Paper checks are facing a coordinated global phase-out as governments target the legacy payment method, raising questions over whether the United States will follow suit. According to data from the Federal Reserve Payments Study, Americans wrote roughly 9.2 billion checks in 2024, totaling over $24 trillion in face value. While check usage has fallen dramatically over the past two decades, businesses and older demographics continue to rely heavily on paper payments.
Global Bans and Federal Policy Shifts
International momentum against paper checks is accelerating across major economies. According to official announcements, Germany is eliminating paper checks by the end of 2027, and Australia is ending check usage by 2030. In the United States, federal policy changes are also underway. Following actions regarding currency production, U.S. President Donald Trump issued an executive order stopping check writing by the federal government.
The Federal Reserve is currently evaluating its own role in the infrastructure. According to the Federal Reserve, the central bank’s check processing unit clears about one-third of all U.S. checks, processing approximately 22 million returned checks totaling around $80 billion due to insufficient funds. The unit cost roughly $100 million a year to run while generating a $6.6 million profit in 2024. In early 2026, the Federal Reserve opened public comments on whether to wind down, improve, or maintain its check-processing operations as aging machinery needs replacing.
Who Still Uses Checks in the United States?
Despite the broader decline, payment habits remain deeply divided by age and commercial sector. According to the Federal Reserve Bank of Atlanta’s Survey and Diary of Consumer Payment Choice, roughly one-third of all respondents reported using a paper check within a 30-day window. Demographic data shows a stark generational divide: about 60% of respondents aged 65 and older reported writing a check, compared with under 6% of those aged 18 to 24.
Commercial reliance remains high among smaller enterprises. Over 80% of businesses with annual sales between $1 million and $10 million utilize checks for outgoing payments. Small business owners frequently require two signatures on a check before funds leave an account, providing internal financial control. Additionally, businesses often incentivize checks by avoiding the 3% or higher processing fees charged by credit card networks.
Fraud Risks and Transaction Volumes
Security challenges continue to plague the paper payment system. According to the most recent figures, the U.S. records about 500,000 annual cases of check fraud, driven largely by mail theft and altered document details. Despite these vulnerabilities, fraud impacts only a tiny fraction of the 9.2 billion checks written annually, and over 99% of all checks clear successfully without bouncing.
The average face value of checks has shifted significantly as overall volume drops. In 2000, the average check was worth less than $1,000, and Americans wrote an average of slightly over 150 checks per person annually. By 2024, average volume plummeted to 27 checks per person per year—roughly two per month—while the average dollar amount more than doubled to $2,600 per check.
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