Fiscal Service says most federal payments are delivered by direct deposit (EFT), with waivers in limited cases and enrollment options for benefit recipients.
Summary
How are federal payments set up for direct deposit (EFT)? Fiscal Service says most federal payments are delivered by direct deposit (EFT), with waivers in limited cases and enrollment options for benefit recipients.
According to Fiscal Service, 31 U.S.C. 3332 generally requires federal payments — other than payments under the Internal Revenue Code — to be made by direct deposit, also called Electronic Funds Transfer (EFT), unless a waiver is available. The agency says recipients must receive payment by direct deposit to an account at the recipient’s financial institution or by an electronically delivered payment to a Treasury-sponsored account, or obtain a waiver under 31 CFR Part 208. Fiscal Service also states that direct deposit is safe, secure, efficient, and less expensive than paper check. For federal benefit payments, the guidance is stricter: all benefit payments must now be paid electronically. If a benefit recipient is still being paid by check, Fiscal Service directs them to enroll through GoDirect.gov, call the U.S. Treasury Electronic Payment Solution Center at 877-874-6347, or use the Direct Express card if they do not have a bank account. Fiscal Service’s vendor guidance likewise says most federal payments are made by direct deposit under the Debt Collection Improvement Act of 1996.
Confirm the direct-deposit requirement and whether a waiver is available for your payment type.
Use a financial-institution account or a Treasury-sponsored account, as described in the cited guidance.
Use GoDirect.gov, call the Treasury Electronic Payment Solution Center, or use Direct Express if you do not have a bank account.
Review whether 31 CFR Part 208 allows a waiver in your situation.
Fiscal Service says direct deposit is the standard for federal payments, and paper checks depend on whether a waiver is available under the cited regulation.