This tool was originally developed by USAID and NetHope; however neither party has endorsed or participated in this application of use.
Key Tool: Example of Key Standard Operating Procedures for
use of Prepaid Card or Mobile Payment
PURPOSE:
The purpose of this example is to help organizations standardize procedures for making
payments using a prepaid card or mobile payment modality. Standard operating procedures
(SOP) are internal and unique to each organization. This document should be used as a guide to
identify areas that may need to be adjusted in your organization’s SOP when transitioning to
electronic payments (especially card and mobile payments).
GENERAL SUGGESTIONS:

Make sure you engage the service provider when developing your SOP to ensure the
payment product has the ability to meet the needs of your internal procedures.

Try to assimilate as much of your previous payment procedures into the adapted SOP for
prepaid card and mobile payments. The process should be very similar to a bank wire
transfer with some slight variations.

Work with your finance team to establish a champion on the staff who will take on the
majority of management around pushing out payments through prepaid cards or mobile
devices. Some organizations have even created entire accounting positions to manage
these specific payments.
The suggested procedures in this example focus strictly on financial procedures that lead to the
release of funds (payment). Another very important part of the payment procedure is ensuring
all recipients are registered and trained on how to use the payment modality. Please refer to
Step 8 in the Toolkit for more information on registering and training recipients.
DEFINITIONS:
Mobile Payment - a form of payment services performed from or via a mobile device. In this
case, the SOP refers to a mobile bulk payment, which is making payments from one to many via
a mobile platform.
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Note: This Toolkit is made possible by the generous support of the American people through the United States Agency for International
Development (USAID). The contents are the responsibility of NetHope and do not necessarily reflect the views of USAID or the United States
Government.
Card Payment - a form of payment services performed via a magnetic strip or smart card that
stores a designated amount of value in addition to recipient information. In this case, the SOP
refers to a card bulk payment, which is defined by making payments from one to many via a
card platform.
Service Provider - The service provider in this case is the bank, Mobile Network Operator, or
third party payment provider who have been contracted to provide the payment service,
whether it be through card or mobile payment methods.
Recipient – The recipient is the person receiving the mobile or card payment.
Payer- The Payer is the organization pushing out the payment, and developing the SOP.
Agent (Mobile payments) – Is a person registered with the service provider that provides cash in
and cash out services to the recipient. It is key for a variety of agents with sufficient liquidity to
be located in
the area where recipients will be receive funds to ensure recipients are able to withdraw cash as
they need it.
Point of Sale Terminal (Card payments) - A point of sale (POS) terminal enables recipients to
cash in and cash out. Like an agent, it is key that there are POS terminals (i.e. ATM, or agent
with a POS terminal) with sufficient liquidity located in the area where recipients receive funds.
Maker: The maker is a member of staff whose responsibility in the payment process is to create
the list of recipients that will be used to direct the transaction
Checker: The checker is a member of staff whose responsibility in the payment process is to
review the list of recipients created by the maker. The checker is responsible for ensuring the
accuracy of the information before the payment is made
Approver: The approver is a member of staff, normally leadership with signatory authority, that
provides the final review and approval of the payment.
RESPONSIBLE PERSONS:
This section of an organization’s SOP will vary depending on how the organization manages
current payment procedures. The table highlights the staff most commonly involved in mobile
or card payments.
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Program Staff:
•Prepare payment or advance request
•Develop Payee information matrix
•Confirm payments recieved in the field
Finance Staff:
•Enter payment request and confirm budget
•Review the Payee information matrix
•Reconcile all payments
•Maintain records for audit compliance
Finance/Country
Director
•Review final Payee information and budget
•Approve transfer of funds
•Review and confirm reconciliation
PROCEDURE:
This section of an organization’s SOP should describe the steps in the payment process and
assign responsibility to staff. There procedures may vary based on where the payments are: 1)
recurring payments, i.e. payments made on a regular basis to staff, field worker stipends, or
vendors whose payment information may be stored for future use; or 2) Nonrecurring payments,
i.e. one off payments made to training participants for per diem or transportation
reimbursement costs.
RECURRING PAYMENTS
Activity
Funds
Preparation
Payment
Request
Pre
Verification
Description
If the organization’s bank account is not directly linked to the
payment provider's system, the necessary funds should be
transferred from the organization's bank account to the
electronic value account established by the organization with
the electronic payments provider (Mobile Network Operator,
card issuer's bank, or third party provider).
Any program staff requiring a payment should produce a
payment request. If the organization is willing to adjust the
format of their preexisting payment request, an excel or .csv file
is a preferred format for the request (see form example below).
