Half a million older Americans are set to start getting their Social Security checks electronically — what you need to know about switching to digital

The change affects fewer than 1% of SSA beneficiaries, but for those impacted — many of whom are older, live in rural areas or don’t have a bank account — the transition could be significant.

Why is the SSA phasing out paper checks?

The switch to electronic payments isn't exactly a new concept. Back in 2013, the SSA required most new enrollees to receive their benefits electronically. However, this final push eliminates paper checks entirely.

There are three main reasons for this shift:

• Faster payments: Electronic payments arrive on time, while mail carrier issues, natural disasters or delivery errors can delay paper checks
• Costs less: According to the U.S. Treasury, issuing a paper check costs approximately 50 cents, compared to less than 15 cents for an electronic transfer. With more than 500,000 benefit recipients still receiving paper checks once a month, that adds up to millions in potential savings per year
• Improved security: Paper checks are 16 times more likely to be stolen or lost in delivery. Digital payments reduce the risk of fraud and help prevent missed payments

What you need to know

If you're still receiving paper checks, you will need to choose an electronic payment method before the September deadline. Otherwise, the SSA will automatically enroll you in a pre-paid debit card program. Here are your two options:

1. Direct deposit

You can have your benefit sent straight to your checking or savings account. You'll need to provide your bank account and routing number to set up an electronic transfer. This is the fastest and most common method as it allows your benefits to be delivered quickly and you can spend the money as you typically would.

2. Direct Express debit card

For people who don’t have a bank account or prefer not to use direct deposit, this government-backed prepaid card offers a secure alternative. You can use it to withdraw cash, make purchases and track spending, just like a regular debit card. To sign up or make changes, log in to your my Social Security account or visit ssa.gov/deposit.

Choosing the right option depends on your situation. If you already have a bank account, direct deposit is likely the simplest choice. Providing your bank account and routing number will not allow anyone to pull money from your account without permission, only deposit funds.

If you don't have a bank account, the Direct Express card provides a secure way to access your benefits. Here are a few steps you can take to make the transition smoother:

• Act early: Don't wait until the last minute to sign up. The SSA recommends making the switch well before the September 30 deadline
• Ask for help: SSA reps are available by phone, online or in-person at SSA offices to walk you through the process
• Monitor your accounts: After the switch, make sure to check your account or Direct Express balance to ensure funds arrive as expected
• Know the signs of a scam: The SSA will never ask for personal details via email or text. It will never offer to hold your funds to protect them, or ask you to convert assets into other forms of payment, such as gold or gift cards.

While the shift away from paper checks might feel abrupt to some recipients, the SSA says it's committed to supporting individuals through the process. Don't be afraid to reach out for help.