The Prompt Payment rule makes sure that valid and proper invoices submitted by vendors are paid on time by federal agencies.
On-time and Late payments
If a vendor submits a proper and valid invoice, the agency must pay it on time. If not, the payment is late.
In most cases when an agency pays a vendor late, it must pay interest. Prompt Payment determines those interest penalties.
- More about on-time and late payments
- Calculators and formulas for paying interest
- Current and historical rates for paying interest
Early (accelerated) payments â€“ no discount
In some cases where it is in the best interest of the government, an agency may pay more quickly than the standard time for payment (without a discount).More about accelerated payments
Discounts for early payments
In some cases, a vendor may offer the agency discount for early payment.
- Prompt Payment final rule (5 CFR Part 1315)
- Federal Acquisition Regulation 52.232-25
(clauses related to prompt payments)
- FAR EFT Final Rule: (3/4/99); published by DoD, GSA, and NASA
The Federal Acquisition Regulation (FAR) Electronic Funds Transfer (EFT) final rule addresses the use of electronic funds transfer for federal contract payments and provides for the collection of banking information from vendors.
- Federal Travel Regulation final rule
This final rule provides for late payment interest penalties for Federal government employee travel reimbursements. See Â§301â€“71.210 How do we calculate late payment fees?
For more information on the Prompt Payment interest rates, call 800.266.9667 or 202.874.9130, or contact:
- OMB guidance on application of PPA requirements for invoices received during shutdown
- Becoming a CARS Reporter Training
- Prompt Payment Interest Rate
January 1, 2015 - June 30, 2015 = 2.125 percent