When the finance staff receives a payment request, they will
upload the recipient information into the electronic payment
system and verify all payment amounts are consistent with the
payment requests. Most systems should be able to verify the
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Responsibility
Finance Staff
Program Staff
(Maker)
Finance Staff
(Checker)
recipient's information is correct automatically.
Once the list is uploaded and verified, the checker sends the
payment request onto the approver. The approver reviews the
recipient list and payment request documentation a final time,
and then approves the payment. Once the approval is finalized,
this will signal the system to release the payments.
Verification of There are two options to verify receipt of the payment. 1) The
Receipt
organization can rely on the transaction summary provided by
the electronic payments provider that verifies each
number/account the transaction was sent to has received or not
received the funds. This transaction summary is usually
immediate and real time, so the payer has a real time summary
of the payment. 2) Some organizations may prefer to have a
signature from each recipient verifying receipt of the funds.
This can be done through an email confirmation from staff or
vendor or a physical signature depending on your
organization's level of control needs. This documentation then
can be attached to the transaction summary.
Reconciliation All paperwork, including payment requests, transaction
summaries, and payment receipt signatures (if needed) are
returned to home office where the funds dispersed from bulk
payment account are reconciled with paperwork. At this point
any remaining funds in the electronic value account (if it is not
directly connected to a bank account) can be returned to the
organization’s bank account to ensure a correct balance on the
bank ledger. Finance will need to apply the payments to the
appropriate billing codes and file the backup documentation
for auditing purposes.
Approval/
Disbursement
Finance
Director or
Country
Director
(Approver)
Finance Staff
and/or
Program Staff
Finance Staff
Non-Recurring Payments
Activity
Funds
Preparation
Payment
Request
Description
If the organization’s bank account is not directly linked to the
payment provider's system, the necessary funds should be
transferred from the organization's bank account to the
electronic value account established by the organization with
the electronic payments provider (Mobile Network Operator,
card issuer's bank, or third party provider).
The staff in the field should prepare a payment request that
coincides with the preparation of the recipient list, or list of
training participants receiving reimbursements for travel or
meals and incidentals. The payment request may take several
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Responsibility
Finance Staff
Program Staff
(Maker)
Pre
Verification
Approval/
Disbursement
forms depending on the organization, but it is recommended
the organization use a .csv or excel file format (see example
below) to develop the list of names, phone numbers/card
numbers in a format that can also be used to upload the
recipient information into the bulk payment system.
Once the list of training participants is uploaded into the
system by the maker, the checker, usually a member of the
finance staff can review and verify the names and numbers on
the list. Many bulk payment products are also able to verify the
number through their system, making this process much easier.
Once the checker verifies the names that have been uploaded
into the system are consistent with the payment request,
The approver looks through the list and payment request
documentation a final time, and then approves the payment.
Once the approval is finalized, this will signal the system to
release the payments.
Finance Staff
(Checker)
Finance
Director or
Country
Director
(Approver)
Verification of There are two options organizations use to verify receipt of the Finance Staff
Receipt
payment. 1) The organization can rely on the transaction and/or
summary provided by the electronic payments provider that Program Staff
verifies each number/account the transaction was sent to has
received or not received the funds. This transaction summary is
usually immediate and real time, so the payer has a real time
summary of the payment. 2) Some organizations may prefer
to have a signature from each recipient verifying receipt of the
funds. This can be done at the end of the training on each day
when the payment has been made. All training attendees must
sign by their name on the attendance list, this confirms they
have received. This documentation then can be attached to the
transaction summary.
Reconciliation All paperwork, including payment requests, transaction Finance Staff
summaries, and payment receipt signatures (if needed) are
returned to home office where the funds dispersed from bulk
payment account are reconciled with paperwork and filed. At
this point any remaining funds in the electronic value account
(if it is not directly connected to the organization’s bank
account) can be returned to a bank account to ensure a correct
balance on the organization’s bank ledger. Finance will need to
apply the payments to the appropriate billing codes and file the
backup documentation for auditing purposes.
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Payment Request in Format Examples:
Recurring Payment:
First Name
Last Name
Phone/Card
Number
Purpose
Payment
of Amount
Non-recurring Payment:
Training:
Date:
Location:
Program Staff Name:
By signing this sheet you verify that a) you have attended this training for its entirety and b) that
you have received the payment for per diem and travel reimbursement
First Name
Last
Name
Phone/Card
Number
Amount
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Attendance
Signature
Payment
Signature
Receipt