As of September 30, 2025, a major change in the way Americans receive federal payments has officially taken effect. The IRS and the U.S. Treasury have stopped issuing paper checks for tax refunds and most other federal disbursements. This change comes from Executive Order 14247, titled “Modernizing Payments To and From America’s Bank Account,” signed earlier this year in March 2025. For decades, many Americans have relied on paper checks arriving in the mail for their tax refunds, Social Security payments, and other federal funds, but that is now a thing of the past. The government has fully embraced digital payments, including direct deposits, debit cards, digital wallets, and other electronic methods.
This change is part of a broader effort to modernize federal payment systems. Paper checks, while reliable, have always been slower, more expensive, and more vulnerable to theft compared to digital methods. By moving payments online, the Treasury aims to make federal transactions faster, more secure, and more convenient for Americans. While the executive order does include exceptions for people who do not have access to bank accounts, for emergency payments, and for certain national security-related situations, the government has not yet provided detailed instructions about how those exceptions will be applied.
For most people, the biggest impact of this change is that direct deposit is now the standard way to receive tax refunds and other federal payments. Anyone who files taxes without providing banking information may experience delays or complications with their refund. For those without a checking or savings account, there may still be exceptions, but details on how to qualify have not been clearly laid out. This means that if you are accustomed to receiving a paper check in the mail, it is now essential to have a bank account or another digital payment option in place.
Opening a checking or savings account has become a crucial step for anyone who doesn’t already have one. Many local banks and credit unions offer low-cost or no-cost accounts, making it easier than ever to access digital payments. Checking accounts are ideal for receiving direct deposits and managing everyday expenses, while savings accounts can also accept electronic deposits and provide a way to set money aside for the future. For those who may not know where to start, resources like FDIC.gov and MyCreditUnion.gov can help you understand banking options, compare different institutions, and find a solution that fits your needs.
Even if you already have a bank account, it is a good idea to double-check that your IRS information is up to date. Any errors in your account or routing numbers can cause delays in receiving your refund or other federal payments. For those who prefer not to use a traditional bank account, prepaid debit cards or digital wallets that accept direct deposits are also options to consider. These alternatives ensure that you can still access your money safely and conveniently.
Since the September 30 deadline, many Americans are already experiencing the benefits of electronic payments. Refunds that might have taken weeks to arrive in the mail now show up in accounts in just a matter of days. Electronic payments also reduce the risk of fraud or theft that comes with paper checks, and they allow for real-time monitoring so you can see immediately when funds are deposited. On top of that, eliminating paper checks reduces environmental waste, making this transition a small but meaningful step toward sustainability.
Social Security recipients have been affected as well. Most were already using direct deposit, but anyone who relied on paper checks had to make the switch to electronic payments. Even for those receiving emergency or special payments, the exceptions built into the executive order are limited and handled on a case-by-case basis, so it is safer to have a digital payment method in place.
With this shift, managing your finances digitally has become increasingly important. Direct deposit can be set up to split your funds between checking and savings, helping you save automatically. Banking apps make it easy to track spending, set alerts, and manage your money without ever visiting a branch. Monitoring transactions electronically also provides peace of mind, since you can immediately verify when funds arrive and ensure everything is correct.
Looking ahead, the Treasury and IRS may release more guidance about exceptions and additional digital payment options. Staying informed is key to making sure you continue receiving your federal payments without any disruption. By taking advantage of digital tools and ensuring your banking information is accurate, you can make this transition smooth and even take steps to improve your financial management overall.
The end of paper checks marks a historic change in how Americans receive their money. Executive Order 14247 was designed to make federal payments faster, safer, and more efficient. While it may have felt sudden at first, the benefits of electronic payments are already being realized. If you haven’t done so already, now is the time to make sure your bank account is ready, your IRS information is correct, and you’re familiar with digital alternatives for receiving funds. This change isn’t just about how money is delivered—it’s about making federal payments more secure, convenient, and accessible for everyone.
For more guidance on getting your finances ready for this new system, the FDIC’s Get Banked website and MyCreditUnion.gov are excellent resources. The IRS website also provides information on updating your banking details and understanding how refunds are processed in this new digital era. By taking these steps, you can ensure that your tax refunds and other federal payments continue to reach you safely and quickly in the era after paper checks.