KALAMAZOO, Mich. (Michigan News Source) — Paper checks from the federal government are headed for the shredder. 

Starting Sept. 30, most federal payments—from Social Security and veterans benefits to tax refunds—must be issued electronically, according to the U.S. Treasury Department.

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The White House says the switch will cut fraud and theft while speeding up payments. 

“Reducing paper checks has been a longstanding bipartisan goal that our administration is finally putting into action,” Treasury Secretary Scott Bessent said, according to WWMT News Channel 3. 

With many still unbanked, the Michigan Department of Insurance and Financial Services is urging residents to open certified “MI Open Accounts” at participating banks and credit unions. The “low- or no-cost accounts” cap fees, ban overdraft charges, and allow deposits with as little as $25.

Accounts certified by the Michigan Open Account Coalition are offered by institutions including Bank of America, Chase, Discover, Wells Fargo, and others. More than 30 banks and credit unions statewide now participate.