US Paper Checks: The era of paper checks issued by the US government is drawing to a close. An executive order signed by President Donald Trump mandates a transition to electronic payment methods for all federal payments by September 30, 2025. This significant change will transform the way millions of Americans receive Social Security benefits, tax refunds, and other governmental payments, as well as how they settle taxes or fines.
The White House articulated this decision in a statement on March 25, noting that “Paper-based payments, such as checks and money orders, incur unnecessary costs, delays, and risks of fraud, lost payments, theft, and inefficiencies.”
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This decision comes amid a sharp rise in check fraud incidents nationwide. Between February and August 2023, criminals pilfered over $688 million through mail-related check fraud. Instances of check fraud have doubled from 2021 to 2023, including high-profile thefts such as a $4 million Treasury check scam perpetrated by former postal workers.
Who Will Be Affected the Most?
Approximately 456,000 Americans continue to receive paper Social Security checks monthly. Many of these recipients are seniors, individuals without internet access, or those who are not adept with digital banking. Transitioning to electronic payments may prove challenging for them.
The government will offer hardship exemptions for those who find this change difficult, but the Social Security Administration (SSA) may encounter obstacles in assisting everyone with the transition, especially in light of recent budget cuts and office closures.
How Will Payments Work Now?
Treasury Secretary Scott Bessent has a timeline of 180 days to devise a plan for this transition. Future payments will adopt:
- Direct deposit (bank transfers)
- Debit/credit card payments
- Digital wallets (like Apple Pay or Venmo)
- Real-time payment systems
Individuals who currently receive paper checks must establish an electronic payment method before the 2025 deadline.
Even outside the realm of government, the use of paper checks is dwindling. A 2024 survey revealed that 46% of Americans did not write a single check over the past year. Younger adults, in particular, favor applications such as Venmo or Apple Pay.
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“Checks aren’t safe anymore,” remarked Haywood Talcove, a fraud expert. “It’s where criminal organizations are thriving.”
What If Someone Can’t Use Digital Payments?
A limited number of exceptions will persist, such as for emergencies or individuals lacking bank accounts. However, the overarching message is evident: the government is going entirely digital, relegating paper checks to history.
For those who depend on checks, the upcoming year will be critical for adaptation before the September 2025 deadline alters how payments are processed in America.
