The University of Memphis

Purchasing Card

BFGuide

• Agency
• Cardholder
• Card Issuer
• Merchant
• Department Head
• Department Administrator/Reviewer
• Procurement Specialist
• Merchant Category Code (MCC)
• iTracer
• On-Line Statement

• Applying for a Purchasing Card
• Using the Purchasing Card
• Resolving Purchasing Card Issues
• Cardholder's Responsibilities
• Administrator's and Reviewer's Responsibilities
• Procurement Specialist's Responsibilities
• General Tips
• Regions Internet Purchasing Card Services
• Blocked Merchant Category Code (MCC)

• Purchasing Cardholder Enrollment
• Regions Purchasing Card Customer Dispute Form
• Purchasing Cardholder Change Form
• Agreement to Accept Visa Purchasing Card

• Cardholder's Reference Guide
• University's Purchasing Policy
• Regions Bank
• TBR Purchasing Policy and Procedures 4:02:10:00

• Procurement Services Staff

The University of Memphis is the agency in the relationship between Regions Bank and the University for purchasing card services.

An employee of the University who is approved by his/her department head to use the purchasing card to execute purchase transactions on behalf of the University.

Regions Bank is the card issuer in the relationship between The University of Memphis and the bank and is primarily responsible for issuing Visa purchasing cards to University-approved employees, billing the University for all purchases made on the cards, and collecting payment from the University on behalf of the merchants.

University official who must approve employee's request for a purchasing card, assign a card administrator, designate a default account number for purchases on the purchasing card, and submit application for a purchasing card to the Procurement Specialist. The department head approval delegates transaction authority to the cardholder.

An employee in each department/college responsible for proper use of the purchasing card within that department. The card administrator will be responsible for reviewing transactions of individual cardholders to ensure the transactions are classified as appropriate University expenses. The administrator and/or reviewer can be two different department employees or one, depending on the size of the department and number of cards issued for department use. If an administrator or reviewer is also a cardholder and must administer his or her own purchasing card, the following must be done each month: Print the monthly statement from iStatement, attach all receipts, review and make allocation adjustments as necessary in iTracer, and have next level of authority review and approve the statement with signature and date on statement. Once this procedure is complete, the statement must be kept in departmental files to meet retention requirements.

The University's official who coordinates the Purchasing Card Program for the University and acts as the University's intermediary in correspondence with the card issuer.

A numeric code designating a grouping of one or more individual suppliers/merchants who sell similar merchandise. It is an industry-provided code that categorizes all suppliers based on the goods and services sold.

A web-based software program that facilitates the management of the Purchasing Card Program by giving users access to transaction information via the Internet from Regions.com. iTracer offers the following benefits: allows expense information to be easily shared with another person or department, offers standard and ad-hoc transaction and analytical data reports, identifies cost savings, furnishes preferred supplier spending, provides daily reporting and data analysis via the Internet, affords opportunity to view and analyze daily cardholder use, and interfaces with the general ledger in a variety of formats.

A web-based software program that provides cardholders and administrators/reviewers access to transaction information to enhance purchasing card services via the Internet from Regions.com. On-Line Statement offers the following features: provides monthly statements from Regions.com for timely reconciliation of expenses, makes statements available to cardholder one day following the close of monthly billing cycle, and permits the agency to access the entire statement of account.

• Eligibility - Any full time employee of the University can apply for a purchasing card upon the approval of his or her department head or responsible departmental official.
• Purchasing Card Enrollment - Eligible employees may apply for a purchasing card by completing the Purchasing Cardholder Enrollment Form. The completed form must be approved by the official responsible for the default account listed on the enrollment form and forwarded to the Procurement Specialist in Procurement Services for further action.
• Training Program for Card Utilization - All prospective cardholders must attend a training session and sign an Agreement to Accept the Visa Purchasing Card Form prior to receiving a purchasing card. The procurement Specialist will conduct the training on cardholder responsibilities such as activating the card, spending limitations, prohibited charges, safeguarding the card, and record retention.

