Note: If you are paying the bill for an agency credit card, see How to pay a Federal Agency's Credit Card Bill. A credit card bill is different from the vendor invoices we are covering on this page.
If a vendor submits a proper and valid invoice to the right people in a federal agency, the agency must pay the invoice on time. If not, the payment is late.
For a definition of "on time" see the Frequently Asked Questions.
What happens if a payment is late?
In most cases, when an agency pays a vendor late, the agency must pay interest.
The Prompt Payment interest rate for January 1, 2020 – June 30, 2020 is 2.125 percent.
To determine the amount of interest, use the Prompt Payment interest calculator (see Resources section).
May an agency pay early?
Discounts for early payments. A vendor may offer the agency a discount if the agency pays within a specified shorter time.
To determine the amount to pay with the discount, use the Prompt Payment discount calculator.
Accelerated payments. Agencies should pay vendors early in these cases:
- The agency has received a proper invoice, and
- It is in the best interest of the government, and
- Any one of these 3 conditions is true:
- The invoice is under $2,500, or
- The payment is to a small business, or
- The payment is related to an emergency, disaster, or military deployment
Jump to:EARLY PAYMENTS ON-TIME AND LATE PAYMENTS
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Last modified 04/30/20