The federal move away from paper checks: what businesses should do
An executive order signed in March 2025 directed the Treasury to stop issuing paper checks for most federal payments from 30 September 2025. Businesses paid by agencies, or receiving tax refunds, need electronic details on file.
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The federal government is one of the largest issuers of paper checks. A March 2025 executive order set a date to stop.
What the order says
| Item | Detail |
|---|---|
| Order | Executive Order 14247, 25 March 2025 |
| Payments out | Treasury to stop issuing paper checks from 30 September 2025, with exceptions |
| Payments in | Agencies to move collections to electronic methods where possible |
| Reasons | Cost, fraud, delays |
What businesses should do
- Make sure bank details are current with every agency that pays you, including the IRS.
- Register for electronic payment with agencies you pay, such as EFTPS for federal tax.
- If you are a federal contractor, check your SAM.gov payment details.
Your own checks
FinCEN has warned about rising check fraud. Businesses that still pay suppliers by check face theft, washing and forgery. ACH costs less and is harder to alter. See positive pay and check fraud.
Paying into the United States: the local rail
| What | Detail |
|---|---|
| Local rail | ACH for batch payments; RTP and FedNow for instant transfers |
| Run by | Nacha for ACH; The Clearing House for RTP; the Federal Reserve for FedNow |
| Settlement | Same-day ACH within the business day, standard ACH the next; RTP and FedNow in seconds, 24/7, where both banks take part |
Source: Nacha: Same Day ACH. Checked when this guide was last updated; the scheme's own page has the current figures.
Where Rivet fits
Rivet gives registered companies USD details for receiving ACH and wires on the free Starter plan and sends payouts by ACH and on local rails abroad, with no paper. Rivet is not a bank; regulated partner institutions hold the funds. See ACH vs wire transfer.
Questions people ask
Is the government stopping paper checks?
For most federal disbursements, yes, from 30 September 2025 under Executive Order 14247, with exceptions for people without access to banking and some other cases.
How will businesses get IRS refunds?
By direct deposit, where bank details are on the return or on file. Make sure they are current.
Does this affect payments to the government?
The order directs agencies to move collections to electronic methods where possible, such as ACH, cards and digital wallets.
Should my business stop using checks?
Most businesses can. ACH is cheaper and safer, and check fraud remains common.
Sources
Alexia compares the accounts, cards and payment tools companies weigh before they switch, and writes Rivet's market guides for founders in a specific country. Prices in Alexia's comparisons come from each provider's own pricing page on the date given in the article, rules come from the regulator or tax authority that sets them, and every source is listed at the end.
More from Alexia M. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
- paper checks phase out
- treasury electronic payments
- executive order 14247
- tax refunds
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