US to phase out most paper checks for federal benefits
The federal government will begin phasing out paper checks for Social Security and other federal payments by September 30.
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Big changes to Social Security for beneficiaries whose benefits will be transferred to debit cards.
Most of the 70.6 million Americans who receive Social Security and Supplemental Security income benefits (more than 99%) receive payments electronically through direct deposit into their checking accounts or through Direct Express prepaid debit cards. Those receiving paper payments should know that the Social Security Administration plans to fully transition to electronic payments for all beneficiaries by the end of the year.
Changes are also coming to recipients who use Direct Express debit cards. SSA said in a May 18 notice that the Treasury Department is changing the banks that handle recipients’ debit cards, with Fifth Third Bank replacing Comerica Bank as the financial agent for the Direct Express Card Program.
SSA says new Direct Express Card registrants already have a Fifth Third Bank card. The transition of current recipients of existing Direct Express cards from Comerica to Fifth Third Bank is expected to begin late this year or early next year, the agency said. The change will affect about 3.6 million cardholders, according to The Motley Fool.
When will Social Security ship my new Direct Express card?
Later this year, the Treasury Department plans to begin sending current Direct Express cardholders a new Fifth Third Bank card to replace their current Comerica card. Once the current card expires, the recipient will receive a new card issued by Fifth Third Bank, officials said.
Cardholders will be notified before their new card arrives. In the meantime, current cards will continue to be fully functional, officials said. Direct Express says the new card will work exactly like the current card, and benefits will arrive on the same schedule.
However, the recipient may want to take some action before receiving the new card. “If you recently moved, make sure you have up-to-date contact information so the Social Security Administration knows where to send your new debit card,” suggests Kylie Hagen, contributing retirement analyst for The Motley Fool.
The SSA states that beneficiaries must keep all contact information up to date to ensure they receive all communications.
Mike Snyder is a national trends news reporter for USA TODAY. You can follow him on Threads, Bluesky, and X, and email him at: mike snyder & @mikegsnider.bsky.social & @mikesnider & msnider@usatoday.com.
