The preferred government method for the payment of Social Security benefits is direct electronic deposit to a bank account. While paper checks are still used (as of late 2010), more than 85 percent of all Social Security recipients now receive their payments electronically in the form of direct deposit to a bank account.
Why is electronic deposit the preferred method of payment for Social Security benefits?
Direct deposit saves a tremendous amount of paper and provides a secure method for the transfer of Social Security benefit payments. Government cost savings also provide motivation for this method, since electronic-style payments save taxpayers an estimated 60 million dollars annually.
Is electronic Social Security benefit payment safe?
There are more than 23 million seniors receiving Social Security benefit payments. Annual estimates suggest that 440,000 payments are lost, stolen, or destroyed, mostly in the form of checks. By comparison, electronic payments are much safer.
What do I do if I have trouble receiving my Social Security benefit payment?
There is a waiting period for reporting an estimated payment delay. Holidays may also delay payment up to two days. Estimated delays and other common questions about direct deposit options can be found on the Social Security web site: http://www.ssa.gov/onlineservices.
I don’t have a bank account or easy access to my bank account. Isn’t there some way to get a good old-fashioned check?
Yes, but probably not for much longer. The government is rapidly moving to make the electronic payment method a mandatory system. The estimated date for the final transition to either direct electronic deposit or automated payments via a Mastercard system is 2011.
For someone with limited use of an existing bank account, the best option is another form of electronic payment called Direct Express Debit Mastercard. This Mastercard is issued by the government and allows the recipient to use the card at any bank or retailer for purchases or cash withdrawals against the amount of Social Security benefit deposited. It is not, however, generally possible to add any other moneys than Social Security to the Debit Mastercard.