Social Security plans to finish their switch to electronic payments this year.
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On June 2, the Social Security Administration sent an email with a link to a very important blog post titled, “Social Security to Fully Transition to Electronic Payments.” A transition to electronic payments has been swirling around since an Executive Order (March 25, 2025) highlighted the need to improve efficiency, reduce costs and enhance security in federal payments.
The blog post noted that Social Security would complete the full transition to electronic payments this year (no exact date noted). Other than some general instructions, there were no details about who needs to do what by when. It’s probably a good idea to pay attention now, just in case a deadline drops soon.
Here’s a quick look at different scenarios with important to-dos noted.
Those who are already set up for direct deposit and receiving Social Security benefits electronically.
- Check your account regularly to confirm that the funds are there.
- Visit “Update direct deposit” on the Social Security website if you need to change bank accounts. The easiest way is through a my Social Security account but there are other possibilities listed. Since April 2025, making changes to direct deposit can be done by phone. Learn more about that here.
- Realize that Social Security needs time to verify and update the new deposit details so don’t close the first account until confirming the second account is receiving the funds.
Those who still receive paper checks.
In the blog post, Social Security noted that less than one percent of beneficiaries still receives paper checks. The “less than one percent” turns out to be about 711,000. Social Security is proactively sending notices to these individuals to explain the upcoming change. The actions to take now depend on one’s current situation.
Having a checking or savings account and a my Social Security account.
Having a bank account but not a my Social Security account.
The blog post notes that creating a Social Security account is one of the “simple steps to make the switch.” However, based on my clients’ experiences, that is anything but simple. They are getting locked out because Social Security’s information does not match what they enter and, in many cases, a phone number is the culprit. Clients have tried the login.gov or id.me steps to resolve this problem but that has not worked so they had to call Social Security. The agents cannot fix the discrepancy but, according to the Social Security website, they can offer alternative ways to confirm identity. One option is to visit a post office. U.S.P.S. offers “In-Person Proofing,” a way to securely verify an identity in-person when it cannot be verified online.
Cannot set up a my Social Security account.
If creating a Social Security account becomes impossible, gather the necessary details (Social Security number, bank account numbers) and then consider one of these options to sign up for direct deposit.
- Call Social Security directly at (800) 772-1213. Be prepared to wait until someone is available.
- Check out GoDirect.gov, an official, secure government website sponsored by the U.S. Department of the Treasury and the Federal Reserve. It is possible to arrange direct deposit through a phone call or by sending in a form.
- According to the blog post, a financial institution can send direct deposit information to Social Security electronically.
- Call the U.S. Treasury Electronic Payment Solution Center at (877) 874-6347 to enroll in direct deposit or the Direct Express card (next paragraph).
Not having a bank account.
The obvious solution, of course, is to set up a checking or savings account and direct deposit. However there are very specific reasons that some people do not have bank accounts and that’s when a Direct Express Debit Mastercard might be the answer. This is a prepaid debit card that can be used to access benefit payments to pay bills, make purchases and get cash, without a bank account. Social Security deposits the benefit payment directly into the card. Learn more about this card, how to get one and any related fees in the Social Security booklet, “Get Your Payments Electronically.”
Cannot make this transition because of mental health challenges or other issues.
A representative payee can request direct deposits and manage the payments.
If there is no representative payee, Social Security may choose to suspend benefits until a payee is appointed.
There is also the possibility of getting a waiver from the U.S. Treasury, contact number (855) 290-1545. Know that the Treasury has some very specific hardship criteria.
Finally, beneficiaries born before May 1, 1921, do not need to request a waiver and can continue to receive payments by check.
With the full transition to electronic payments, Social Security offers options for just about every situation but direct deposit is the logical one. It may take time and effort to set up whatever accounts you’ll need but then you can enjoy the convenience of direct deposit. Once you know the day of the month (e.g., the third Wednesday) for your monthly deposit, monitoring your account for accuracy is a simple enough task.
