**UPDATE IN PROCESS**
PURCHASE CARD FREQUENTLY ASKED QUESTIONS
1. As the Agency P-Card Administrator, when I receive a new p-card for an employee, do I set the card limit or the single purchase limit or both?
The card limit is the total amount per cycle. The single purchase limit is the amount for a single purchase. Set both. The card limit on a standard p-card should be set at an amount sufficient for one month’s spending, based on expectation and agency need. The single purchase limit should be set at $5000.00 or less. You cannot exceed $5000.00 for the single purchase limit on a standard card.
2. Do you know why the p-card encumbrances must be placed on an authority order as opposed to an indefinite quantity purchase order that included sufficient prior encumbrance?
The Office of State Finance Replied: The reason for the authority order over a purchase order (PO) is that the PO is vendor specific and p-card purchases normally consists of multiple vendor payments. The bank is only the payment method and not the vendor for the purchases. We have the p-card authority orders identified as such for tracking purposes and it remains as the "vendor" for the payment. Whereas, authority order payment vouchers normally must be changed to the proper vendor being paid and that vendor is tracked for expenditure purposes.
3. I have reviewed the P-Card rules and policies and cannot find anywhere that prohibits me from using the P-Card to pay a vendor that requires a convenience fee for the use of a credit card. Can you confirm this to be correct? The convenience fee to use the card to pay this vendor is 2.5%.
Our contract with JP Morgan Chase says the State will not pay a fee for the use of the cards. All merchants pay a fee to MasterCard to be able to accept their cards. Most merchants disguise this fee by increasing the cost of their goods or services. The State should not be paying convenience fees. The contract that the merchants sign with MasterCard says that they can’t charge a fee for use of the cards so some merchants have started calling them convenience fees rather than card usage fees. You have a few options. You can talk to the merchant and ask that they remove the fee, you can file a complaint against the merchant with MasterCard, or you can use another vendor. Also, depending on the cost of the item you are buying, 2.5% may significantly increase the cost of the purchase and would make the purchase not “fair and reasonable.” All p-card purchases must be “fair and reasonable.” You may wish to either find another vendor or find a different method of payment if they won’t remove the fee.
4. I faxed the appropriate Hotel form to each hotel before our employees checked in. None of them returned the form with a signature. What do I do?
You can’t make the hotel sign the form, but every effort should be made to try to get a signature from the hotel before check-in. You should document all your efforts to get a signature from them. Instead of dealing with the reservation clerk, who has little authority, you may wish to communicate with the manager, or accounting manager next time.
5. I have a question regarding the Travel P-Card. If an employee who the travel card is issued in their name is staying at a Hotel and they are responsible for 2 days of the Hotel, can they charge all of the days of the hotel and we deduct those 2 days from the per diem rate we would be reimbursing them for after they complete their travel form.
No – The P-Card should only be used for official state business. The employee would have to use the Travel P-Card for the hotel for the days they are on official business and their personal card for the others. Or they could use their personal credit card for all of the days and seek reimbursement through a travel claim for the days they were on official state business.
6. Can baggage charges be added at the time the airline ticket is purchased? Since the airline is charging the baggage fee, can we put on the travel card?
If the baggage charge is part of the normal airline cost and it appears on the airline bill at the time reservations are made, then it can be charged to the Travel P-Card. (Airfare and baggage on one invoice). If the baggage charge is invoiced or billed separately, or you pay when you get to the airport, it can be charged to the Standard P-Card if it is a normal airline fee, for example, you are not being charged for overweight bags or extra baggage, etc. Or, the preferred method is to pay for the baggage with a personal credit card or check and seek reimbursement with a Travel Reimbursement Claim.
7. Is there a report you can run that will show how many p-card transactions our agency has had by fiscal year for the last 3 years?
PathwayNet only keeps records for the last 13 months. In accordance with the P-Card procedures, your agency should be running Report 161 – Transaction Detail Report – each month for audit purposes. If you need specific information regarding transactions, this report should be helpful.
8. Our agency purchased flowers for two funerals for former employees can I use the p-card to pay for these?
That sounds like a personal expense and could be considered gifting the state’s resources. Do not use the p-card for this expense. You may wish to request donations from the employees for flowers, etc.
9. I have a question about use of the SW P-Card. Can we use a SW P-Card to make a purchase from OCI?
No, OCI does not have a statewide contract with DCS, Central Purchasing. Statewide p-cards can only be used for statewide contracts issued through the Central Purchasing Division of the Department of Central Services, to pay for regulated utilities that exceed $5,000.00 per month or contracts designated by the State Purchasing Director for use with the statewide p-card. You can use your standard p-card for purchases with OCI that are under $5,000.00.
1.Why are so many State Purchase Card (P/Card) purchases listed as General Transaction?
The description of the transaction may be based upon (1) what is reported to the payment card organization card company by the merchant; (2) the level of reporting capability authorized for a specific merchant; or, (3) the MCC code assigned to a merchant by a bank.
Reporting capabilities assigned to a merchant may vary and each reporting level differs. Level I requires a merchant to report only basic information, i.e. total amount and date of purchase transaction. In addition to Level I information, Level II requires reporting of more merchant information, e.g. merchant telephone number and address; and, Level III also requires, a detailed description of the items purchased.
The State is not involved with the assignment of reporting levels to a merchant by a payment card organization.
2. What is an MCC code?
An MCC code or Merchant Category Code is a four-digit number assigned to a merchant/payee by a payment card organization when the business first starts accepting an approved card as payment for goods or services. The MCC code is a classification code assigned to the merchant/payee based on the primary goods or services provided by the merchant, e.g. Homeland Stores would most likely be issued an MCC code that categorized it as a grocery store.
3. Who do I contact to obtain more specific information about a purchase card transaction made by an agency?
Occasionally, an MCC code may be entered incorrectly or the transaction description fails to provide adequate information. To obtain specific details about a state agency P/Card transaction, you must contact the state agency responsible for the purchase. You can locate an agency's official agency web address through the Open Books website to research the agency's contact information.
4. Where can I find more information about the State Purchase Card Program?
General information and the official State Purchase Card Program Procedures are available at: http://www.ok.gov/DCS/Central_Purchasing/P_Card_Information/index.html.
Each state agency participating in the State Purchase Card Program must appoint an agency Purchase Card Administrator. The Agency Purchase Card Administrator is knowledgeable in their specific agency's internal purchasing controls; authorized purchase card holders and required purchase card training completed by each, and card purchase limit; and, monthly reconciliation of the agency's purchase card transactions etc.