The Treasury Department shared options for consumers who receive federal payments by check as the government officially ceased issuing checks.
Details: In the announcement, Treasury said direct deposit is a safer, faster, more convenient way of receiving benefits and urged consumers to make the switch to an electronic payment method right away.
More from Treasury: The mymoney.gov page offers frequently asked questions and contact information on the change, which responds to a March executive order. The Treasury Department announced the phaseout in August, with the Bureau of the Fiscal Service offering additional information to beneficiaries.
IRS Update: In an announcement last week, the IRS confirmed paper tax refund checks for individual taxpayers will be phased out as of Sept. 30. It said taxpayers should continue using existing forms and procedures until further notice, including those filing their 2024 returns on extension of a due date prior to Dec. 31, 2025.
ICBA View: ICBA in March applauded the Trump administration for working to combat the threat of check fraud by addressing Treasury’s use of paper checks.
Check Fraud Resources: Amid a dramatic rise in check fraud, ICBA also encourages community banks to use:
The Treasury Department’s Treasury Check Verification System to catch canceled, duplicate, or other problematic Treasury checks at the time of presentment.
Nacha’s ACH Contact Registry, which includes thousands of check contacts.
ICBA’s customizable news release via ICBA’s Marketing Resource Center and check fraud prevention flyer to distribute to customers.
Community banker resources on the ICBA website, including ICBA guides on check fraud and online fraud courses.
ICBA Community’s Fraud subgroup, which includes more than 1,100 members dedicated to discussing fraud.
ICBA’s Solutions Directory to identify payments, compliance, and security service providers dedicated to community banks.