Latest news with #electronicpayments
Yahoo
20 hours ago
- Business
- Yahoo
Social Security checks go paperless this fall, impacting half a million seniors
For roughly half a million people who still collect their Social Security check from their mailboxes every month, those days are ending. Starting Sept. 30, the Social Security Administration (SSA) will no longer issue paper checks for benefit payments. This transition to electronic payments was mandated by President Trump in March. Social Security payments for the more than 73 million Americans receiving benefits, including retired workers, disabled workers, survivors of deceased workers, and those receiving Supplemental Security Income, are mostly made electronically these days. Mostly, but not entirely. Less than 1% of total recipients, or about 520,000 people, don't get their check direct deposited into their bank account or prepaid debit card. Social Security is 'proactively contacting those beneficiaries to alert them about the change,' an agency spokesperson told Yahoo Finance. Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy People who receive paper checks have two options for receiving their Social Security payments electronically. They can enroll in direct deposit with their financial institution that allows monthly payments to be deposited into their checking or savings account. For people without a bank account, there's a prepaid debit card, called Direct Express. There are good and bad sides to this mandate, experts say. 'In general, it's a good thing in that it ensures benefits will flow in the case of natural disasters that can interrupt postal delivery,' said Mark Miller, an author and retirement expert. Shannon Benton, executive director of the Senior Citizens League, added that the transition to electronic Social Security payments 'improves security and reduces fraud.' The downsides of the change may be felt by the most vulnerable recipients. 'It is concerning how it may affect vulnerable seniors, especially those without bank accounts or internet access,' Benton said. 'The rollout of this initiative should be a gradual phase-in period with clear communication to ensure no one is left behind. The transition to electronic Social Security payments could pose significant challenges for unbanked individuals, those without internet access, or those who are not computer literate.' Six percent of Americans are "unbanked"—they nor their spouse or partner had a checking, savings, or money market account, according to The Federal Reserve's most recent analysis. These rates are significant among low-income adults. Roughly a quarter of adults with income below $25,000 were unbanked compared with 1 percent of adults with income of $100,000 or more. Unbanked rates were also higher among younger adults, Black and Hispanic adults, and adults with a disability. Read more: When will I get my social security check? This year's payment schedule. The agency's guidance for those still receiving paper checks is to update payment information by logging on to their My Social Security account online. But what if you can't do that? A process exists today for beneficiaries who are unbanked and cannot use the Direct Express card to continue receiving paper checks, said Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare. They must be granted a waiver by the Treasury Department, which grants them in cases of hardship or geographic limitations. Following the change in September, the Treasury Department will continue making exceptions in certain circumstances. To qualify for a waiver, a beneficiary must: have a mental impairment that makes electronic payments a hardship; live in a remote area that lacks the infrastructure to support electronic financial transactions, or be age 90 or older To request a waiver application or inquire about an existing waiver, individuals can contact the Electronic Payment Solution Center's waiver line at 855-290-1545. The agency also has staff on hand to help beneficiaries choose an electronic payment option, but experts are concerned about what will happen to them if they cannot make the transition. 'There is the prospect of delays in payments for these individuals in the fall, for these thousands of seniors who will need to go to a field office to continue receiving benefits,' Richtman that the Trump administration has made deep staff cuts at the agency, that could be a slog. The current average wait time for an appointment is 35 days. Appointments are set up by calling 800-772-1213. The Social Security Administration has been trying to shift to an all-electronic payment system for more than a dozen years, Miller said. This time looks like it's for real. Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky. Sign up for the Mind Your Money newsletter
Yahoo
21 hours ago
- Business
- Yahoo
Social Security checks go paperless this fall, impacting half a million seniors
For roughly half a million people who still collect their Social Security check from their mailboxes every month, those days are ending. Starting Sept. 30, the Social Security Administration (SSA) will no longer issue paper checks for benefit payments. This transition to electronic payments was mandated by President Trump in March. Social Security payments for the more than 73 million Americans receiving benefits, including retired workers, disabled workers, survivors of deceased workers, and those receiving Supplemental Security Income, are mostly made electronically these days. Mostly, but not entirely. Less than 1% of total recipients, or about 520,000 people, don't get their check direct deposited into their bank account or prepaid debit card. Social Security is 'proactively contacting those beneficiaries to alert them about the change,' an agency spokesperson told Yahoo Finance. Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy People who receive paper checks have two options for receiving their Social Security payments electronically. They can enroll in direct deposit with their financial institution that allows monthly payments to be deposited into their checking or savings account. For people without a bank account, there's a prepaid debit card, called Direct Express. There are good and bad sides to this mandate, experts say. 