Commercial Card
Status: Implemented November 30, 2007, last revised in October 2021.
Purpose
The purpose of this policy is to govern the University’s Commercial Card Program and to provide information about the process, the types of purchases that can and cannot be made, records that must be maintained and reconciled for each cycle, and a variety of other program information. Employees who travel frequently or regularly purchase University items should utilize a Commercial Card.
Policy
Overview
The Commercial Card Program is intended to streamline and simplify the Purchasing and Accounts Payable functions by providing an avenue for low value activity, as well as virtually eliminating requests for employee reimbursements. The Commercial Card is a tool that reduces transaction costs, facilitates timely acquisition of materials and supplies, automates data flow for accounting purposes and offers flexible controls to help ensure proper usage.
The Commercial Card Program is designed as an alternative to a variety of processes including petty cash, payment requests and low dollar purchase orders. The Commercial Card Program is not intended to avoid or bypass appropriate procurement or payment procedures.
Only employees of DePauw University are eligible to receive a Commercial Card. Contractors or temporary employees are not eligible.
Definitions
Commercial Card – The Card issued to an employee of the University for the purpose of making approved University charges.
Cardholder – This is the University’s employee who has been issued a Card and whose name appears on the Card. The cardholder is the person responsible for all charges made to the Card.
Commercial Card Cardholder Account Form – This is the application form which is submitted by the employee’s Vice President. This form may be obtained from a link at the Commercial Card site on e-Services.
Visa Cardholder Agreement – This is the document which the employee must sign as the new cardholder. This form may be obtained from the Director of the Business Office.
Commercial Card Coordinator – The person designated by the University as the contact person for employees to communicate any issues or questions pertaining to the policies and procedures for the Commercial Card.
Monthly Statement – An online statement will be available through e-Services.
Commercial Card Reconciliation – The monthly online reconciliation performed by the Cardholder. This reconciliation includes the verification of statement amounts with actual receipts and itemized documentation, confirming the charges made to the Card. This reconciliation is performed online in Business e-Services and must be completed within 15 days of being available.
Merchant – This is the provider of the services and products purchased by the Cardholder and charged to the Card.
Business Office – This office is responsible for the creation of Commercial Card accounts in Business e-Services, establishing internal controls and procedures for monitoring Commercial Card activity, and communicating with the provider, PNC Bank.
Dispute Form – Form available from PNC Bank which is used to resolve issues between the Cardholder and Merchant.
Procedures
Overview
This Cardholder Guide provides information about the process, the types of purchases which can and cannot be made, records which must be maintained and reconciled for each cycle, and a variety of other Program information. All expenses made on a Commercial Card are subject to the University's Travel Policy, with the exception of any purchases made on a government or private grant that are subject to the funding agencies' conditions.
University funds are committed each time the cardholder uses the Commercial Card. This is a responsibility that should not be taken lightly. The cardholder is the person responsible for all charges made to the Card. Intentional misuse or fraudulent abuse may result in disciplinary action up to and including dismissal.
The Card has no impact on the cardholder’s personal credit. Although the card lists an individual's name, the card is actually issued to DePauw University.
Obtaining a Card
Before an employee is issued a Card, the employee must read the Cardholder Guide and understand the procedures outlined, must have completed all the requirements of the Commercial Card application form, and complete the Commercial Card Online Training.
The Commercial Card application form must be completed and submitted by the employee’s Vice President responsible for the employee’s University activities.
The Cardholder is responsible for the security of the Card and the transactions made against the Card. Each Cardholder will be required to sign the Visa Cardholder Agreement as part of the Commercial Card application process.
When the employee receives the Commercial Card, the employee needs to activate the card with PNC Bank and then immediately sign the back of the Card and keep the card in a secure place. Although the Card is issued in the employee’s name, it is the property of DePauw University and is only to be used for University purchases as defined in the Cardholder Guide.
Commercial Card Training
Prior to receiving a Commercial Card, the Cardholder must complete the Commercial Card online training.
Commercial Card Restrictions
The Commercial Card must not be used for personal purchases or cash advances.
Note: The only exception to the cash advance restriction is for employees traveling internationally.
Each Card is issued with a cycle total limit. Purchases for amounts greater than the limit are rejected in that cycle. This amount is determined by the employee’s Vice President. Limit changes require the approval of the employee’s Vice President.
Debit Card (Cash Advance Policy)
Advances of cash on a commercial card are only allowed on a limited basis for international travel while out of the country. The following policies apply to cash advances for international travel:
- Cards with this capability and the maximum dollar limit for cash advances are determined by the appropriate Vice President.
- A PIN number will be mailed to the Business Office by PNC Bank. You will receive an email verification once it arrives for pick up.
- Itemized receipts reflecting the cash spent should be attached to the commercial card reconciliation.
- Any cash unspent in a foreign country should be converted back into U.S. currency prior to returning to the University. The cardholder is responsible for returning any unused cash at the time of reconciliation.
- Any fees associated with the receipt of cash or its conversion should be reconciled to the appropriate department for which the cash was disbursed.
- This functionality is removed from the card once the trip is completed.
Using the Commercial Card
Purchases with the necessary approval are initiated by the employee using the assigned Card. It is required at the time of purchase that the employee obtain an itemized receipt showing the items purchased as well as tax paid for the purchases. It is required that the employee retain itemized documentation for any purchases, as well as the Visa receipt. No receipts will be necessary on credit card transactions under $30.00 (Exception: All grant expenses and cost share transactions require an itemized receipt). This will not apply to cash advances or reimbursements through Accounts Payable. Those are only allowed in travel abroad scenarios, and in order to mitigate risk and prove business purpose, itemized receipts are required for ALL Cash Advances and Accounts Payable transactions.
