THE clock is ticking for Social Security recipients to sort out banking requirements before a huge policy tweak affects future payouts.
Donald Trump‘s modernization push includes switching from old-fashioned paper-based payments to fast, secure electronic payments.
The President signed an Executive Order on March 25 to switch-up how the government handles money in future.
He said the federal government will cease sending paper checks for all disbursements.
This includes for intragovernmental payments, benefits, vendor payments, and tax refunds.
The Order is effective September 30, 2025.
The tweak means that consumers will have until Sept. 30 to set up an online bank account, or some form of digital payment option.
More than 68 million Americans – more than 99% of recipients – currently receive their Social Security Administration (SSA) benefits through direct deposits into their bank accounts, reported Yahoo! News.
But there are fears that around 500,000 recipients will struggle with the huge change.
That’s because they are – in most cases – older, are unbanked, or lack access to reliable internet services.
They still rely on the “old-fashioned” method of payment – a paper check – sent by mail.
This potential hiccup has raised fears they’ll find it too tricky to make that important switch, “potentially harming some of the most vulnerable people in the country,” warned Yahoo!
The White House said that, from the end of September, “All executive departments and agencies must transition to modern, electronic funds transfer (EFT) methods like direct deposit, debit/credit card payments, digital wallets, and real-time transfers.”
However, there are “exceptions.”
Checks aren’t safe anymore. It’s where the criminal groups are feasting
Haywood Talcove, CEO of LexisNexis Risk Solutions GovernmentThe White House added, “Exceptions will be made for people without banking or electronic payment access, certain emergency payments, … and other special cases qualifying for an exception under the Order or other existing law.”
Yahoo! warned readers of another potential hurdle – many recipients may need the SSA’s help with the huge change.
But this will prove difficult due to the recent slashing of staff numbers and office closures made by the Trump administration’s Department of Government Efficiency.
What are the Social Security payment changes?
Paper checks will eventually disappear
Donald Trump on March 25 signed an executive order declaring that all federal departments and agencies must end their use of paper checks and switch to electronic payments by September 30 2025.
The U.S. Treasury now has less than four months to phase out the paper checks it uses for the likes of tax refunds and the roughly 456,000 Social Security checks that are mailed monthly.
The executive order will “modernize how the government handles money, switching from old-fashioned paper-based payments to fast, secure electronic payments,” the administration said.
The White House said, “Paper-based payments, such as checks and money orders, impose unnecessary costs, delays, and risks of fraud, lost payments, theft, and inefficiencies.”
Under the order, all government departments and agencies will have to issue disbursements via electronic transfer methods, like direct deposit, debit or credit card payments, digital wallets and real-time transfers.
Consumers will have until Sept. 30 to set up an online bank account or some form of digital payment option.
Source: NBC News
It added that changes “of this magnitude could come with confusion and complications, especially as more than 485,000 people receive their monthly Social Security payments” by paper check.
FRAUD FEARS
Haywood Talcove, CEO of LexisNexis Risk Solutions Government, gave the news site advice to pass on to those affected by the looming change.
For those still receiving paper checks, he suggested signing up for the USPS Informed Delivery.
It allows customers to see their package details and tracking history – and thus access their valuable checks before any thief can steal their money.
The expert also suggested setting up alerts on bank accounts for when money is deposited or withdrawn – again, to avoid any potential scammer.
But, he pointed out, the change will be “hard” for some elderly Americans.
Talcove told NBC News in April, “Checks aren’t safe anymore. It’s where the criminal groups are feasting.”
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