The paper check, a long staple of business transactions, could be nearing its end. An Executive Order issued on March 25, 2025, is fast-tracking the shift to digital payments for all federal transactions, nudging businesses to rethink paper-based payment processes.
Federal disbursements going fully digital by September 2025
The March 2025 Executive Order requires the U.S. government to switch to 100% electronic payments by September 30, 2025, which means the U.S. Treasury will no longer issue paper checks for benefits, vendor payments, tax refunds, and other disbursements.
While the Executive Order urges federal agencies to transition incoming payments to electronic methods, it does not establish a firm end date for accepting paper checks from businesses or individuals. Agencies are instructed to move inbound payments to digital ‘as soon as practicable’ under existing law.
Modernization across the payments industry
With the government being one of the largest check issuers, this federal action will likely accelerate the decline of paper checks throughout the economy – and businesses dependent on them face increasing disruption. Proactive transition to alternative payment methods can enhance efficiency, lower costs, and safeguard cash flow. More importantly, the transition to digital payments offers greater security through encryption and authentication, greatly reducing the risk of theft or alteration of paper checks.
Paper checks are also expensive and slow. Processing them requires manual handling, printing, mailing, and reconciliation. ACH, cards, digital checks and instant payments streamline payments, reduce manual touchpoints, and offer faster, more trackable, and cost-effective alternatives. These solutions also help enable better cash flow management, rebate potential, and improved security controls.
Santander Bank’s digital capabilities driving more seamless client experiences
With an increased focus on mobile banking and investments in treasury products, Santander Bank continues to expand its suite of digital cash management offerings that are designed to provide a convenient and secure commercial client experience. This includes electronic/digital payables and receivables solutions such as ACH, wire transfers, cards, and digital checks. In addition to offering fraud detection and protection tools, the Bank works closely with clients to help them optimize workflows, reduce payment costs, and mitigate risk during this transition.
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