If you or a family member receives Social Security benefits, you must make the necessary changes so that payments are issued electronically. The Social Security Administration reminds beneficiaries that since September 30 of last year, federal law and Executive Order 14247 require federal benefits to be paid electronically.

This is done in order to improve efficiency, reduce costs and increase security in federal payments; the Treasury Department is gradually eliminating paper checks. Therefore the Social Security Administration plans to complete the transition to electronic payments for all beneficiaries this year.

How to switch to electronic payments

The Social Security Administration tells the community that, if you still receive payments via paper checks, it recommends you switch to electronic payments as soon as possible. In addition to being the new way payments will be issued from now on, paper checks have 16 times more chances of getting lost, being stolen, altered or returned as undeliverable than electronic payments.

Therefore, switching now ensures that you receive your Social Security or Supplemental Security Income promptly and securely, they say.

Why electronic payments?

According to this government agency, electronic payments offer several important advantages over traditional paper checks. Such as speed and efficiency, electronic funds transfers (EFT) are processed faster, which ensures you receive your payments on time each month.

In addition, they aim to save costs because the Treasury Department has reported that the average cost of printing a check has risen to $3.07 per check, which is approximately 20 times more expensive than automated payments. This change would save the federal government millions of dollars annually.

Security will also be enhanced because receiving electronic payments significantly reduces the risk of loss, theft or fraud.

“We are committed to making this transition as easy as possible for all beneficiaries, including seniors, people with disabilities, and those who do not have access to traditional banking services,” the Social Security Administration said in a statement.

At the same time, they take into account people who will have trouble adjusting to this change and assure that there may be exceptions.

“If you need an exception due to difficulties, such as mental health issues or if you live in a remote area without access to financial institutions, you can request an exemption through the United States Department of the Treasury.”

To enroll and receive your electronic payments

• Create or sign in to your My Social Security personal account at www.ssa.gov/myaccount.
• Add your bank account information to receive your payment as a direct deposit. You can also ask your financial institution to electronically send your direct deposit information to Social Security.
• Don’t have a bank account? You can still receive electronic payments deposited to a prepaid debit card by enrolling in the Direct Express program. Get more information at GoDirect.gov or call 1-800-967-6857.