• Activating the Purchasing Card - The cardholder should call the number on the sticker of the purchasing card to activate the card. The automated line will prompt the cardholder for the necessary information.
• Renewing the Purchasing Card - The purchasing card will automatically be renewed before the expiration date. The Procurement Specialist will notify the cardholder by e-mail upon arrival of the new card. When picking up the new card, the cardholder will attest University purchasing policies will continue to be followed. If the cardholder would like to review policies related to the use of the P-card, the cardholder will make arrangements with the Procurement Specialist. The cardholder MUST destroy the old card and call to activate the new one.
• Canceling the Purchasing Card - Notify the Procurement Specialist who will then contact the bank for cancellation.
• Purchasing Card Limitations - The Purchasing Card has two spending limits determined by The University of Memphis and each department. The University decides the individual transaction limit (currently $4,999) and the responsible departmental official decides the monthly dollar limit. The monthly cycle ends on the last business day of the month. The monthly billing cycle resumes the following day.
• Purchasing Card Restrictions - The University prohibits the purchase of alcoholic beverages, membership dues, travel-related expenses (including food and registration), cash advances, gift cards, items for personal use, items for non-University purposes, professional services that would normally require a Personal Services Contract, and any other items prohibited according to University and individual departmental policies. The University prohibits the use of the purchasing card with out-of-country vendors. A cardholder who makes an unauthorized purchase with the purchasing card or uses the purchasing card in an inappropriate manner will be subject to disciplinary action including possible termination of employment and criminal prosecution.
• Making a Purchase Using the Purchasing Card - Present the purchasing card and inform the merchant that the card is a University of Memphis card (logo and name are embossed on the face of the card) and exempt from paying sales tax. The cardholder is responsible for obtaining itemized receipts for all purchases. Each department is solely responsible for maintaining receipts or other supporting documentation for audit purposes.
• Sales Tax Exemption- Always request tax exemption when making a purchase on the purchasing card. The University's tax-exempt number is embossed on the face of the card.
• Phone and Internet Orders - The purchasing card may be used to place orders over the phone or on the Internet. On phone orders, the cardholder should request a copy of the itemized invoice by facsimile to ensure prompt documentation of charges to be reconciled. On Internet orders, the cardholder should print a copy of the invoice or confirmation when the order is placed.

• Disputes of Purchasing Card Charges - If the cardholder disputes a charge, the cardholder must first try to resolve the dispute directly with the merchant. The nature of the dispute and the final resolution must be documented. This documentation must be retained with the Statement of Account on which the disputed charge appears. If the dispute cannot be resolved directly with the merchant, the cardholder must file a Regions Purchasing Card Customer Dispute Form and return it to Regions Bank within sixty days of the date of the periodic billing statement upon which the transaction alleged to be in error or dispute first appeared.
• Lost/Stolen Purchasing Cards - If a purchasing card is lost, stolen or compromised in any way, the cardholder should notify Regions Treasury Management Client Services Bank immediately at 1-888-934-1087 for 24-hour assistance. Cardholders must also notify the Procurement Specialist (3673), within 24 hours after reporting the incident to the bank. After the above notification procedures have been completed, the Procurement Specialist will issue a new purchasing card to the cardholder. A purchasing card that is found after it has been reported lost or stolen must be destroyed by cutting it in half and forwarded to the Program Coordinator.
• Erroneous Declines - There may be certain situations when a vendor receives a decline message when processing a cardholder's purchasing card transaction. If you do not know the reason for the decline, contact Regions Bank Customer Service at 1-888-934-1087 for an explanation. If the decline was in error, the cardholder should immediately contact the Procurement Specialist for assistance. If the purchase is being made outside of normal University business hours, the employee must find an alternate payment method or terminate the purchase and contact the Procurement Specialist during normal University hours. The following reasons may decline a card: exceeding the monthly credit limit; exceeding the single transaction limit; or, the Merchant Category Code (MCC) is blocked.

