Government phasing out paper checks

Starting next year, the check will no longer be in the mail for millions of people who receive Social Security and other government benefits.

The federal government, which issues 73 million payments a month, is phasing out paper checks for all benefit programs, requiring people to get payments electronically, either through direct deposit or a debit card.

The changes will affect people who get Social Security, veterans’ benefits, railroad pensions and federal disability payments. Tax refunds are exempt, but the Internal Revenue Service encourages taxpayers to get refunds electronically.

About 90% of people who receive federal benefits already get them electronically, the Treasury Department said.

“It’s just that natural progression of moving to how people are used to receiving their funds,” said the Treasury Department’s Walt Henderson.