WASHINGTON–Oct. 1 marked the beginning of the fourth quarter and the end of most paper checks from the U.S. government.
Executive Order 14247, “Modernizing Payments To and From Americans’ Bank Accounts,” signed by President Trump in March, requires all individuals to enroll in direct deposit to receive government funds.
The change affects recipients of benefits including Social Security, Supplemental Security Income and tax refunds.
The administration said the shift of all payments and collections to electronic methods is designed to protect taxpayers from fraud and stolen checks, speed up processing and cut costs. Paper checks cost the government about 50 cents each, compared to less than 15 cents for electronic transfers.
Critics have suggested many people are unaware of the change and will miss payments, although most people already receive their funds electronically.
400,000 Still Receive Checks
According to the government, nearly 400,000 Social Security and SSI recipients receive their benefits through paper checks, which is less than 1% of the 70.6 million retirees, disabled people and children who receive Social Security benefits.
Under the new plan, instead of paper checks, they will receive a direct deposit or a Direct Express card, which is intended for people without a bank account. The Social Security Administration says it will still issue paper checks if no other options are available.
Dupaco Offers Reminder
Among the credit unions reminding members of the change is Dupaco Community Credit Union in Dubuque, Iowa, which has issued an alert to members who receive funds from Social Security, the IRA, the VA, the Department of Labor, the Railroad Retirement Board (RRB) and Federal Motor Carrier Safety Administration (FMCSA).
“Direct deposit is a safer, faster and more reliable way to receive your money,” Katie Shemak, AVP of Deposit Operations at Dupaco, said in a statement. “It eliminates the risk of lost or stolen checks and ensures funds are available without delay. Our team is here to help members make the switch with confidence.”
Consumers are being urged to go to GoDirect.govto sign up for direct deposit.
