Following a Treasury Department Request for Information, The Clearing House filed two comment letters supporting modernization of payments to and from the federal government. The request for information asked for input on, among other things, a potential public awareness campaign to educate consumers on the risks of using checks and encouraging use of more secure electronic payment methods.

In one letter, The Clearing House Payments Company commented in its role as a payment system operator. It indicated there were opportunities to encourage small businesses to adopt electronic payments. It also urged Treasury to consider using private-sector payment networks, such as TCH’s RTP®, CHIPS®, and EPN® networks, to improve resiliency and capacity for federal government payments.

In the second letter, The Clearing House Association commented on behalf of its member banks jointly with the Bank Policy Institute and the Consumer Bankers Association. In that letter, the associations urged Treasury to do the following:

• Use Government Data to Implement Targeted Paper Check Reduction Strategies. Treasury should analyze government agency data to understand the reasons behind continued check usage for payments to or from the federal government and develop strategies to reduce such usage, including by ensuring exceptions are narrowly granted.

• Create a Targeted Public Awareness Campaign to Encourage Use of Electronic Payments. Treasury should educate consumers on check fraud risks and the benefits of electronic payment, with special support for those most reliant on checks.

• Expand Government Use of Existing Secure Electronic Payment Platforms. Treasury should expand the federal government’s use of existing secure electronic payment systems for government payments, including real-time and bank-developed platforms.

• Enhance Fraud Controls for Electronic Payments Made by Treasury. Treasury should continuously monitor and strengthen its fraud controls for all electronic payment methods as check usage declines.

• Provide Controls for Remaining Treasury Checks Issued. Treasury should review processes it uses for paying, reviewing, and returning Treasury checks and implement or enhance fraud controls for such checks.

Read the full letter from The Clearing House Payments Company here.

Read the full letter from The Clearing House Association, the Bank Policy Institute, and the Consumer Bankers Association here.

“RTP,” “CHIPS,” and “EPN” are registered service marks of The Clearing House Payments Company L.L.C.