Big changes are on the way for how the government pays Social Security and VA benefits. By September 30, 2025, paper checks will be phased out, and nearly all beneficiaries must switch to electronic payments.
This transition will enhance security, reduce fraud, and cut costs, but also poses challenges for some recipients. Here’s everything you need to know.
Why the Payment Change Matters
An executive order signed in March 2025 mandates that all federal payments, including Social Security and VA benefits, transition from paper to electronic formats by September 30, 2025.
This aims to eliminate inefficiencies, lower costs, and prevent fraud—since paper checks are roughly 16 times more likely to be lost, stolen, or tampered with.
Who Will Be Affected—and Who’s Already on Board
| Group | Status Before Sept 2025 | Action Needed |
|---|---|---|
| Majority of beneficiaries | Already receiving electronic payments (~99%) | No action needed |
| Remaining paper check recipients | ~485,000 people—mostly elderly or unbanked | Must switch payment method or request exception |
| People without banking access | May qualify for exceptions or alternate options | Contact agency before deadline |
Most recipients are already set. However, about 485,000 individuals—often older adults or those without banking access—still rely on paper checks and will need to act.
What Are Your Electronic Payment Options?
Moving forward, benefit payments must be delivered via one of the following electronic methods:
- Direct deposit to your bank account
- Prepaid card (like the Direct Express® card)
- Digital wallets, debit/credit cards, or real-time payment systems
If you don’t have a bank account, you can enroll in products like the Direct Express™ debit card or open one through supported financial services.
Exceptions to the Rule
While the transition is widespread, some exceptions apply. You may still receive paper checks if:
- You lack access to banking or electronic systems
- You’re receiving emergency or hardship-related payments
- Special cases exist as determined by the Treasury
To qualify for an exception, you must request it before the deadline and provide justification to the appropriate agency.
What You Should Do Now
- Check your current payment method: If you’re already enrolled in electronic payments, no further action is needed.
- Not yet switched? Enroll online or by phone with SSA or VA to set up direct deposit or choose a prepaid card.
- Need help? If you’re not tech-savvy or lack access, ask a trusted friend or family member to help, or contact your agency for in-person assistance.
The shift to electronic-only benefit payments by September 30, 2025 is a major modernization step for Social Security and VA benefits. While most recipients won’t be affected, those still relying on paper checks must act before the deadline—or risk delayed or missed payments.
With better security, speed, and reliability, this change aims to strengthen delivery of vital support—but only if you’re prepared for it.
FAQs
No—paper checks will be discontinued unless you qualify for a rare exception due to lack of access or hardship.
You can choose a prepaid benefits card, like the Direct Express® card, which functions like a debit card and allows electronic receipt of benefits.
You risk delays or interruption in payments. It’s essential to act before September 30, 2025, either by enrolling electronically or applying for a valid exemption.