• Accountability - Cardholders are accountable for all charges made with their purchasing cards and are responsible for checking all transactions against supporting documentation to verify accuracy and propriety. Cardholders are to utilize sound business decisions in making small-dollar purchases for University use. Such purchases must be made in accordance with this guideline, University Purchasing Policy, TBR Purchasing Policy and Procedures 4:02:10:00, and the Cardholder's Reference Guide. It is the cardholder's responsibility to safeguard the purchasing card and the associated account number in a secure location at all times. Cardholders must not allow anyone else to use their purchasing card and/or account number. The purchasing card may not be used to make repetitive purchases that would normally require a purchase order or blanket purchase order. Cardholders should always keep in mind the single transaction limit stipulated and their individual monthly spending limit. Be sure the vendor does not charge sales tax. The University's sales tax exemption number is embossed on the face of the purchasing card.
• Documentation - When making purchases in person, via telephone, mail order, or Internet, always request a detailed, itemized invoice or receipt at the time of the transaction. Each purchase must be supported by some type of itemized documentation. Attach this supporting documentation to the monthly cardholder's Statement of Account downloaded from the Regions Internet Purchasing Card Service - On-Line Statement, and forward to the departmental Card Administrator within two (2) calendar days from date of purchase. If a particular charge or credit does not appear online on the Statement of Account, it should be checked against future online transaction information on the Statement of Account. If the charge or credit does not appear within 60 days after the original transaction was made, the cardholder must notify the Procurement Specialist.

• Administrator's Responsibilities - Card administrators are responsible for verifying that all charges against the cardholder's account are substantiated by supporting documentation and that the documentation is retained within the department for audit purposes. Records must be retained for three years after the fiscal year-end. Receipts for purchases paid from federal funds are to be maintained for grant specified years. Questions about record retention for grant and contract purchases should be referred to Grants Accounting. The supporting documentation (sales receipt, original invoice, credit receipt) should indicate the relevant details for each item purchased, including quantities, amounts, a description of what was purchased, the total charge amount and the merchant's name and address. The card administrators shall retain all receipts and vouchers for audit by internal and external auditors. Card administrators must match the cardholder's receipts/supporting documentation to the electronic statement. Card administrators are also responsible for reviewing each transaction using the online transaction review system and making any necessary changes such as reallocation of charges to departmental accounts and object codes. On-line allocation adjustments must be made within two (2) business days after the last business day of the preceding month. In the event a cardholder leaves the University, transfers to another department, or no longer wishes to use a purchasing card, the card administrator may delete an account or change the existing account information by completing a Purchasing Cardholder Change Form. Upon approval of the completed form, it must be forwarded to the Procurement Specialist who will administer the necessary changes. Once the amendments have been made, the Procurement Specialist will inform the card administrator that modifications are complete and that the cardholder may utilize the purchasing card. The reviewer and/or administrator can be two different department employees or one, depending on the size of the department and number of cards issued for department use. If an administrator or reviewer is also a cardholder and must administer his or her own purchasing card, the following must be done each month: Print the monthly statement from iStatement, attach all receipts, review and make allocation adjustments as necessary in iTracer, and have next level of authority review and approve the statement with signature and date on statement. Once this procedure is complete, the statement must be kept in departmental files to meet retention requirements.
• Reviewer's Responsibilities - A department may have more than one reviewer. The reviewer must be in a position to objectively question any and all cardholder purchases. The reviewer is responsible for sampling and testing purchasing card transactions each month to see that purchases comply with University purchasing procedures and that adequate documentation exists. The reviewer and administrator may be the same person.

• Auditing Purchasing Card Process - The Procurement Specialist will conduct periodic audits of card use and charges for appropriateness through the use of iTracer on-line reporting system. Areas to be monitored include, but are not limited to, compliance with this guideline, University Purchasing Policy, TBR Purchasing Policies and Procedures, and the Cardholder's Reference Guide. Non-use of purchasing card by cardholders will also be monitored. If the Procurement Specialist suspects a cardholder has made an inappropriate charge or used the card to make repetitive purchases in order to bypass standard purchasing procedures, the Coordinator will contact the department's reviewer and advise the reviewer to discuss said charge and or charges with the cardholder. The reviewer will then inform the Procurement Specialist of violations and if so, the consequences to the cardholder.
• Purchasing Card Software Administration - Purchasing cards will be administered through the use of Regions's Internet purchasing card software services: iTracer, On-Line Statement, and On-Line Maintenance. Personal contact with Regions's Customer Technical Support personnel is also available.
• Reconciliation of Purchasing Card Accounts -The Procurement Specialist is responsible for acting as the main contact between the University and the bank and shall reconcile the University's monthly accounting statement with Regions Bank.
• Purchasing Card Training Program - This program consists of proper use of the purchasing card, including but not limited to, purchasing card activation; purchasing card limitations; purchasing card restrictions; purchasing card purchases, sales tax exemption; how to make phone and internet orders; how to settle a disputed charge; and how to address lost/stolen cards. Additionally, cardholders will be reminded NOT to allow anyone else to use their purchasing card and/or account number.

