Prompt Payment

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.

Early (accelerated) payments โ€“ 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.

Quick Links

  • Prompt Payment final rule (5 CFR Part 1315)
    Text version
    PDF version
  • 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 ยง301โ€“71.210 How do we calculate late payment fees?

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