Updated April 2012
Welcome to the Clemson University/State of South Carolina VISA Purchasing Card Program. Clemson University participates in this program as an agency of the State of South Carolina. The program is designed to help better manage low-dollar routine purchases and benefit job performance. The University and our vendors use of the purchasing card allows for a more cost effective process for purchasing. Those individuals who have buying responsibilities in departments are encouraged to be the departmental cardholder.
What is the Purchasing Card?
The Purchasing Card is a VISA credit card issued by Bank of America. It is a flexible purchasing tool that offers an alternative to the existing University purchasing process and provides for an efficient and effective method of payment for items purchased under $2,500, or items 1) from State or Agency contracts, 2) airline tickets, or 3) those included on the Direct Purchase Voucher Exemption List, even if those exempt purchases exceed $2,500. Purchases must follow the State and University purchasing regulations and the card is to be used only for official University purchases.
The VISA Purchasing Card enables the purchase of non-restricted commodities, by telephone, in person, or via internet directly from vendors. Some of the items that can be charged on the Purchasing Card are office supplies, registration fees, Federal Express, UPS, utilities, international student programs and airline tickets.
It eliminates the need to issue Direct Purchase Vouchers for payment. Charges to your University accounts are made through the online system in the University's WEB application. The VISA Purchasing Card is issued in the employee's name with the State of South Carolina emblem, the wording "For Official Use Only" and Clemson University is clearly indicated on the face of the card.
The Purchasing Card program brings many benefits to the following:
Here is a list of possible items and services which can/cannot be charged on the University Purchasing Card.
Student Travel-see Student Travel Guidelines - **Student group travel expenses may be paid in full with the CU VISA including those of the employee chaperones. These expenses should be coded to 6030. Athletics would use separate account # for travel.
Employee Travel with the exception of airline & train tickets & baggage fees when purchased with ticket. **All other employee travel expenditures must be paid by the traveler from personal funds and reimbursed on a Travel Voucher upon return.
Airline Tickets & Train Tickets plus baggage fees if purchased with ticket (which may exceed $2500 to allow for ease of modifications) ∆
Travel Packages that include airline tickets hotel and rental cars
Registration fees that include hotels
Gifts, Gift Certificates
Employee parking hang-tags
Temporary Services under contract ( Manpower)
Telephone calling cards or additional minutes for calling cards
Postage & Office Supplies
Holiday or Birthday Cards
Telephone & Cell Phone payments that are in compliance with the University Personal Communication Services Policy
Credits must be returned to cards
Lodging: visiting speakers (room only)
APL iTunes – for CU business applications only
Enterprise-Rent-a-Car – Exception is student & guest travel
Purchases off State or Agency Contract, even if appearing as "split purchases." ∆
Purchases over $2,500 - EXCEPTIONS are items with the following symbol ∆
Payments to Conference Facilities for the purpose of reselling such conferences to the public. ∆
Other DPV Exemption purchases. ∆
GENERAL PROCEDURES AND GUIDELINES
Purchasing Cards are limited to certain types of allowable University business transactions (refer to allowable charges on page 2).
Agency - Clemson University arranges with the card issuer, Bank of America, for the issuance of Purchasing Cards to approved University employees and agrees to accept departmental liability for the employees' use of the cards.
Cardholder - Employee of the University who is approved by his/her Department Head and Business Officer to use the Purchasing Card to execute procurement transactions on behalf of the University.
Card Issuer - Bank of America's services were contracted for by the State of South Carolina to issue VISA Purchasing Cards to University employees, to bill the University for all purchases made on the cards, and to collect payment from the University on behalf of the vendors.
Department Head - University official who must approve employee's request for a purchasing card, assign departmental liaison, designate default account number for purchases on the purchasing card, and submit application to the University Purchasing Card Administrator. Department Head and Business Officer approval delegates transaction authority to the Cardholder.
Departmental Liaison - Employee in each department/college responsible for account distribution and retention of backup documentation for the cardholder. Each Cardholder will be assigned a Departmental Liaison and the liaison will be responsible for reviewing charges of the individual Cardholders to make sure the transactions are classified as an appropriate university expense.
