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The federal government will soon stop distributing paper checks for federal payments after the Trump administration announced a move to pivot to a digital-only model.
Chase Bank and other financial institution customers can prepare for the change by switching to checking accounts.
How To Still Get That Paper
President Donald Trump issued an executive order in March to stop the issue of paper checks for federal payments, urging Americans to switch to an electronic payment method.
Paper checks are 16 times more likely to be lost or stolen, marked undelivered or illegally altered, the order explained, while maintenance of the technology to digitize paper records proved to be a hindrance that cost taxpayers $657 million in 2024.
The order will take effect on September 30, a decision that will impact over 500,000 household beneficiaries of Social Security, or 0.75% of all Social Security beneficiaries as of July.
In a news release, Chase encouraged customers to sign up for electronic payment methods as soon as possible.
“Direct deposit is not only a more secure option, but it also ensures that our customers receive their payments promptly without the risk of theft or delays sometimes associated with paper checks,” said Steve Goodman, head of product for Chase Consumer Bank.
“We are dedicated to providing our customers with the resources and support they need to make this transition as smooth as possible.”
Get Set Up
Those who are still receiving federal payments via paper checks should sign up for direct deposit as soon as possible to prevent hiccups or delays. Chase offers checking accounts with no minimum deposit requirements and a mobile app for easy access.
Keep in mind that Chase charges a monthly fee of $15 for accounts that don’t reach balance minimums. Users can avoid the fee by sending electronic deposits totaling $500 or more into the account, maintaining an account balance at the beginning of each day of $1,500 or more or an average beginning day balance of $5,000 or more in any combination of Chase checking, savings and other accounts.
Customers can enroll in direct deposit by contacting the federal agency that pays their benefits, visiting GoDirect.gov or calling the Electronic Payment Solution Center at 800-967-6857.