Social Security move to digital payments
Direct deposit and prepaid cards are now the main payment methods for US benefit recipients.
The US Social Security Administration has ended the routine issuance of paper benefit cheques in favour of electronic payments after a 30 September federal deadline. Electronic methods such as direct deposit or prepaid cards are now standard for most beneficiaries.
US officials say the shift speeds up payment delivery and strengthens security since electronic payments are less likely to be lost or stolen than mailed cheques. The move also aims to help reduce federal costs and fraud risks.
A small number of recipients can still receive paper cheques if they qualify for an exemption by showing they lack access to banking services or digital payment systems. People must contact Treasury to request a waiver.
SSA urges beneficiaries to set up or confirm direct deposit details through their online account or use a prepaid card to avoid delays. Recipients without bank accounts are encouraged to enrol for secure electronic options.
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