Payment by Electronic Funds Transfer — SAM
Also known as: EFT, ACH, direct deposit, SAM banking information
What you do here: Keep your SAM.gov banking information current
At a Glance
- Who it's for
- Every contractor — EFT is the default federal payment method
- How the money arrives
- Electronic funds transfer (ACH) to your SAM.gov bank account
- Where the details live
- Your active SAM.gov registration
- Governing clause
- FAR 52.232-33, Payment by EFT — SAM
- Cash-flow effect
- No transfer, no cash — a lapsed SAM registration stops payment
What It Is
Federal law requires that contract payments be made electronically. Under FAR Subpart 32.11 and the clause at FAR 52.232-33 (Payment by Electronic Funds Transfer — System for Award Management), the government pays you by EFT (ACH direct deposit) to the financial-institution account in your SAM.gov registration. That means SAM isn't just where you register to be eligible to win work — it's also where the government looks up where to send your money. If your SAM registration lapses, or the banking information in it is wrong or out of date, payments can be delayed or fail entirely, and a defective invoice/registration problem doesn't start the prompt-payment clock. Some contracts instead use FAR 52.232-34 (EFT other than through SAM), but the SAM clause is the norm.
When It’s Used
- On virtually every federal contract — EFT is the statutory default for federal payments.
- Whenever the payment office issues a payment: it pulls your banking details from SAM.
- When you update your bank — the change must be made in SAM to reroute payments.
- Alongside every other payment method here (invoice, progress, PBP, voucher) — EFT is how the money physically arrives.
Key Features
| Feature | What It Means |
|---|---|
| EFT is the default | Statute and FAR require electronic payment; paper checks are the rare exception, not the rule. |
| SAM is the source of truth | The clause 52.232-33 pulls your remittance banking details straight from your SAM registration — keep it active and accurate. |
| Registration must stay active | SAM registrations must be renewed at least annually; a lapse can suspend not only new awards but also payment on existing ones. |
| Change your bank in SAM | If you change financial institutions, update SAM promptly so the payment office routes funds to the right account. |
| Alternate EFT clause | FAR 52.232-34 covers EFT arranged outside SAM; check which clause your contract uses. |
The SDVOSB Cash-Flow Angle
This is the most avoidable cash-flow failure there is: an SDVOSB does everything right, delivers, invoices — and then discovers payment bounced because the SAM registration lapsed or the bank account changed and SAM wasn't updated. Because SAM renewal is annual and tied to your eligibility (and your VetCert status), treat SAM currency as a payment issue, not just a registration chore. Put the annual SAM renewal on the same compliance calendar as your other deadlines, and update banking details in SAM before you close an old account.
How to Get Paid
- Confirm your SAM.gov registration is active and renewed (at least annually).
- Verify the banking (EFT/ACH) information in SAM is current and matches an open account.
- Note which EFT clause your contract uses (52.232-33 via SAM, or 52.232-34).
- Before changing banks, update SAM first so payments route to the new account.
- If a payment doesn't arrive, check SAM status and banking details as the first diagnostic step.
Watch Out For
- A lapsed SAM registration can stop payment on active contracts, not just block new awards.
- Changing your bank account without updating SAM sends payments to a closed account.
- EFT/registration errors don't start or toll the prompt-payment clock — the delay is on you until it's fixed.
- Fraudulent 'change of banking details' requests target contractors — verify any change through official SAM channels only.
Frequently Asked
How does the government know where to send my contract payment?
It uses the banking (EFT/ACH) information in your SAM.gov registration. Under FAR 52.232-33, federal payments are made by electronic funds transfer to the financial-institution account in your active SAM registration, so SAM is effectively the government's source of truth for where to send your money.
Can a lapsed SAM registration stop my payments?
Yes. Because payment routing depends on your active SAM registration and its banking details, a lapse can delay or suspend payment on existing contracts — not just prevent new awards. SAM registrations must be renewed at least annually, so keeping SAM current is a payment issue, not only a registration formality.
Primary Sources
- FAR Subpart 32.11 — Electronic Funds Transfer
- FAR 52.232-33 — Payment by EFT — System for Award Management
- FAR 52.232-34 — Payment by EFT — Other than SAM
- SAM.gov — System for Award Management
Plain-English reference, not legal, accounting, or financial advice. Payment and financing terms are set by each contract, and the FAR is amended from time to time — always read the actual contract clauses and invoicing instructions, confirm the applicable procedures with the contracting officer and payment office, and consult qualified counsel or an accountant for your specific situation before relying on this.
Change log (1)
- LaunchedPublished the federal contract financing & payment methods reference covering how an SDVOSB gets paid — invoice payment and the Prompt Payment Act (FAR Subpart 32.9 / 52.232-25), progress payments based on cost (FAR Subpart 32.5 / 52.232-16), performance-based payments (FAR Subpart 32.10 / 52.232-32), commercial product & service financing (FAR Subpart 32.2 / 52.232-29 & -30), construction progress payments and retainage (FAR 32.103 / 52.232-5 & -27), cost-reimbursement and T&M public vouchers (FAR 52.216-7 / Subpart 42.7), payment by electronic funds transfer through SAM (FAR Subpart 32.11 / 52.232-33), electronic invoicing via WAWF and IPP (FAR 32.905 / DFARS 252.232-7003), assignment of claims for bank financing (FAR Subpart 32.8 / 52.232-23), and contract debts and government offsets (FAR Subpart 32.6 / 52.232-17) — each with an at-a-glance quick-facts card, a when-it's-used list, a key-features table, an SDVOSB cash-flow angle, a how-to-get-paid checklist, watch-outs, FAQPage, Article, Dataset, and BreadcrumbList structured data, primary-source citations, and cross-links into the glossary, how-to guides, FAQ, contract types, clauses, forms, thresholds, and the price-to-win and limitations-on-subcontracting calculators.