The cardholder must pay all undisputed charges directly to the bank in full by the billing due date as printed on the billing statement. This date will be 25 to 30 days after the closing date on the statement, depending on the bank. The closing date is often referred to as the billing cycle date and is assigned by the Contractor for your accounts. This date will generally be the same each month for all accounts under your control.
It is important to remember that under the terms of the GSA SmartPay® 2 Master Contract, an account is considered past due if payment for the undisputed principal amount has not been received within 45 calendar days from the closing date on the statement of account in which the charge appeared.
- The bank may suspend the account, unless otherwise directed by the A/OPC, if the payment for the undisputed principal amount has not been received 61 calendar days from the closing date on the statement of account in which the charge appeared.
- If payment for the undisputed principal amount has not been received 126 calendar days from the closing date on the statement of account in which the charge appeared, the Contractor (bank) may cancel the account, unless otherwise directed by the A/OPC.
Another category of delinquency is credit losses (write-offs). Contractors are required to show balances older than 180 days as losses on their profit and loss statements. In turn, these losses are defined as write-offs by the Contractor. The Contractor may continue efforts to recover these losses after they have been written off.
