FAR 32.1102—Definitions.
Plain-English Summary
FAR 32.1102 provides the core definitions used in Subpart 32.11, which governs electronic funds transfer (EFT) payments and related payment methods. This section defines three key terms: Electronic Funds Transfer (EFT) information, Governmentwide commercial purchase card, and payment information. These definitions matter because they determine what data must be collected and transmitted for electronic payment, what payment instruments count as EFT methods, and what information the Government must provide to explain a payment. In practice, the definitions support faster, more secure, and more traceable payments to contractors, while also helping agencies comply with the Prompt Payment Act and EFT payment requirements. Contractors and contracting officers use these terms to understand what banking and payment-advice information must be exchanged, when a purchase card can satisfy an EFT payment requirement, and what details should appear in payment notices and remittance information.
Key Rules
EFT information means payment data
Electronic Funds Transfer (EFT) information is the information needed to make a payment through the specified EFT mechanism. In practice, this includes the banking or routing details and any other data required by the payment system used to send funds electronically.
Purchase card is an EFT method
A Governmentwide commercial purchase card is a card similar to a commercial credit card used to make financing and delivery payments for supplies and services. The rule expressly treats the purchase card as an EFT method, so it may satisfy an EFT payment requirement when card limits do not prevent the payment.
Card limits can restrict use
Although the purchase card may be used as an EFT method, it only works to the extent that purchase card limits allow the payment. If the amount or transaction terms exceed card limits, the card cannot be used to meet the EFT payment requirement.
Payment information explains the payment
Payment information is the payment advice the Government gives the contractor identifying what the payment is for, any Government computations or adjustments, and any information required by the Prompt Payment Act. This definition ties the payment to the underlying invoice or obligation and supports contractor reconciliation.
Definitions apply within this subpart
These terms are defined specifically for use in Subpart 32.11. Their meaning controls how the EFT payment rules in that subpart are interpreted and applied, even if similar terms are used differently elsewhere.
Responsibilities
Contracting Officer
Ensure the contract and payment administration process use the correct EFT-related information and payment method. The contracting officer must understand when a purchase card may be used, confirm that payment advice includes required information, and apply the subpart consistently.
Contractor
Provide accurate EFT information needed for electronic payment and review payment advice for the amount paid, any adjustments, and Prompt Payment Act-related information. The contractor should also understand that purchase card use depends on applicable limits and may not be available for every payment.
Agency Payment Office
Use the contractor’s EFT information to make electronic payments and issue payment information that identifies the purpose of the payment and any calculations or adjustments. The payment office must ensure payment advice is complete enough to support contractor reconciliation and statutory compliance.
Program/Finance Personnel
Coordinate payment method selection and ensure transaction data aligns with EFT requirements and purchase card limitations. They must also help maintain accurate records of payment information and any adjustments reflected in the payment advice.
Practical Implications
Contractors should keep EFT banking data current, because incorrect information can delay payment or cause rejected transactions.
Agencies should not assume every purchase card transaction can replace EFT; card limits may make the card unusable for some payments.
Payment advice should be reviewed carefully, since it may include offsets, deductions, or other adjustments that affect the amount actually paid.
The Prompt Payment Act information in the payment advice matters for tracking timeliness, interest, and dispute resolution.
Because these are subpart-specific definitions, users should apply them in the context of Subpart 32.11 rather than assuming they control all FAR payment provisions.
Official Regulatory Text
As used in this subpart- Electronic Funds Transfer information (EFT) means information necessary for making a payment by EFT through specified EFT mechanisms. Governmentwide commercial purchase card means a card that is similar in nature to a commercial credit card that is used to make financing and delivery payments for supplies and services. The purchase card is an EFT method and it may be used as a means to meet the requirement to pay by EFT, to the extent that purchase card limits do not preclude such payments. Payment information means the payment advice provided by the Government to the contractor that identifies what the payment is for, any computations or adjustments made by the Government, and any information required by the Prompt Payment Act.