A trio of bank groups has urged the U.S. Department of the Treasury to expedite the transition from paper checks to electronic payment options.
In March, President Donald Trump ordered the U.S. federal government to phase out paper checks and centralize payment processing to combat fraud. He noted that the use of paper checks and money orders incurs unnecessary costs, delays, and risks including fraud, lost payments, and theft.
In response to this initiative, the Bank Policy Institute, The Clearing House Association, and the Consumer Bankers Association have called for swift action to fully transition to secure electronic payment methods while minimizing check usage.
The groups emphasized that phasing out paper Treasury checks is crucial for reducing theft and financial losses for both the federal government and financial institutions. They highlighted the opportunity this presents to modernize America’s payment infrastructure, enhance fraud prevention, and improve financial security for taxpayers.
They are advocating for a public awareness campaign to educate Americans about electronic payments, an expansion of the government’s use of existing electronic payment platforms, and an investment in fraud detection tools such as ID verification.