President Donald Trump signed an executive action this week directing the Treasury Department to shape retired insubstantial checks and usage physics payments instead.
The Presidential action, "Modernizing Payments to and from America's Bank Account," stated that utilizing "paper-based payments" leads to delays and "risks of fraud."
"President Trump is cracking down connected waste, fraud, and maltreatment successful authorities by modernizing outdated paper-based costs systems that enforce unnecessary costs, delays, and information risks," a fact sheet outlining the scheme reads.
The connection besides notes that message theft complaints are connected the rise.
In 2023, the U.S. Postal Service warned customers against sending checks successful the message owed to rising fraud.
What payments does the executive bid affect?
The Treasury was directed to "cease issuing insubstantial checks for each Federal disbursements," which intends each authorities payments, including intragovernmental, benefits, and vendors.
It besides includes taxation refunds.
Payments will alternatively beryllium issued by nonstop deposits, debit and in installments paper payments, integer wallets, and "other modern physics costs options."
Related: Check Fraud Is On the Rise. Here's How to Avoid Being a Victim.
When will the authorities extremity insubstantial checks?
The bid goes into effect this fall, connected September 30, 2025.
What if you don't person entree to integer banking?
There are respective carve-outs for group without entree to integer costs systems aliases those who can't person physics payments. In those cases, "individuals aliases entities qualifying for an exception" will beryllium "provided replacement costs options."
The bid does not authorities really this would beryllium wished aliases really to use for the exception. It besides doesn't authorities what the alternatives will be.
Related: The IRS Is Reportedly Planning to Cut Up to 45,000 Workers — Half of Its Workforce
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