Latest news with #paperchecks
Daily Mail
4 days ago
- Business
- Daily Mail
Social Security makes screeching U-turn on controversial policy
Social Security will continue mailing paper checks — in a major U-turn from a previously announced plan. The agency had planned to halt checks after September 30 to cut costs and reduce fraud, shifting entirely to electronic payments. Paper checks cost about 50 cents to issue, compared with 15 cents for direct deposits, officials said. But the agency has now reversed course, saying that it will continue to issue paper checks for Americans who have no other means of getting payments, a spokesperson confirmed to This includes both recipients of retirement and disability benefits. Despite the about-face, the agency urged people to switch to direct deposit if they can. 'We will continue to drive down paper check volume, which is less than 1 percent of total,' the spokesperson said. The news comes as a grim new forecast this week warned Social Security's retirement fund is set to run short in just seven years — which could end up meaning benefits will be slashed for millions of recipients. The check U-turn came after pushback from Massachusetts Democratic Senator Elizabeth Warren. Warren met with Social Security Commissioner Frank Bisignano on Wednesday and asked about the plan to discontinue paper checks, according to CBS News. 'There are about 600,000 Americans who still receive their paper checks — it's a small fraction of people who receive Social Security payments, but it's a population that often needs checks through paper' instead of through electronic deposit, Warren said. She added that Bisignano made a commitment that 'no one would be left behind.' Millions of Americans are 'unbanked,' which means they do not have a traditional checking or savings account at a bank or credit union. The reasons why can vary, from past money mistakes to losing a job or not having enough money to meet minimum balance requirements. These people tend to rely on alternative banking services, such as check cashing establishments, in order to access vital funds. But paper checks are also more than 16 times more likely to be reported stolen or lost compared to electronic transfers, according to government data. There is also a higher chance that they will be returned deliverable or altered. The policy reversal came after pushback from Massachusetts Democratic Senator Elizabeth Warren Social Security relies on its trust funds to provide monthly benefit checks to around 70 million Americans who still receive paper checks but are able to switch 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. The policy reversal comes after latest forecasts painted a grim picture for the future of the program. Social Security's retirement fund is set to run short in just seven years — which could end up slashing benefits for millions of Americans by thousands of dollars a year. According to latest projections, retirees could face automatic 24 percent benefit cuts as early as the end of 2032. This means a couple who both worked would receive $18,100 less each year if they retire at the start of 2033. The new forecast from the nonpartisan Committee for a Responsible Federal Budget (CRFB), released Thursday, moves up the insolvency date for both Social Security and Medicare trust funds. A projection just last month had funds lasting until 2033, but that has already been revised. A major factor is the impact of President Donald Trump's 'Big, Beautiful Bill ', which experts warned would speed up the use of funds.
Yahoo
4 days ago
- Business
- Yahoo
Social Security checks are going paperless: What you need to know
Starting September 30th, the Social Security Administration will stop sending paper checks. Payments will be electronic instead. Yahoo Finance Senior Personal Finance Columnist Kerry Hannon shares the details with Mind Your Money Host Allie Canal. To watch more expert insights and analysis on the latest market action, check out more Mind Your Money here. Starting this fall, roughly half a million people who've been collecting their social security checks via mail are in for a change. Payments are set to go fully electronic starting September 30th. Joining me now with more senior columnist Carrie Hannon. So Carrie, what's behind this change? I mean, probably a good idea. We're getting a little more technologically advanced here. Yeah, exactly, Ali. This is something that the Social Security Administration has been talking about for decades. I'm not making that up. This is something that they've wanted. The president mandated this in March and said it was all going electronic September 30th. So no more paper checks for many people. And it does impact, um, you know, a segment of the population. Now, most of us are have access to electronic direct deposits or the other option is having a debit card. And and for many people, that's fine. But about 550,000 people, this is not going to impact. It's it's a small percentage, but it can have lasting impact for them and and some hardship. The pros, as you just said, of course, it increases, you know, the security of this transaction and also prevents fraud in many cases. The concern is for people who don't have banks, they're unbanked, or they live in a rural area where there is not great internet access and so forth. So those are some people that it can be concerning. Now, let's get this straight. Even though they're hardcore and we're all going electronic, there is still a process for people who need to have a waiver, who need to still have that paper check. And um, they're not touting it. Social Security is not