Executive Order: Electronic Payments
MAINSTREET BANK
As your trusted financial partner, MainStreet Bank is committed to keeping you informed about important changes that may affect your finances. Earlier this year, an Executive Order was signed directing federal agencies to stop using paper checks for payments by September 30, 2025. This includes payments that you may receive from government agencies, like social security and tax refunds. But what does this mean for you, and how can you prepare? This resource outlines what you need to know about the U.S. Treasury’s initiative to transition federal payments from paper checks to electronic methods.
What’s Happening?
The U.S. Department of the Treasury has been actively working to transition all federal payments to electronic methods, primarily direct deposit and prepaid debit cards. This initiative aims to increase efficiency, reduce costs, and enhance the security of federal payments.
Why the Change to Electronic Payments?
- Increased Security: Electronic payments eliminate the risk of lost or stolen paper checks, which can be vulnerable to fraud.
- Faster Access to Funds: Funds are deposited directly into your account or onto your prepaid card, often available sooner than waiting for a check to arrive and clear.
- Convenience: No more trips to the bank to deposit a check, and your funds are always accessible.
- Cost Savings: Electronic payments significantly reduce the government’s administrative costs associated with printing and mailing checks.
- Environmental Benefits: Less paper used means a reduced environmental impact.
Who Does This Affect?
This initiative affects anyone who currently receives federal payments via paper check. This includes, but is not limited to:
- Social Security recipients
- Supplemental Security Income (SSI) recipients
- Veterans Affairs (VA) benefit recipients
- Other federal benefit recipients
What Are Your Options?
The U.S. Treasury offers two primary electronic payment options:
1. Direct Deposit: This is the safest, fastest, and most convenient way to receive your federal payments. Your payments are deposited directly into your checking or savings account at MainStreet Bank.
2. Direct Express Debit Mastercard: For individuals who do not have a bank account or prefer not to use direct deposit, the U.S. treasury offers the Direct Express Debit Mastercard. This prepaid debit card functions like a regular debit card, allowing you to make purchases, get cash back, and pay bills.
What Do You Need To Do?
If you are currently receiving federal payments via paper check, it’s important to prepare for the upcoming changes.
1. Visit www.GoDirect.gov to view your options for payment
2. Sign Up for Direct Deposit using your routing and account numbers; or
3. Call 1-877-874-6347 to request a Direct Express Debit Mastercard
Additional Details:
- Be Wary of Scams: The U.S. Treasury and MainStreet Bank will never call, email, or text you asking for your personal information to set up direct deposit. If you receive such a request, it is likely a scam.
- Keep Your Information Updated: If your banking information changes (e.g., you close an account or open a new one), it’s crucial to update your direct deposit information with the relevant federal agency immediately to avoid payment disruptions.
- Executive Order: For full details on the order, refer to the official executive order.
- Fact Sheet: Learn more about how this will impact both federal agencies and recipients by reading the fact sheet.
