Definition
Banking Verification Validation of bank account information for electronic payment of contract invoices.
Definition
Banking Verification is the process of validating a contractor's bank account information in SAM.gov to enable electronic funds transfer (EFT) payment for contract invoices. Contractors must provide bank routing number, account number, and account type as part of the Financial Information section of SAM registration. The banking information is verified to ensure payments can be successfully processed. Incorrect banking information can result in payment failures or delays. Government policy requires EFT payment for most federal contracts. Banking information is sensitive and access is restricted within SAM. Changes to banking information require appropriate authorization and may trigger additional verification to prevent fraud.
Also Known As
- EFT Setup
- Bank Account Verification
- Payment Information
Examples
Common Mistakes to Avoid
- ✕Providing incorrect routing or account numbers causing payment failures
- ✕Not updating banking information after changing banks
- ✕Using personal accounts instead of business accounts
Who Should Know This Term
Finance managers, contracts administrators, company officers
Official Source
FAR 32.1103