Sales Tax
Sales tax should be paid on all taxable purchases made with the Commercial Card, when applicable. The Indiana Sales Tax Exemption Number has been imprinted on the Commercial Card, to be used only for University purchases that are exempt. Under no circumstances may this sales tax exemption number be used for personal purchases. The Cardholder should contact the Accounts Payable department or Commercial Card Coordinator in the University’s Business Office if there are questions about which purchases are subject to tax. To assure that taxes are properly paid, the Cardholder should ask the merchant to show the sales tax amount charged as a separate line item on the receipt. The Cardholder is responsible for having the Merchant provide proof of payment of the sales tax.
Cardholder’s Reconciliation of Commercial Card Account
Each Cardholder will receive a monthly statement (cycle cut-off date is the 15th of each month) identifying each transaction made against the Commercial Card during the billing cycle. The following procedures must be completed:
- The statement must be reconciled against the Cardholder’s retained receipts and itemized documentation for accuracy.
- The Commercial Card statement reconciliation must be completed by the Cardholder as proof of reconciliation and emailed to the Cardholder’s Budget Manager and/or Vice President or designee for approval and to commercialcard@depauw.edu.
- The online monthly statement, credit card receipts, and supporting documentation must be submitted electronically to commercialcard@depauw.edu. It is the responsibility of the Cardholder to obtain and retain the credit card receipts and itemized documentation. When submitting a Commercial Card reconciliation the individual should attach the itemized receipts. Credit card receipts should not be submitted in lieu of these itemized receipts. Itemized receipts are required for conference registration, airfare, hotel, rental car, gas, and meals as well as miscellaneous expenses, if practical (e.g., taxi, toll, and parking). For conferences, itemized receipts showing amount paid, dates and destination of the conference are required. If the employee fails to request documentation at the time of charges, it is the responsibility of the employee to contact the rental car agency, hotel, restaurants or other vendors to request duplicate documentation. If you are not provided an itemized receipt at the time of your purchase, ask for one. For internet purchases, attach the confirmation page along with the itemized page of the purchase. If itemized receipts cannot be obtained, a missing receipt form must be completed and submitted with the reconciliation explaining the situation, as well as the business purpose of the expenses. Failure to provide sufficient and timely business explanations for expenses could result in individual liability for federal, state, and county income taxes. No receipts will be necessary on credit card transactions under $30.00 (Exception: All grant expenses and cost share transactions require an itemized receipt). This will not apply to cash advances or reimbursements through Accounts Payable. Those are only allowed in travel abroad scenarios, and in order to mitigate risk and prove business purpose, itemized receipts are required for ALL Cash Advances and Accounts Payable transactions.
- The Cardholder’s account must be reconciled online through Business e-Services within 15 days of receipt of the online monthly statement. If the card is not reconciled timely, a manual Report of Visa Activity form must be completed with all pertinent information required. This form is linked at the Commercial Card site on e-Services.
- Expenses should be submitted by reconciliation within 60 days of a statement being made available for reconciliation through e-Services. IRS regulations require reimbursements that are requested after the 60 day period to be reported as wages to the employee and included on the individual’s form W-2, Wage and Tax Statement. If expenses are not accounted for by reconciliation within this 60 day period, they may be reported on an individual’s form W-2, Wage and Tax Statement.
Failure to reconcile and provide receipts within the 15 day & 60 day time periods, as well as using a card for personal use, may result in the cancellation of the Commercial Card by the Commercial Card Coordinator. Repeat offenders will be monitored on a 30 day basis. Cardholder may be put on a six month probationary period before a card is re-activated or issued. Reimbursement of expenses during this period should be submitted within the 60 day IRS regulation. If not, a commercial card will not be reactivated or issued. If a cardholder completes their reimbursements timely, they will then be required to successfully complete the Commercial Card Online Training (which is linked on e-Services) course and provide the certificate showing their completion before a card is reactivated or issued.
Resolving Errors and Disputes
In the case of an error, the Cardholder should contact the merchant and try to reach an agreement. Most disputes can be resolved between the Cardholder and the merchant directly. The Cardholder should contact PNC Bank if the Cardholder is unable to reach an agreement with the Merchant. The Cardholder may be asked to complete and sign a Dispute Form and forward this form to PNC Bank. All disputes must be submitted in writing to PNC Bank within 60 days of the statement date via fax at 1-269-973-1688 or via email to billinginquiries@pnc.com or mail to:
PNC
P. O. Box 2859
Kalamazoo, MI 49003-2859
Paying the Credit Card
The Commercial Card is a corporate pay arrangement. Account balances are paid in full each month by a direct charge to a DePauw University bank account. A Cardholder’s purchases are charged to an expense account based upon the department account(s) that have been established.
Lost or Stolen Card
The Commercial Card should be secured at all times in the same manner as the Cardholder would secure personal credit cards. If the Commercial Card is lost or stolen, immediately contact PNC Bank via this toll free number (1-800-685-4039). Also notify your Commercial Card Coordinator.
Refusal of Card or Account
Should the Cardholder be declined at the point of sale for any reason, the Cardholder should contact PNC Bank at 1-800-685-4039. Every effort will be made to determine why the transaction was declined.
Cardholder Departmental Transfers or Employment Termination
If the Cardholder is transferred to a new department, changes university address or leaves the University, the Cardholder is to notify the Commercial Card Coordinator immediately. The Card must be returned to DePauw University upon termination of employment.
Commercial Card Activity Audit
Card activity is audited by the Business Office. The audits are to help ensure adherence to the Program's policies and procedures.
***Foreign currency must be calculated to U.S. dollars and notated on individual receipts. Amounts/statement line number should be included on receipts as well as the statement.