EFT Includes Government Credit Card

April 13, 2006

	Visited: 193
	Not rated
	Rate:

Under recent legislative requirements, the term "electronic funds transfer" now includes a government-wide commercial purchase card. Under the law, the government purchase may be used as a means to meet the requirement to pay by EFT.

A government-wide commercial purchase card is similar in nature to a commercial credit card and is used by the government to make financing and delivery payments for supplies and services. A government purchase card charge authorizes the third party (e.g., financial institution) that issued the purchase card to make immediate payment to the contractor.

The contract will identify the third party and the particular purchase card to be used, but will not include the purchase card account number. The purchase card account number is provided separately to the contractor.

The provisions related to EFT payment will be specified in your contract. Complete details on electronic funds transfer are included in FAR 32.1110 and FAR 52.232-33 and -34.