VA Ends Paper Check Benefits Payments
In 2025, the Department of Veterans Affairs is making a “final push to move veterans who receive benefits by paper check to get the money directly deposited to an account” after the President ordered “a shift to electronic banking” for federal agencies by Sept. 30 2025.
After that date, VA payments will no longer be issued by paper check, delivered by electronic means only.
In 2023, VA.gov warned veterans that the days of the paper VA benefits check were numbered. “All Federal agencies, including VA, are transitioning from issuing paper checks to Electronic Fund Transfers or EFTs.” The mandate to switch from paper checks to electronic payments has been in place for some time, but there are still holdouts who have not made the switch at press time.
Unbanked Veterans
More than 120,000 veterans and their family members continue to collect VA checks monthly by mail for disability, survivor support and other compensation.
The VA says these veterans and their beneficiaries opted not to use direct deposit or do not have a bank account. The target date of Sept. 30 for federal agencies to phase out check disbursements and receipts is directed to be accomplished “to the extent possible under law,” so the desired cutoff date may be affected by existing federal law.
But there is a problem. The 120 thousand veterans still on the old legacy paper check system, those who opted NOT to use Direct Deposit? Some of that number may not even have a bank account to switch to. The “mandate” to eliminate paper checks may disenfranchise these veterans who may not have the same access to banking services as other veterans due to rural location, disability, or other issues.
Getting Help With Direct Deposit
What can be done for these veterans? The VA official site has options for veterans who need to change their payment options based on the sunsetting of paper checks.
- To sign up for Direct Deposit, visit: Direct Deposit (Electronic Funds Transfer).
- Veterans without a bank or credit union account may apply for one using the Veterans Benefits Banking Program (VBBP) operated by the Veterans Benefits Administration.
- You aren’t required to open a bank account. You can opt for VA benefits payments to be deposited to a Direct Express Debit Mastercard or to a Bank or Credit Union account using Go Direct.
Why is the Department of Veterans Affairs ending paper check payments for benefits?
The Department of Veterans Affairs is working under a broader federal mandate to transition from paper checks to electronic payment methods. This is a move intended to eliminate VA benefits payments being lost, stolen, or damaged.
What is the standard method for receiving VA benefits electronically?
The standard and most recommended method for receiving VA benefits electronically is through direct deposit into a personal bank account. This involves electronically transferring funds directly into a checking or savings account held at a bank or credit union.
What is the alternative for veterans who do not have a traditional bank account?
Veterans who do not have an existing bank account or prefer not to open one can use the Direct Express Debit MasterCard, a prepaid debit card into which VA benefits are paid.
This card may be used for purchases wherever Mastercard is accepted. However, it’s worth noting that it may have some limitations compared to a full-service bank account, such as potential fees for certain transactions or fewer deposit options.
What information do I need to prepare before switching to direct deposit?
Your bank account number, your bank’s routing number, and the specific type of account you wish to use (either checking or savings). You can typically locate these numbers on a voided check or by contacting your bank or credit union.
How do I update my VA direct deposit information?
To update your direct deposit information online, visit VA.gov and securely sign in using your verified Login.gov or ID.me credentials.
If you don’t already have an account, you can start the process involving identity verification and setting up multi-factor authentication.
Within your profile, locate the “Direct Deposit information” area. You’ll likely see distinct sections for different benefit types, such as “Disability and Pension” or “Education Benefits.” Start by clicking the “Edit” button next to the specific benefit type you wish to modify.
After submitting changes, you should receive an online confirmation. Monitor your designated bank account to ensure your upcoming payments are successfully deposited as expected.
Do I need to update information for each type of VA benefit if I receive multiple payments?
Yes, if you receive various VA benefits, such as disability compensation and educational assistance, you might need to update the direct deposit information for each benefit category separately within your online profile.
Can I update my direct deposit information over the phone?
Call the VA benefits hotline at 1-800-827-1000 (TTY: 711). A specific line is available at 918-781-7550 for those managing international direct deposit.
Be sure you have your personal identification details, your VA file number, and your bank’s routing and account numbers readily available. It’s also a good practice to ask for confirmation of the change and an estimated timeframe.
Is it possible to change direct deposit details in person?
Yes, for those who prefer face-to-face assistance, you can visit your nearest VA regional office to update your direct deposit information. You can use the VA’s online tool to locate the closest office. At the office, you will likely need to complete a specific form, typically the “Direct Deposit Sign-Up Form” (VA Form SF-1199a), which requires your personal information, account details, benefit type, and VA claim number.
Bring a valid photo ID, bank account number, and routing number. Once submitted, request a copy of the form for your records and inquire about the expected processing time.
What is the Veterans Benefits Banking Program (VBBP), and how can it help?
This program connects veterans with a network of banks and credit unions committed to helping veterans open an account. These institutions are often more understanding of unique financial histories. They may offer low-cost or no-cost banking options, making it easier for veterans to receive their benefits via direct deposit and gain access to broader financial services.
Are there any challenges veterans might face when making the switch?
Some veterans face challenges switching from paper checks to Direct Deposit. One common issue is not having an existing bank account, which can be addressed through the Veterans Benefits Banking Program (VBBP). The VA also provides phone support and in-person assistance at regional offices to help you make the switch.
About the author
Editor-in-Chief Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