• Emergency Transactions - Emergency transactions over $4,999 may NOT be handled with the purchasing card. For any transaction which does not meet the spending controls assigned to the card, the cardholder must contact Procurement Services for assistance.
• Credits - The merchant should issue a credit to a cardholder's purchasing card account for any item accepted for return. This credit will appear on a subsequent statement. Under no circumstance should a cardholder accept cash in lieu of a credit to the purchasing card account.
• Merchant Participation - If a merchant/retailer frequently used by University employees does not accept the Visa card, the Procurement Specialist will assist in recruiting the merchant to take the necessary steps to begin acceptance of the card. Cardholders should contact the departmental card administrator or the Procurement Specialist when encountering merchants who do not accept the card.

• Regions Access - With the Regions Visa Purchasing Card, cardholders can access their information via the Internet on http://www.inettracer.com/.
• Regions Purchasing Card On-Line Statement - On-Line Statement is an interactive bill presentment product that permits users to view statements and invoices over a secure Internet site. On-line Statement is the perfect solution for consumer card users. From anywhere in the world with access to the Internet, users can view their statements. To access this information, go to Regions.com and click on main view. Once the main view is accessible, go to the drop down box Access Accounts (upper right corner) and select On-Line Statement from the drop down selection available. For the first time signing onto http://www.inettracer.com/ On-Line Statement, cardholders will need the following information: USER ID: this will be cardholder’s 16 digit account number (card number) INITIAL PASSWORD: First two letters of the cardholder's first and last name, and the last 4 digits of the purchasing card. Once cardholder has logged in, it will require a change in password. Follow prompt information to change this initial password.
• Regions Purchasing Card iTracer - iTracer facilitates the management of a Purchasing Card Program by giving users access to transaction information on the Internet. Users make better business decisions by having access to timely and accurate expense information. iTracer organizes and displays information in logical views. All views limit the displayed data to a single screen eliminating the need to scroll side-to-side. Within each function, the user can select from a list of relevant views that logically organize information about accounts, transactions, merchants and company hierarchies. To access this information go to http://www.inettracer.com/ to access main view. Once the main view is accessible, go to the drop down box Access Accounts (upper right corner) and select iTracer from the drop down selection available. For the first time signing onto iTracer, cardholder will use the following information: USER ID: am (lower case) and last six (6) numbers of P-Card. INITIAL PASSWORD: password (lower case) and last two digits of the current calendar year. Once cardholder has logged in, it will require a change in password. Follow prompt information to change this initial password. The first time signing onto iTracer an administrator or administrator/cardholder will use the following information: USER ID: am (lower case) and six (6) digit hierarchy level number. (This will be provided to administrator.) INITIAL PASSWORD: password (lower case) and last two digits of the current calendar year. Once administrator or administrator/cardholder has logged in, it will require a change in password. Follow prompt information to change this initial password.
• Regions Purchasing Card On-Line Maintenance - On-Line Maintenance permits U of M to directly manage the purchasing cards. On-Line Maintenance provides real-time updates to account demographics, card limit information, increase/decrease card limit instantly, change or delete merchant category code groups, and add new accounts online. On-line Maintenance interfaces directly with the allocation setup function in iTracer without having to involve Regions Bank. Additionally, accounts can be blocked if an employee resigns or if a card is lost or stolen. A new card for a new employee can be activated via the Internet. Administrators will have limited access to this function. The first time signing onto On-Line Maintenance an administrator or administrator/cardholder will use the following information: USER ID: am (lower case) and six (6) digit hierarchy level number. (This will be provided to administrator.) INITIAL PASSWORD: password (lower case) and last two digits of the current calendar year. Once administrator or administrator/cardholder has logged in, it will require a change in password. Follow prompt information to change this initial password.
• Regions Customer Service - Card Service Center - The Card Service Center provides assistance to cardholders and administrators. Call 1-888-934-1087 or via e-mail at clientservicesgroup@regions.com. For reporting lost or stolen cards outside the fore mentioned time period, call 1-888-934-1087. This number is available 24 hours a day, 365 days a year.

