What is a Purchasing Card?

The Purchasing Card is a tool for university employees to use when making low-dollar purchases for official university business needs. It allows the Director of Institutional Support to delegate the authority to purchase low-dollar items directly to you, the designated card- holder, enabling you to purchase supplies faster and more easily than before. You will no longer have to enter a purchase order prior to buying qualifying items. Instead, you may purchase these low-dollar items (up to $5000) with a VISA credit card issued in your name.

The VISA Purchasing Card payment system is an individual bill/central payment system. You, the cardholder, receive a monthly account statement for information and reconciliation purposes only. An electronic billing file is sent centrally to the accounting system (Accounts Payable), together with a summary of all charges with supporting detail. Accounting makes one payment to VISA on behalf of all cardholders. Expenditure transactions are processed through the agency's accounting systems (PeopleSoft) and posted to the various departmental accounting code combinations.

In brief, a Purchasing Card is:

• Authority delegated by the Director of Institutional Support to individual university employees
• Authorized for official State/University use only
• Authorized for low-dollar purchases (under $5000)
• Authorized for purchases greater than $5000 on state contracts where indicated (must have prior approval from the Purchasing Office).
• Authorized for use within certain categories of merchants and commodities

A Purchasing Card is NOT:

• For cardholder personal use purchases or identification under any circumstances. It cannot be used for reimbursable meals costs or other miscellaneous lodging expenses such as phone calls.
• A means to avoid appropriate procurement or payment procedures
• A card to access cash or credit (ATM)
• A travel card (use Corporate Card for travel)
• A right of employment

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What are the Benefits of a Purchasing Card?

The Purchasing Card enables cardholders, purchasing and accounting staff to perform more effectively and focus on the value-added aspects of your jobs by:

• Reducing time needed to purchase and receive supplies
• Reducing the number of purchase orders
• Reducing reimbursements from petty cash
• Reducing the number of invoices and invoicing problems
• Reducing the number of checks issued

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Who are Likely Cardholders?

Because the Purchasing Card allows the cardholder to place orders directly with the
supplier, the greatest program benefits are achieved when cards are issued to end-users.
Therefore, in addition to traditional buyers (purchasing staff), other staff that should be issued cards are:

• Field staff, who may need emergency parts or supplies
• Librarians/others who routinely buy subscriptions and books
• Program support staff who buy supplies
• Facilities Management/Maintenance staff

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How Do I Obtain a Purchasing Card?

1. Contact Marie Helmke, Purchasing Card Coordinator at X2598 to request a Purchasing
   Card Request Form or access it from the Purchasing website.
2. The Purchasing Card Request Form must be completed and signed by your
   supervisor. Multiple cards with different budget numbers may be issued to one individual. The card will be mailed directly to you within 5 business days after it is requested. You will be notified of the request date.
3. Attend a training session. Contact Marie Helmke at X2598 to
   schedule a session. The training takes approximately 30 minutes.
4. Read and complete a Purchasing Card Application/Use Agreement. This form will be
   sent to you at the time you receive the notice that your card has been requested. Your participation must be approved by management level required by your agency to grant purchasing approval.
5. Keep a copy of the Purchasing Card Application/Use Agreement. Send the original to the Purchasing Card Coordinator.

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Personal Liability and Your Credit Rating

The use of the Purchasing Card results in agency liability, NOT a personal liability for the cardholder. Your credit rating will not be affected. However, remember that you sign an agreement with the University prior to receiving the card and as such you are responsible for any misuse of the card as outlined in this manual. The penalty for misuse of these cards is the same as misuse of a purchase order, which can be up to and not limited to dismissal If misuse of the Card occurs, any personal or unauthorized item(s) must be immediately returned to the vendor for full credit OR the employee must repay the campus all personal amounts including any applicable state, county or city sales taxes. Even if the vendor does not charge these taxes, the campus must collect and remit the taxes to the State of Wisconsin Department of Revenue. All documents related to the Purchasing Card may be fully disclosed as a public record to the extent provided by the Open Records Law.. The U.S. Bank/VISA Purchasing Card Program provides liability protection to the State once notification of any loss, theft or fraudulent use is made. However, the same level of liability protection does not apply to cards that are made available to multiple users. Therefore, each Purchasing Card must be used only by the person whose name appears on the Card.

