Social Security payments will see a big change next week: What you need to know about the September 30 update

"Starting next week on Tuesday, September 30, the Social Security Administration (SSA) will no longer issue paper checks for benefit payments, and instead move exclusively to electronic payments: either direct deposit or a pre-paid debit card. The change is part of a broader government-wide initiative to modernize its services and improve efficiency and security, to ensure some 70 million Americans receive their monthly benefits promptly."

"However, this could mean trouble for some older Americans who do not know how to set up direct deposit or will have trouble using a pre-paid debit card. In March, President Trump issued Executive Order 14247, which mandates the transition to electronic payments for all federal disbursements by September 30. "Less than one percent of Social Security Administration beneficiaries currently receive paper checks," a Social Security spokesperson told Fast Company in an email on Friday."

"According to the Treasury Department, this shift could save the federal government millions of dollars each year. Issuing a paper check costs about 50 cents, while an electronic payment (or EFT) costs less than 15 cents. Electronic payments are also more secure. Paper checks are 16 times more likely to be lost or stolen compared to electronic payments, thus increasing the risk of fraud, according to the agency."

Beginning Tuesday, September 30, the Social Security Administration will end paper checks and move all benefit payments to electronic methods: direct deposit or a Direct Express prepaid debit card. The change implements a government-wide modernization effort intended to improve efficiency and security for roughly 70 million beneficiaries. Beneficiaries with difficulty enrolling in direct deposit or using prepaid cards, particularly some older Americans, may face challenges. Paper checks will continue only when beneficiaries have no other means to receive payments. The Treasury Department estimates significant annual savings because electronic funds transfers cost under 15 cents versus about 50 cents per paper check. Electronic payments also reduce loss, theft, and fraud risk.

Read at Fast Company