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A big change is coming to government payments in the United States, as the country says goodbye to paper checks and does everything through electronic payments.
The White House issued a statement on March 25, 2020, stating that President Donald Trump signed an executive order to modernize the way the government handles money, “moving from traditional paper payments to fast and secure electronic payments.”
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This measure will take effect from September 30, when paper checks will no longer be issued for all disbursements, including intragovernmental payments, benefits, supplier payments and tax refunds.
The statement adds all executive departments and agencies will transition to modern methods of electronic funds transfer (EFT), such as direct deposit, debit or credit card payments, digital wallets and real-time transfers.
Who will be affected?
The Grada 3 website details that this change will affect around half a million Americans who receive their Social Security payments by paper check. And while it is a modernization, there is concern about how it will affect the vulnerable population.
It details that some 456,000 Americans (0.7%) out of a total of 68.2 million Social Security beneficiaries still use paper checks across the country
Generally, they are older people who are not so used to using digital systems.
The website notes that because this change is being announced at a time when the Social Security system is reducing the availability of telecommunications services, which are vital to facilitate the transition of beneficiaries, skeptics believe that the changes could affect the financial stability of beneficiaries who rely on Social Security payments as their primary source of income.
In the statement, the White House emphasizes that President Trump decided to take these steps to combat waste, fraud and abuse in government by “modernizing outdated paper-based payment systems that impose unnecessary costs, delays and security risks.”
This news was originally published on this post .
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