Skip to main content

The Move to Digital Payment: When the Check Is No Longer in the Mail

Hanns Kuttner

Digital payment shows how productivity can grow in the public sector. Making a payment digitally costs less than a paper check. Those who receive a monthly benefit payment, most often from Social Security, make up the largest number of payments the federal government makes by paper check. Direct deposit has been an alternative to paper checks for 35 years. Not everyone has a bank account, limiting the potential for direct deposit. A newer form of digital payment, a prepaid debit card, will allow digital payment to replace the monthly paper check. Millions of recipients will now go digital in 2013, implementing a change Congress called for in 1996. Those who do not choose a digital payment type will be enrolled as prepaid card users.

View PDF

Related Articles

Fear Secular Stagnation

Irwin M. Stelzer

Analysts hoping to rebut the purveyors of gloom who are arguing that America is in long-term decline were looking to Friday's job report for comfort. ...

Continue Reading

Hudson Institute Releases Study on the Worth of the Internet to the U.S. Economy

On September 8 at 12pm, Hudson Institute's Center for the Economics of the Internet will host a seminar launching a new report on the economic growth ...

Continue Reading

Cronyism, and the Ex-Im Bank

Irwin M. Stelzer

Free trade is a huge benefit if you are a Walmart shopper. All those microwave ovens, lamps, sneakers, and other stuff available for a relative pittan...

Continue Reading