by Cynthia R.
It’s official: federal government payments have largely gone digital.
The Executive Order President Trump signed declaring the federal government will no longer produce paper checks became effective September 30, 2025, with limited exceptions. Instead, the Treasury Department is now issuing payments by electronic funds transfer (EFT).
If you receive government benefit payments by check, it’s time to switch to Direct Deposit at ACE and get your money up to five days sooner!1 Here’s what you need to know about the federal change and why enrolling in Direct Deposit is the way to go.
Why the Federal Government Phased Out Paper Checks
According to the Executive Order, the primary reason the federal government largely phased out paper checks is to protect against financial fraud and improper payments, increase efficiency, reduce costs, and enhance the security of federal payments. U.S. government benefit payments and tax refunds are now processed with EFT methods and other digital payment options, with limited exceptions.
Examples of Government Benefit Payments That Went Digital
The shift to electronic payments applies to a range of government benefits. Some of the most widely used programs affected include:
- Social Security benefit payments (for retirement, disability, and survivors)
- Supplemental Security Income (SSI) payments
- Veterans Affairs benefit payments (for disability, pension, and educational assistance)
- Federal employee retirement payments
Get Your Government Benefit Payments Up to Five Days Faster1
If you still receive government benefit payments by paper check, it’s time to set up Direct Deposit and get your payments up to five days faster.1 With EFT, there’s no waiting for the mail. Once the Treasury Department processes your payment, it goes straight into your Direct Deposit account, giving you quicker access to your funds.1 Visit an ACE store near you to learn more!
Benefits of Setting Up Direct Deposit
Just a few benefits to using Direct Deposit over paper checks are:
- Getting your money faster.* When you enroll in Direct Deposit at ACE, you could receive your government payments up to five days faster1 than a paper check.
- Saving on check cashing fees. There is no fee to receive money into your Direct Deposit account.
- Having safer transactions. Paper checks can get lost in the mail, stolen, or misplaced. Meanwhile, electronic funds are transferred to your Direct Deposit account securely and reliably.
*Based on a comparison of Direct Deposit to a mailed paper check.
What People Say About Direct Deposit at ACE
Many ACE customers have already switched to Direct Deposit, and they’re glad they did. Here’s what some of them shared in some recent five-star reviews:
“Chloe helped me set up my direct deposit for my SSI. She was so nice.” (see all reviews for this store)
Donnie C., Henderson, NC – 11/12/25
“Karen helped with my government direct deposit enrollment. It was great!” (see all reviews for this store)
Tyson Z., Roseburg, OR – 11/12/25
“Thank you Uriah for setting up my government direct deposit online. I will get paid early!” (see all reviews for this store)
Thomas A., Aurora, CO – 8/18/25
How to Set Up Direct Deposit with ACE
In addition to check cashing and other financial products and services, ACE can help you set up Direct Deposit with one of our convenient prepaid card or debit card products. With paper checks now gone, it’s the perfect time to enroll in Direct Deposit and get your government benefit payments faster.1 Enroll online or visit an ACE store near you!
This blog is not intended to provide any tax, legal, financial planning, insurance, accounting, investment, or any other kind of professional advice or services. To make sure that any information or suggestions in this blog fit your particular circumstances, you should consult with an appropriate tax or legal professional before acting on any suggestions or information that we provide.
Sources
Executive Order - Modernizing Payments to and from America’s Bank Account. March 25, 2025.
Disclaimers
- Faster funding claim is based on a comparison of our policy of making funds available upon receipt of payment instruction versus the typical banking practice of posting funds at settlement. Fraud prevention restrictions may delay availability of funds with or without notice. Early availability of funds requires payor’s support of direct deposit and is subject to the timing of payor’s payment instruction. 5 days faster funding claim is limited to federal government benefit funds. 5 days faster funding claim is limited to Federal tax return funds regarding when funds are received from the IRS. IRS processing times will not be affected. For up-to-date information from the IRS, visit www.irs.gov/refunds.
Porte® is a deposit account established by Pathward®, National Association, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Certain products and services may be licensed under U.S. Patent Nos. 6,000,608 and 6,189,787. Card can be used everywhere Visa® debit cards are accepted.
The Flare Account® is a demand deposit account established by Pathward, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. Ouro Global, Inc. is a service provider to Pathward, N.A.
Card can be used everywhere Visa® debit cards are accepted.
The ACE Elite® Visa® Prepaid Debit Card is issued by Pathward, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. Ouro Global, Inc. is a registered agent of Pathward, N.A. Card can be used everywhere Visa debit cards are accepted. Use of the Card Account is subject to activation, ID verification, and funds availability. Transaction fees, terms, and conditions apply to the use and reloading of the Card Account. See the Cardholder Agreement for details.
