Prepare for California’s New Alcohol EFT Law with Fintech and COGS-Well

The hospitality industry in California is facing a major regulatory change. A newly passed law requires all local retailers to pay wholesale alcohol invoices via electronic funds transfer (EFT) by December 31, 2025. This applies to beer, wine, and distilled spirits. EFT modernizes the way businesses pay invoices, creating faster, safer, and more secure payment processes.

For restaurants, bars, and other hospitality businesses, staying compliant while maintaining operational efficiency is critical. That’s why COGS-Well has partnered with Fintech to help businesses navigate these changes with ease.

What the California EFT Law Requires

Under the new regulations:

• EFT is defined as transferring money electronically between bank accounts.

• California’s 30-day credit limit on alcohol sales remains unchanged.

• Electronic payments can include credit cards, but retailers are responsible for paying transaction fees.

• Each party (wholesaler and retailer) must cover their own EFT service costs.

• Wholesalers must initiate payment processing, such as uploading invoices through a platform like Fintech.

• Wholesalers will be responsible for selecting which third-party payment platforms they use, but there is an exception for retailers already using a third-party payment platform.

  
  

Unlike Michigan’s comparable 2023 law, California does not allow wholesalers to remove retailers from EFT service due to repeated bank return issues.

Retailers can learn more and sign up for Fintech’s free EFT service here.

Why Early Adoption is Critical

Transitioning to EFT payments ahead of the December 2025 deadline offers important advantages:

• Businesses can test and fine-tune their bank filters for seamless transactions.

• Staff can receive training on EFT systems before the law goes into effect.

• Automated reporting and reconciliation features can immediately improve operational efficiency.

• Early adoption minimizes the risk of service disruptions, legal penalties, or delayed payments.

  
  

The earlier your business switches to EFT, the more prepared and resilient your operations will be.

How Fintech and COGS-Well Simplify the Transition

For more than 34 years, Fintech's PaymentSource® has been the trusted leader in EFT alcohol invoice payments for hospitality and retail businesses. Designed to streamline operations, PaymentSource eliminates the need for manual data entry, minimizes costly errors, and ensures full compliance with the latest California EFT regulations. All of this helps businesses save valuable time and resources while optimizing efficiency.

COGS-Well complements this by helping restaurants and bars reduce costs through increased efficiency, control, and insights. Their best-in-class inventory, recipe, and cost management software is faster, easier, and more accurate because COGS-Well handles inventory setup and maintenance for you.

Unlike traditional inventory management systems that can take weeks to implement and require countless hours to maintain, COGS-Well gets your inventory database up and running in just a few days, maintained by smart technology and expert auditors.

For independent operators and chain restaurants, the COGS-Well and Fintech partnership offers a comprehensive solution to meet today's regulatory and operational challenges.

Get Started Today

As the compliance deadline approaches, your business needs the right partners and the right tools. With Fintech’s PaymentSource® and COGS-Well’s inventory management expertise, you can seamlessly adapt to the new alcohol EFT law while improving your operational efficiency.

Contact us today to learn how COGS-Well and Fintech can help your business transition smoothly, stay compliant, and operate smarter.