Bankers Association urges switch to federal e-payments
The Puerto Rico Bankers Association is urging residents to prepare for the upcoming elimination of federal paper checks, as the U.S. government moves fully to electronic payments under Executive Order 14247.
Starting Sept. 30, the Treasury Department will no longer issue paper checks for most federal disbursements, including benefits, supplier payments and tax refunds.
The measure is intended to reduce costs, delays and risks tied to physical checks. Treasury checks are 16 times more likely to be lost, stolen, undeliverable or altered compared with electronic transfers, according to the order. Maintaining the infrastructure for paper records cost U.S. taxpayers more than $657 million in fiscal 2024.
“This transition toward electronic payment methods is an opportunity for consumers to benefit from greater speed and security,” said Zoimé Álvarez-Rubio, president of the Puerto Rico Bankers Association.
“The important thing is that federal beneficiaries get informed and make the switch in advance to avoid setbacks. The federal government has informed that there are several ways to transition to electronic payments,” she said.
People already receiving direct deposit do not need to act, but those still relying on paper checks must switch before the deadline. Temporary paper checks will no longer be available, and exemptions must be requested directly from the Treasury Department.
Álvarez-Rubio also warned consumers to be alert for scams during the transition.
“It is important to be cautious about possible fraud. Scammers often pose as government representatives and may even have personal information to make their calls seem legitimate,” she said.
Residents can learn more at the Go Direct website or by contacting the U.S. Treasury’s Electronic Payment Center at 1-877-874-6347.