Purchasing Card Administrator - Located in Clemson University's Procurement Department and coordinates the Purchasing Card program for the University and acts as the University's intermediary in correspondence with the card issuer. Monitors transctions periodically for compliance with procurment card guidelines and procurement regulations.
Vendor - Merchant from whom a Cardholder is making a purchase.
The Cardholder must only use the Purchasing Card for legitimate Clemson University business purposes. The Purchasing Card may not be used for travel (except airline & train tickets), entertainment, cash and other categories as included in the Blocked Vendor list included in these policies and procedures. Misuse of the card will subject Cardholder to disciplinary action in accordance with University Policies and Procedures relating to disciplinary action and termination for cause. The Cardholder must:
DEPARTMENTAL LIAISON RESPONSIBILITIES
Each Department Head must designate one or more Departmental Liaisons for his/her department. The Department Head will assign a Departmental Liaison for each Purchasing Card application approved for his/her employees. A Departmental Liaison may not process accounting activity for transactions for his/her own card. The Departmental Liaison must receive training before any individuals in the department may receive a Purchasing Card. Responsibilities include:
UNIVERSITY PURCHASING CARD ADMINISTRATOR RESPONSIBILITIES
The University's Procurement Office will assign an Administrator to be responsible for the over-all Purchasing Card program. Responsibilities include:
The University Purchasing Card Administrator is required to close an account if the Cardholder: (a) transfers to a University department within a different Budget Center, (b) moves to a new job in which the Purchasing Card is not required, (c) terminates University employment or (d) for any of the following reasons which will also subject Cardholder to disciplinary action in accordance with University Policies and Procedures relating to disciplinary action and termination for cause.
Criteria to receive a University Purchasing Card are as follows:
The Purchasing Card is a departmental corporate charge card which will not affect the Cardholder's personal credit; however, it is the Cardholder's responsibility to ensure that the card is used within stated guidelines of the Purchasing Card Cardholder Manual as well as University Policies and Procedures relating to the expenditure of University funds. Ultimate responsibility for use /misuse of cards rests with the cardholder. Failure to comply with the program guidelines may result in permanent revocation of the card, notification of situation to management and further disciplinary measures which may include termination.
The University Purchasing Card Administrator is required to close an account if the Cardholder: (a) transfers to different University department, (b) moves to a new job in which the Purchasing Card is not required, (c) terminates University employment or (d) for any of the following reasons which will also subject Cardholder to disciplinary action in accordance with University Policies and Procedures relating to disciplinary action and termination for cause.
LOST, MISPLACED OR STOLEN PURCHASING CARDS
Cardholders are required to immediately report any lost or stolen Purchasing Card to Bank of America toll-free at 1-888-449-2273 (24 hours a day, 365 days a year). The Cardholder must also immediately notify his/her Department Liaison and/or the University Purchasing Card Administrator about the lost or stolen card at the first opportunity during normal business hours.
The Purchasing Card is to be used only for the purchase of items normally allowed for a Direct Purchase Voucher. Clemson University general spending parameters for each VISA purchasing card issued is set at $2,500 per transaction. The purchasing Card must adhere to the University purchasing policies and procedures. The University, through the Procurement Department, will adjust limits as determined by demonstrated need.
For P-card purchases, card holders should continue to follow the published Procurement Card Policies and Procedures. P-card limits may be increased up to a single purchase limit of $10,000 for one-time purchases by requesting permission from the P-card Administrator. Additionally, purchases over $10,000 may be made, if P-card limit allows, for those items annotated as such in the "Allowable / Non-Allowable" table above (e.g. purchases off State contract, DPV Exemptions, etc...)
Should the Purchasing Card be erroneously declined by a vendor, the Cardholder should immediately contact the University Purchasing Card Administrator for assistance. If purchase being made is outside of normal University business hours, the employee must find an alternate payment method or terminate the purchase and contact the University Purchasing Card Administrator during normal University hours.
Vendors will issue all credits to the individual Purchasing Card account for any item they have agreed to accept for return. This credit will appear on a subsequent statement. Under no circumstances should a Cardholder accept cash in lieu of a credit to the Purchasing Card account.
UNRESOLVED DISPUTES AND BILLING ERRORS
The Cardholder is responsible for contacting the vendor to resolve any disputed charges or billing errors. If the matter is not resolved with the vendor, the Cardholder/Departmental Liaison should -
SECURITY AND STORAGE
Cardholders should always treat the University Purchasing Card with the same level of care as one does their own personal credit card(s). The card should be kept in a secure location and the account number should be carefully guarded.
