Chase Reminds Customers About Upcoming Federal Phaseout of Paper Checks

Chase is encouraging its customers who receive paper checks from the government to enroll in direct deposit as the U.S. Treasury’s Sept. 30 deadline for the phaseout of paper checks for most federal payments nears.

In a Wednesday (Aug. 27) press release, the bank suggests that customers enroll in direct deposit by contacting the federal agency that pays their benefits, visiting GoDirect.gov or calling the Electronic Payment Solution Center at 800-967-6857.

Chase also invites customers who have questions to visit a branch for help with the transition.

“Direct deposit is not only a more secure option, but it also ensures that our customers receive their payments promptly without the risk of theft or delays sometimes associated with paper checks,” Steve Goodman, head of product for Chase Consumer Bank, said in the release.

“We are dedicated to providing our customers with the resources and support they need to make this transition as smooth as possible,” Goodman said.

The Treasury Department reminded recipients of federal benefits about the phaseout of paper checks in an Aug. 14 press release, saying “It’s time to switch to an electronic payment method.”

Treasury shared the same options as Chase and added that those without a bank account to receive direct deposit can find help at FDIC: GetBanked or MyCreditUnion.gov. They can also call the Electronic Payment Solution Center or contact their paying agency to sign up for a Direct Express Debit Mastercard that allows them to receive benefit payments electronically.

“Reducing paper checks has been a longstanding bipartisan goal that our administration is finally putting into action,” Treasury Secretary Scott Bessent said in the release. “Thanks to President Trump, this will help reduce fraud and theft. It will also remove delays that prevent hardworking Americans from receiving their vital payments.”

President Donald Trump signed an executive order on March 25 requiring that the federal government stop issuing paper checks for disbursements, effective Sept. 30, and stop accepting them for payments “as soon as practicable.”

At that time, the federal government will switch to electronic payments.

“This order promotes operational efficiency by mandating the transition to electronic payments for all Federal disbursements and receipts by digitizing payments to the extent permissible under applicable law (but not, for avoidance of doubt, to establish a Central Bank Digital Currency),” the order said.

The PYMNTS Intelligence and Ingo Payments collaboration “Measuring Consumers’ Growing Interest in Instant Payouts” found that half of the individuals surveyed said they had received at least one government disbursement in the previous year.

Another PYMNTS and Ingo Payments collaboration, “Government Goes Digital: Phasing Out Federal Checks Opens Door to Instant Payments,” found that replacing checks with digital and real-time rails addresses consumer demand, as 90% of Americans said they would prefer to receive disbursements instantly if given the choice.