Social Security, SSI and VA Benefits Go Digital – What You Need to Do Before September 2025

The U.S. government has announced a significant change to how Social Security and other federal payments will be delivered. Beginning September 30, 2025, all federal benefit payments will be issued electronically, officially ending the use of paper checks for Social Security, Supplemental Security Income (SSI), veterans’ benefits, and IRS tax refunds.

This nationwide transition follows Executive Order 14247, signed by former President Donald Trump, which set in motion efforts to modernize the federal payment system. While the majority of beneficiaries already receive funds via direct deposit, an estimated 850,000 Americans—primarily seniors—still rely on traditional paper checks.

Treasury Confirms End of Paper Checks

The U.S. Department of the Treasury has confirmed that beginning in late 2025, all federal disbursements will move exclusively to electronic formats. Officials cite multiple reasons for the shift, including:

• Rising cases of mail fraud, theft, and forgery targeting paper checks.
• Higher costs associated with paper processing—over 50 cents per transaction, compared to less than 10 cents for direct deposits.
• A need for faster, safer, and more reliable benefit delivery systems.

The Treasury emphasizes that digital payments will not only cut costs but also reduce fraud-related losses and improve payment security for millions of Americans.

Options for Receiving Electronic Payments

To comply with the upcoming requirement, beneficiaries must select one of two electronic payment options currently supported by the Social Security Administration (SSA):

1. Direct Deposit

• Funds are deposited directly into a recipient’s checking or savings account.
• Offers immediate access on payment day.
• No fees or delays when using traditional banking systems.

2. Direct Express® Debit Mastercard®

• A prepaid debit card provided by the U.S. government for recipients without bank accounts.
• Can be used for purchases, ATM withdrawals, and bill payments.
• Minimal optional service fees may apply.

Comparison at a Glance:

Feature	Direct Deposit	Direct Express® Card
Bank Account Needed	Yes	No
Access to Funds	Bank/ATM	ATMs and POS Terminals
Fees	None	Minimal for certain services
Payment Speed	Immediate	Same day of deposit

Enrolling Is Mandatory by the Deadline

The government has set a strict deadline of September 30, 2025. By this date, all beneficiaries must be enrolled in either direct deposit or the Direct Express® program.

Failure to enroll could result in:

• Delayed payments
• Potential compliance issues with federal disbursement rules

Enrollment Options:

• Online: Through GoDirect.gov or the official SSA website.
• Phone: By calling 1-877-874-6347.
• Mail: Submitting Form SF-1199A to set up direct deposit with a bank or financial institution.

Officials urge recipients not to wait until the last moment, as high demand near the deadline could overwhelm service lines and create processing delays.

Impact Extends Beyond Social Security

The new rule doesn’t just affect Social Security—it covers all federal payments that are currently delivered by check. This includes:

• IRS tax refunds
• Veterans’ pensions and benefits
• Federal retirement programs
• Supplemental Security Income (SSI) payments

Transition Timeline:

Timeline	Action Required	Outcome
Until August 2025	Voluntary early enrollment	Uninterrupted payments
September 30, 2025	Mandatory transition deadline	Paper checks end permanently
After September 2025	Electronic-only payments enforced	Delays for non-compliance

Officials Encourage Early Enrollment

The Treasury Department and SSA are actively encouraging beneficiaries to enroll early. This approach ensures recipients avoid potential disruptions and helps ease the workload for agencies managing the transition.

Community banks, SSA field offices, and financial partners are also preparing to assist those less familiar with electronic banking systems—particularly older Americans who may need guidance on digital payment methods.

The government highlights three main benefits of this modernization:

1. Speed – Payments are available the same day.
2. Security – Digital transfers reduce fraud and theft risks.
3. Savings – Lower processing costs benefit taxpayers.

With this shift, the U.S. government is reshaping how millions of Americans receive financial support—replacing outdated check systems with fast, secure, and cost-effective electronic payments.

FAQs

Q1. When will paper checks for Social Security and federal payments end?
All paper checks will be discontinued on September 30, 2025, with payments issued electronically only.

Q2. Who will be affected by this change?
The policy impacts all recipients of Social Security, SSI, VA benefits, IRS refunds, and federal retirement programs who still receive paper checks.

Q3. What are my options if I don’t have a bank account?
You can enroll in the Direct Express® Debit Mastercard®, a prepaid government-issued card that functions like a bank card.

Q4. How do I enroll for electronic payments?
You can sign up online via GoDirect.gov, by phone at 1-877-874-6347, or by mailing Form SF-1199A.

Q5. What happens if I don’t enroll by the deadline?
Payments may be delayed or disrupted until you comply with the mandatory electronic payment requirement.