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Payment Terms

Payment Terms for Nonmanufacturing Suppliers

Cisco has a standardized payment term policy for all non-production spend.

Payment term are net 60 from receipt of approved invoice and contingent on completion, delivery, and acceptance of goods and services.

Subject to local laws and regulations, transactions within the following countries are permitted to have net 30:

  • France
  • Germany
  • Italy
  • Netherlands
  • Slovenia
  • Spain


Suppliers who meet the Government of India’s Micro, Small and Medium Enterprises Development Act, 2006 (“MSME Act”) and provide and maintain a valid registration number under the MSME Act, payment terms are net forty-five (45) days.

United States or Canada

At Cisco’s discretion and approval for U.S. and Canadian suppliers, Cisco may offer expedited discounted payment terms of 1%/20 net 60. Approved suppliers must submit invoices to Cisco U.S. or Cisco Canada accounts payable, as directed by a Cisco purchase order.

If you have questions not addressed in the FAQs or still have concerns you may contact a Payment Terms Office representative. Be prepared to reference your supplier number, other relevant payment or supplier information, and reference your supplier notification (where applicable).

Electronic Funds Transfer (EFT) payment

Cisco Systems encourages our suppliers to utilize electronic funds transfer (EFT). There are several options for receiving payments and remittance advice notification from Cisco Systems.

  1. Automated Clearing House (ACH). Payments will be electronically transmitted from Cisco Systems's bank to your US domestic bank. Note: Allow a minimum of 10 business days for the process of pre-notification for the first payment with the banks involved.
  2. Wire Transfers. Payment will be electronically transferred (wired) to your non-US bank.

EFT remittance transmission options

  1. Send via FAX or e-mail
    Cisco Systems will send the payment remittance advice as a FAX information document or as an email.
  2. Send via Mail
    Remittance advice will be mailed directly to your accounts receivable department via US mail.
  3. EDI 820 Transmission to Bank
    Supplier must be able to handle ACH CTX transactions. This option is available to suppliers who have an established EDI 820 link with their bank. The remittance advice will be transmitted electronically to the bank together with the payment. This option can also be used with foreign wire transfers, but will contain limited remittance information.
  4. EDI 820 Transmission to VAN
    This option is available to suppliers who use a third party Value Added Network (VAN) for EDI 820 transactions. Under this option, payments will be sent to your bank, but the remittance advice will be transmitted through an authorized VAN.


What does "net 60" or "net 30" mean?

These terms mean that Cisco will pay the full invoice amount within 60 or 30 days from receipt of an approved invoice.

Do we need to renegotiate a new contract?

Your acceptance of future Purchase Orders will be our agreed upon payment terms going forward.

Where can I find my payment term listed?

Payment terms are documented on the purchase order.