making a big deal about this, but you can contact Social Security and you have to meet a couple one of these certain criteria. You have to be over 90 or over, you have to have a mental incapacity of some kind or be able to prove that you don't have the infrastructure for an internet, a safe, secure internet access where you live. So that's really what's happening here. And I think, you know, it's noteworthy to say that there are ways around it, but you might have to go to a Social Security office or you might have to just sit on that phone and wait to hear back from somebody. That's interesting. And if you are part of that group that has been receiving paper checks, what are the options out there for getting those payments electronically, if that's possible for you? Yeah, what the Social Security Administration wants you to go is to do is to go to your what is called my Social Security account, which many people have been encouraged to or on social security to set these electronic accounts up in order to track their benefits and so forth. So if you can do that, if you have access to being able to go on electronically and you do have a paper check, now's your time to get to it and you can just change your payment right there. You can give your bank information to make sure it's direct deposit or if you need the debit account. But there is a very easy way online to make that adjustment so that they know where to send your check electronically. Related Videos Broadcom's record, Charter's Q2 miss, Newmont's buyback plan Big Tech earnings on deck: What to expect from Meta & Apple Question of the day: Are we in a market bubble? What Volkswagen's $1.5B tariff hit means for US expansion Sign in to access your portfolio
CBS News
5 days ago
- Business
- CBS News
Social Security retreats from plan to eliminate paper checks for beneficiaries
The Social Security Administration said it will continue issuing paper checks to the retirement program's beneficiaries, backing away from a previously announced plan to switch all payments to electronic deposits after Sept. 30. On Wednesday, the Social Security Administration told CBS MoneyWatch it would continue issuing paper checks for beneficiaries who have no other means of receiving payments. But the program will also emphasize the advantages of electronic transfers to its roughly 70 million beneficiaries in an effort to encourage check recipients to switch, a Social Security spokesperson added. The about-face comes after the agency said on July 14 that it would phase out paper checks beginning in October, citing the advantages of electronic deposits including faster payment processing and enhanced security. Eliminating paper also saves the federal government money, with checks costing 50 cents each, compared with 15 cents for an electronic funds transfer, the agency said at the time. The reversal of the policy to eliminate paper checks comes after Senator Elizabeth Warren, a Democrat from Massachusetts, met with Social Security Commissioner Frank Bisignano on Wednesday morning and asked about the plan to discontinue paper checks, along with other changes at the agency. "There are about 600,000 Americans who still receive their paper checks — it's a small fraction of people who receive Social Security payments, but it's a population that often needs checks through paper" versus electronic deposit, Warren said in a press call to discuss her meeting with Bisignano. She added that Bisignano "made a commitment that no one will be left behind and that people who have access to paper checks will get access to paper checks." Millions of people in the U.S. are "unbanked," meaning they lack traditional bank accounts, often because they believe they don't earn enough to qualify for an account or are worried about costs or other issues, according to Bankrate. Typically, these people rely on check-cashing services or other non-bank financial companies, such as PayPal or Venmo, rather than banks. About one out of every five households headed by someone over the age of 65 is unbanked or underbanked, according to the AARP. People who are underbanked may have a bank account but still primarily rely on alternative banking services, like check cashing establishments, to handle their money. Warren also said she addressed other issues with Bisignano, including concerns that a major workforce reduction at the Social Security Administration this year could affect customer service. The senator said Bisignano agreed to her request that the agency's inspector general conduct an independent audit to assess the state of customer service at SSA, such as call wait times and how many Social Security recipients are able to reach a human employee when they call for help. "More accurate data is absolutely essential to oversight, to holding the Social Security Administration accountable to the job they are required to do," Warren said. On Wednesday, the Social Security Administration said customer service is improving, noting that the agency has reduced its phone response time to an average of 18 minutes in 2025, down from 30 minutes in 2024. "Commissioner Bisignano had a productive meeting with Senator Warren where he presented improved customer service metrics that are currently being realized on the phone, in field offices and online," a Social Security Administration spokesperson told CBS MoneyWatch. "Senator Warren reacted positively to many of the indicators, specifically lower phone and field office wait times, the reduction of the disability claims backlog by 25% and the speed at which the SSFA payments were completed — give months ahead of schedule."
