Federal Electronic Payment Mandate

On March 24, 2025, the White House issued an Executive Order Modernizing Payments To and From America’s Bank Account that would phase out paper checks in favor of electronic payments effective September 30, 2025. Agencies are directed to transition to electronic funds transfers (EFTs) including direct deposit, prepaid cards and other digital payment options. Only limited exemptions will be granted. The Executive Order also applies to payments made to the federal government.

Treasury issued a Request for Information in June 2025 seeking recommendations on making this migration successful. In response to the RFI, ABA made several recommendations to lay the groundwork for an efficient transition to electronic payments.

Increase the number of consumers and businesses with bank accounts capable of sending and receiving electronic payments.
Increase the number of consumers and businesses with bank accounts using faster, safer, and cheaper electronic payment services.
Concentrate initial efforts on the largest federal payment flows.

News

Press Release
New Letter: ABA Expresses Strong Support for Treasury’s Effort to Increase Efficiency in the Payments System
June 30, 2025
Press Release
ABA, America’s Banks Launch Two Major Consumer Protection Initiatives: #PracticeSafeChecks and #BanksNeverAskThat
October 01, 2024

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Related Training & Events

Preparing Your Bank for the Federal Payments EFT Mandate
Upcoming Webinar | August 14, 2025 | 2 - 3 PM ET

Learn how financial institutions can comply with the 2025 Federal Payments EFT Mandate.
#BanksNeverAskThat and #PracticeSafeChecks: What’s New in 2025
Upcoming Webinar | August 26, 2025 | 2 - 3 PM ET

Get a sneak peek and prepare for a successful launch by attending our free webinar on August 26 where you will get an overview of common scams and fraud tactics and a walkthrough of this year’s new resources.