What is the "Pcard"?
Program Overview - How it Works
Obtaining a Purchasing Card
Getting Started
Using the Pcard
Preparing to Purchase
Credit Limits
Tax Exemption
Restricted Transactions
Receipt of Goods & Services
Returning Items
Transaction Recordkeeping

Managing Transactions and Cards
Default Charges
Problematic Transactions
Cardholder Profile
Making Changes
Lost or Stolen Cards
Expiring Cards

Closing the Loop-Accountability
Proof of Purchase
Establishing Business Purpose
Internal Review
FYI - Administrative Actions
Additional Information
Extended Absence and Leave from Gettysburg
Termination of Employment
Insurances for Travelers
Foreign Travel Alert

Cardholder's Guide  Feb, 2013
Welcome to Gettysburg College's purchasing card program. The purpose of the program is to provide College personnel who are authorized to acquire goods and services on behalf of the College with an additional tool, complimenting existing processes, with which to conduct business within established guidelines and procedures. The program also provides for travel and entertainment in connection with College business. Several card options are available to best meet the cardholders' requirements.

The manual provides the guidelines for cardholders. A key element of the program is cardholders' clear understanding of their responsibilities as their signature on a required cardholder agreement is binding.

What Is The "Pcard"?                  
Gettysburg's brand of "pcard" is a VISA credit card issued by JPMorgan, administered by Financial Services and managed by cardholders with web-based software known as PaymentNet.

Credit cards issued through our program differ from personal credit cards in several important ways:
1. The College assumes corporate liability even though cards are issued in individual's names. Use of the pcard will not affect the cardholder's personal credit history.
2. Each card is issued with specific purchasing limits and restrictions as detailed further below.
3. Purchasing cards do not provide access to cash.
4. The purchasing card program enjoys enhanced fraud protection from JPMorgan.

To the cardholder:
1. Facilitates electronic commerce, phone and fax orders.
2. Eliminates the need to use personal funds followed by requests for reimbursement.
3. Provides means for reservations, guarantees and prepayment when necessary.
4. Accommodates faster delivery of goods and services.
5. Reduces departmental payables processes.

To the College:
1. Enables decentralized purchasing activities.
2. Decreases volume of reimbursements, invoices, and checks processed.
3. Improves reporting of the College's expenses.

To the VISA merchants:
1. Permits payment in as few as two business days.
2. Eliminates invoicing and collection activities.

Program Overview - How It Works       

Employees who travel or purchase goods or services for the College can obtain a pcard with the approval of their department or division head. Three card types are offered: 

Type 1 -  Travel, Entertainment, and Related Activities Card
*Issued to employees to facilitate business travel and guest relations. Type I cards allow transactions with merchants providing all modes of travel (including emergency services), lodging, and dining.  They will also allow conference registrations and limited miscellaneous transactions that business travelers may require when away from campus such as documents copied, purchasing a map, or a floral arrangement.
*Type I cards are  suitable for most employees whose position responsibilities do not include procurement of departmental goods and services.
*Type I cards provide enhanced fraud protection for the College by limiting exposure to higher risk merchant categories.

Type II - General Purchasing Card
*Traditional purchasing cards are issued to employees for long term continuous and varying use in the performance of their position responsibilities. Type II cards allow transactions with most VISA merchants; high risk or experientially fraudulent merchants have been blocked.
*Type II cards affect departmental commerce in a prepayment environment and best practice is for Type II cards to be utilized from campus locations.

Type III - Special Purpose Card
*Special purpose purchasing cards are issued to individuals not in need of a long term account but with a need to accommodate expenses related to specific acquisitions, short term travel, and/or an event. Type III cards are the equivalent of a Travel Advance in credit form.
*Special purpose purchasing cards have a fixed value (credit is not revolving) and a fixed time period. not to exceed six months.
*The review and reconciliation of Type III accounts is generally supported in the cardholder's department. Type II cardholders are not granted administrative user status.

A Purchasing Card Application is submitted to the pcard administration team, a unit within Financial Services, for issuance. While the new account is processing, the cardholder completes online orientation and training. The cardholder signs the Purchasing Card Agreement and delivers it to the pcard administration team when notified that their card is ready. Cardholders activate their card with VISA and may then initiate purchases. When a purchase is made, the transaction is systemically validated against the pre-set limits and restrictions established for the account and approved or declined at the point-of-sale. Cardholders retain documentation for each transaction on their account and periodically login to PaymentNet to verify transactions and assign correct budget codes. All transaction data is swept monthly and posted to the general ledger. Cardholders submit monthly statements of their account activity together with transaction documentation to Financial Services.

