Starting in September 2025, nearly 500,000 Social Security recipients will face a significant change in how they receive their payments. After September 30, 2025, the Social Security Administration (SSA) will stop sending paper checks and switch entirely to digital payments. This change is part of a larger push to reduce fraud, increase efficiency, and improve the security of payments.
If you are still receiving your Social Security, SSDI, or SSI payments by paper check, here’s everything you need to know to stay on track and make sure you continue receiving your benefits without interruptions.
Why the Change?
The move to digital payments is driven by the need to streamline government payments, reduce costs, and improve security. Paper checks have several drawbacks—they are expensive to process and mail, and they can be lost or stolen. In contrast, digital payments via direct deposit or Direct Express debit cards provide faster, safer access to funds and reduce the risk of fraud.
What You Need to Do Now
If you’re currently receiving paper checks, you need to switch to one of the two digital payment options before September 30, 2025:
Direct Deposit: Your Social Security benefits will be deposited directly into your bank account. This ensures that your payments are fast, safe, and easily accessible each month.
Direct Express Debit Card: If you don’t have a bank account, your payments will be loaded onto a Direct Express government-issued prepaid debit card. You can use this card just like a regular debit card for purchases and withdrawals.
How to Set Up Direct Deposit or a Direct Express Card
To ensure you’re prepared for the switch, here’s how to set up your new payment method:
Direct Deposit: Visit the official site at godirect.gov to sign up for direct deposit and provide your bank account details. You can also visit the SSA website or call 1-800-772-1213 if you need assistance.
Direct Express Card: If you don’t have a bank account, sign up for the Direct Express card at the Direct Express website. This card is free to sign up for and has no monthly maintenance fees, making it an ideal choice for those without bank accounts.
What Are the Costs?
Both Direct Deposit and the Direct Express card are free to sign up for, and there are no ongoing monthly fees for either option. However, there are some small fees associated with the Direct Express card for certain services:
$0.90 for withdrawals at non-Direct Express ATMs
$0.90 for withdrawals at Walmart Money Centers or Customer Service Desks
$1.50 to transfer funds to a personal bank account
$4 to replace the card
$13.50 for overnight card delivery
$3 plus 3% for international ATM withdrawals
How Does This Benefit You?
Switching to digital payments will provide several advantages:
Faster Access to Funds: Unlike paper checks, which can take several business days to arrive, digital payments are processed immediately and show up in your account the same day.
Safer Payments: Digital payments eliminate the risks of checks being lost, stolen, or delayed in the mail.
Convenience: Direct deposit ensures your payments arrive on time every month, and the Direct Express card offers a secure way to access your funds if you don’t have a bank account.
Additional Steps You Can Take
Aside from switching to digital payments, it’s a good idea to review your financial situation and consider ways to supplement your income for a more secure future. Some ways to do this include:
Paying Off Debt: Debt can be a significant barrier to financial security. Paying off high-interest debt like credit cards can free up more money for savings and retirement.
Saving for Retirement: If you have a 401(k) or IRA, make sure you are maximizing your contributions. Some employers even match your contributions, giving you extra retirement funds.
Cutting Expenses: Examine your largest expenses—such as auto insurance or utilities—and consider ways to reduce costs. For instance, shopping around for a new insurance provider can often result in lower premiums.
The upcoming change to digital payment by September 30, 2025, is a significant shift for Social Security recipients. While this change may seem disruptive, it’s designed to provide a safer, faster, and more efficient way to distribute benefits. Make sure to switch to direct deposit or the Direct Express card before the deadline to avoid missing any payments. Taking this step will ensure that you continue to receive your benefits smoothly and securely.