'In general, it's a good thing in that it ensures benefits will flow in the case of natural disasters that can interrupt postal delivery,' said Mark Miller, an author and retirement expert. Shannon Benton, executive director of the Senior Citizens League, added that the transition to electronic Social Security payments 'improves security and reduces fraud.' The downsides of the change may be felt by the most vulnerable recipients. 'It is concerning how it may affect vulnerable seniors, especially those without bank accounts or internet access,' Benton said. 'The rollout of this initiative should be a gradual phase-in period with clear communication to ensure no one is left behind. The transition to electronic Social Security payments could pose significant challenges for unbanked individuals, those without internet access, or those who are not computer literate.' Six percent of Americans are "unbanked"—they nor their spouse or partner had a checking, savings, or money market account, according to The Federal Reserve's most recent analysis. These rates are significant among low-income adults. Roughly a quarter of adults with income below $25,000 were unbanked compared with 1 percent of adults with income of $100,000 or more. Unbanked rates were also higher among younger adults, Black and Hispanic adults, and adults with a disability. Read more: When will I get my social security check? This year's payment schedule. The agency's guidance for those still receiving paper checks is to update payment information by logging on to their My Social Security account online. But what if you can't do that? A process exists today for beneficiaries who are unbanked and cannot use the Direct Express card to continue receiving paper checks, said Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare. They must be granted a waiver by the Treasury Department, which grants them in cases of hardship or geographic limitations. Following the change in September, the Treasury Department will continue making exceptions in certain circumstances. To qualify for a waiver, a beneficiary must: have a mental impairment that makes electronic payments a hardship; live in a remote area that lacks the infrastructure to support electronic financial transactions, or be age 90 or older To request a waiver application or inquire about an existing waiver, individuals can contact the Electronic Payment Solution Center's waiver line at 855-290-1545. The agency also has staff on hand to help beneficiaries choose an electronic payment option, but experts are concerned about what will happen to them if they cannot make the transition. 'There is the prospect of delays in payments for these individuals in the fall, for these thousands of seniors who will need to go to a field office to continue receiving benefits,' Richtman that the Trump administration has made deep staff cuts at the agency, that could be a slog. The current average wait time for an appointment is 35 days. Appointments are set up by calling 800-772-1213. The Social Security Administration has been trying to shift to an all-electronic payment system for more than a dozen years, Miller said. This time looks like it's for real. Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky. Sign up for the Mind Your Money newsletter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fast Company
3 days ago
- Business
- Fast Company
Social Security benefits update: SSA is making a major change this year that will impact many seniors
The Social Security Administration (SSA) will officially stop issuing paper checks. The transition, which aims 'to improve efficiency, security, and ensure beneficiaries receive their monthly benefits promptly,' will come into effect starting September 30, 2025. Beneficiaries should receive electronic funds transfers (EFTs) quicker than the time it takes for a check to arrive in the mail. Electronic payments should also be more secure, with the SSA claiming a paper check is 16 times more likely to be stolen or lost. Meanwhile, the federal government will financially benefit from the change. It costs about 50 cents to mail a paper check, while the EFT should cost under 15 cents. How many people will be impacted by this change? The SSA claims that less than 1% of recipients still get paper checks. As paper checks are phased out for Social Security benefits, individuals can either enroll in direct deposit through their bank or get a Direct Express card. The latter works as a prepaid debit card with just the federal benefits added to it, meaning you don't need a bank account to use it. A survey by the Federal Deposit Insurance Corporation (FDIC) last year found that about 5.6 million U.S. households were unbanked in 2023. Although the percentage of people without bank accounts is declining overall, certain populations are disproportionately impacted, according to the FDIC. Those include low-income households, Black and Hispanic households, and people who are disabled, have less formal education, or are in single-parent households. The plan to 'gradually' eliminate paper checks actually dates back to 2010, according to the Department of Treasury. However, a lot of recipients may just be hearing about it after the SSA posted an alert on Monday. Comments on that page suggest many are unhappy with the change. 'What steps are being taken to assist the elderly and physically / visually handicapped paper check recipients?' one commenter stated. 'What will SSA do if, on 30 September, there are hundreds of thousands of benefit recipients who have not set up electronic payments? Just not send them their payments?' another commenter asked. The SSA claims it is 'proactively' sending notices to beneficiaries who receive paper checks and explaining how to make the change. Their technicians should also be able to help with the transition.
