Americans who receive money from the federal government may soon notice a shift in how those payments are delivered. The IRS is moving many federal disbursements away from paper checks and toward electronic options. That includes tax refunds and other government payments, meaning any future stimulus payments would likely follow the same process. The new change could impact your stimulus payments. Here are five things you should know. Paper Checks Are Being Phased Out Under a recent IRS policy update, t ...

Core Insights - Many Americans are expected to receive larger tax refunds this year due to tax cuts from a bill signed by President Trump, which included several tax breaks for 2025 [1] - The IRS will issue refunds electronically, but those without direct deposit information will face delays [2][3] Group 1: Tax Refunds and Delays - The average tax refund in 2025 was $3,167, with estimates suggesting an increase of $675 to $1,000 for this year [5] - Individuals without direct deposit will experience longer wait times for their refunds, particularly affecting low-income and older populations [4][5] - The IRS processed 93.5 million tax refunds in 2025, with only 7% issued by check, equating to approximately 6.5 million refunds [6] Group 2: Electronic Payments vs. Paper Checks - The IRS indicates that paper checks are 16 times more likely to be lost, stolen, or delayed compared to electronic payments, which are issued in less than three weeks [7] - The move towards electronic payments is seen as beneficial, as checks are considered costly, inefficient, and insecure [7]

Core Insights - Block, Inc. is recognized as one of the top mobile payments stocks to invest in, primarily due to its ability to reach micro merchants that are often overlooked by other acquirers [1][2] - The company's legacy Square business model, characterized by effective client onboarding, modern point-of-sale devices, flat fees, and a comprehensive suite of software solutions, contributes to its competitive advantage [1] - The ongoing transition towards electronic payments provides ample growth opportunities for payment providers like Block, Inc., allowing them to expand without directly competing for market share [2] Company Overview - Established in 2009, Block, Inc. offers payment services and related solutions, including the Cash App for individual payments [3] - In 2024, Square processed approximately $250 million in payments, reinforcing its position as a leading player in the digital payments sector [3]

Policy Change - Social Security Administration is transitioning to fully electronic payments starting September 30th, impacting approximately 550,000 people who currently receive paper checks [1][2][3] - The transition aims to enhance transaction security and reduce fraud [3] - Waivers are available for individuals over 90, those with mental incapacities, or those lacking secure internet access, allowing them to continue receiving paper checks [5][6] Impact and Concerns - The change may disproportionately affect unbanked individuals and those in rural areas with limited internet access [3][4] - Social Security Administration is not actively promoting the waiver option [5] Electronic Payment Options - Social Security Administration encourages beneficiaries to use "my Social Security account" to manage payments electronically [8] - Beneficiaries can update their payment preferences online to direct deposit or debit card [8][9]