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FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.11

FAR 32.1106 EFT mechanisms.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section explains the electronic funds transfer (EFT) mechanisms the Government uses for contract payments. For domestic payments, it specifies the use of the U.S. Automated Clearing House and Fedwire Transfer System, but allows agency heads to authorize other EFT methods with concurrence. For payments outside the U.S. or in foreign currency, it generally requires non-EFT payment unless the agency head authorizes EFT under certain conditions.

Applies to: Government contractors receiving payments under contracts

Key terms: EFT · domestic EFT mechanisms · nondomestic EFT mechanisms · United States currency · Automated Clearing House

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Domestic EFT mechanisms. The EFT clauses at 52.232-33 and 52.232-34 are designed for use with the domestic United States banking system, using United States currency, and only the specified mechanisms (U.S. Automated Clearing House, and Fedwire Transfer System) of EFT. However, the head of an agency may authorize the use of any other EFT mechanism for domestic EFT with the concurrence of the office or agency responsible for making payments.

(b) Nondomestic EFT mechanisms and other than United States currency. The Government shall provide payment by other than EFT for payments received by or on behalf of the contractor outside the United States and Puerto Rico or for contracts paid in other than United States currency. However, the head of an agency may authorize appropriate use of EFT with the concurrence of the office or agency responsible for making payments if—

(1) The political, financial, and communications infrastructure in a foreign country supports payment by EFT; or

(2) Payments of other than United States currency may be made safely.

Sections it refers to

  • 52.232-33 Payment by Electronic Funds Transfer—System for Award Management.
  • 52.232-34 Payment by Electronic Funds Transfer—Other than System for Award Management.

Sections that refer to it

  • 32.1103 Applicability.
  • 32.1110 Solicitation provision and contract clauses.

← 32.1105 Assignment of claims. · 32.1107 Payment information. →

Rule changes for FAR Part 32

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 32.1106 EFT mechanisms · SpendQuery