On March 25, 2025, President Donald Trump issued an executive order directing the federal government to eliminate paper checks by September 30, 2025, except in certain circumstances. According to the White House, the Trump administration aims to “modernize how the government handles money, switching from old-fashioned paper-based payments to fast, secure electronic payments.” The order cites a continued rise in check fraud.
The order mandates that all federal government departments and agencies must issue payments, including Social Security benefits, veterans’ benefits, tax refunds, and vendor payments, via electronic funds transfer (EFT) methods, like direct deposit, debit/credit card payments, digital wallets, and real-time transfers.
Payments made to the federal government, like taxes, fees, fines, or loans, will also have to be made electronically, with limited exceptions. There will be exceptions made for people who don’t have access to electronic payment tools, in emergency situations and for law enforcement activities, the order said. Treasury Secretary Scott Bessent must provide an implementation plan for the measures within 180 days, according to President Trump’s directive.
The policy shift will likely benefit financial services providers that facilitate government fund disbursement programs, including prepaid card programs and electronic payment services that process and distribute payments to recipients.
Key Considerations
Different demographics have varying levels of adaptability. Older individuals, especially those who have relied on checks, may struggle to transition to electronic payment systems or may be unable to fully adopt these new technologies. Additionally, some people may lack reliable internet access or the necessary devices to set up and manage digital payment solutions such as apps and direct deposits.
While paper checks present fraud concerns, EFTs are not immune from fraud, as new risks continue to emerge and evolve. Cybercriminals may exploit the increased use of digital payments to launch cyberattacks, identity theft, fraud, and other crimes. Cybersecurity threats will continue to pose a risk to electronic payment systems.
The move to electronic payments also raises privacy concerns. The use of electronic payments may increase the prospect of impersonations, and when personal data is shared and stored digitally, questions arise about how this information will be used and protected from unauthorized use or disclosure. The federal government and financial institutions will need to address privacy concerns that will arise from this new mandate.
PRINTING United Alliance has consistently championed consumers' right to choose paper-based options rather than being compelled to adopt electronic or digital formats, particularly in areas such as financial documents and transactions. We believe that individuals and businesses should have the freedom to select the payment method that best suits their needs, whether for security, accessibility, or personal preference. This advocacy extends to ensuring that those without access to digital banking services, such as the unbanked or underbanked populations, are not left without viable alternatives.
While the transition to electronic payment systems may be inevitable, by supporting policies that preserve paper-based choices, the Alliance Government Affairs team seeks to maintain inclusivity, prevent digital exclusion, and uphold consumer rights in an increasingly digital financial landscape.
In this article, Stephanie Buka, Government Affairs Manager, PRINTING United Alliance, reports on the President’s Executive Order directing the federal government to transition from paper checks to electronic payment systems. More information can be found at Business Excellence-Legislation or reach out to Steph should you have additional questions specific to how these issues may affect your business: sbuka@printing.org.
To become a member of the Alliance and learn more about how our subject matter experts can assist your company with services and resources such as those mentioned in this article, please contact the Alliance membership team: 888-385-3588 / membership@printing.org.
