eft payment for Michigan mandate

If you didn’t read our first MI Administrative Order blog, this one will discuss how both alcohol distributors and the retailers they deliver too benefit from this new state order.

The buzz around Michigan has been all about a new order implemented by the Michigan Liquor Control Commission. In this blog, we’ll explore who the MLCC is and the logic behind why Administrative Order NO. 2023-01 Payment For Beer, Wine and Mixed Spirit Drink By Electronic Funds Transfer (EFT) is a step in the right direction for all parties involved.

Why is There a Michigan Liquor Control Commission (MLCC) and What Do They Do?

The Michigan Liquor Control Commission (MLCC) was created by the Michigan Legislature in 1933 following the repeal of Prohibition. The purpose of the MLCC is to regulate the sale and distribution of alcoholic beverages in the state of Michigan. The MLCC has several important responsibilities, including:

  1. Licensing businesses that wish to sell alcoholic beverages in Michigan, bars, restaurants, and retail stores.
  2. Regulating the sale and distribution of alcoholic beverages in Michigan, including underage drinking, over-serving, and illegal sales.
  3. Revenue Collection of taxes on the sale of alcoholic beverages.
  4. Educating and training businesses and individuals in the alcoholic beverage industry to ensure compliance with state laws and regulations.

Why Did the MLCC Order an EFT Mandate for Alcohol Sales?

In their email communication, they didn’t clearly state why they are implementing this and only highlighted the benefits of safety and security for retailer licensees and wholesaler delivery personnel. A potential business reason could be to collect tax dollars more efficiently using EFT compared to traditional forms of payment.

How EFT Payments Benefit Both Alcohol Retailers and Distributors

Accounting Accuracy

One of the biggest advantages of EFT is improved accuracy and efficiency. EFT eliminates manual payment processing and reduces the risk of human error, resulting in faster, more accurate payment processing. Retailers can track their payments easily and avoid errors, saving time and resources.

Safety and Security

Safety and security are two of the biggest components for mandating EFT payments to keep drivers safe. For starters, drivers are safer because they don’t have to carry large amounts of cash or checks throughout their delivery route.  Secondly, EFT pay is also securely transmitted and encrypted over the internet, greatly reducing the risk of fraud and data theft. This added security protects not only the retailer but also the state. Unlike physical cash or checks, EFT payment cannot be damaged, lost, or stolen, providing peace of mind for all parties involved. The secure and reliable nature of EFT payments makes them a superior option for alcohol deliveries.


Another benefit of EFT is increased flexibility. Retailers can set up automatic payments, reducing the need for manual intervention and allowing for more efficient payment processing. Additionally, EFT payments can be made from anywhere, at any time, reducing the need for time-consuming trips to the bank.

In conclusion, EFT payment provides liquor retailers with a more efficient, secure, and flexible solution for purchasing alcohol under-regulated state orders. By using EFT, retailers can streamline their payment process, reduce errors, and increase security, increasing productivity and profitability.

Read More From Fintech

Relationships are an essential part of successful business management. Trust and collaboration between suppliers, distributors, and retailers keep the three-tier system of alcohol thriving, and the best way to establish that trust is with reliable, on-time payments for goods and services. Electronic Funds Transfer (EFT) payment offers a

Yes.  For a few reasons.  Forty-eight states in the U.S. dictate very specific payment terms for the wholesale of beverage alcohol to retailers. Half of the states require payment at the time of delivery (COD), and the other half allow wholesalers to extend limited credit terms. In nearly

Optimizing your business is an ongoing challenge. There are always new things to adopt, new ways to automate your processes, and new customer personas that create their own pain points and opportunities. Many companies are held back by legacy systems that, while they have worked before, need some

Inventory and invoices are two critical elements of the hospitality business that, when optimized, can revolutionize workflows and increase efficiency. Management software tools like Fintech and Yellow Dog, a food and beverage inventory system, work harmoniously to create a seamless environment where all inventory and invoices are accounted

Ready to learn more?
Fill out the form below to request more information.