Reforming federal disbursements adds to convenience, ability to fight fraud
Limiting paper check disbursements by federal agencies in favor of electronic funds transfers (EFTs) brings a range of benefits include convenience, reduction in operational burdens, and enhanced fraud protection.
Responding to a Treasury proposal implementing an Executive Order reforming federal disbursements, America’s Credit Unions’ comment letter outlines how these benefits “outweigh the potential inconvenience for certain recipients that will no longer be able to receive federal disbursements in the form of paper checks,” the letter notes.
It also encourages Treasury to monitor the potential for adverse effects on populations dependent on checks by sharing available data on the demographic composition of such communities, as “such data could help credit unions identify which markets might benefit from additional financial education or other resources to promote the use of federal disbursements via EFTs.”
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