Direct deposit now required for federal payments: Dupaco helps members make the switch

DUBUQUE, Iowa — Effective today, Executive Order 14247, titled “Modernizing Payments To and From American’s Bank Account,” goes into effect, marking a significant shift in how federal payments are delivered. The U.S. Treasury has officially phased out paper checks for most federal payments, requiring all individuals to enroll in direct deposit to avoid delays or disruptions.

To help ensure a smooth transition, Dupaco Credit Union reminds individuals to update their payment method to avoid any disruption in benefits. This change affects all individuals who receive payments from agencies including:

Social Security Administration (SSA)
Internal Revenue Service (IRS)
Department of Veterans Affairs (VA)
U.S. Department of Labor (DOL)
Railroad Retirement Board (RRB)
Federal Motor Carrier Safety Administration (FMCSA)

Important details for individuals receiving federal payments:

If you are already using direct deposit: No action is needed.
If you are still receiving a paper check: Immediate enrollment in direct deposit is required to avoid payment delays.

“Direct deposit is a safer, faster and more reliable way to receive your money,” said Katie Shemak, AVP, Deposit Operations at Dupaco. “It eliminates the risk of lost or stolen checks and ensures funds are available without delay. Our team is here to help members make the switch with confidence.”

Dupaco urges those receiving paper checks for their federal payments to visit GoDirect.gov to sign up for direct deposit. To set up direct deposit, individuals will need their full account number and financial institution’s routing number.

“If you don’t have access to technology or aren’t sure what to do, I recommend reaching out to a trusted family member or your financial institution to help,” said Shemak. “There are resources available to guide you and it’s important to get your payments set up to avoid delays.”

Why the change? According to the U.S. Treasury, the move to electronic payments is intended to:

Reduce fraud: Check fraud has increased 385% nationwide since the COVID-19 pandemic.
Prevent delays: Paper checks are 16 times more likely to be lost, stolen, or delayed.
Lower costs: Paper checks cost the government about 50 cents each, compared to less than 15 cents for electronic transfers.

The US Treasury is allowing exceptions to the new rule and waivers may be granted for individuals with documented mental disabilities or those living in remote areas without access to electronic banking. To request a waiver, call 1-855-290-1545.

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ABOUT DUPACO COMMUNITY CREDIT UNION

Dupaco Community Credit Union is a not-for-profit, member-owned financial cooperative headquartered in Dubuque, Iowa. It is dedicated to the financial well-being of its members, and specializes in personalized financial counseling, money advice and education. It offers savings, loans, investments, insurance and wealth management products for individuals and businesses. Dupaco serves residents in 118 counties throughout Iowa, northwest Illinois and southwest Wisconsin. Founded in 1948 by ten Dubuque Packing Company employees, membership has grown to more than 176,000 with assets exceeding $3.6 billion. It has over 600 employees and 23 branch office locations. Learn more at www.dupaco.com.