The Fed considers ending paper check processing due to low usage and high costs, but fears over harming vulnerable groups persist.

The Federal Reserve is evaluating ending its paper check processing due to declining use, rising fraud, and costly infrastructure needs. Though digital payments dominate, checks still represent 5% of transactions and 21% of payment value, remaining vital for bill payments, small businesses, and those avoiding credit card fees. Critics warn phasing out checks could harm unbanked Americans—about 6% of adults—and low-income, elderly, and tech-limited populations who rely on them. Experts caution that eliminating checks too soon could cause significant disruptions despite their reduced role. The decision remains under review.