The Social Security Administration has a major shift planned for later this year.

Starting Sept. 30, the federal agency will discontinue issuing paper checks for benefit payments. The change, SSA said, is “part of a broader government-wide initiative to modernize payment systems and enhance service delivery.

“By moving to electronic payments exclusively, we aim to improve efficiency, security, and ensure beneficiaries receive their monthly benefits promptly,” the agency said in a statement.

The transition will “affect a small group of beneficiaries” who have yet to switch to electronic payments. SSA said less than 1% of beneficiaries currently get paper checks and those people are being encouraged to enroll in direct deposit or opt for a pre-paid card to continue receiving their monthly benefits without interruption.

Why the change from paper checks?

SSA is touting several benefits for the change, primarily the speed of Electronic Fund Transfers, or EFT, over paper checks. It’s also cheaper for the government – issuing a paper check costs about 50 cents compared to 15 cents for an ETF.

Paper checks are also 16 times more likely to be lost or stolen, SSA said.

Getting a paper check now? Here’s what you should do

SSA is sending out notices to people currently receiving paper checks to explain the change. All benefit checks will also include an insert explaining the steps a person can take to switch to electronic payments.

There are two options:

• Enroll in direct deposit with your bank. Benefits can be directed towards your checking or savings account.
• Opt for a Direct Express Card. If you don’t have a bank account, you can get a prepaid debit card designed specifically for federal benefit payments.

You can update your information anytime through your personal my Social Security account online or see more details here.