Prompt Payment

More About Discounts on Payments

Must vendors offer discounts to federal agencies?

No. Vendors may offer a discount to federal agencies, but they are not required to do so.

If a vendor offers a discount, must the federal agency accept it?

No. Under the Prompt Payment rule, agencies may take an offered discount if it is economically justified and if the agency has accepted the good or services. To see if the discount is economically justified, use the Discount Calculator.

  • If the agency takes the discount, payment is due in accordance with the discount terms.
  • If the agency does not take the discount, payment is due within 30 days of receipt of a proper invoice, unless the agency uses an accelerated payment.

More on proper invoices

More on accelerated payments

When does the discount period start?

If the vendor submits a proper and valid invoice with an invoice date, that date starts the discount period.

If the invoice is proper and valid but does not have an invoice date, the discount period starts on the date the agency received the invoice.

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.


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