President Donald Trump recently signed an executive order calling on the federal government to phase out the use of paper checks and switch to electronic payments by Tuesday, Sept. 30, with some exceptions.
The U.S. Treasury now has about six months to phase out the paper checks it uses for various purposes, including tax refunds and Social Security payments.
According to the White House, the Trump administration aims to “modernize how the government handles money, switching from old-fashioned paper-based payments to fast, secure electronic payments.”
In other words, all government departments and agencies must issue disbursements via electronic funds transfer methods, like direct deposit, debit/credit card payments, digital wallets and real-time transfers.
Payments made to the federal government, like taxes, fees, fines or loans, must also be made electronically, with limited exceptions.
The executive order makes exceptions for individuals who don’t have access to banking services, or for certain special cases, such as emergency payments. Learn more.