The first Social Security check was mailed to Ida May Fuller of Vermont in January 1940 for the amount of $22.54; the last paper checks were mailed out this month averaging nearly $1,300 a check.

Roughly 93 percent of Social Security payments are now being made electronically.

Until this change approximately $5 million in checks were mailed monthly.

The new electronic payments would save approximately $4.6 million in monthly costs, since each mailed check costs 92 cents more than a direct deposit transfer, according to U.S. Treasury officials.

The agency said if it didn't push for the switch to electronic transfers, it would cost taxpayers another $1 billion over the next 10 years.

People who have been receiving a paper check for their Social Security or other federal benefit payments are required by law to switch to an electronic payment method by Friday, March 1, 2013.

The recipients have a choice of direct deposit to a bank, credit union account, or to a debit MasterCard account. This change will not affect recipients already receiving their payments by direct deposit.

The Direct Express MasterCard gives the advantages of direct deposit without requiring a bank account and is an option for those who prefer a prepaid debit card recommended by the Treasury Department.

The monthly benefit payment goes straight into the Direct Express card account on the payment day each month.

People will no longer need to wait for the mail to arrive or to make a special trip to cash a check.

There’s no risk of lost or stolen checks, no need to carry large amounts of cash. The card can be used to make everyday purchases everywhere debit MasterCard is accepted.

It can be used to make purchases, pay bills, buy money orders and get cash at thousands of locations nationwide. The card can be use 24 hours a day, seven days a week.

The March 1 deadline also applies to recipients currently receiving paper checks for other federal benefit payments, such as Supplemental Security Income, Veterans Affairs benefits, and anyone receiving benefits from the Railroad Retirement Board, Office of Personnel Management or Department of Labor.

The change can be made by going to www.godirect.org, by calling the U.S. Treasury Payment Solution Center’s toll free helpline at 1-800-333-1795, or by speaking with a bank or credit union representative.

Information for this article was obtained from www.usgovinfo.about.com/od/federalbenefitprograms and www.SSA.gov/history/.