Checks, cash, and the cost of clinging to old systems

What public disbursements reveal about the state of local government 

County governments are under increasing pressure to do more with less, especially when it comes to disbursing payments. Whether paying jurors, issuing tax refunds, distributing stipends or covering work-related expenses, many counties still rely heavily on paper checks or cash. But checks are slow, insecure and expensive. And they often create barriers for residents who are unbanked or underbanked. 

At a time when efficiency and accountability are critical, local government officials are rethinking how they deliver payments.  

Paper checks are standard … and costly 
Despite advances in digital payments, many county governments still use paper checks for one-time or irregular payments. These include jury duty compensation and stipends to prison release funds or housing subsidies. But issuing checks involves manual processes, staff time and fraud risk. 

According to the Federal Reserve’s 2023 Diary of Consumer Payment Choice, checks now account for just 4% of consumer payments, down from 7% in 2020. Yet governments still issue millions of checks annually, often to populations who would benefit most from faster, safer alternatives. 

Prepaid debit cards offer a scalable way to modernize payments, reduce check issuance, and improve the recipient experience. 

RELATED: The high stakes of government payment inefficiencies 
 
Built-in flexibility for counties  
One of the key advantages of today’s government prepaid card solutions, including the Conduent Way2Go Card®, is configurability. County agencies can tailor the card experience based on the purpose and nature of the disbursement. 

Need to issue a one-time payment for jury duty or a stipend? The Way2Go Card can be instantly issued on-site and activated by the recipient immediately. Need to control how the card is used? Counties can restrict cash access, limit ATM withdrawals or block spending at certain merchant types through merchant category code (MCC) blocking. 

This flexibility supports use cases far beyond traditional benefits, including: 

• Uniform purchases for Department of Corrections reentry programs
• Educational subsidies or training stipends
• Rebate and refund programs
• Unclaimed property or settlement payments 

With options for recurring, one-time, and instant-issue cards, counties can replace virtually any check-based payment with a secure, digital alternative. 

RELATED: Securing EBT transactions for government benefits payments 
 
Improving service delivery and equity 
For many recipients, access to timely, usable funds is a lifeline. Prepaid debit cards offer them a more convenient, dignified experience. There’s no need to visit a check-cashing location or wait days for funds to clear. Funds are available immediately after card activation and can be used for purchases, bills, or in some cases, limited cash withdrawal. 

These improvements matter in the broader context of financial equity. In the U.S., the FDIC’s most recent Survey of Household Use of Banking and Financial Services found more than 5 million households were unbanked. By using configurable debit cards, counties can ensure more people receive funds reliably and securely. 

RELATED: Conduent Cardless Cash: Provide cash access without a card 
 
Counties are increasingly asking our experts for modern, more secure ways to disburse payments beyond benefits. They're seeking faster options, including issuing a virtual card while the physical one is in transit. Our newest service lets cardholders access funds without needing the physical card. Agencies are also looking to streamline operations, boost auditability and better serve constituents. With Conduent’s government debit card platform, they’re saving time and taxpayer dollars while delivering greater value to their communities. 

Our platform supports multiple enrollment methods, including secure online portals or batch file uploads. Cards can be mailed or issued instantly. Agencies control key settings like expiration, cash access, and MCC rules. It’s a configurable, secure way to support how government works today.