Overview
This section defines the essential terminology for Electronic Funds Transfer (EFT) within government contracting, establishing what constitutes EFT data, the role of government purchase cards, and the required components of payment documentation.
Key Rules
- EFT Information: Defined as the specific data required to facilitate a payment through designated electronic mechanisms.
- Purchase Card Classification: The Governmentwide commercial purchase card is explicitly categorized as an EFT method.
- EFT Compliance: Agencies may use the purchase card to satisfy the legal requirement to pay via EFT, provided the transaction stays within the card's authorized spending limits.
- Payment Advice Requirements: "Payment information" must include a breakdown of what is being paid, any adjustments made by the government, and all data mandated by the Prompt Payment Act.
Practical Implications
- Contractors must ensure their provided EFT data is accurate to prevent payment delays, as this information is the primary vehicle for fund delivery.
- Vendors should be prepared to accept government purchase cards as a standard electronic payment method, which can streamline the reconciliation process through detailed electronic payment advice.