Checks are becoming obsolete primarily due to the rise of faster, more secure, and cost-effective digital payment alternatives like ACH, wire transfers, and digital wallets. Key factors driving this shift include high rates of fraud, significant processing delays, and the high cost of manual handling compared to instant, electronic transactions.
Electronic payments such as direct deposit are safer than checks, allow quicker access to funds, and have less risk of fraud,” said Fiscal Service Chief Disbursing Officer Linda Chero.
A digital payment system allows government agencies to send and receive funds electronically, eliminating the need for paper checks. These systems can: Disburse funds to citizens (benefits, refunds, reimbursements) Pay vendors and contractors through automated accounts payable (AP) tools.
Paying online is faster and cheaper than writing a check. Businesses and utilities encourage online and automatic payments, which increase the availability and use of such options. Banks like electronic checking because there is a lower risk of fraud.
Checks remain a trusted payment method, even in today's digital-first world. The Vericast Paper Check Usage and Sentiment Survey (May 2025) found that over half (53%) of respondents reported choosing to use a check despite having digital alternatives.
WASHINGTON – The U.S. Department of the Treasury announced that the federal government will stop issuing paper checks for most federal payments on September 30, 2025. If you are one of the few people who still receives a federal benefit check, it's time to switch to an electronic payment method.
The "$10,000 bank rule" refers to federal laws requiring financial institutions and businesses to report large cash transactions (deposits, withdrawals, payments) of over $10,000 in currency to the government to combat money laundering and financial crimes. Banks file Currency Transaction Reports (CTRs) for cash activity over $10,000, while businesses file Form 8300 for similar payments, both sending info to FinCEN and the IRS to track illicit funds.
According to a recent study, 74% of Gen Z's members have never written a check.
While the future demand for cash is uncertain, it is unlikely that cash will die out any time soon.
The era of the paper Social Security check is officially drawing to a close. As of September 30, 2025, the U.S. government has mandated that all federal benefits payments transition exclusively to electronic payments. This means that after this date, you will no longer receive a physical check in the mail.
While the FDIC insures deposits up to $250,000, meaning your money is generally safe if a bank fails in a crisis, a legal mechanism called "bail-in" authority exists under U.S. law (Dodd-Frank Act) that could allow failing banks to convert large deposits into equity (essentially seizing funds to recapitalize the bank). Although not implemented in the U.S. yet, this "bail-in" concept has been used elsewhere, creating concern, though many experts believe regulators would prevent the system collapse it would cause. For typical accounts, deposits are protected, but large, uninsured amounts carry more risk in extreme scenarios, making diversification across banks a wise precaution.
The recovery rebate credit was intended for people who during the pandemic did not receive one or more stimulus payments. You may still be eligible to receive a check from the IRS worth $1,400 or more that was issued to most Americans during the COVID-19 pandemic.
The "27.39 rule" (often rounded to $27.40) is a simple financial strategy to save $10,000 in one year by consistently setting aside $27.40 every single day, making it an achievable micro-saving habit to build wealth or an emergency fund. It turns the daunting goal of saving $10,000 into a manageable daily action, emphasizing consistency over large lump sums.
One in five Americans over the age of 50 have no retirement savings, according to a survey by the AARP. And even if you have something tucked away, it may not be enough — though that is something you can change even late in the game.
The Pew Research Center defines the middle class as households that earn between two-thirds and double the median U.S. household income, which was $83,730 in 2024. 2 Using Pew's yardstick, middle income is made up of people who make between $55,820 and $167,460.
Depositing $2,000 in cash isn't inherently suspicious and is well below the $10,000 reporting threshold for banks, but it can raise flags if it's part of a pattern (structuring), inconsistent with your normal income, or involves other red flags like frequent large cash deposits from others, leading to a potential Suspicious Activity Report (SAR). To avoid issues, have clear records for the cash's source, like invoices or sales receipts, especially if you deal in cash often.
The Expedited Funds Availability Act requires up to the first $275 of a non-"next-day" check(s) to be made available the next day.
In some cases, we may choose to decline the cash withdrawal based on the information you've given us. This would only ever be in situations where we need to protect our customers because we have concerns about an account.
You can deposit any amount of cash without being automatically flagged if it's under $10,000 in a single transaction, but banks must report deposits of $10,000 or more to the IRS via a Currency Transaction Report (CTR). While large, legitimate deposits are fine, making multiple deposits to stay under $10,000 (structuring) is illegal and triggers Suspicious Activity Reports (SARs), leading to potential account freezes or law enforcement scrutiny, so transparency with your bank is best for large sums.
How far back can the IRS go to audit my return? Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years.