The Department of the Treasury’s Fiscal Service (Treasury) requires that Federal payments be made electronically. As a result, all Social Security beneficiaries or recipients must receive their payments electronically. This includes new beneficiaries or recipients and beneficiaries or recipients who have been receiving check payment for a certain period.

Treasury may grant one of the following exemptions:

1. 1. 

   Treasury automatically grants an exemption in instances where:

   • •

     the beneficiary or recipient was born prior to May 1, 1921 and continues to receive payment by check, or

   • •

     the payment is not eligible for direct deposit to a Direct Express prepaid debit card account, or

   • •

     the beneficiary or recipient’s Direct Express debit card has been suspended or cancelled.

2. 2. 

   Treasury may grant an exemption in instances when a beneficiary or recipient requests an exemption from the electronic funds transfer (EFT) requirement and the beneficiary or recipient:

   • •

     has a mental impairment that prevents him or her from handling their payments electronically and he or she is not assisted by a representative payee.

   • •

     lives in a remote geographic location that does not have the infrastructure necessary to receive payments electronically.

   NOTE: Foreign beneficiaries who refuse electronic payment are not required to apply for an exemption. See GN 02402.201B for more information concerning foreign beneficiaries.

   Individuals who indicate that an EFT payment would impose a hardship because of a mental impairment that prevents them from handling electronic payments or reside in a remote geographic location within the U.S., which lacks infrastructure to provide electronic payments, must apply with Treasury for an exemption.

   Treasury will require the individual to sign a certification before a notary public and under the penalty of perjury.

   NOTE: Treasury is responsible for determining if an individual is eligible for an exemption. SSA is not responsible for the exemption determination or its development.

For individuals who file for benefits on or after May 1, 2011 and do not allege one of the exemptions to the electronic payment requirement, take the following actions:

1. 1. 

   Advise the individual of the electronic payment (direct deposit) requirement.

2. 2. 

   Inform the individual that he or she must receive payment by direct deposit, and discuss its advantages as stated in GN 02402.005G.

3. 3. 

   If the individual does not have a bank account, discuss the Direct Express debit card and its advantages as stated in GN 02402.007. NOTE: Do not use a protective filing or development date solely to exempt a claim from the electronic payment requirement. Claims filed before May 1, 2011 are not subject to the electronic payment requirement, regardless of when we adjudicate the claim.

4. 4. 

   As of March 1, 2013, Title II beneficiaries and Title XVI recipients must select a form of electronic payment or if they allege a qualifying exemption, then apply for a waiver. Treasury is responsible for reviewing the request and making a determination. Instruct the individual to contact the U.S. Treasury Electronic Payment Solution Center at 1-800-967-5042. Currently, SSA cannot accept a waiver application or approve a waiver request. Treasury will contact the individuals directly once they make a determination.

GN 02402.005 Direct Deposit Information for All Types of Interviews

GN 02402.007 Direct Express Debit Card Program

GN 02402.201 Background and Policy for Direct Deposit Outside the U.S.