Third Party Pay System
TPPS is a commercial, off-the-shelf, third-party payment system used by the Department of Defense (DoD) for transportation payment processing. In 1999, Dr. John Hamre, then Deputy Secretary of Defense, designated TPPS as the DoD system for surface freight payments in an effort to redesign Defense transportation documentation and financial processes. Household Goods (HHG) followed surface freight and implemented TPPS in 2004.
TPPS provides real-time information exchange through the World Wide Web and bridges the gap between DoD and carrier information systems. TPPS collects shipment and financial data from both shippers and carriers in a single electronic document and makes data available over the Internet to all parties.
TPPS is used to reduce costs by:
- Eliminating paper invoices
- Eliminating hard-copy check payments
- Auditing each invoice to reduce payment errors
- Avoiding late fees and balance due invoices
- Improving security to eradicate fraud opportunities
Page updated July 24, 2019