The Departmental Liaison assigned to each Purchasing Card will maintain the Cardholder's bank statement or system generated Activity Report, and vendor receipts/packing slips/charge slips. The University Purchasing Card Administrator will maintain all other documentation concerning the Purchasing Card program. This documentation includes, but is not limited to, applications, Cardholder agreements, agency billing statements, reconciliation of accounting statements, Bank of America program material, copies of transmittals and correspondence with Bank of America.
VENDOR SET UP
The University Purchasing Department will conduct a study of frequently used vendors for purchases under $2,500, which qualify for use of the Purchasing Card by Cardholders. If a vendor frequently used by University employees does not accept the VISA card, the University will assist in recruiting the vendor to take the necessary steps to begin acceptance of the card and provide this information to Bank of America. Cardholders should contact the Departmental Liaison or University Purchasing Card Administrator when encountering vendors who do not accept the card.
The University has established a Blocked Vendor List. Transactions will be blocked at the point-of-sale level at the types of vendors on the Blocked Vendor Listing attached to these procedures.
The University P-card Administrator can authorize the temporary unblocking of an MCC code on an as needed basis. Upon receiving a request from a card holder or liaison, the P-card Administrator will review the request and determine if, in fact, the blocking can be changed for a particular purchase or series of purchases, ensuring that such purchase will not be in violation of any other policies, procedures or regulations. The Procurement Director may be asked to give guidance as well. Once such a change is deemed authorized, the Administrator will work with the bank to have the MCC block changed temporarily for at particular card/purchase. Once the purchase is complete, the MCC restriction will revert back to the original set-up. Occasionally, p-cards established for specific use, such as student travel, may be established with different MCC blocks from the start and maintained with those blocks at all times. This is determined at the time of issuing these specific cards in coordination with the card holder, liaison, business officer, P-card Administrator, and Procurement Director. Any changes to MCC codes are captured in the history files in the Bank of America Works program.
PURCHASING CARD SET UP, MAINTENANCE AND CLOSURE
All contact with Bank of America for card set up, maintenance and closure (except for reporting lost or stolen cards) will be handled by the University Purchasing Card Administrator who is located in Procurement Services.
Card Set Up
Purchasing Card Administrator will use all available software tools offered by Bank of America for the maintenance of cards.
Cardholder must immediately report the lost/stolen card to Bank of America at 1-800-538-8788. Cardholder must also notify the University Purchasing Card Administrator who will follow up with Bank of America.
Departmental Liaison is to secure Purchasing Cards from terminated employees and employees who transfer to another University department. The Departmental Liaison will immediately notify the University Purchasing Card Administrator via phone or e-mail of the termination or transfer. A request for closing the Cardholder account will be submitted to Bank of America by the University Purchasing Card Administrator within 2 days of receiving the notification. All Purchasing Cards are to be returned to the University Purchasing Card Administrator for disposal.
University Purchasing Card Administrator will notify Bank of America immediately of all revocations and closures.
RECONCILIATION, APPROVAL & ALLOCATION OF BILLING
Receipt and Payment of Bank of America Billing
Allocation of Purchasing Card Charges to University Departments
Clemson University's internal control procedures and guidelines are as follows:
Department Liaison will:
University Purchasing Card Administrator will:
Monitoring & Review Process
Purchasing Card transactions are subject to the monitoring & review process of Procurement Services. Cardholders and/or liaisons may be requested to provide additional explanations for questioned transactions.
Violations of the Purchasing Card Program and Guidelines
Violations of purchasing card program policy or guidelines may be self-reported, detected by cardholder liaison or in the University or divisional monitoring/compliance programs.
Violations of program policy or guidelines will result in notification of violation to the cardholder and business officer.
Any of the following action(s) will be the result based on the severity of the violation :
Actions for purchasing card transactions which are violations of the State Procurement Code will be handled as an unauthorized procurement.
An unauthorized procurement is an act obligating Clemson University in a contract by any person not authorized to do so in accordance with Clemson University procurement policies and procedures:
When a transaction has been determined to be an unauthorized procurement and payment has already been made, the following steps need to be taken by the employee who made the purchase.
