With Social Security phasing out paper checks, try THESE options for direct deposit

Under the direction of an order signed by President Donald Trump, the office of Social Security has decided to stop issuing paper checks on September 30. The administration believed that it was necessary to drop paper-based payments because they create "unnecessary costs; delays; and risks of fraud, lost payments, theft, and inefficiencies.” It also said, “Mail theft complaints have increased substantially since the COVID-19 pandemic. Historically, Department of the Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer (EFT)."

In this case, what can people who receive benefits and who cannot sign up for direct deposit online do? They have a few options:

1. They can contact their financial institution where they have an account.
2. They can visit their local Social Security field office.
3. They can call Social Security at 800-772-1213.
4. Recipients have the option to sign up for a Direct Express debit card that allows access to benefits. A bank account is not required for the card.

What does Donald Trump’s order say?

Trump’s order, released by the White House, revealed that “maintaining the physical infrastructure and specialized technology for digitizing paper records cost the American taxpayer over $657 million in Fiscal Year 2024 alone.” “This order promotes operational efficiency by mandating the transition to electronic payments for all Federal disbursements and receipts by digitizing payments to the extent permissible under applicable law (but not, for avoidance of doubt, to establish a Central Bank Digital Currency),” it added.

The order stressed that it is the US’ policy to “defend against financial fraud and improper payments, increase efficiency, reduce costs, and enhance the security of Federal payments.”

It further said, “As soon as practicable, and to the extent permitted by law, all payments made to the Federal Government shall be processed electronically, except as specified in section 4 of this order.”