The Department of Agriculture has denied that the offer of electronic payments to farmers is an attempt to tidy up its accounts.
"We're in the business of giving the best possible service," a Department spokesman said. "We have a protocol in place for better delivery of service."
While the electronic credit system is voluntary, An Post believed most would opt for the postal system, a spokeswoman said. The Department also believed the new system "won't be taken up wholesale immediately".
A total of 1.5 million cheques were posted to farmers last year, creating €600,000 in revenue for An Post.