As part of an executive order issued by President Donald Trump, federal payments such as Social Security and tax refunds will no longer be made by check. Beneficiaries who still receive paper checks have until September 30, 2025 to sign up for direct deposit or another electronic payment option. The Social Security Administration is touting several benefits for the change, primarily the speed of Electronic Fund Transfers (EFT) over paper checks. It’s also cheaper for the government, with issuing a paper check costing about 50¢ compared to 15¢ for an ETF. Paper checks are also 16 times more likely to be lost or stolen. The two options those who receive paper checks have include (1) enrolling in direct deposit with their bank, or (2) opting for a Direct Express Card, which is a prepaid debit card designed specifically for federal benefit payments for those who have no bank account. The change will affect those who receive Social Security retirement benefits, Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI).
