Social Security is ending paper checks—here’s what banks and credit unions should do now

The Social Security Administration (SSA) has announced that it will discontinue issuing paper checks for benefit payments, effective September 30, 2025. While 99% of recipients already use electronic deposit, roughly 600,000 Americans still receive paper checks—many of them older, rural, or unbanked/underbanked.

This policy shift represents a strategic opportunity for community banks and credit unions to reach underserved populations, build trust, and grow deposit relationships through direct deposit enrollment.

Why paper check recipients are a growth opportunity

While the number may seem small, these remaining paper-check recipients are often financially underserved or disconnected from digital banking. This is a rare instance where compliance, mission, and growth align.

By helping them transition, financial institutions can:

• Increase recurring deposit volume from Social Security and other federal benefits
• Grow member and customer acquisition with tailored account offers
• Demonstrate community support and inclusion, especially for seniors and low-income households
• Build trust and long-term loyalty by offering hands-on assistance during a high-anxiety transition

How to help Social Security recipients switch to direct deposit

1. Run a Social Security Direct Deposit outreach campaign
Educate your members and local communities about the upcoming change. Include clear messaging such as:

• “Social Security is going digital—are you ready?”
• “Avoid delays. Set up direct deposit before September 30.”
  
• “Get your Social Security payments faster and safer.”

Use your website, email newsletters, direct mail, and in-branch signage to drive awareness. (Local SEO tip: include service area terms like “direct deposit help in [City/Region]” on your landing pages.)

2. Provide in-person and phone-based assistance
Offer walk-in support at branches and community events. Create a dedicated phone line with staff trained in working with older adults or caregivers. Many check recipients will need support with:

• Filling out direct deposit forms
  
• Understanding account options (checking vs. savings)
  
• Learning how to avoid scams during the transition

3. Promote low-fee checking accounts designed for Social Security recipients
Make it easy for individuals to open an account. Offer:

• Low or no minimum balance requirements
• No monthly maintenance fees
• Automatic alerts for deposits and withdrawals
  
• Optional paper statements

Include a checklist of what they’ll need to bring—ID, Social Security number, and benefit information.

4. Highlight the benefits of direct deposit vs. paper checks
Emphasize the advantages of electronic payments:

• Safer: Paper checks are 16 times more likely to be lost or stolen
• Faster: Funds are deposited on time, even during bad weather or mail delays
  
• More convenient: No need to visit a branch or ATM

Also note that federal benefits received via direct deposit have stronger fraud protections under federal law.

Add value with mobile check deposit and government prepaid card support

Even after the paper check deadline, some customers may still receive occasional mailed checks. Promote your mobile check deposit capabilities and educate users on how to:

• Snap a photo of their check using your mobile app
• Verify successful deposit
  
• Avoid fraud or third-party check-cashing fees

Final thoughts: Banks and credit unions have a civic and strategic role to play

The end of Social Security paper checks presents an opportunity for local financial institutions to lead with empathy, offer genuine assistance, and foster long-term banking relationships.

Whether your institution is in a rural area, urban neighborhood, or serves a multilingual population, you have the tools to make a difference, and grow in the process.

Launch your direct deposit assistance program today

Need help developing campaign messaging or creating a landing page for Social Security recipients? We can help.