What the electronic payments mandate means for you
Starting May 1, 2011, the U.S. Social Security Administration stopped issuing paper checks. If you receive Social Security benefits, you must receive them through electronic bank deposit or a prepaid debit card. This is not optional — it is the only way the government now sends out benefits.
The mandate applies to everyone who gets Social Security retirement, disability, survivor, or Supplemental Security Income (SSI) benefits. If you were already receiving benefits by direct deposit before the important date, nothing changed for you. If you were still using paper checks, you had to switch to one of two electronic methods.
The two ways to receive your benefits are a traditional bank account (direct deposit) or a Treasury-issued prepaid debit card called the Direct Express card. Both deposit your money on the same schedule — usually the second, third, or fourth Wednesday of each month, depending on your birth date.
Key Takeaways
- Social Security no longer issues paper checks; all benefits go to a bank account or the Direct Express prepaid card.
- Direct deposit into your own bank account is free and the most common method, with no fees or monthly charges.
- The Direct Express card is a government-issued prepaid debit card for people without a bank account, with some fees for certain transactions.
- Your payment date depends on your birth date and does not change based on which electronic method you choose.
- You can switch between direct deposit and Direct Express at any time by contacting Social Security or your bank.
Direct deposit into your own bank account
Direct deposit is the most straightforward option. Your Social Security payment goes straight into a checking or savings account at any bank, credit union, or other financial institution that accepts direct deposits. There are no fees to you, and you keep full control of your money.
To set up direct deposit, you need your bank's routing number and your account number. You can find both on a check, or call your bank and ask. You then contact Social Security — by phone at 1-800-772-1213, in person at a local office, or online through your my Social Security account — and provide those numbers. The change usually takes one or two payment cycles to go into effect.
Once direct deposit is active, your benefit arrives automatically every month. You can withdraw it, spend it, or leave it in the account just like any other deposit. If you change banks, you need to update your information with Social Security so the payment goes to the correct account.
The Direct Express prepaid debit card
If you do not have a bank account, the Direct Express card is the alternative the government provides. It is a Visa prepaid debit card issued by Comerica Bank on behalf of the U.S. Department of the Treasury. Your Social Security payment deposits to the card each month, and you can use it to withdraw cash, make purchases, or pay bills online.
The card itself is free — there is no cost to have it issued or to receive your monthly deposit. However, some transactions do carry fees. Withdrawing cash at an ATM that is not in the MoneyPass network costs $1.50 per withdrawal. Checking your balance by phone costs $0.50. A replacement card costs $7.50 if you lose it. These fees are taken from your card balance, so they reduce the money available to you.
Direct Express cardholders can use any ATM in the MoneyPass network for free balance checks and withdrawals. The network includes ATMs at many grocery stores, pharmacies, and convenience stores. You can find a nearby MoneyPass ATM on the Direct Express website or by calling the customer service number on the back of your card.
How to switch from paper checks to electronic payment
If you were grandfathered in and still receiving paper checks after 2011, you had a important date to switch. However, if you are now receiving benefits and have not yet chosen a method, you must set up either direct deposit or Direct Express before your first payment.
To set up direct deposit, contact Social Security at 1-800-772-1213, visit your local Social Security office, or log into your my Social Security account online. Have your bank's routing number and your account number ready. To request a Direct Express card, you can also call Social Security or explore online through the Direct Express website at usdirectexpress.com.
If you already have one method and want to switch to the other, the process is the same. You can change from direct deposit to Direct Express, or from Direct Express to direct deposit, at any time. The change takes effect within one or two payment cycles.
What happens if you do not set up electronic payment
Social Security will not send you a paper check. If you do not set up direct deposit or request a Direct Express card, your benefits will not be paid. You must choose one of the two electronic methods to receive your money.
If you are unable to set up payment yourself — for example, because of a disability or language barrier — you can ask a representative payee to do it for you. A representative payee is someone authorized by Social Security to manage your benefits on your behalf. They can contact Social Security and provide the necessary banking information.
Changing your payment method or bank account
You are not locked into your first choice. If you set up direct deposit but later want to switch to Direct Express, or vice versa, you can change at any time. You can also switch to a different bank account while staying with direct deposit.
To change your bank account, call Social Security at 1-800-772-1213 or update your information in your my Social Security account online. Provide your new bank's routing number and your new account number. The change usually takes one or two payment cycles. During the transition, make sure you know which account your payment will go to so you do not miss a deposit.
If you are switching from direct deposit to Direct Express, or vice versa, the process is the same — contact Social Security and request the new method. There is no penalty for switching, and you can change as often as you need to.
Protecting your account information
When you provide your bank account number to Social Security, that information is used only to deposit your benefit. Social Security does not use your account for any other purpose, and your bank cannot withdraw money from the account without your permission.
If you are concerned about sharing your account number, remember that direct deposit is one of the safest ways to receive money. Your bank account number is already on every check you write, and direct deposit does not give anyone the ability to withdraw funds — only to deposit them.
If you lose your Direct Express card or suspect fraud, call the number on the back of the card or contact Comerica at 1-800-935-9935. You can report the card lost or stolen and request a replacement. If unauthorized charges appear on your card, report them when ready — Direct Express cardholders have the same fraud protections as regular debit card users.
Frequently Asked Questions
Can I still get paper checks from Social Security?
No. The electronic payments mandate has been in effect since May 2011, and Social Security no longer issues paper checks under any circumstances. You must receive your benefits through direct deposit or the Direct Express card.
What if I do not have a bank account?
You can use the Direct Express prepaid debit card, which is issued by the government specifically for people who do not have a traditional bank account. The card is free, and your benefit deposits to it each month. You can use it to withdraw cash, make purchases, or pay bills.
Is there a fee to set up direct deposit?
No. Direct deposit is free. Your bank does not charge you to receive a deposit, and Social Security does not charge you to set it up. The only costs are the optional fees some banks charge for certain services, like overdraft protection or expedited transfers.
How long does it take for my payment to show up after I set up direct deposit?
Once you provide your bank information to Social Security, the change usually takes one or two payment cycles to go into effect. Your next payment after the change is processed should arrive in your account on your regular payment date.
Can I have my Social Security payment go to someone else's bank account?
No. Your benefit must go to an account in your name, or to a Direct Express card issued in your name. If you need someone else to manage your benefits, you can ask Social Security to appoint a representative payee, but the payment still goes to an account or card in your name.