News Social Security Completes Transition to Electronic Payments

In August 2026, SSA reminded the public that federal benefits must be paid electronically, a requirement that took effect September 30, 2025 under federal law and Executive Order 14247. The agency plans to complete the full transition away from paper checks this year.

SSA cites security and cost as the drivers. According to the announcement, paper checks are "16 times more likely to be lost, stolen, altered, or returned undeliverable than electronic payments," and "the average cost to print a check has increased to $3.07 per check, which is approximately 20 times more expensive than automated payments." Electronic payments also process faster, which means more predictable monthly deposit dates.

The two payment options

Direct deposit. People with a bank or credit union account can add their account information through a my Social Security account at ssa.gov/myaccount.

Direct Express®. For people without a bank account, payments can be loaded onto a Direct Express prepaid debit card. Enrollment is available at GoDirect.gov or by calling 1-800-967-6857.

Waivers

SSA notes that an exception is available for people who face real barriers to electronic payment. The announcement states: "If you need an exception because of challenges, such as mental health concerns or you live in a remote location without access to financial institutions, you can request a waiver through the U.S. Treasury." Waivers are administered by Treasury rather than SSA, so requests go through Treasury's process.

What this means for your practice

This change lands hardest on the people our field works with most closely. Many applicants and recipients are unbanked, do not have a stable mailing address, or have had prior negative experiences with financial institutions. A missed transition means a missed payment, and a missed payment can mean a lost housing placement.

A few steps worth building into your workflow now:

• Ask about payment method at every check-in with people already receiving SSI or SSDI, not just at application. Anyone still receiving a paper check needs a plan.
• Address the payment question during the application process, so the answer is already in place when an approval comes through.
• Remember that Direct Express cards are mailed, so a reliable mailing address still matters. General delivery, an agency address where permitted, or a trusted mailing arrangement may need to be set up first.
• Connect people to Bank On certified accounts where they are available locally. These accounts have no overdraft fees and low minimums, and they are often a better long-term fit than a prepaid card.
• For people who genuinely cannot use either option, start the Treasury waiver conversation early rather than waiting for a payment to be interrupted.
• If you serve as a representative payee, confirm that the payee account information on file is current.

This is a good moment for a quick review of your caseload. Identifying who is still on a paper check now is far less work than resolving a missed payment later.

Sources Social Security to Fully Transition to Electronic Payments