Obtaining a Purchasing Card        
The process begins with the completion and submission of a Purchasing Card Application. The form requires some personal information which is used for identification purposes only. The form also requires the cardholder and supervisor to determine appropriate spending limits and the budget to which the transactions will most frequently be charged. Upon receipt of the form, the pcard administration team will convey the application to JPMorgan, add the new cardholder to a College mail group of purchasing cardholders, and email the cardholder with instructions for the online orientation and training (a part of which is the reading of this guide).

The standard application process time is approximately a week. All newly issued cards are mailed directly from the bank's processing center to the pcard administration team for establishment of a new cardholder record in PaymentNet. Another email to the new cardholder will let him/her know that the card is available for distribution. Cards will not be released without a signed Purchasing Cardholder Agreement.

Getting Started   
A sticker on the new card will remind new cardholders that their card must be activated before it can be used. Voice prompts will walk cardholders through the required steps.

Handouts inserted in the new card envelop provide new cardholders with their PaymentNet login information and pcard administration team contact information.

 Using the Pcard
Merchants presently accepting VISA as a form of payment for goods or services should readily accept the College's purchasing card. While actual use of the pcard closely resembles using one's personal credit card, be aware that the card is a corporate card and some merchants may have to take several extra steps at their terminals in order to process the transaction.

Preparing to Purchase     
The card may be used to purchase in person at a vendor site, by phone, by fax or online. When placing your order you should be prepared to supply the following information:
1. Identification as a Gettysburg College employee
2. Cardholder name
3. Individual card number
4. Expiration date of the card
5. 3 digit security code on back of card
6. Tax-exempt status and number
7. Shipping address
8. Billing address: At all times use: 300 N. Washington St.
Other information necessary to complete the transaction

Credit Limits
As you initiate a purchase please be mindful that your purchasing card has two pre-set limits. Your single transaction limit is the cap or ceiling on any one individual purchase. Your monthly transaction limit determines your spending limit for any one month. These parameters are established to reflect the cardholder's business requirements. They can be adjusted upon written request to the pcard administration team if actual expense patterns differ or under urgent circumstances the adjustment can be done immediately by phone contact.

A special purpose purchasing card has a stored value which is determined by the amount requested on the Purchasing Card Application. It also has a short term expiration date. The aggregate of all transactions on the card cannot exceed its total value and must transpire before the expiration date. These parameters cannot be adjusted or extended.

Tax Exemption
Gettysburg College is exempt from a grouping of taxes imposed by Pennsylvania, the most commonly known one being sales tax. Our sales tax exemption number is embossed on the card for convenience. Our Pennsylvania Sales, Use and Hotel Occupancy Tax Exemption Certificate may be copied and given to any vendor requiring it.

Gettysburg College is also exempt from similar taxes in other states when the goods or services are purchased for use in that state. Please utilize all available exemptions whenever possible.

Restricted Transactions
There are two broad categories of potential purchasing card transactions which are restricted. They apply to all cards issued under this program.

The first category is transactions not adhering to the College's policies regarding allowable expenses. Under this, personal use of the card is strictly prohibited. Also herein, cardholders will be accountable for inappropriate use of institutional funds.

The other category is "hard-coded" transactions. The College has blocked card usage with some groups of VISA merchants for our own protection. Pcard transactions with vendors registered with VISA under the following classifications will be rejected at the point of sale:
*Wire Transfer - Money Orders
*Financial Institutions ***Please note that cards in the College's program do not have any cash access privileges.***
*Electronic Cash Withdrawal - Cash Withdrawal
*Security Brokers/Dealers
*Insurance, Insurance Sales, Underwriting, Premiums
*Real Estate Agents and Managers - Rentals
*Remote Stored Value Load - Financial Institution/Merchant
*Savings Bonds
*Funeral Service & Crematories
*Dating & Escort Services
*Tax Preparation Services
*Betting/Lottery Tickets
*Court Costs, Alimony, Child Support
*Bail and Bond Payments
*Tax Payments
*Numerous Other Specialty/Consumer/Retail Merchants

Receipt of Goods & Services
The cardholder is responsible for ensuring receipt of goods and services and for initiating and resolving problems pertaining to the transaction when the purchasing card is used.

Returning Items
Items should be returned directly to the vendor by whichever means you have agreed upon.  You should ask the vendor to provide copies of your credit slips to you. The cardholder is responsible for ensuring that proper credit is posted for any returned item(s).

