Paper Check-Issued Social Security Benefits to End in September

This article was originally featured on NTD. Written by Juliette Fairley

An executive order issued by U.S. President Donald Trump will digitize all Social Security payments by September 30.

Social Security data show that some 486,316 Social Security claimants receive their benefits by way of a monthly paper check.

However, an executive order issued by President Donald Trump will digitize them all by Sept. 30.

The order says paper checks will be discontinued because the ongoing use of paper-based payments imposes unnecessary costs, delays, and the risk of lost payments, theft, and inefficiencies.

“It is the policy of the United States to defend against financial fraud and improper payments, increase efficiency, reduce costs, and enhance the security of Federal payments,” the order states. “All executive departments and agencies shall comply with this directive by transitioning to EFT [electronic funds transfer] methods.”

EFT channels include direct deposit, prepaid card accounts, and other digital payment options.

At 50,461, California has the highest number of Social Security benefits being issued by paper check, followed by 36,371 in Texas, 31,974 in New York, and 31,060 in Florida, according to the SSA.

"I'm not surprised that this is happening, but I'm surprised that it took this long," CareYaya.org co-founder and CEO Neal K. Shah said of September's digitization deadline. "As someone who works daily with thousands of families navigating aging, I see directly how our analog payment systems create unnecessary barriers between seniors and the benefits they've earned."

For example, a Benton Institute for Broadband and Society study found that almost 22 million older Americans lack broadband access at home.

As a result, SuperMoney.com certified financial planner Andrew Latham believes success of the digitization will depend on how accessible and understandable it is for the people who need it most.

“SSA should consider early outreach, plain-language instructions, one-on-one help where needed, and real alternatives for those who cannot or will not use digital systems,” Latham told NTD.

The challenge, according to Shah, is the digital divide that exists around retirees.

“There needs to be a partnership with community organizations and elder care providers to offer hands-on digital literacy training,” Shah told NTD. “Second, they need to create simplified interfaces specifically designed for seniors with cognitive challenges.”

U.S. Hispanic Business Council founder and CEO Javier Palomarez hopes the SSA will tackle the various cybersecurity threats that may impact EFT payments.

"The SSA will have to adapt to these threats with new systems, contracts, and precautions," Palomarez told NTD.