The Treasury Department will stop sending monthly paper checks after Sept. 30. This will impact those receiving Social Security benefits. This also means tax returns will no longer be sent via mail.
The Social Security Administration says fewer than 1% of Social Security recipients currently receive paper checks. Those individuals will need to opt in to direct deposit or a prepaid debit card option to continue receiving their benefits.
"We’re proactively sending notices to people who currently receive paper checks, to explain the upcoming change and highlight the benefits of switching to electronic payments," the agency said in a statement.
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Each notice will include a flyer outlining how beneficiaries can sign up for electronic payment options.
The agency says moving away from paper checks improves efficiency and reduces the risk of theft or delays. Paper checks are 16 times more likely to be lost or stolen than electronic payments, according to SSA.
The change is also expected to save money. The U.S. Treasury estimates it costs about 50 cents to issue a paper check, compared to less than 15 cents for an electronic funds transfer.
The only exceptions being made will be for those over age 90, and Americans with mental disabilities.