When a transaction has been determined to be an unauthorized procurement and payment has not been made, the following steps need to be taken by the employee who made the purchase.
LISTING OF BLOCKED VENDORS CLEMSON UNIVERSITY MERCHANT CLASS CODE BLOCKING LIST
4829 Wire Transfer Money Orders
5094 Precious Stones & Metals Watches
5271 Mobile Home Dealers
5309 Duty Free Stores
5521 Automobile and Truck Dealers (Used Only)
5541 Service Stations (with or without ancillary services)
5542 Automated Fuel Dispensers
5561 Recreational & Utility Trailers, Camper Dealers
5571 Motorcycle Dealers
5592 Motor Home Dealers
5598 Snowmobile Dealers
5681 Furriers & Fur Shops
5698 Wig and Toupee Stores
5813 Drinking Places (Alcoholic Beverages) Bars, Taverns, Cocktail, Lounges, Nightclubs, Discotheques
5814 Fast Food Restaurants
5921 Package Stores - Beer, Wine & Liquor
5932 Antique Shops
5933 Pawn Shops
5937 Antique Reproductions
5944 Jewelry Stores, Watches, Clocks, and Silverware Stores
5948 Luggage & Leather Goods Stores
5960 Direct Marketing Insurance Services.
5963 Direct Selling Establishments/Door-to-Door Sales
5966 Outbound Telemarketing Merchant
5972 Stamp & Coin Stores - Philatelic & Numismatic Supplies
5993 Cigar Stores & Stands
5997 Electric Razor Stores - Sales & Service
6010 Financial Institutions - Manual Cash Disbursements
6011 Financial Institutions - Automated Cash Disbursements
6012 Financial Institutions - Merchandise & Services.
6051 Non-Financial Institutions - Foreign Currency, Money Orders wire transfer), and Travelers Cheques
6211 Security Brokers/Dealers
6300 Insurance Sales & Underwriting
6381 Insurance Premiums
6399 Insurance (Not Elsewhere Classified)
6760 Savings Bonds
7032 Sporting & Recreational Camps
7033 Trailer Parks & Camp Grounds
7251 Shoe Repair Shops, Shoe Shine Parlors, and Hat Cleaning Shops
7261 Funeral Service & Crematories
7273 Dating & Escort Services.
7276 Tax Preparation Service
7277 Counseling Services - Debt, Marriage, Personal
7278 Buying-Shopping Services, Clubs
7280 Hospital Patient Personal Funds Withdrawal Accounts
7295 Babysitting Services
7296 Clothing Rental - Costumes, Uniforms
7297 Massage Parlors
7298 Health & Beauty Spas
7519 Motor Home & Recreational Vehicle Rentals
7524 Express Payment Service Merchants - Parking Lots
7833 Express Payment Service Merchants - Motion Picture Theaters
7995 Betting (Including Lottery Tickets, Casino Gaming Chips, Off-track Betting & Wagers)
7996 Amusement Parks, Circuses, Carnivals, Fortune Tellers
7997 Membership Clubs (Sports, Recreation, Athletic), Country
8021 Dentists, Orthodontists
8042 Optometrists, Ophthalmologist
8044 Optical Goods & Eyeglasses
8049 Chiropodists, Podiatrists
8050 Nursing & Personal Care Facilities
8099 Medical Services
8111 Legal Services, Attorneys
8211 Elementary and Secondary Schools
8241 Correspondence Schools
8244 Business & Secretarial Schools
8249 Vocational & Trade Schools
8351 Child Care Services
8651 Political Organizations
8661 Religious Organizations
9211 Court Costs, Including Alimony and Child Support)
9223 Bail and Bond Payment
9311 Tax Payments
9411 Government Loan Payments
9700 Automated Rental Service
9751 U.K. Supermarkets - Electronic Hot File (For Regional Use Only)
9752 U.K. Petrol Stations - Electronic Hot File (For Regional Use Only)
DIRECT PURCHASE VOUCHER EXEMPTION LIST
View complete exemption list at the following web address http://www.clemson.edu/cfo/procurement
Exempt items over $2,500 bought under exemption Nos. 45 and 46 must be processed by certified buyer for the department/budget center.
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