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Guidelines for Card Use

The Purchasing Card is to be used to purchase low-dollar value items with the total amount of any purchase not to exceed $5000. These items may include:

• subscriptions for business use sent to the University address
• membership fees/dues
• conference registrations/NOTE: it must state on the Travel Expense Report that the purchasing card was used for the registration fee. A copy of the conference brochure must be attached to the TER or it will be returned.

Examples of items that may not be purchased with the card:

• The Purchasing Card may not be used for cash advances (ATM machines)
  or to purchase non-business (personal) items/services.
• In order to prevent difficulties in reporting to the IRS, the Purchasing
  Card should not be used for tax (1099) reportable services. These
  are services performed by a vendor that is not incorporated and cannot provide a federal employer identification number on their W-9 form. Please check with the Purchasing Office to confirm vendor status.

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Merchant Category Code Standards

All vendors are assigned a Merchant Category Code (MCC) by their bank which designates the type of business they conduct (ex. hardware store, liquor store, etc.) . All Purchasing Cards are encoded with specific MCC exclusions (ex. tattoo parlor). Attempting to buy from these merchants will cause your transaction to be denied. Occasionally, a bank may have assigned an incorrect MCC to a "legitimate" vendor. Contact the Purchasing Card Coordinator at X2598 to determine why your transaction is declined.

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Use With Statewide Contracts

The Purchasing Card may be used on statewide contract ONLY when the contract or subsequent amendment indicates that card use is allowed. The procedures for use on contracts are subject to change at any time. Contact the Purchasing Card Coordinator if you are aware of a contract vendor who accepts credit cards and the contract documentation indicates card use is disallowed. Be sure to consult the relevant contract before making any purchase with the card.

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General Instructions for Card Use

1. If the transaction value is greater than your assigned value (single transaction limit), either use traditional purchasing procedures (enter a purchase order or process a direct charge) or contact the Purchasing Card Coordinator at X2598 to request an increase on your card limits.
   
   
2. If the transaction value is assigned value or less:
   
   
   • Assuming the item is not on a mandatory state contract, you may use best judgment (under $1500) to determine an appropriate vendor for the materials desired. You must obtain a minimum of three quotes on orders exceeding $1500, but less than $5000. These quotes must be attached to purchase receipt from low bidder. Orders exceeding $5000 must be bid by the Purchasing Office. Consult VendorNet for mandatory contract vendors.
     
     
   • The State of Wisconsin and UW-Green Bay are committed to the involvement of minority business enterprises in the state's procurement program by attempting to ensure that 5% of the total amount expended in a fiscal year, is paid to minority businesses. Check the Purchasing website for a listing of minority vendors. Approved minority vendors are given a 5% award of preference (if their bid is within 5% of the lowest bid obtained, the order should be given to the minority vendor).
     
     
   • There is a listing of vendors that are not eligible to conduct business with the
     State. Vendors doing business with State agencies are declared ineligible if they do not comply with the Wisconsin sales and use tax OR if they do not submit acceptable affirmative action information. According to Wisconsin law, state agencies, the University of Wisconsin and their employees are prohibited from making purchases from these vendors.
     
