Prompt Payment

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 July 1, 2020 – December 31, 2020 is 1.125 percent.

To determine the amount of interest, use the Prompt Payment interest calculator.

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

Final Rule: 5 CFR Part 1315