Credit Card
Policy & Procedures
Revision Date: 24 Jun 2015
CONTENTS
INTRODUCTION
1. General Rules before using your University card
Page 3
2. Placing an order using the card
Page 4
a)…Using the credit card in person
b)…Using the credit card by telephone
c)…Using the credit card for ordering by mail
d)…What if the supplier refuses to accept your card?
e)…Requesting a VAT invoice
f)….Recording purchases
g)…What to do if goods need to be returned
3. Administering your statements
Page 4
Page 4
Page 4
Page 4
Page 4
Page 4
Page 4
Page 5
a)…Receiving monthly statements
b)…What to do if you dispute an item on the statement
c)…The reconciled Statements
4. Card Housekeeping
Page 5
Page 5
Page 5
Page 6
a)…Security of the card
b)…Card expiry
c)…Damaged card
d)…Change of personal details
e)…Cardholders liability
Page 6
Page 6
Page 6
Page 6
Page 6
5. Purchasing Office Responsibilities
Page 6
6. Finance (Creditors) Responsibilities
Page 7
7. Finance (Management Accounts) Responsibilities
Page 7
8. Summary
Page 7
2
INTRODUCTION
The University has identified that there are 2 reasonable justifications for the use of a
University credit card.
1. A Departmental credit card to be used by staff members who as part of their role
and responsibilities are required to purchase goods and services on behalf of the
department, faculty that they work in. In order to streamline the purchasing process
the credit card can be used to purchase one off, low value (typically less than
£1000), goods and services from Contracted and Non Contracted Suppliers.
2. An Individual credit card to be used by staff members who as part of their role and
responsibilities are required to travel on University business and or provide external
hospitality on a regular basis. This card is to be used for incidental expenses that
would otherwise have to be paid for by the individual and reclaimed as an expense.
2.1 Please see Appendix 1 for a guide to what is allowed as an incidental
expenditure.
Please read the following policy and procedures carefully as FAILURE to adhere to them
WILL result in the University credit card being withdrawn.
NB: Please note your attention is drawn to specific changes made to the policy in section
3c.
1
GENERAL RULES REGARDING USE OF THE CREDIT CARD
The University Credit Card is issued in your name, which means that you are responsible for
ensuring that the purchase transactions that are made against it are for legitimate University
business requirements.

Personal use of the card is not permitted, even if you intend to repay the cost of the
transaction.

You must keep the credit card and PIN number safe and secure at all times.

It is not permitted to set up direct debit or standing order payments against the
card. Please refer to the Finance Department for further advice on these types of
payments

Departmental card purchases must be for the benefit of the University and can only
be for items that would normally be purchased by your department.

Individual credit card purchases must be for legitimate business travel or hospitality
expenses.

Purchases against either card must not contravene the University’s Financial
Regulations, Travel & Expense or the Entertaining and Hospitality Policies. Copies of
which can be found under Policies and procedures
3

University Credit Cards are not provided as a means to by pass the Purchase Order
System (E5). Purchases, where possible should be made from suppliers who are
already set up on the E5 system. The University has numerous contracts and
agreements in place with suppliers, details of which can be found on the
Purchasing web pages

Convenience must not be allowed to override all other considerations such as
warranty, after-sales service.

It is not permissible to split an order with a supplier because the value exceeds your
individual card transaction limit.

All purchases must be supported by a written request or email, which must be kept
on file in the department for audit purposes.

Travel – the cardholder must declare the date, destination and purpose of the travel
expense. (HMRC Requirement). Travel Policy

