Policy

Payment Card Policy


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Policy Purpose

This document establishes the Policy for New York University’s Global Payment Card Program and applies to all Cardholders. Compliance will ensure Payment Card transactions are incurred and approved in accordance with approved University standards. The Policy will be reviewed and revised annually by the Global Payment Card team and all other relevant teams to reflect current business needs. All permitted exceptions are noted herein.

Program Scope

The Global Payment Card Program is a card product that enables authorized employees to use the Payment Card for approved business-related expenses. The Policy applies to any member of the University community including participating Student Clubs who seek to establish, maintain, approve or conduct transactions in or through NYU Global Payment Card Accounts.

Objectives

The objectives of the Global Payment Card Program include

  • Enhance client satisfaction for all Card Program users at NYU’s schools, administrative units, Global Academic Centers, Student Clubs and portal campuses
  • Support administrative functions for Payment Cards
  • Maintain effective relationships with our issuing Bank and Cardholders globally
  • Minimize financial and operational risks
  • Replace check payments with Payment Card payments for Low Dollar Item purchases
  • Strengthen governance and infrastructure, e.g. policies, procedures, compliance, technology, security, fraud protection, management reporting, and performance measurement/metrics

Global Payment Card Roles

Global Payment Card Program Manager
The Global Payment Card Program Manager or team manages the Payment Card Program, including, Payment Card issuance, reporting, analysis, maintenance, spot audits, compliance, and training. The role also monitors overall performance of the program against qualitative and quantitative goals, identifies revenue and savings opportunities, validates payments and maintains relationships with the Procurement, Accounts Payable (A/P), Financial Reporting, Tax and Internal Audit teams to ensure that related policies are in alignment and in compliance.

Card Administrator
This role evaluates the need, recommends and approves the issuance of the Payment Card for the Cardholder. This role also monitors the timeliness of Payment Card reconciliation in this school or unit.

Card Approver
The Card Approver reviews the documentation supporting the Payment Card transactions and approves the transactions for valid business expenses, using the issuing Bank’s online reconciliation system on a weekly basis as well as at month end. The Card Approver ensures that the Cardholder complies with the Procurement, Business Expense, Expense Reimbursement, and the Record Retention Policies.

Cardholder
The individual named on the Payment Card who conducts transactions using the Payment Card on behalf of and for the use of New York University and its departments and/or schools. This individual is approved to hold an NYU Payment Card by the Card Administrator of the department.

Payment Card Issuer
NYU’s Payment Cards including Purchasing, Corporate Travel Account, Student Club, Fleet and Bookstore Cards are issued by our Bank(s) and Card issuer partners to approved employees of New York University.  The Card Provider(s) processes electronic transaction authorization, fraud protection, details and statements for all purchases made on the Payment Cards.  The Card Issuer(s) also provides a web portal for reporting and processing purposes.

Global Payment Card – Responsibilities

Card Program Manager / Senior Card Analyst
  • Oversee Payment Card Program performance and metrics
  • Manage all aspects of client service and continuous improvement for the program
  • Submit Payment Card applications to Bank issuer
  • Develop and monitor Policy and Procedures
  • Distribute Payment Cards to schools and units
  • Maintain compliance with all internal Policy and external regulatory requirements
  • Conduct periodic audits to assess compliance and performance
  • Develop and conduct training
  • Develop and maintain MCC groupings
  • Manage Bank issuer relationships
Card Administrator
  • Review and approve new Cardholders
  • Request cancellation of Payment Cards
  • Approve limit increases and escalate exceptions
  • Initiate journal entries on expired budget or incorrectly debited chartfields
  • Manage and reconcile any personal transactions generated by the Cardholder
  • Request access to additional (MCC) groupings for Cardholder
Card Approver
  • Review and approve transactions
  • Ensure compliance with all relevant NYU Policies
  • Request additional MCCs via email to the Global Payment Card Program Manager
  • If a transaction is questionable, review directly with the Cardholder
  • Initiate chartfield modifications for the Cardholder as necessary
  • Track unapproved transactions (if any) with the Global Payment Card Program team
Cardholder
  • Use NYU’s Payment Card in compliance with all NYU Policies and the signed Cardholder Agreement
  • Make purchases and generate transactions
  • Review transactions on the Bank’s online reconciliation system at least weekly
  • Modify chartfields as necessary
  • Split transactions via the reconciliation tool as necessary
  • Dispute transactions with the Bank
  • Maintain receipts in accordance with the SPA Handbook (if applicable)
  • Reconcile monthly statements on the Bank website against the reviewed and approved transactions and the applicable receipts
  • Report fraud, lost or stolen Payment Cards
  • Upload supporting documentation (receipts, invoices, POs) to the Bank’s website and tag to transactions
  • Whenever possible in New York State, ensure that tax exempt status is announced to the Merchant to avoid sales taxes on the purchase
Alternate Card Approver with Reviewer Access
  • This role is relevant to NYU Student Clubs.  Since the Student Club Cards will be shared among students, these individuals cannot become cardholders.
  • The Club President, Treasurer and other students will have the same responsibility as described under the Cardholder Section of this table.
Payment Card Issuer / Bank Provider
  • Assist Cardholder on fraud, lost or stolen Payment Cards and hacking
  • Handle disputes with Cardholder
  • Invoice NYU for the monthly consolidated invoices
  • Issue Payment Cards and Card Statements
  • Maintain website for clients’ reconciliation and reporting needs
  • Provide customer service facilities in all locations where Payment Cards are issued 24/7
  • Provide monthly reconciliation feeds
  • Retain transactions on website for 3 years
Chief Financial Officer/Treasurer
  • Approve exception limit increases over Policy Guidelines
  • Approve exception purchases
  • Approve exceptions to restricted MCCs

Procedures for Implementation

Card Requests and Usage

Eligibility
Only a full time New York University employee is eligible to receive a Payment Card with authorization from the applicable Card Administrator and Card Approver. The most common applicant profile reflects an individual that is making purchases for a school or department, or arranging travel or events for their department.