Transaction Recordkeeping
The authority to purchase includes the responsibility to obtain adequate documentation for all pcard transactions. Documentation includes both printed material from the merchant relative to the details of the transaction as well as a statement regarding its business purpose. This information is a requirement of the program as explained in further detail below.

 Managing Transactions & Cards
Managing your pcard transactions can be likened to personal online banking. It is simple and the software is rather intuitive. Each time you use your pcard the transaction will post to an account which has been established for you in PaymentNet. You will have been provided with access information when you pick up your card. You are responsible for logging into your account periodically and taking one or more of the following steps:
1. Acknowledging that the transaction was effected by you
2. Verifying that it posted in the correct amount
3. Assigning the correct budget codes to the transaction (see training materials for illustration)
4. Safekeeping the supporting documentation for the transaction

PaymentNet supports your due diligence with tools to set up email reminders when your account has activity requiring your attention. These reminders are helpful but are subject to occasional delivery failure. Your proactive attention to your account is the best practice.

Default Charges
Each transaction posting to your account is assigned a default general ledger number which appears as part of the transaction record. The default codes for your account are either the Supplies & Materials expense line or the Travel expense line for your department. Additionally, some vendors are pre-coded so that the expense line is more particular. For example, any transaction at a hotel will automatically post to the department's "lodging" line. Default codes are embedded for convenience. All transactions should be viewed to ensure correct allocation to the appropriate budget.

Problematic Transactions
Most problems with orders and billing can be resolved by the cardholder contacting the vendor and monitoring the account for corrective action. In the event a problem such as an erroneous charge, failure to receive goods, altered amounts, credits due not processed, duplicate charges, or suspected fraud cannot be resolved at the cardholder level, the cardholder may dispute a charge and thereby engage JPMorgan to initiate an action against the merchant. This process is an important safeguard to the College against fraudulent activity. It is not to be misused for usual transactions that derailed for internal reasons. Disputing a transaction is also illustrated in the training materials.

Cardholder Profile           
Your PaymentNet account and profile contain information about your account balances, limits, defaults, etc. You may need to check this record from time to time. Instructions for viewing are included in the training materials.

Making Changes
Cardholders may need to modify their traditional purchasing card account for various reasons, including a name, department, or GL default change. The most frequently requested change is for an approved credit limit adjustment. Explanatory email to will attend to a routine matter for you.  In the event of an emergency, please call a member of the pcard administration team. The current contact information is on the Purchasing Card home page and within your start-up envelope.

Lost or Stolen Cards *       
In the event of a lost or stolen purchasing card, cardholders should immediately notify JPMorgan (1-800-VISA-911) and the pcard administration team.  A replacement card will be issued within a week and sent directly to the pcard administrators who will contact the cardholder to pick up the new card.

Expiring Cards and Replacement Cards *
All renewal Purchasing Cards will be sent automatically to the pcard administration team several weeks prior to the expiration date of the card, who will contact the cardholders directly to exchange their cards.

Direct Billing Relationships
*If the account number or expiration date on a card changes, the cardholder is responsible for updating the accounts receivable records of any vendor with whom a direct billing relationship has been established. Failure to do so may result in the inconvenience of declined pcard transactions which may lead to an interruption of services.

 Closing the Loop - Accountability  
The purchasing card program is on a monthly billing cycle, ending on the last day of each month. Email notification is sent to cardholders to remind them that they have approximately one week after the close of the billing cycle to complete the reconciliation of all transactions for the previous month. This message also advises cardholders of the pending "download" date. On this date all of the transaction data is swept to the general ledger and can no longer be modified in PaymentNet.

All charges from all accounts are paid by Financial Services from a central bill. All cardholders are required to submit a specific monthly report, prepared within PaymentNet as described in the training materials, together with transaction documentation, to Financial Services by the 12th of the following month.

Proof of Purchase   
The authority to purchase includes the responsibility for maintaining adequate documentation at the source of the transaction. Whether a purchase is made in person or via telephone, internet, fax, or mail, the cardholder must obtain vendor produced evidence of the purchase. Original documentation must support the legitimate business purpose of all transactions made with the purchasing card. Documentation must include the name of the supplier, location, date and dollar amount. The following are examples of supporting documentation:
*detailed cash or sales receipts
*packing slips with a dollar amount
*subscription or dues forms
*conference registration forms
*online ordering or booking confirmations
*repetitive postings of long term contracted services should be supported with a copy of the contract at its inception and entries in the Transaction Notes field as mentioned below, or by separate memo.

