The phrase “the check’s in the mail” will soon be a thing of the past – at least when it comes to the federal government.

President Donald Trump recently signed an executive order directing the federal government to stop making payments via paper checks, covering things like Social Security benefits, tax refunds and money sent to vendors.

Effective Sept. 30, all department and agencies “must transition to modern, electronic funds transfer methods like direct deposit, debit/credit card payments, digital wallets and real-time transfers,” the order said.

According to Social Security, about 480,000 people currently receive their monthly benefits via paper checks, roughly 7% of all recipients. About 4% of tax refunds this year were issued via paper check, according to the latest Internal Revenue Service figures.

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People who receive checks from the government will have to set up an online bank account or a digital payment option, though limited exceptions will be made for those who don’t have access to banking services or electronic payment methods.

Payments to the government for things such as fees, loans, fines and taxes, will also be required to be electronic.

Why the change?

The order cites several reasons for doing away with paper checks, including unnecessary costs, delays, risks of fraud, lost payments and theft. Mail theft complaints have increased substantially since 2020, the order noted, and Treasury checks in particular are 16 times more likely to be reported lost or stolen or returned as undeliverable.

In 2020 alone, the order noted, banks issued about 680,0000 reports of check fraud in 2022, nearly double the number from 2021.

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