GSA SmartPay® - Implementing Executive Order 14247—Modernizing Payments to and from America's Bank Account

GSA SmartPay® Smart Bulletin No. 043

UPDATE:

Effective Date

August 27, 2025, and shall remain in force until modified or rescinded.

Business Line(s) Affected

Purchase, Travel, Fleet, and Integrated

Introduction

This Smart Bulletin provides clarifying information for the GSA SmartPay program as it relates to the March 25, 2025, Executive Order 14247—Modernizing Payments to and from America’s Bank Account.

Summary

Executive Order 14247—Modernizing Payments to and from America’s Bank Account recognizes the challenges associated with the use of paper-based payments by the federal government, including checks and money orders, flowing into and out of the United States General Fund. The order seeks to promote operational efficiency by mandating the transition to electronic payments for all federal disbursements and receipts by digitizing payments to the extent permissible under applicable law.

Currently, some agencies may receive paper refund checks from their GSA SmartPay contractor bank. In order to be in compliance with Executive Order 14247—Modernizing Payments to and from America’s Bank agencies should discontinue receiving paper refund checks and begin receiving electronic refund payments from their contractor bank.

Additionally, questions have been asked about the use of convenience checks under the GSA SmartPay program and whether Executive Order 14247—Modernizing Payments to and from America’s Bank applies. Since FY10, the Center for Charge Card Management (CCCM) has consistently encouraged agencies to reduce the use of convenience checks to the maximum extent possible and this continues to be the position of our office.

However, it is important to note that convenience checks issued under the GSA SmartPay program are not considered third party drafts which are checks/payment orders drawn by a party other than the person who is actually liable for the payment. Rather, convenience checks are issued by the charge card bank and allow the account holder to write checks that draw against the charge card account. They are tied directly to the GSA SmartPay account number from which they are issued. They are not directly tied into or issued from the Department of the Treasury (aka America’s Bank Account) and are not instruments drawn by or payable to third parties in the typical-third party draft sense. As a result, Executive Order 14247—Modernizing Payments to and from America’s Bank does not apply to GSA SmartPay issued convenience checks.

Action

Agencies that are currently receiving paper refund checks should work with their contractor bank to begin accepting electronic refund payments in lieu of paper refund checks in order to be in compliance with Executive Order 14247—Modernizing Payments to and from America’s Bank.

Agencies should also continue to reduce the number of convenience checks issued, to the maximum extent possible, in accordance with Smart Bulletin No. 12.