Social Security backs away from plan to eliminate paper checks

The Social Security Administration said it will continue issuing paper checks to the retirement program's beneficiaries, backing away from a previously announced plan to switch all payments to electronic deposits after Sept. 30.

On Wednesday, the Social Security Administration told CBS MoneyWatch it would continue issuing paper checks for beneficiaries, including recipients of retirement and disability benefits, who have no other means of getting payments. But the program will also emphasize the advantages of electronic transfers to its roughly 70 million beneficiaries in an effort to encourage check recipients to switch, a Social Security spokesperson added.

The about-face comes after the agency said on July 14 that it would phase out paper checks beginning in October, citing the advantages of electronic deposits including faster payment processing and enhanced security. Eliminating paper also saves the federal government money, with checks costing 50 cents each, compared with 15 cents for an electronic funds transfer, the agency said at the time.

The reversal of the policy to eliminate paper checks comes after Senator Elizabeth Warren, a Democrat from Massachusetts, met with Social Security Commissioner Frank Bisignano on Wednesday morning and asked about the plan to discontinue paper checks, along with other changes at the agency.

"There are about 600,000 Americans who still receive their paper checks — it's a small fraction of people who receive Social Security payments, but it's a population that often needs checks through paper" versus electronic deposit, Warren said in a press call to discuss her meeting with Bisignano.

She added that Bisignano "made a commitment that no one will be left behind and that people who have access to paper checks will get access to paper checks."

Millions of people in the U.S. are "unbanked," meaning they lack traditional bank accounts, often because they believe they don't earn enough to qualify for an account or are worried about costs or other issues, according to Bankrate. Typically, these people rely on check-cashing services or other non-bank financial companies, such as PayPal or Venmo, rather than banks.

About one out of every five households headed by someone over the age of 65 is unbanked or underbanked, according to the AARP. People who are underbanked may have a bank account but still primarily rely on alternative banking services, like check cashing establishments, to handle their money.

Warren also said she addressed other issues with Bisignano, including concerns that a major workforce reduction at the Social Security Administration this year could affect customer service.

The senator said Bisignano agreed to her request that the agency's inspector general conduct an independent audit to assess the state of customer service at SSA, such as call wait times and how many Social Security recipients are able to reach a human employee when they call for help.

"More accurate data is absolutely essential to oversight, to holding the Social Security Administration accountable to the job they are required to do," Warren said.

On Wednesday, the Social Security Administration said customer service is improving, noting that the agency has reduced its phone response time to an average of 18 minutes in 2025, down from 30 minutes in 2024.

"Commissioner Bisignano had a productive meeting with Senator Warren where he presented improved customer service metrics that are currently being realized on the phone, in field offices and online," a Social Security Administration spokesperson told CBS MoneyWatch. "Senator Warren reacted positively to many of the indicators, specifically lower phone and field office wait times, the reduction of the disability claims backlog by 25% and the speed at which the SSFA payments were completed — give months ahead of schedule."

• Social Security Administration
• Social Security