Comments sought on EO requiring electronic payments for federal disbursements

With the Treasury Department looking to transition federal disbursements to electronic payments whenever possible, credit unions are encouraged to submit feedback and help ensure the full impact is reflected in America’s Credit Unions’ comments.  

The Treasury’s Request for Information follows an Executive Order (EO) that directs Treasury, in coordination with other agencies, “to develop and implement a comprehensive public awareness campaign to inform Federal payment recipients of the transition to electronic payments, including guidance on assessing and setting up digital payment options.” Treasury must also work with financial institutions, consumer groups, and other stakeholders to address financial access for unbanked and underbanked populations. 

Check fraud remains a persistent and serious fraud risk for credit unions. The EO marks an important step forward in fighting check fraud by acknowledging that using more secure electronic payments for disbursing funds can reduce the risk of financial institutions inadvertently paying fraudulent government checks. It could also accelerate credit union investments in mobile banking, digital identity verification, real-time payments, and user-friendly account opening processes.
  
America’s Credit Unions recently attended a Treasury roundtable on the EO, met with Treasury Deputy Secretary Michael Faulkender, and called for updated funds availability rules to help credit unions combat check fraud.  

Credit unions are encouraged to submit their comments to America’s Credit Unions by June 25 to help inform the organization’s comment letter. Comments are due to the Treasury Department by June 30.