Hospitality – the cardholder must declare the date, organisation, number of external
and internal persons present and the purpose of the hospitality. Hospitality can only
be given in accordance with the University’s Entertaining and Hospitality Policy.
2
PLACING AN ORDER USING THE CREDIT CARD
a)
Using the credit card in person
When making a purchase at a supplier outlet you will be asked to confirm the transaction by
entering your unique PIN number. You must never disclose this PIN number to anyone. Also
you cannot place an order by phone and then send someone else with the credit card to
collect the goods.
b)
Using the credit card by telephone (Departmental Cards Only)
Once a supplier is identified, proceed to purchase by quoting your card details. Instruct the
supplier to mark the packaging/paperwork with ‘University credit card’ and for the attention
of [name and location]. If applicable, a VAT invoice/receipt clearly marked University credit
card paid should be sent with the goods or directly to you. The supplier may request details
of the University postcode for a security check. If asked for the Richmond Road postcode
BD7 1DP should be quoted.
c)
Using the credit card for ordering by mail (Departmental Cards Only)
Orders can be made if there is an application form that can be completed for Visa payment.
The packaging and accompanying paperwork must be marked ‘University purchase card’ and
‘for the attention of [name and location]’. If applicable, a VAT invoice/receipt clearly marked
University purchase Card paid should be sent with the goods or directly to you.
d)
What if the supplier refuses to accept your card?
4
If the supplier refuses to accept your card, contact the bank in the first instance, they should
be able to advise what the problem is. Then if you are not able to resolve the problem you
may need to contact the University Card Administrator in Finance.
e)
Do you need a VAT Invoice/receipt
The University does not reclaim Vat paid on its purchases made by University credit cards
but you will be required to show the VAT element, where applicable when coding your
transactions in the online system.
All invoices/ receipts though must be first scanned and then attached to your online
transaction report. Non grant code receipts are to be retained by the cardholder for a period
of up to 12 months for audit purposes
For purchases made against a grant code, after scanning and attaching the receipt online the
hardcopy MUST be sent through to Finance.
f)
Recording purchases on the Transaction Log or Statement
You may wish to record all your purchases on a transaction log including all the relevant
information, requisitions, invoices/receipts and goods received notes with it. You should
ensure that there is sufficient detail to facilitate reconciliation to the card statement at the
end of the month.
g)
What to do if goods need to be returned
The following Procedures should be followed:
Inform the supplier immediately.
Make arrangements for the replacement goods to be sent to you (where applicable)
Return the rejected goods to the supplier, or arrange for supplier to collect them.
Enter details onto the Transaction Log sheet or monthly statement.
When the monthly statement is received, check to ensure that the supplier has credited
your account, and recharged you where applicable.
3
ADMINISTERING YOUR STATEMENTS
a)
Receiving monthly statements
Each month you will receive an email from Mastercard via the online system indicating that
your statement is available to be coded. Login online and check that the transactions are
correct and add the relevant cost codes. You will be required to attached a scanned version
of the receipt to each transaction.
Ensure that there is a description of the transaction entered in the required field and also
that the required information for travel and hospitality is added.
5
Print your statement off and send this along with any your receipts for GRANTs only
expenditure to Finance.
b)
What to do if you dispute an item on the statement
Occasionally you may not be able to reconcile your log sheet or monthly statement for one
of the following reasons:
Transactions you are not aware of
Contact the University Card issuers (the Bank) Customer centre, the telephone number will
be on the reverse of your card and request details of the transaction in question. Once you
are sure that it is not a transaction you have forgotten about inform the University Card
Administrator in Finance for action. The bank will also issue you with a form to complete so
the transaction can be credited against your account.
Supplier’s price is greater
Contact the supplier direct in order to discuss the difference. If you are unable to resolve
inform the University Card Administrator in Finance for action.
Billed for goods not yet received
If the goods have not been despatched, inform the University Card Administrator in Finance.
It is a Mastercard regulation that the transaction should not be processed until the goods
are despatched. If the goods have been despatched check the delivery address with the
supplier and follow up with the relevant store/delivery point.
You must ensure that any credit received is applied directly to your University Card account
and is not settled by way of cash reimbursement or cheque.
c)
The reconciled statement
This must be coded and available to your Authorising Manager within 5 days of the
statement being available. This is to enable your Authorising Officer sufficient time to
authorise within 10 days of the statement being produced. In the event of holidays or illness,
if you are unable to meet this requirement then please contact the finance department so
that alternative arrangements can be made.
Continual FAILURE to comply with these times scales WILL result in your card being
withdrawn.
Be aware that the following process will take place:
i)
Month 1 statement - After the initial 5 days you will be sent a reminder to
complete the coding of your transactions.
ii)
Month 2 statement – If the month 1 and 2 statements remain un-coded
beyond the second 5 working day period your UoB credit card will be blocked.
6
iii)
Month 3 statement – if there are still any outstanding statements to be coded
and or approved by this point the University will look to recover expenses
from your salary
Please remember it is the cardholders responsibility to ensure that the statements, coding
and receipts are all kept up to date.
4
CARD HOUSEKEEPING
a)
Security of the Card
Lost or stolen cards should be immediately notified to the University card provider (the
Bank) and inform the University Card Administrator in Finance. A new card will be
forwarded by the bank shortly.
b)
Card Expiry
If a replacement card is not received by the time the old card expires, contact the University
Card Administrator in Finance. Expired cards should be cut up, in particular the “microchip”
and disposed of securely.
c)
Damaged card
If you damage your card contact the University Card Administrator in Finance.
d)
Change of Personal details
Contact the University Card Administrator in Finance if you change your name, your
job/department or you are to leave the University’s employment.
Cut the card up and return it to the Purchasing Office.
e)
Cardholders liability
Although the University Card is embossed with your name the account and therefore liability
is in the name of the University. The card does not have an impact on your personal credit
status.
5
PURCHASING SERVICES RESPONSIBILITIES
It is the responsibility of the Purchasing Office to ensure that:
New and existing cardholders have signed the cardholder agreements before the cards may
be used.
The Card Authorising Officer/Administrator approves any requests to amend credit limits.
Guidance and procedures are issued to new cardholders and Card Authorising
Officer/Administrator.
Training is provided as appropriate.
7
Cards are terminated on a timely basis.
A log of the cardholder’s details is maintained within the online system.
Suppliers are encouraged to accept card payments, in liaison with the cardholder.
The Purchasing Office will monitor management information in respect of the level of the
usage, values and nature of purchases made in order to consider whether the cards continue
to offer value for money.
6
FINANCE (CREDITORS) RESPONSIBILITIES
That Cardholder and Authorisers adhere to the timetable as detailed above and that
statements are sent to Creditors on a timely basis.
Check that the statements have been appropriately coded authorised.
Regular monthly checks are carried out to ensure outstanding balances are being cleared
and monthly reversing journal prepared for outstanding balances.
Creditors download statements transactions on a timely basis to the appropriate ledger
codes and clear the appropriate balance on the card holding account within the Finance
system.
Maintain a record of statements and Grant receipts.
7
FINANCE (Management Accounts) RESPONSIBILITIES
Financial Accounts allocate direct debits to the correct holding account.
Creditors balances are cleared off on a timely basis by JPC transaction.
8
SUMMARY
The basic object of using the University credit card is to reduce administration, but we also
need to maintain the appropriate controls as given in this document.
The University reserves the right to withdraw the card if the cardholder does not follow the
established procedure and may face appropriate disciplinary action.
The University continues to search for new ways to improve the way we conduct our
business. Your use of the University credit card in conducting your daily business can help
significantly reduce the number of transactions we process for payment each month. If you
have any questions about these procedures or need additional information, please contact
the Purchasing Office.
8