Improving Electronic Funds Transfer for Vendor Payments.ppt

Improving Electronic Funds Transfer for Vendor Payments Office of the Chief Financial Officer Debt Collection Improvement Act Requires Electronic Funds Transfer (EFT) for most Federal Payments Definition of EFT Automated Clearing House (ACH) Fedwire Credit Card Debit Card Debt Collection Improvement Act 31 CFR Part 208, “Management of Agency Disbursements,” 9/25/98, establishes: Waivers Account Requirements Agency Requirements Withholding Payments Electronic Transfer Account (ETA) Waivers for Individuals Where an individual determines that EFT would impose a hardship due to Physical or mental disability, Geographic, language, or literacy barrier, or Financial hardship Waivers for All Recipients Where the political, financial, or communications infrastructure does not support payment by EFT in a foreign country; Where payment is to a recipient within an area designated by the President or an authorized agency administrator as a disaster area; Waivers for All Recipients Where paying by EFT would jeopardize military or law enforcement operation or national security interests; Where an agency’s need for goods and services is of such unusual and compelling urgency that the Government would be seriously injured unless payment is made by a method other than EFT; Waivers for All Recipients Where the agency does not expect more than one EFT payment within one year; or Where there is only one source of goods or services and the Government would be seriously injured unless payment is made by a method other than EFT. Why All The Fuss? President’s Management Agenda / CFO Council Initiatives Scorecard System Require 96% EFT Payment Rate for a “Green” Grade. EFT saves money, is faster, and improves cash management. Treasury advised us that EFT costs $.10; check costs $.73 USDA January 2004 EFT Rate was 35%. That’s “Red” and “Last” on the Government-Wide Metric Tracking System. EFT Rates are currently “self-reported” by Departments. Why? Benefits of Vendor Express to the Vendo