The Switch Back to Community Banking

For 34 years, I watched Bank of America nickel-and-dime me - $8, then $12 a month just for not keeping a certain balance. Enough was enough.

At first, TFCU felt refreshingly simple. But then came the shocker: not all bill payments are processed electronically. In 2025, some are still sent out as paper checks. YES, PAPER CHECKS!

Why This Matters More Than Ever

This discovery hit me while I was already dealing with another headache: credit cards sent through regular mail that never arrived. In just the past few weeks, both Bank of America and Citi had to cancel cards that were "renewed" or "replaced" but never made it to me. I had to request replacements with priority shipping and tracking because sending sensitive financial tools through untracked mail today is reckless. 

Now add paper checks into the mix. When I asked about it at TFCU's Gambrills (Maryland) branch, the manager tried to reassure me: "Don't worry, none of your personal information is on the check." That was supposed to be comforting. But let's be real the bigger risk isn't identity theft. It's the payment itself never reaching the biller. 

If a check to Citibank gets lost or intercepted, I'm stuck proving it wasn't my fault. Meanwhile, I'm hit with late fees, credit score damage, and endless customer service battles. (For the record, I have outstanding credit.)

Why Do Credit Unions Rely on Third Parties?

TFCU uses Fiserv, one of the largest bills pay processors in the U.S. Fiserv processes hundreds of millions of payments every year. And when a biller refuses electronic payments, Fiserv falls back on paper checks. 

Why don't bank and credit unions just handle it directly?

• Scale & Complexity: Thousands of billers, utilities, credit cards, insurers, government agencies. Connecting to each one electronically isn't realistic.
• Cost Efficiency: Outsourcing to Fiserv consolidates operations and cuts overhead.
• Security & Compliance: Providers specialize in fraud prevention and regulatory rules.
• Fallback to Paper Checks: If a biller won't accept electronic payments, the provider mails a check on your behalf. 

So, here's the deal: the hold-up isn’t always on the credit union’s end. A lot of the time, it’s the billers, big banks and card companies stuck in their old-school ways and refusing to update. 

Who Still Forces Paper Checks?

You gotta know the usual suspects:

• Utilities: Smaller local electric, water, or gas companies.
• Municipal Services: Property taxes, DMV payments, local governments.
• Insurance Providers: Smaller or regional insurers.
• Credit Card Issuers: Some big banks still reject electronic bill pay.
• Medical Offices: Independent practices without centralized billing. 

These are the weak links and they're putting consumers at risk. 

9/11: The Catalyst for Change

After 9/11, the financial industry had to rethink how checks were processed. Planes were grounded, check transportations stopped, and the delays were massive. That crisis pushed institutions toward electronic clearing. 

Yet, here we are, decades later, still mailing paper checks for bill payments. 

The Bigger Picture

This isn't just about convenience. It's about:

• Transparency: Members should know upfront which payments are electronic and which are mailed.
• Security: Paper checks and untracked mail are unnecessary risks in a fraud-heavy world.
• Efficiency: We have AI and digital banking tools. Why are we still relying on envelopes and stamps?

A Call to Action

Financial institutions especially the most prominent players, need to stop hiding behind third-party vendors. If a payment can't be processed electronically, members should be told immediately, not after the fact. 

Consumers deserve better. We deserve transparency, efficiency, and modernization. And we deserve to know which companies are holding back progress in the digital age. 

Your Go-To Checklist: Stay Safe with Paper Checks