[US] Trump signs order to modernise disbursements and cease issuing paper cheques

President Trump has signed a new executive order to phase out paper cheques and transition the US federal government to electronic payments for disbursements, including benefits and tax refunds, Fintech Futures reports.

In a statement announcing the order, the White House said, “Effective September 30, 2025, the federal government will cease issuing paper checks for all disbursements, including intragovernmental payments, benefits, vendor payments, and tax refunds.”

The move will reportedly see the government transition to electronic funds transfer (EFT) methods such as direct deposit, debit and credit card payments, digital wallets and real-time transfers.

In its statement, the White House said the order is intended to help address the challenges associated with paper-based payments, which “impose unnecessary costs, delays and risks of fraud, lost payments, theft and inefficiencies”.

It states that treasury cheques are “16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer” and adds that, in 2022, banks issued around 680,000 reports of cheque fraud, nearly double the figure from 2021.

As part of the transition, the treasury will “phase out physical lockbox services and expedite electronic collection of federal receipts”, and a public awareness campaign will be launched for federal payment recipients offering guidance on how to set up electronic payment options.

There will reportedly be exceptions for those without access to banking or electronic payment methods, certain emergency payments, and law enforcement activities.

Source: Fintech Futures

(Quotes via original reporting)

President Trump has signed a new executive order to phase out paper cheques and transition the US federal government to electronic payments for disbursements, including benefits and tax refunds, Fintech Futures reports.

In a statement announcing the order, the White House said, “Effective September 30, 2025, the federal government will cease issuing paper checks for all disbursements, including intragovernmental payments, benefits, vendor payments, and tax refunds.”

The move will reportedly see the government transition to electronic funds transfer (EFT) methods such as direct deposit, debit and credit card payments, digital wallets and real-time transfers.

In its statement, the White House said the order is intended to help address the challenges associated with paper-based payments, which “impose unnecessary costs, delays and risks of fraud, lost payments, theft and inefficiencies”.

It states that treasury cheques are “16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer” and adds that, in 2022, banks issued around 680,000 reports of cheque fraud, nearly double the figure from 2021.

As part of the transition, the treasury will “phase out physical lockbox services and expedite electronic collection of federal receipts”, and a public awareness campaign will be launched for federal payment recipients offering guidance on how to set up electronic payment options.

There will reportedly be exceptions for those without access to banking or electronic payment methods, certain emergency payments, and law enforcement activities.

Source: Fintech Futures

(Quotes via original reporting)