Government to Issue Checks That Are Cheaper to Make, Harder to Duplicate

The Treasury Department soon will begin replacing the government’s familiar green punch-card checks, issued for 40 years, with multicolored paper checks that are cheaper and harder to duplicate, Treasury Secretary James A. Baker III said Friday.

Under the conversion, which is expected to take about a year, the 20 million Americans who receive Social Security benefits will get the new checks starting Dec. 3. By next spring, income tax refunds, veterans benefits and most federal paychecks will be issued on the new checks.

The face of the new checks will range in color from light blue to pale peach and will bear two pictures of the Statue of Liberty and the seal of the U.S. Treasury. Unlike the old checks, the new ones can be folded and will remain valid.

The new checks’ security features include stains that will appear on the line where the recipient endorses the check or where the amount is printed if any attempt is made to alter the check; a pattern of “USA” in blue ink that cannot be reproduced on the reverse side, and a hidden word “Void” that appears when the check is photocopied.

The Treasury Department issues about 500 million checks annually and the switch-over will save taxpayers $6 million a year because the paper stock is both cheaper to buy and to store, according to William E. Douglas of the department’s Financial Management Service. The lighter weight and thinner design of the paper will reduce the space needed for storage by 30%, he said.