New mandates, evolving standards and reporting rules are reshaping how businesses send payments, and the deadlines are closer than they seem.
From the federal government’s push to eliminate paper checks to evolving IRS requirements, regulatory updates for payments in 2025 are accelerating the shift toward digital, secure and compliant payment systems. These changes demand real operational change, particularly from AP and finance teams.
In this guide, we break down what’s changing, how it impacts your payment workflows and how to prepare.
One of the most visible business payment regulations this year is the federal mandate to stop using paper checks. As of September 30, 2025, all federal disbursements must be made electronically, with limited exceptions.
This is part of a larger initiative outlined in the Executive Order on “Modernizing Payments to and from America’s Bank Account,” which aims to streamline, digitize and secure the nation’s payment systems.
So, what could this mean for businesses?
Even though this rule is for federal payments, this kind of change can often ripple through the private sector, as everyone else adopts the same standard more broadly.
Among the most overlooked – but potentially impactful – regulatory updates for payments in 2025 are the changes to Form 1099-K.
The IRS has lowered the reporting threshold from $20,000/200 transactions to just $600, a change that will expand the number of businesses receiving this form, even for certain B2B transactions. While full enforcement has been phased in, businesses should expect broader reporting obligations in the 2025 tax year.
Key considerations:
Don't wait until tax season to understand the impact to you. Consult with a tax professional.
When business payment regulations change, it's often legal or tax teams that spot the implications first, but it’s AP teams who have to act on them.
The shift to digital, secure and auditable payment processes requires:
Every business should already know that regulatory compliance, and being ready for new regulation, is critical. But it’s easy to fall into the trap of thinking it’s just about paperwork. Instead, think about regulatory readiness as part of your organization’s ability to operate with agility.
Here’s a practical, cross-functional checklist to help you get started:
As we approach the end of 2025 and the start of a new year, it’s the perfect time to review your current operations and identify areas for improvement in the weeks and months ahead.
Regulatory change is picking up speed, but with the right technology partner, staying ahead doesn’t have to be complex.
REPAY helps finance and AP leaders:
When you do it right, you’re ready to comply with today’s rules and flexible enough to prepare for tomorrow’s.
With REPAY, staying compliant is fast, simple and secure, just the way business payments should be. Contact us today to learn about our vendor payment automation tools and how we help you keep up with ever-changing compliance standards!
Q: What are the new business payment rules for 2025?
By September 30, 2025, federal agencies must eliminate paper checks. Businesses also face and lower 1099-K reporting thresholds from the IRS.
Q: What is the deadline for going paperless?
Federal disbursements were required to go digital by September 30, 2025. While private companies aren’t bound to this, it sets a precedent for payment modernization.
Q: What’s changing with Form 1099-K?
The reporting threshold has dropped to $600, meaning many more businesses will receive 1099-Ks. This could impact tax reporting, especially for B2B transactions processed through third-party networks. Consult your tax advisor for additional details.
Q: How can I make sure my payment systems are compliant?
Review your AP workflows, validate banking information, update fraud controls and work with a payments partner like REPAY to ensure system compatibility.