The following are typical examples for Cardholders:
  • Administrative Assistants
  • Administrative Managers
  • Deans, Vice Deans and Assistant Deans
  • Fiscal Officers
  • Global Site Director
  • Members of the Faculty
  • NYU Security and Mail Drivers
  • Procurement Managers
  • Researchers
  • School Administrators
  • Travel Coordinators
  • Student Club President and/or Treasurer

In limited circumstances, multiple Payment Cards may be issued within a cost center. Individual employees may receive multiple Payment Cards for different cost centers within their department in limited instances. For example, Administrative Assistants responsible for several cost centers may have multiple Payment Cards. All exceptions will be authorized only by the applicable Card Administrator.

Prospective Cardholders and Card Approvers are required to attend a Payment Card Program training course and sign a Cardholder Agreement before obtaining the card.

Payment Card Limits
The table below describes the maximum allowable monthly and single transaction limits, based on Card type. In limited circumstances, Cardholders may request approval from the Card Administrator to increase credit limits in increments on the Payment Card. Higher single transaction and monthly credit limits must be formally justified and may be granted with CFO (or Treasurer) approval. Cardholders will need to submit a request via email approved by the Card Administrator to the Global Payment Card Manager to initiate CFO approval.

Please note that locally de-nominated limits should be equal to the US Dollar limits using the annually budgeted foreign exchange rate for the relevant foreign currency.

Note: Use of American Express Travel (T&E) Cards must comply with NYU’s Business Expenses Policy.

Limits Purchasing
(P-Cards)
Fleet Cards
(US only)
Bookstore Card
(US only)
Student Club Cards
(US only)
Corporate Travel Account
(CTA) Card

Monthly Transaction Limit Amount

$15,000 $5,000 $2,500 Determined by Club’s Budget Administration Representative Up to $350,000 based on the need of Department and approval by the Fiscal Officer, Dean and/or Vice President

Single Transaction Limit Amount

$3,000

$250

$250

Determined by Club’s Budget Administration Representative

N/A

Daily Transaction Limit Amount

N/A

$1,000

N/A

Determined by Club’s Budget Administration Representative

N/A

Daily Transaction Limit Number

20

3

N/A

Determined by Club’s Budget Administration Representative

N/A

Cash Advance Limit

$2,500 (this exception is only available with CFO Approval)

N/A

N/A

N/A – Not permitted for Student Clubs

N/A

Usage
Payment Cards are issued to staff that make business-related purchases, business travel or arrange group travel or events on behalf of New York University.

General Payment Card Guidelines* (see Addendum: NYU Student Club Cards)
Payment Cards are University / university liability Cards issued in an employee’s name. Student Club Cards, Fleet Cards and Bookstore Cards are exceptions to this guideline as those are departmental cards. In these programs, the card may be issued to a Club, a designated Public Safety Representative or a Department. Payment Cards should only be used for qualified NYU business-related purchases. Payment Cards are not to be used for personal purchases. The Cardholder named on the Payment Card is the ONLY person authorized to use the Payment Card or account number. The Cardholder may process authorized purchases for other members of the department.

Additional Payment Card Guidelines for all Cardholders
a. Utilization of Card:
The Cardholder is responsible for each transaction on the Payment Card and must keep the Payment Card in a secure location at all times.
- A Cardholder may only use a Payment Card for valid NYU business purposes, including but not limited to: organized business activities relating to administration, development and recruiting, and Low Dollar Items that are not available via i-Buy. Examples follow in 2.3.3 - In New York, Payment Cards may be utilized to purchase NYU Bookstore Cards up to the value of $250 per Card.
b. Prohibited Uses:
- Cash Advances: Payment Cards must not be used for cash advances.
- Currently, items that require a Purchase Order (P.O.) may not be purchased with a Payment Card. See section 2.3.3. - Gift card purchases: these must be processed by the Accounts Payable Department. Examples include: Cash Gift Cards: AMEX Gift Cards, Visa Gift Cards, and Restaurant Gift Cards: Chipotle, Panera, Starbucks, Shake Shack, Eataly, etc., Retailer Gift Cards:
Amazon Gift Cards, Walmart, Target, BestBuy, etc.
c. Uses subject to the CFO’s approval:
- Cash advances in exceptional circumstances where a Payment Card is not an acceptable form of payment (e.g., international projects in locations where Payment Cards cannot be utilized);
- Any increase in the monthly limit greater than $15,000 - Any increase for a single transaction greater than $3,000

For any exceptions to the above guidelines please contact the Global Payment Card Program team at payment.cards@nyu.edu or use ServiceLink (nyu.service-now.com/servicelink). Please note that each exception requires the approval of the Card Administrator first. 


Notes
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  1. Dates of official enactment and amendments: Dec 1, 2008
  2. History: Updated 4/15/15 and 11/1/17
  3. Cross References: blank