Electronic payment methods are rapidly changing the way in which invoices are paid, displacing the traditional paper check method Electronic payments can provide a secure, rapid, accurate, and cost effective means for issuing and receiving payment, if properly implemented. This study provides an assessment as to whether or not the expanded use of electronic payments for DoD contracts is improving the payment process. Three DoD contract paying activities which have implemented electronic payment systems are examined: DFAS-Columbus Center (MOCAS system), Aviation Supply Office, Philadelphia (IDA system), and DFAS-Cleveland STARS/SEPS system). An analysis of these systems, their objectives, and the difficulties associated with DoD payment/accounting processes is presented. A survey of defense contractors provides an assessment of electronic payment usage in private industry, as well as an evaluation of DoD's electronic payment capabilities from a customer perspective. Several suggestions which may help make DoD electronic payment capabilities more effective will be offered. Electronic funds transfer, Electronic data interchange, Electronic payments.