CNET
18-07-2025
- Business
- CNET
Paper Social Security Checks Phasing Out in September 2025, but Exceptions Are Possible
If you get your Social Security payment in the form of a paper check, you'll need to switch to an electronic payment option instead soon. If you're used to receiving your Social Security or other federal payments in the form of paper checks, you're in for a change soon. Starting in September, all federal disbursements, including Social Security, SSDI, SSI and tax refunds will be sent electronically, ending the era of paper payments. The vast majority of Social Security, SSDI, Supplemental Security Income and tax refunds are sent electronically already, so the transition will affect only a small portion of Americans -- but that's still tens or even hundreds of thousands of individuals. As of July 2025, 521,644 households are still receiving paper checks out of the 68 million total Social Security recipients. These peoples may have a harder time moving forward to a digital form of payment, whether they don't have access to banking services or doing so would create more of a hardship. Luckily, exceptions can be made in certain circumstances. Below, we'll go over why the move to digital is happening, how to prepare if you or someone you care for are still receiving paper checks and the exceptions to the order. For more, check out the Social Security payment schedule for this month. Why is the US transitioning to digital payments? The move to a digital payment system for federal payments, like Social Security, was announced in an executive order by the Trump administration on March 25, 2025. The title of the order sums it up pretty clearly: Modernizing Payments To and From America's Bank Account. The order says that using paper checks for federal disbursements imposes unnecessary costs and risks, including fraud, lost payments and theft. It also notes that mail theft complaints have substantially increased since the COVID-19 pandemic and that checks are 16 times more likely to be reported as lost, stolen or returned as undeliverable compared to an electronic funds transfer payment. The executive order says the goal of this transition is to defend against fraud, reduce costs, improve efficiency and increase the overall security of federal payments. What federal payments are going digital? According to the executive order, all federal payments will go digital by Sept. 30, 2025. That's well ahead of the next tax season. However, those who still rely on monthly paper checks for programs like Social Security will need to prepare sooner. Here are all of the forms of federal disbursements transitioning to digital: Intragovernmental payments Benefits payments (Social Security, SSDI, SSI) Vendor payments Tax refunds Digital payment methods include direct deposit, debit and prepaid cards that can be mailed to you, digital wallets and real-time payment systems. What are the exceptions to this order? The order acknowledges that the transition to digital payments may not necessarily be feasible for all people, so there are exceptions that will be made for the following situations: People who do not have access to banking services of electronic payments. Certain emergency payments where an electronic payment would cause undue hardship. Certain national security or law enforcement activities where non-EFT transactions are necessary or desirable. Specific circumstances as determined by the Secretary of the Treasury People or entities that qualify for an exception will be provided with alternative payment options. Social Security recipient? Here's how to prepare For payments such as tax returns, all you need to do is opt for the direct deposit option while filing taxes. It's that easy. However, if you receive Social Security benefits or Supplemental Security Income in the form of a monthly check, you'll need to make preparations for the upcoming transition. This can be done in one of two ways: Signing up for electronic payments via the Treasury's Go Direct website. You can also call the Treasury's Electronic Payment Solution Center at 1-800-333-1795. Signing in or signing up for a My Social Security account to start or update your direct deposit information. For more, check out our Social Security and SSDI cheat sheet.
Fast Company
17-07-2025
- 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.
