Beginning Sept. 30, the U.S. Department of Treasury will end paper checks for most federal payments, including Social Security, Veterans Affairs benefits, and tax refunds. Under the federal executive order Modernizing Payments To and From America’s Bank Accounts, most recipients will be required to receive their funds electronically.

Currently, about 7% of tax refunds and 2% of federal benefits are still issued via paper checks. However, paper checks are 16 times more likely to be lost, stolen, or altered than electronic payments.

Approved options for electronic payments include:

• Direct Deposit into a checking or savings account

• Prepaid debit card accounts (such as the Direct Express® card) which often includes extra fees

• Other digital payment options

While limited exemptions may apply, federal guidelines are still pending. The Social Security Administration will be contacting current paper-check beneficiaries directly.

Locally, Bank On Central Kansas is here to help. Three community banks – Sunflower Bank, Equity Bank, and First Kansas Bank – offer Bank On certified accounts that can make this transition easy, safe, and affordable. 

These accounts:

• Have no overdraft or insufficient funds fees

• Are federally insured

• Can be opened quickly to set up direct deposit for benefits or refunds

“With this federal change coming, it’s more important than ever to make sure every recipient has a safe, affordable account to receive their benefits,” said Charell Owings, Executive Director of United Way of Central Kansas. “Local banks are stepping up to provide accounts that meet those needs right here in our community.”

For help setting up an account or to learn more about your options, visit www.uwck.org/bankon.