Federal government ceases disbursement of physical checks as of the final day of monthly cycle
The US Treasury Department has announced a significant change in the way social security benefits are received, with the aim to modernize the federal benefit payment system and combat financial fraud. Starting from September 30, 2021, most payments will no longer be issued as paper checks.
Beneficiaries will have the option to receive their benefits either through direct deposit or through a pre-paid debit card known as Direct Express. However, exceptions will be made for individuals over 90 years old, those with a mental impairment, and those living in remote locations.
For those who still need to receive a paper check, a waiver can be requested at the website godirect.gov. It is important to note that more than half a million social security recipients need to choose another way to receive their benefits, although less than 1% of social security recipients are affected by this change.
This move is part of the Trump administration's effort to modernize federal benefit payments. The change is intended to reduce financial fraud and save money. The German federal government is also planning a similar mandate for businesses to offer at least one digital payment option alongside cash starting gradually by the end of 2025/2026, with registration cash register obligations starting January 1, 2027.
It's worth mentioning that the group required by the German government to ensure that they receive their money digitally before September 30, 20XX, are not explicitly named in the search results. However, the exact options for paper payments amid the shift have not been detailed in the search results for the US Treasury Department's change.
The shift towards digital payments is a significant step towards modernizing the federal benefit payment system, ensuring a more efficient and secure method of delivering benefits to recipients. Beneficiaries are encouraged to visit the godirect.gov website to learn more about the options available and to make any necessary changes to their payment preferences.
