Trump Orders End to Social Security Paper Checks: 7 Ways This Affects Recipients’ Money
Written by
Heather Altamirano
Edited by
Zuri Anderson
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In an executive order signed on Mar. 25, President Trump banished Social Security paper checks and tax refunds in favor of digital payments as of Sept. 30, 2025.
“Paper-based payments, such as checks and money orders, impose unnecessary costs; delays; and risks of fraud, lost payments, theft, and inefficiencies,” the order stated.
Trump said his administration is cutting out paper payments to save money, create less fraud and set up a more efficient system, but what does this mean to you? If you receive a tax refund or Social Security payment by mail, that will end later this year.
While some welcome the new policy, the change creates a significant problem for many older Americans who aren’t tech savvy or have access to online accounts.
According to financial experts, here are seven ways this major change to Social Security affects recipients’ money.
Tough for People with No Internet Access
In today’s evolving tech world, it seems like everyone has a device at the tip of their fingers, but 15% of seniors only have a smartphone and not a broadband service at home, according to a Pew Research study.
It’s something that Andrew Lokenauth, money expert and founder of Be Fluent in Finance, often sees with clients.
“Roughly 25% of my elderly clients don’t have regular internet access or struggle with online banking,” he stated.
As of now, it’s unclear how people who don’t know how to use a computer or have online banking will receive their payments.
Potential Rise in Elder Abuse
Another major issue Americans are facing is the closure of banks. Lokenauth pointed out that many of his clients live in “areas where bank branches are closing.”
“This means they’re often forced to rely on family members to help manage their money, which can sometimes lead to financial abuse,” he explained. “I’ve unfortunately seen this happen several times.”
Extra Fees
While there are some perks of digital payments, there’s also drawbacks like more fees.
“When paper checks go away, most recipients end up with prepaid debit cards by default,” Michael Schmied, senior financial analyst at Kredite Schweiz, explained. “These cards might seem convenient, but they often come with hidden transaction fees that quietly chip away at your benefits.”
Unless you’re on top of your balance, you might not notice them.
“There can be fees for ATM withdrawals or monthly maintenance even if you don’t use the card enough,” according to Schmied. “That means you could lose money just trying to access the money you’re owed. Over time, those costs stack up and make it harder to budget on a fixed income.”
Schmied also stated that “if your benefits land in a checking account, you could run into overdraft fees.”
“Some banks automatically deduct charges or bills before you can even use your money,” he noted.
Financial Mistakes Will Happen
For retirees who rely on paper payments, switching to tech won’t be seamless and Schmied suspects financial mishaps will take place.
“For people who aren’t used to online banking or mobile apps, it’s easy to lose track of what’s coming out of your account,” he stated. “That’s how small mistakes turn into bigger financial problems.”
Delayed Payments
The tech barriers are real. Many elderly people have never used a computer and Lokenauth said his clients are really stressed.
“Some people need help setting up direct deposit accounts,” he stated. “Others are dealing with incorrect account numbers or routing issues. And then there’s the timing gap — the last paper check might arrive before the first electronic deposit is fully set up.”
People who are affected the hardest are the folks who have been receiving paper checks for years.
“Change is tough,” Lokenauth noted. “I’m working with several elderly clients who are really struggling to adapt to checking their balances online or using debit cards for the first time.”
With anything new, there can be a tough transition phase and Schmied acknowledges that would likely be the case.
“There’s almost always a hiccup when setting up new payment systems,” he stated. “Account details get mistyped, names don’t match exactly or verification drags out longer than expected. That holds up payments, sometimes for days or even weeks.”
Phone Scams
Scams are becoming more sophisticated and seniors are at risk. According to the TrueCaller Scam Report 2024, more than 56 million Americans were victims of a phone scam and lost a collective $25.4 billion to phone scams.
It’s a concern that weighs on Lokenauth.
“While electronic payments are generally more secure, they create new risks,” he explained. “I’ve had multiple clients fall for phone scams where criminals posed as Social Security staff offering ‘help’ with the transition.”
Faster Payments
One positive aspect of a digital payment is that the funds will be posted in your account faster than receiving a check in the mail once any glitches are worked out.
“The electronic deposits hit their accounts two to three days faster than paper checks — which makes a huge difference for people living paycheck to paycheck,” Lokenauth noted.
The upcoming changes can be brutal for certain groups and while there is some time before the new policies go into effect, many older folks are worried.
“I work with an 85-year-old woman who’s never used an ATM and now feels completely lost,” Lokenauth shared.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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