Federal Payments Going Digital

The Change Is Here

If you receive Social Security, veterans benefits, or tax refunds, this change affects you. As of September 30, 2025, the U.S. government stopped mailing out most paper checks. Payments now come to you electronically through direct deposit or a prepaid debit card.

President Trump signed an Executive Order in early 2025 to modernize how America handles these payments. If you have been busy, you might not know about this or what to do next. We are here to help you get it sorted out.

Who This Affects

This new rule applies to several groups of people:

Social Security recipients including retirement and disability
Veterans receiving VA benefits or pensions
Federal employees and retirees with pensions or annuities
Medicare beneficiaries for refunds and payments
Tax refund recipients who are due money back
Anyone else receiving payments from a federal agency

If you already get your money digitally, you are likely all set. But if you are still waiting on a paper check or are unsure how to update your info, keep reading. WE CAN HELP YOU.

What You Need to Do

Option 1: Set Up Direct Deposit

Direct deposit is the simplest and safest way to get your benefits. It is our top recommendation for most families. Here is how you do it:

You need a bank account. You can set one up at a local bank or credit union. You can often do this even with no banking history.
Gather your numbers. You will need your bank routing number and your specific account number.
Sign up with the agency. You can call Social Security at 1-800-772-1213 or visit ssa.gov. For VA benefits, call 1-800-827-1000.

This process usually takes about 15 minutes. Once it is done, your payment deposits automatically every month without you lifting a finger.

Option 2: Get a Prepaid Debit Card

If you do not want a bank account, the government offers prepaid benefit cards. These work just like a regular debit card. You can use them to withdraw cash at an ATM or pay bills in stores. Your benefits load onto the card automatically each month. No bank account is required for this choice.

Option 3: Apply for a Paper Check Exception

You can still get paper checks if you have a real barrier to electronic banking. This is not easy to qualify for, but it is an option for some. This might apply if you live in a rural area with no banks or have a disability that prevents digital use. To apply, you must contact your federal agency and explain your situation in detail.

Common Questions Answered

Is my money safe with direct deposit?

Yes. Direct deposit is one of the safest ways to receive money. Banks are required by law to keep your account secure. Unlike a check sitting in a mailbox, direct deposit cannot be stolen or lost in the mail. Your account is also protected by FDIC insurance up to $250,000.

What if I don't have a bank account?

You have two good paths forward. You can open a simple checking account at a local Harrisburg credit union. Many have no fees for retirees. Or, you can use the government issued prepaid card. If you need help choosing, PAC Financial can walk you through the pros and cons of each.

I am not tech-savvy. Can I really do this?

Absolutely. You do not need to be a computer expert to set up direct deposit. You can do the whole thing over the phone with the agency. These groups are designed to help seniors and they will walk you through it. If you still feel stuck, come see us. We have helped many neighbors navigate this change. NO STRESS NECESSARY.

Help Is Available

This transition has been smooth for most, but some are still catching up. If you missed the deadline and aren't getting your payments, give us a call. We work with Harrisburg residents every day to solve these types of problems. It is part of our commitment to our community. We will answer your questions with no fees and no pressure.

Schedule a consultation by calling (717) 564-6400 TODAY. Let’s get your payments back on track. We're here to help.

Official Resources

Federal Payment Info: mymoney.gov/federalpayments
Social Security: ssa.gov or 1-800-772-1213
VA Benefits: va.gov or 1-800-827-1000

Compliance Note
This information is for educational purposes only. It is not financial, legal, or tax advice. The details here are based on laws and executive orders in effect as of early 2026 and can change. For specific guidance, please talk to a professional. Federal benefit requirements vary by agency. PAC Financial is a financial advisory firm serving Central Pennsylvania.

PAC Financial Advisors
5291 Devonshire Road, Harrisburg, PA 17112
(717) 564-6400

Member of FINRA and SIPC. All advisors are subject to state and federal regulatory requirements.