President Donald Trump has signed an executive order that directs the government to end the use of paper checks by the Federal government, with some exceptions. The order claims its purpose is to “modernize how the government handles money, switching from old-fashioned paper-based payments to fast, secure electronic payments.”
The White House added, “Paper-based payments, such as checks and money orders, impose unnecessary costs, delays, and risks of fraud, lost payments, theft, and inefficiencies. Digital payments are more efficient, less costly, and less vulnerable to fraud.”
U.S. Treasury to Eliminate Paper Checks: What It Means for Tax Refunds, Social Security – Kiplinger’s Personal Finance
Source Link
Excerpt:
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 September 30, with some limited exceptions.
The U.S. Treasury now has approximately six months to phase out paper checks 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.”
Payments made to the federal government, like taxes, fees, fines, or loans, will also have to be made electronically, with limited exceptions.
As noted, exceptions are supposed to be made for individuals who don’t have access to banking services, or for certain special cases, such as emergency payments. Treasury Secretary Scott Bessent must provide an implementation plan for the measures within 180 days, according to Trump’s directive.
