President Trump is leading the way toward reduced check usage by phasing out paper checks for government payments.

WASHINGTON—A new executive order from President Donald Trump bans paper checks as a form of payment for the federal government.

The order was signed noting that Treasury checks are often reported stolen, and face other issues.

The order also notes that payments made to the federal government are also modernizing.

“Check fraud is a perennial concern for the banking industry, growing in recent years – reports doubled from 2021 to 2022. Target stores announced last year that they would stop accepting paper checks,” the Independent Community Bankers of America pointed out.

“It's a great sign that the government is leading the way toward reduced check usage by phasing out paper checks for government payments,” said ICBA payments expert Scott Anchin, noting that consumers and financial institutions should maintain the ability to determine appropriate payment mechanisms for specific cases. 

ABA President and CEO Rob Nichols said his organization welcomes President Trump’s latest executive order.

“Despite a continued decline in business and consumer use of checks, check fraud has continued to rise,” stated Nichols. “That is why ABA and banks across the country launched the #PracticeSafeChecks campaign last October to educate consumers, including encouraging them to use digital banking options to send money whenever possible. The bottom line: Electronic payments are a much faster, cheaper and safer choice for consumers and the federal government. We look forward to working with the Administration to make sure consumers are ready for this transition, which will also provide another important opportunity to further reduce the number of unbanked in the country from the current record low of 4%.”