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Key organizations within the payments industry have voiced strong support for the federal government’s initiative to eliminate paper checks for disbursements. Nacha (the governing body of the ACH network), The Bank Policy Institute, The Clearing House Association, and the Consumer Bankers Association have all submitted comments to the Treasury Department in favor of Executive Order 14247, titled “Modernizing Payments To and From America’s Bank Account.”
This executive order, issued by the Trump Administration in March 2025, mandates the transition to fully electronic federal payments and collections. Specifically, it calls for the elimination of paper checks for federal disbursements by September 30, 2025, to the extent permitted by law.
The industry’s support stems from several key benefits associated with electronic payments:
* Cost Savings: Nacha highlighted that the estimated cost for the federal government to issue a paper check is $2.02, while an ACH credit costs only 12 cents. They noted that in 2024, the Treasury Department issued 36 million paper checks, and if these had been sent via the ACH network, the government could have saved over $68 million.
* Fraud Reduction: Industry groups emphasized that paper checks are the most susceptible payment method to fraud. By transitioning away from checks, the federal government can significantly reduce the potential for fraud and improper payments.
* Increased Efficiency and Security: Electronic payments are generally more efficient, faster, and more secure than paper-based methods, reducing delays and risks of lost payments and theft.
* Modernization: The move is seen as a critical step in modernizing America’s payment infrastructure, aligning with broader trends in the financial sector.
The Treasury Department had requested public comments on the order, seeking feedback on implementation, barriers to transition (especially for unbanked and underbanked populations), and recommendations for public awareness campaigns to help recipients transition to digital payment options. The banking associations stressed the importance of investing in fraud detection tools and minimizing exceptions to electronic payments.

Video courtesy of Interactive Brokers.

Video courtesy of Interactive Brokers.