For purchases where no receipt is generated (e.g., flowers ordered by phone), a complete explanation in the Transaction Notes field will suffice, or by separate memo.

Establishing Business Purpose
Cardholders are also responsible for ensuring that the College business purpose for each transaction is clear from the proof of purchase paperwork (clear to an auditor) or that notations regarding the College business purpose are written on the documentation or added to the Transaction Notes fields within PaymentNet as illustrated in the training materials.

Internal Review        
All cardholder transactions are subject to monthly review by the pcard administration team. After the close of the billing cycle, cardholders are required to prepare and print the report titled (see training materials for report instructions): Transaction Detail with GL and Notes, attach proof of purchase for each listed transaction with business purpose duly noted and submit records packets by the 12th of the following month. Records packets will not be returned to cardholders. Cardholders will be contacted if records packets are incomplete and records packets will be returned for resolution if any of the following are presented:
1. File is unworkable as submitted. It should be organized chronologically in accordance with the monthly statement of transaction activity.
2. The monthly statement of Transaction Detail with GL and Notes is not included. This report must be printed and submitted.
3. Original documentation not provided. Always obtain supporting paperwork wherever possible.
4. Business purpose is not provided or is not clear from the documentation. You will be asked to add notations to any tagged items within your packet.
5. File does not include evidence that the College was reimbursed as the records indicate it should have been. Please provide a cashier's receipt, cash transmittal number, or copy of canceled check.
6. A credit needs to be obtained from a merchant.

FYI - Administrative Actions
The pcard administration team is guided by standard operating procedures applied consistently to all cardholders. All cardholders will receive an initial email notification during the first week of the month reminding them that their records for the previous month must be submitted by the 12th. A following up email is sent to all cardholders the following week. Cardholders who have not submitted by the third week of the month, without prior notice of delay, will be sent another message which will warn of suspended privileges. Any cardholders remaining non-compliant by month end will receive notice that their cardholder privileges will be suspended pending successful resolution.

Additionally, despite timely submission, cardholders whose packets are repeatedly rejected are subject to suspension or termination of privileges.

Cardholders are reminded that the terms and conditions of the Purchasing Cardholder Agreement are binding.

The pcard administration team is authorized to act as follows to manage program compliance:
Policy Infractions (i.e. personal, misuse)
*1st - Contact employee requesting immediate correction
*2nd - Contact employee requesting immediate correction/ memo to supervisor and HR documenting infraction
*3rd - Contact employee requesting immediate correction and notice of account termination (copy to supervisor and HR)/full disclosure to supervisor
Procedural Infractions
*1st - 30 days past due - Notice to cardholder of suspension until remedied
*2nd - 30 days past due - Notice to cardholder of suspension until remedied/copy to supervisor
*3rd - 30 days past due - Notice to cardholder of account termination

 Additional Information 

Extended Absence and Leave from Gettysburg
Cardholders should notify the pcard administration team in the event of extended travel when they need to use the card for college business but will be unable to meet monthly submission requirements. Upon the cardholder's return to the College, all reconciliations, budget transfers, and records should be updated and submitted.

Cardholders on leave from the College, the nature of which does not include College business, should notify the pcard administration team of departure and return dates so that the account may be deactivated as a safeguard.

Termination of Employment
It is the responsibility of the cardholder to return their pcard to the College immediately upon notice of termination of employment with partial month's records packets. Some employment circumstances may require a cardholder to keep their account active until their departure date. Notice to the pcard administration team will avoid premature closure of an account.

Insurances for Travelers
All VISA purchasing cards issued to cardholders are accompanied by various pamphlets containing information pertaining to various insurances and benefits to which cardholders are entitled. They include:
*Travel Accident - $500,000
*Emergency Evacuation and Transportation - $10,000
*Repatriation of Remains - $1,000
*Hotel/Motel Burglary - $1,000
*Common Carrier Baggage - $1,250
*Travel and Emergency Assistance Services

Please review the enclosures for more information.

Foreign Travel Alert
Our pcard partner and issuing bank, JPMorgan, is mindful of and concerned with growth in international credit card fraud. When it occurs, it is much more difficult to resolve than domestic transactions and, resolution notwithstanding, travelers can encounter difficult problems. Accordingly, all cardholders intending to travel internationally on College business are asked to call JPMorgan/VISA prior to departure (1-800-270-7760) to advise account managers of plans so foreign transactions will be allowed to process without verbal approval from the cardholder or the pcard administration team. Additionally, travelers should always have an alternate method of payment available to them. Lastly, traveling cardholders are asked to utilize web access to review pcard activity online to ensure validity of all postings.