The U.S. Government Is Moving to Electronic Payments: What You Need to Know
Starting September 30, 2025, the government will stop using paper checks for most payments and will switch to electronic payments instead. This includes things like Social Security, tax refunds, veterans’ benefits, and other payments.
Why the Change?
Using paper checks costs more money, takes longer, and increases the risk of fraud and theft. Since the COVID-19 pandemic, mail theft has gone up. Government checks are 16 times more likely to be lost or stolen than digital payments.
What This Means for You
If you receive any payments from the government, you need to take action. We advise you to receive payments by the following methods:
- Direct deposit to your bank account
- Prepaid cards
- Digital wallets (like Apple Pay or PayPal)
- Other modern payment methods
PLEASE NOTE: If you already get your payments electronically, nothing will change.
Are There Exceptions?
Yes. Some people may still get paper checks if:
- They don’t have a bank account or access to digital payments
- There’s an emergency or special situation
- It’s for national security or law enforcement
The government will offer other safe payment options for people who qualify for exceptions.
How to Prepare
- Make sure your bank account info is up to date
- Consider setting up direct deposit or another digital payment option
- Watch for updates from the government or your bank
Switching to digital payments is safer, faster, and saves money. Need a checking account? Easily open a Horizon checking account online here today!
If you have questions, contact your bank or visit official government websites for more information.