Paper checks are being discontinued for new Social Security recipients
The Social Security Administration stopped issuing new paper checks to first-time beneficiaries on January 1, 2021. If you become may be able to access for Social Security after that date, you cannot receive payments by paper check — you must use either direct deposit to a bank account or a Direct Express debit card. Existing beneficiaries who already receive paper checks can keep them, but the SSA is encouraging all recipients to switch to electronic payment methods.
This shift is permanent. The SSA made the change to reduce costs, improve payment security, and align with how most federal benefits are now distributed. Paper checks are slower to arrive, easier to lose or steal, and more expensive for the government to produce and mail.
Key Takeaways
- New Social Security recipients must choose direct deposit or a Direct Express debit card; paper checks are no longer an option for them.
- Current beneficiaries receiving paper checks can continue to do so, but the SSA recommends switching to electronic payment.
- Direct deposit is free and deposits funds into your bank account on the same day each month; Direct Express is a debit card option for those without a bank account.
- You can change your payment method at any time by contacting Social Security or using your my Social Security account online.
- The SSA is gradually phasing out paper checks entirely, though no firm end date has been set for current recipients.
Who is affected by the paper check phase-out
If you started receiving Social Security benefits before January 1, 2021, you are not required to change your payment method. You can continue receiving paper checks for as long as you want. However, the SSA has stated that it intends to eventually discontinue paper checks for all recipients, though no specific deadline has been announced.
If you are applying for Social Security now or will become may be able to access in the future, you have no choice: you must set up either direct deposit or a Direct Express card before your first payment is issued. The SSA will not process your claim without selecting one of these two methods.
The same rule applies to Supplemental Security Income (SSI), which uses the same payment system as Social Security. Railroad Retirement benefits and Veterans benefits also follow similar policies.
Direct deposit: the fastest and most common option
Direct deposit sends your Social Security payment straight to your bank or credit union account on the same day each month. There is no fee, and the money is available immediately — you do not have to wait for a check to arrive in the mail or be processed at a bank.
To set up direct deposit, you need your bank's routing number and your account number. You can provide this information when you apply for Social Security, or you can update your payment method later through your my Social Security account online or by calling Social Security at 1-800-772-1213. If you do not have a bank account, you can open one at most banks or credit unions with just an ID and a small initial deposit.
Direct deposit is the most reliable option because there is no physical check to lose, steal, or have delayed in the mail. If you move, your payment continues without interruption. If you die, Social Security can more easily recover overpayments from your account.
Direct Express: a debit card option for those without a bank account
Direct Express is a prepaid debit card issued by Comerica Bank specifically for federal benefit recipients who do not have a traditional bank account. Your Social Security payment is deposited onto the card each month, and you can use it to make purchases, withdraw cash at ATMs, or transfer money to another account.
There is no monthly fee for the Direct Express card itself, but Comerica charges for certain transactions — for example, $1.50 to withdraw cash at an out-of-network ATM, or $1 to check your balance at a non-Comerica ATM. You can avoid most fees by using Comerica ATMs, which are available at many Walmart locations and other retailers.
If you do not have a bank account and prefer not to open one, Direct Express is your only option for receiving Social Security. You can request a Direct Express card when you apply for benefits, or you can switch to it later by contacting Social Security or updating your my Social Security account.
How to change your payment method
You can update your payment method at any time, whether you are switching from paper checks to direct deposit, from one bank account to another, or to a Direct Express card. There are three ways to make the change:
- Online: Log into your my Social Security account at ssa.gov and select "Change Direct Deposit Information" under the "Manage Your Benefits" section. This is the fastest method and takes about five minutes.
- By phone: Call Social Security at 1-800-772-1213 (TTY 1-800-325-0778). Have your bank routing number and account number ready, or your Direct Express card number if you are switching to that option.
- In person: Visit your local Social Security office with proof of identity and your bank account information or Direct Express card details.
Changes typically take effect within one to three months. During the transition period, you may receive both a paper check and an electronic deposit, so do not be alarmed if you see both payments arrive. Contact Social Security if the change does not go through after three months.
What happens if you do not choose a payment method
If you are a new beneficiary and do not select direct deposit or Direct Express before your first payment is due, Social Security will automatically enroll you in Direct Express. This is a safeguard to ensure your payment reaches you, but you can change to direct deposit or request a different Direct Express card at any time.
If you are already receiving paper checks and do nothing, your payments will continue by check. However, the SSA periodically sends notices encouraging recipients to switch to electronic payment, and it may eventually set a deadline for the transition — though no date has been announced yet.
Security and fraud protection with electronic payments
Electronic payments are more secure than paper checks in several ways. A check can be lost in the mail, stolen from your mailbox, or forged. Once a check is cashed, it is difficult to recover the money if fraud occurs. With direct deposit or Direct Express, your payment goes directly into an account only you can access, and you have fraud protection through your bank or Comerica.
Both direct deposit and Direct Express accounts are covered by federal fraud liability protections. If someone fraudulently accesses your account, you can report it and the bank is required to investigate and restore your funds under federal law. Paper checks offer no such protection once they leave the mail system.
If you are concerned about identity theft or fraud, electronic payment is the safer choice. You can also set up account alerts through your bank to notify you each time your Social Security deposit arrives, so you know immediately if something is wrong.
Frequently Asked Questions
Can I keep receiving paper checks if I already get them?
Yes. If you were receiving paper checks before January 1, 2021, you can continue to receive them. Social Security has not set a firm deadline for eliminating paper checks for current recipients, though the agency has stated it intends to phase them out eventually. You can switch to direct deposit or Direct Express at any time if you change your mind.
What if I do not have a bank account?
You can use Direct Express, a prepaid debit card that works like a bank account. Deposits arrive on the same day each month, and you can withdraw cash, make purchases, and check your balance. If you prefer a traditional bank account, most banks and credit unions will open one for you with just an ID and a small deposit.
How long does it take to set up direct deposit?
If you set up direct deposit when you apply for Social Security, it is included in your initial claim. If you are switching from paper checks, the change typically takes one to three months to process. You can set it up online through my Social Security, by phone, or in person at a Social Security office.
What if my bank account information changes?
You can update your bank account or routing number at any time through my Social Security online, by phone at 1-800-772-1213, or in person at a Social Security office. Changes take one to three months to process. During the transition, you may receive both a check and a deposit.
Is there a fee for direct deposit?
No. Direct deposit is free through Social Security. Your bank may charge fees for other services, but receiving your Social Security deposit costs nothing. Direct Express also has no monthly fee, though Comerica charges for certain transactions like out-of-network ATM withdrawals.