Bank checks may be quietly headed for extinction. Since the end of September, most federal benefit payments — including Social Security — have not been sent by paper check as part of a push to fully modernize government payments. Now, the Federal Reserve — which runs the national system that processes and clears paper checks between banks — has added fresh fuel to fears that paper checks could eventually disappear altogether. The Federal Reserve revealed that it’s considering winding down the check services it provides to banks. The notice, posted quietly on its website, signals a possible long-term retreat from paper-based payments. While no final decision has been made, the warning alone has set off alarm bells across the banking and retail industries. Now facing rising fraud, failing usage, and soaring infrastructure costs tied to paper checks, the Federal Reserve is weighing whether to invest heavily to keep the system running, or to slowly let it fade away. Either path could reshape how millions of Americans get paid and pay their bills.