South China Morning Post
3 days ago
- Automotive
- South China Morning Post
Hong Kong taxi drivers must offer at least 2 e-payment methods from April 2026
Hong Kong taxi drivers will be required to accept electronic payments starting in April next year and complete the installation of journey recorders by early 2027, transport authorities have said, in an effort to improve service quality. In a paper submitted to the Legislative Council on Wednesday, the Transport and Logistics Bureau revealed that a significant portion of taxi drivers were expected to meet the e-payment requirements by early 2026. Authorities will coordinate with e-payment platforms to help drivers learn how to use such systems. 'It is proposed that the mandatory requirement for the provision of e-payment means by all taxi drivers be implemented on 1 April 2026,' it said. Under the plan, all taxi drivers will be required to provide at least two e-payment methods: one that uses QR codes and another that does not rely on them. 'Given the variety of e-payment means available in the market as well as the fast-evolving technology, we will not mandate a specific type of e-payment means to allow flexibility for taxi drivers to choose based on their operational needs and costs,' the bureau said. All taxis are expected to be required to install journey recorders by early 2027. Photo: Jelly Tse Meanwhile, the Transport Department will begin receiving applications and authorising suppliers to provide journey recording systems from the fourth quarter of this year. As a result, installation work is expected to kick off next year.
Daily Mail
5 days ago
- Business
- Daily Mail
Major change to Social Security checks coming within weeks
Social Security checks will soon no longer be delivered by mail and recipients must act fast to register for electronic payments. The change comes as part of an executive order issued by President Donald Trump that will make all federal payments such as Social Security and tax refunds strictly electronic. Beneficiaries who still receive paper checks have until September 30 to sign up for direct deposits or another electronic payment option. The White House said the move will prevent fraud and reduce government costs. Paper checks are more than 16 times more likely to be reported stolen or lost compared to electronic transfers, according to government data. Physical checks are also more likely to be returned deliverable or altered, the figures suggest. Discontinuing paper checks could result in annual savings of $750 million, according to First Citizens Wealth. The change will affect those who receive retirement benefits, Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). Recipients can provide a bank account or credit union for direct deposits or an approved pre-paid debit card. Registration can be completed at the government's Go Direct website that helps Americans with their electronic payments. The US Treasury is also willing to make a handful of exceptions for those with no access to banking or electronic payments or those experiencing extreme hardship. All exceptions must be approved by the US Treasury on a case-by-case basis. Government contractors, including businesses and individuals paid by the federal government, will also need to register for electronic payments. Companies or individuals can enroll their business for direct payments on US Treasury sites or Businesses that are already enrolled are urged to ensure their account information is accurate to avoid any delays or complications. The rising cost of health care and new legislation affecting benefits has moved up the timeline that bosses expect Social Security and Medicare programs to run short of funds. Social Security relies on its trust funds to provide monthly benefit checks to around 70 million Social Security and Medicare are now projected to run out of money by 2033 Both programs are now expected to run out of money in 2033, according to the latest annual report. The date is now three years earlier than last year's estimate. Once the funds are exhausted, beneficiaries would still receive payments, but at reduced levels. Medicare would be able to cover just 89 percent of hospital costs, while Social Security could pay only about 81 percent of promised benefits. Trustees say the latest findings show the urgency of needed changes to the programs, which have faced dire financial projections for decades.
