Electronic Funds Transfer(EFT)
A payment method where the government transfers funds electronically to contractor bank accounts.
Overview
Electronic Funds Transfer (EFT) is the standard method for federal contract payments. The government deposits funds directly into a contractor's designated bank account rather than issuing paper checks, accelerating payment and reducing fraud risk.
Why It Matters in GovCon
Contractors must register in SAM.gov with correct banking information for EFT. Incorrect or outdated banking data can delay or block payment. Prompt payment depends on compliant EFT setup.
Key Details
- SAM.gov Requirement: Bank account details must be current in the System for Award Management.
- Treasury Rules: 31 CFR Part 210 governs federal EFT requirements.
- Payment Timing: Prompt Payment Act and contract terms specify payment deadlines; EFT speeds receipt.
- Invoice Compliance: Proper invoice submission triggers EFT release per contract payment provisions.
Related Terms
- System for Award Management (SAM)
- Prompt Payment Act
- Invoice
- Contract Financing
More Acquisition Terms
A 1994 law that simplified federal procurement by raising thresholds, reducing paperwork, and promoting commercial item acquisition.
The predecessor to SAM.gov; the legacy system where federal solicitations were posted (replaced by beta.SAM.gov).
A formal review gate in the acquisition process where senior leadership decides whether a program may proceed to the next phase, requires changes, or should be terminated.
Written narrative responses that describe a candidate or contractor capability in specific areas, historically used in federal hiring and some proposal evaluations.
Goods and services used to maintain, repair, and operate facilities and equipment — a major category of government procurement.
A non-binding agreement between parties that outlines intentions, roles, and expectations for collaboration or coordination.
Ready to Win More Contracts?
Use GovCon Data to find opportunities matched to your business and generate winning proposals with AI.