Cardholders may not use a purchasing card to make purchases from the following types of merchants/retailers unless prior approval has been granted. Certain items may be unblocked as an exception based on request and usage with prior approval from the Director of Procurement Services or the Procurement Specialist. These requests will be viewed on a case-by-case basis. The following is a listing of the Merchant Category Groups and/or Merchant Category Codes (MCC) whose access is blocked:

BLOCKED MCC	DESCRIPTION
3000 - 3299	Airlines
3351 - 3441	Rental Cars
3501 - 4010	Hotels
4011	Railroads
4111	Local/Suburban Commuter Transportation
4112	Passenger Railways
4121	Taxicabs/Limousines
4131	Bus Lines
4411	Steamship Lines/Cruise Lines
4457	Boat Rentals & Leases
4468	Marinas, Marine Service and Supplies
4511	Airlines, Air Carriers (not listed elsewhere)
4582	Airports, Airport Terminals, Flying Fields
4722	Travel Agencies and Tour Operators
4723	Package Tour Operators (Germany Only)
4761	Telemarketing Of Travel Related Service
4784	Tolls, Road And Bridge Fees
4789	Transportation Services, Not Elsewhere Classified
4829	Wire Transfer - Money Orders
5271	Mobile Home Dealers
5422	Freezer & Locker Meat Provisioners
5441	Candy, Nut, Confectionary Stores
5451	Dairy Products Stores
5462	Bakeries
5551	Boat Dealers
5571	Motorcycle Shops and Dealers
5592	Motor Homes Dealers
5598	Snowmobile Dealers
5811	Caterers
5812	Eating Places, Restaurants
5813	Cocktail Lounges, Bars-Alcoholic Beverages
5814	Fast Food Restaurants
5921	Package Stores - Beer, Wine, and Liquor
5932	Antique Shops-Sales, Repairs,& Restoration Services
5940	Bicycle Shops - Sales and Service
5960	Direct Marketing - Insurance Services
5962	Direct Marketing-Travel-Related Arrangement Services
6010	Financial Institutions - Manual Cash Disbursements
6011	Financial Institutions-Automated Cash Disbursements
6012	Financial Institutions - Merchandise and Services
6051	Non-Financial Institutions-Foreign Currency,Cheques
6211	Security Brokers/Dealers
6300	Insurance Sales, Underwriting, and Premiums
6381	Insurance Premiums (thru 3/29/96)
6399	Insurance - Not Elsewhere Classified (thru3/29/96)
6611	Overpayments
6760	Savings Bonds
7011	Hotels-Lodging (Not Listed Elsewhere)
7012	Timeshares
7261	Funeral Service & Crematories
7273	Dating & Escort Services
7276	Tax Preparation Service
7277	Counseling Service - Debt, Marriage, Personal
7280	Hospital Patient Personal Funds Withdrawal Accts
7295	Babysitting Services
7297	Massage Parlors
7299	Personal Services, Not Elsewhere Classified
7321	Consumer Credit Reporting Agencies
7361	Temporary Help Services, Employment Agencies
7393	Protective Services
7512	Car Rental Companies (Not Listed Elsewhere)
7519	Motor Home & Recreational Vehicle Rentals
7992	Golf Courses - Public
7995	Betting Including Lottery Tickets
8111	Legal Services, Attorneys
8241	Correspondence Schools
8351	Child Care Services
8651	Political Organizations
8661	Religious Organizations
8675	Automobile Associations
8911	Engineering, Architectural & Surveying Services
8931	Accounting, Auditing & Bookkeeping Services
8999	Professional Services Not Elsewhere Defined
9211	Court Costs, Alimony, Child Support
9222	Fines
9223	Bail And Bond Payments
9311	Tax Payments
9411	Government Loan Payments
9700	Automated Referral Service
9701	Visa Credential Server
9702	GCAS Emergency Services

http://bf.memphis.edu/procurement/purchasingcard/pcarde.html

http://bf.memphis.edu/forms/procurement/dispute.pdf