     
     • Vendors and their affiliates who are not properly registered and remitting Wisconsin sales or use tax will be declared ineligible under s.16.75 10m) and 77.66, Wis. Stats.  These vendors are listed at:  http://vendornet.state.wi.us/vendornet/wocc/certlist.pdf
     • Vendors who fail to submit acceptable affirmative action information are also ineligible.  A vendor remains ineligible until s.16.765, Wis. Stat and ADM 50, Wisconsin Administrative Code information is submitted.  These vendors are listed at http://vendornet.state.wi.us/vendornet/wocc/wocc.asp
       
     
     
     
   • Give the vendor your Purchasing Card number and expiration date or present the card at the point of sale. Occasionally a transaction may be denied. Please
     contact the Purchasing Card Coordinator at X2598 or U.S. Bank Customer Service at the 800-number located on the back of your Card to determine the reason. Some
     of the reasons may include:
     
     
     • exceeding the single/monthly transaction limit established for your card.*
     • vendors Merchant Category Code (MCC) is incorrect and therefore
       may be a blocked item.
     • vendor's equipment is not working properly.
     • vendor enters incorrect expiration date when processing authorization.
       
       

     *If you feel the established limits are not appropriate, please send memo or email Marie Helmke requesting a revision and justification. A response approving or denying the request will follow. Raising credit limits is preferred as opposed to the vendor "splitting" charges in order to remain under the established credit limits.

   • Tell the vendor that the State is exempt from State sales taxes.
     NOTE: Tax exempt number is ES 40706. Print the Sales & Use Tax
     Certificate of Exempt Status.
     
     
   • If the material will be shipped or delivered, instruct the vendor to enclose or mail a copy of the receipt/invoice with each shipment. Emphasize to the vendor that the receipt must be mailed to the cardholder and not Accounts Payable or the
     Purchasing Office. Have the vendor mark it "paid" to avoid duplicate payment.
     

     Shipments are to be addressed as follows:

     Cardholders Name and Dept. Name
     UW-Green Bay
     Receiving Dept./CHARGE
     2420 Nicolet Dr.
     Green Bay, WI 54311

     Also, ask the vendor to put the following word (or something to its effect) on the shipping label where there would normally be a purchase order number: the letters "CHARGE". This will notify receiving personnel that the shipment is related to a Purchasing Card Transaction and delivery to you will be made much quicker.
     
     If the material is picked up, be sure to obtain the itemized receipt indicating the purchase price. Ensure the merchant specifically identifies what is purchased and does not use a description such as "miscellaneous merchandise".
     
     Purchases in Person:  Must have a signed, detailed receipt at the time of purchase clearly identifying each item purchased.
     Phone/Fax Orders:  The original invoice or packing slip sent with goods shipped.  If the packing slip doesn’t have the itemized detail, write it on by hand. 
     Internet Orders:   Print a copy of the order or confirmation screen that shows what was purchased and the dollar amount.  Use extreme care when sending Card numbers over the Internet.  Make sure the website has some type of security alert box OR a secure site statement along the bottom of the order page before submitting the final order.
     
   
   3. Maintain a Purchasing Card receipt file: Obtain and file receipts for all transactions for reconciliation purposes.:
   

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Reconciliation Procedure

1. A bank statement for each account is mailed to you, the cardholder. An electronic billing
   file is sent to the University Accounts Payable for payment processing.
2. It is your responsibility as the cardholder to verify the charges on the statement
   against your receipt. Attach receipts to the corresponding statement. If there are inaccuracies and/or erroneous charges, complete the Billing Inquiry Form (located in back of manual) and notify the Purchasing Card Coordinator.
3. Sign by "Cardholder Signature" on the bank statement to document review and submit it to your supervisor for their review on a "no less than quarterly" basis. The supervisor must also sign the Card statement verifying the charges were appropriate and for University business purposes.
   
4. Maintain file of signed statements in a secure location for a period of seven (7) fiscal years (6 plus the current). After this time, the documents can be legally destroyed; be sure to obtain authorization from the Archival Coordinator (X2539) before submitting the documents for confidential destruction.

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What If the Supplier Does Not Accept Credit Cards

Not all suppliers accept Purchasing Cards, if this happens:

• Choose another supplier, or:
• Complete the transaction using traditional purchasing procedures, then:
• Ask the supplier if they are interested in accepting VISA. If yes, refer them to the Agency Purchasing Card Coordinator for information about signing up as a VISA merchant

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Returns, Credits or Disputed Items

You are responsible for following up with the merchant or bank on any erroneous charges, disputed items or returns as soon as possible. Disputed billings can result from failure to receive the goods charged, defective merchandise, incorrect dollar amounts, duplicate charges, credit not processed, as well as fraud and misuse.

