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Do purchase cards pay sooner than invoice & check or eft?


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Re: the 736 TAPS schedule, what is the typical process for invoice and payment - Can invoices be submitted weekly typical in the staffing industry? Would the use of a government purchase card for amounts above micropurchase expedite the payment?

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Re: the 736 TAPS schedule, what is the typical process for invoice and payment - Can invoices be submitted weekly typical in the staffing industry? Would the use of a government purchase card for amounts above micropurchase expedite the payment?

Here's the link to the TAPS solicitation. Take a look at the clauses for payment and see what the contract clauses say. If the contract doesn't prohibit frequent payments, then it's up to the ordering agencies.

http://gsa.gov/Portal/gsa/ep/contentView.d....jsp&P=7FC6

The purchase card usually doesn't do much for expediting payments. The contractor submits an invoice and the government takes aropund 30 days for payment. EFI should be just as fast.

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Here's the link to the TAPS solicitation. Take a look at the clauses for payment and see what the contract clauses say. If the contract doesn't prohibit frequent payments, then it's up to the ordering agencies.

http://gsa.gov/Portal/gsa/ep/contentView.d....jsp&P=7FC6

The purchase card usually doesn't do much for expediting payments. The contractor submits an invoice and the government takes aropund 30 days for payment. EFI should be just as fast.

Formerfed are you certain about what you just said? Getting paid via VISA costs the vendor, contractor, whatever, from 2-5% in VISA fees per transaction, which are often figured into the price charged the Government.

I contracted with an agency to teach some classes after I retired (before coming back as a rehired annuitant). They insisted on payment via the VISA. I was paid within a couple of days, in exchange for my additional cost for accepting VISA for the individual transactions. This agency uses an electronic payment voucher and accounting system. As soon as the government input the receiving report (terminology?) with the credit card information, I received payment from VISA very shortly thereafter.

There is no benefit other than faster payment for a firm to accept Government VISA transactions for providing services, due to the higher costs and the administrative BS that goes along with having a VISA merchants account.

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Formerfed are you certain about what you just said? Getting paid via VISA costs the vendor, contractor, whatever, from 2-5% in VISA fees per transaction, which are often figured into the price charged the Government.

I contracted with an agency to teach some classes after I retired (before coming back as a rehired annuitant). They insisted on payment via the VISA. I was paid within a couple of days, in exchange for my additional cost for accepting VISA for the individual transactions. This agency uses an electronic payment voucher and accounting system. As soon as the government input the receiving report (terminology?) with the credit card information, I received payment from VISA very shortly thereafter.

There is no benefit other than faster payment for a firm to accept Government VISA transactions for providing services, due to the higher costs and the administrative BS that goes along with having a VISA merchants account.

Joel,

I started to qualify what I meant but didn't. There are two ways the purchase card is used. One is like your example where you did work and got paid almost immediately. The other is just for payment. In the original posters case, the ordering agency issues a delivery order. The work gets performed and the contractor submits an invoice. The agency uses the purchase card for payment. While some agencies make payment almost immediately, the majority do not. The time is about the same as EFI.

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I just realized another scenario is possible. I don't know how many agencies still do this because of the risk of unacceptable performance on services provided but the contractor could be authorized to bill the bank upon completion of the services (or partial completion). The contractor is paid almost immediately and the agency can dispute charges with the bank if the work isn't proper.

That's something I would not recommened especially for temporary services but it is allowed under the GSA contract with the banks - just not certain what the maximum payment amounts are.

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