SOCIAL Security recipients may receive delayed checks if they are unaware of a new payment change that takes effect on Saturday.
The Trump administration is officially ending a Social Security policy that has been in place for nearly a century, and it will be gone in just hours.
Starting September 30, the Social Security Administration will stop mailing paper checks to recipients.
Moving forward, most recipients will have two options for receiving their Social Security checks.
Direct deposit to existing bank account.
Open a prepaid debit card called Direct Express
The SSA says the move is intended to modernize the federal payment system, save money, and reduce fraud.
“Paper checks are 16 times more likely to be lost or stolen compared to electronic payments, increasing the risk of fraud,” the Social Security Administration (SSA) wrote on its blog.
“Electronic payments provide a safer, more secure way to receive benefits,” according to the Social Security Administration.
In terms of cost-cutting, the Social Security Administration estimates that mailing a check costs about 50 cents. However, electronic transfers cost less than fifteen cents.
“This shift could save the federal government millions of dollars annually,” the Social Security Administration announced.
According to CNN, the change will affect more than half a million recipients, or 0.8% of all beneficiaries.
However, some people may still receive paper checks.
EXCEPTIONS
According to the GoDirect site, there are three situations in which a recipient who still needs a paper check can request a waiver.
1. If “electronic payments would impose a hardship due to a mental impairment”
2. If the recipient “lives in a remote geographic location lacking the infrastructure to support electronic financial transactions”
3. If the recipient is 90 or older.
Those who believe they qualify for waivers can call the US Treasury Electronic Payment Solution at -855-290-1545.
They can also print the form and mail it to the address provided at the bottom.
Senator Elizabeth Warren, however, claims to have met with Social Security Commissioner Frank Bisignano to discuss potential exceptions, according to CNN.
“Their plan is to start with people who do have checking accounts,” she said on a call with reporters July 23.
“But he made a commitment that no one will be left behind, and the people who still need access to paper checks will have that access to paper checks,” she continued.
The switch to electronic payments did not start with the Trump Administration, however.
For years, laws have prompted federal agencies to make payments electronically.
But they’ve been allowed to make some exceptions.
The Treasury notes that moving away from paper checks is a major effort to fight fraud.
“Paper checks are increasingly the front door for fraud,” The Treasury said in a statement.
“The Treasury is committed to raising awareness of the growing fraud risks associated with paper checks and providing Americans with the knowledge and tools to fight financial fraud and make informed financial decisions,” The Treasury added.