If you have a problem with a purchased item or a billing resulting from use of the VISA Purchasing Card, you should first try to reach a resolution with the supplier that provided the item. In most cases disputes can be resolved directly between the cardholder and the supplier.

Credits
Referring to your receipt, request from the merchant that a credit be placed on your card account. If the item was shipped, refer to the shipping form you kept with your Card statement.

Returns
A credit should be issued for any item that the supplier has approved for return. The credit will appear on a subsequent statement. Any item purchased with the VISA Purchasing Card that is returned must be returned for credit. Do not accept a refund in cash or check format.

Make sure you keep documentation of credits, returns and exchanges with your Card statement..

Disputed Items
If you have a disputed charge and cannot reach resolution with the supplier, complete the Cardmember Services Corporate Disputes Form (copy located at the back of this manual) and fax to U.S. Bank Financial Services along with a copy to the Purchasing Card Coordinator. This written notice of dispute must be received within 60 days of the date that U.S. Bank sent the first statement or transaction file.

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Credit Card Security

Your Purchasing Card should be treated with the same level of care you use with your personal credit cards.

• The card should not be loaned to another person. The only person authorized to use the Purchasing Card is the person whose name is on the front of the card or who completed the Purchasing Card Application/Use Agreement.
• Your Purchasing Card account number should be guarded carefully. Do not post it or write it in any location that is accessible to others.
  Use extreme care when sending your Card number over the Internet.
  

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Reporting Lost or Stolen Cards

Unlike personal credit cards where cardholders are responsible for paying the first $50.00 if the card is stolen or misused, U.S. Bank will hold the University (and ultimately your departmental budget) is responsible for paying all charges resulting from stolen or misused cards until they have been notified.

Contact U.S. Bank immediately at (800) 393-3526 to report a lost/stolen Card. This number is staffed 24 hours/7 days a week. At the first available opportunity, report the same information to the Purchasing Card Coordinator at X2598

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Random Audits

The UW-Green Bay Purchasing Office,Internal Auditor, as well as the State Bureau of Procurement and the State Controller's Office, will conduct random audits of Purchasing Card use. The primary purpose of these audits is to ensure the Purchasing Card program procedures are being followed and that:

• Purchase volume appears reasonable
• The card is being used for appropriate transactions
• Documentation is complete (receipts attached, reconciliation taking place, etc.)

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Consequences of Failure to Comply with Policy Guidelines

Any misuse of the card or other failure to comply with these procedures will result in the following cardholder consequences:

• Revocation of Card
• Disciplinary measures, if appropriate
• In addition, if the misuse involves personal transactions, the cardholder must repay to the University all personal amounts, including any applicable state, county or city taxes.
• "Three strikes and you're out" rule. Three separate instances of misuse will result in temporary or permanent termination from the program

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What If I Leave the Agency or Transfer to Another Unit?

If you leave your agency or transfer to another unit within the agency, you must return your Purchasing Card to the Purchasing Card Coordinator who will cancel the card. Returned Purchasing Cards are not reissued to other employees for use. Before returning a canceled Purchasing Card, cut the card in half.

Note: If you have established accounts with vendors that relate to your card number, these will also need to be canceled and re-established as a new account with your successor (ex. monthly cell phone billing).

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Key Contacts

The following resource persons are available to provide assistance, answer questions, or help solve any problems that arise:

Agency Purchasing Card Coordinator
Marie Helmke, 920-465-2598

• To apply for a Purchasing Card
• For questions about policies and procedures
• To replace damaged cards
• For assistance with suppliers
• For account inquiries
• For billing information
• If you didn't receive your monthly statement
• To report a lost or stolen card
• To determine reason card transaction was denied

U.S. Bank Customer Service: (800) 393-3526

• To report lost or stolen cards
• For questions about your statement

 

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