National Finance Center

Electronic Funds Transfer - USDA Government Vendors

November 2, 1998

Thank you for your interest in the Electronic Funds Transfer (EFT) program termed Vendor Express.

On April 26, 1996, President Clinton signed into law The Debt collection Improvement Act of 1996 (DCIA), which revises the way that Federal agencies must pay their vendors. The law requires Federal agencies to make electronic payments to all recipients who become eligible to receive such payments on or after July 26, 1996. In order to comply with these new directives, the USDA Office of the Chief Financial Officer/National Finance Center (OCFO/NFC) has begun the process of converting our vendors from receiving payments by Fedwire or U.S. Department of the Treasury (Treasury) checks to the Automated Clearing House (ACH) network of electronic funds transfer payment (EFT) method known as "Vendor Express." The OCFO/NFC Vendor Express program has been in use since 1987.

ACH / EFT offers cost savings to the vendors and to the Federal Government. ACH / EFT payments by vendor express are almost 10 times less expensive to issue than a paper check, and nearly 100 times less than a wire transfer. Also, there are no restrictions on the minimum dollar amount of the payments transmitted through the ACH / EFT network, or the number of invoices each vendor can receive payment for on each ACH / EFT transmittal.

The ACH / EFT payment means that in lieu of receiving a check for goods and/or services provided to the Department of Agriculture and other Departments serviced by USDA's OCFO/NFC, your company's payment will be sent via electronic transfer and automatically credited to your account at your financial institution. The vendor express program has proven to be an efficient and cost effective mechanism for making payments, for increasing payment security and for eliminating the 2 to 3 day mail time. In addition, funds are credited and available to the recipient on the due date without the need for making manual deposit.

The Department of the Treasury and OCFO/NFC are enthusiastic about this means of making payments and look forward to working with your company to make this a successful program.

The information requested on the ACH Vendor/Miscellaneous Payment Enrollment Form, SF-3881 is necessary to establish accurate electronic records for ACH/EFT payments, and will enable us to make timely, accurate transfers to your financial institution. Additional information is provided in the form of Vendor Express Program Highlights and a Checklist which is used to establish a written agreement between you and your financial institution as to what information will be provided to you with each credit to your account. After completing the checklist, each party should retain a signed copy for their records. After your financial institution information has been recorded at OCFO/NFC, you will be notified via a letter from OCFO/NFC with instructions and your Vendor Express OCFO/NFC number for use in receiving payments via ACH/EFT.

Enrollment

Adhering to the following instructions will ensure successful implementation of your company's payments via ACH/EFT:

• To receive payment electronically from OCFO/NFC, it is necessary that you complete the PAYEE/COMPANY Information section of the enrollment form SF-3881. The form SF-3881 can be accessed and a copy downloaded from the Treasury Web site. You may also contact the OCFO/NFC Miscellaneous Payments Section at 1-800-421-0323 and request a copy of form SF-3881 be sent to your address.
  
• After completing the PAYEE/COMPANY Information section, please take the enrollment form to the ACH/EFT Coordinator of your financial institution for completion of the FINANCIAL INSTITUTION Information section. The completed enrollment form will ensure that your financial institution is prepared to accept ACH/EFT payments from OCFO/NFC. Additionally, the Vendor Express Program Highlights/Checklist should be completed and signed by you and your financial institution. The Vendor Express Program Highlights and Checklist can be accessed and downloaded from the OCFO/NFC web site or call the number provided above.
  
• After completing the PAYEE/COMPANY Information section and the FINANCIAL INSTITUTION Information section of the form SF-3881 the signed form should be mailed to the OCFO/NFC Miscellaneous Payment Section at the following address:

USDA, OCFO/NFC
P.O. Box 60000
Miscellaneous Payment Section
New Orleans, LA 70160

IMPORTANT

1. Be sure the form SF-3881 is signed by the proper Payee/Company official and Financial Institution official. Please include their title along with their signature.
   
2. The business Taxpayer Identification Number (TIN) is required. If the form is being completed for a company, the IRS assigned Employee Identification Number (EIN) should be entered as the TIN. If the form is being completed for a sole proprietor, the Social Security Number (SSN) should be entered as the TIN.
   
3. Please include the business FAX number as well as a telephone contact number.

If you want to have payments for different contracts go to different accounts, you will need to file a separate enrollment form for each account.

Payment Identification Information

To assist your company in identifying its payments, a payment identification record (addendum) will be provided to your financial institution each time electronic funds are transferred. It is important that you and your bank agree on how and when the addendum information will be provided to your company. We will use the Cash Concentration or Disbursement Plus (CCD+) ACH/EFT format to transmit your payments and addendum records to your financial institution. Discuss with the ACH/EFT Coordinator of your financial institution what payment information they will provide to you with each credit to your account.

The payment information transmitted to your financial institution as an addendum record will include the following information (currently being provided with a check payment):

• A reference to assist your proper application of the payment and to facilitate any inquiry to OCFO/NFC.
• The amount being electronically transferred to your account.
• The billed amount
• If the payment is subject to the Prompt Payment Act, the amount of any interest included in the payment along with the number of days late and the interest rate used.

We trust your company will find the Vendor Express program a prompt, effective, and reliable method for receiving payments and we look forward to your participation. If you have any questions, please contact OCFO/NFC Miscellaneous Payment Section at 1-800-421-0323. Thank you.

Miscellaneous Payment Section
Administrative Payments and Analysis Branch
Financial Services Division
United States Department Of Agriculture, OCFO/NFC

Completing the SF-3881 to Receive Payments Electronically from the OCFO/NFC

The following information should be used to complete the SF-3881, ACH Vendor/Miscellaneous Payment Enrollment Form. Further instructions may be obtained from the Treasury Web site or by calling the OCFO/NFC Miscellaneous Payments Section at 1-800-421-0323 to request a copy:

Payment Identification Information