Policy

NYU Global Payment Card Policy

Policy Contents

Policy Purpose
Program Scope
Objectives
Updates and Changes from Previous Policy
Global Payment Card Roles
Global Payment Card – Responsibilities
Procedures for Implementation
Related Policies
Appendix
Important Links
Key Contacts
Notes

Policy Purpose

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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

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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

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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

Updates and Changes from Previous Policy

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This policy supersedes the NYU Global Payment Card Policy updated in November 2017. Changes include:

Approver role updated
Standard card limit reductions
Additional details on Restrictions and Allowable Exceptions for Gift Card Purchases, e.g. PayPal, Venmo, Zelle, Uber for Business, Lyft Business transactions are prohibited. This Policy includes the same restrictions as the NYU Travel and Expense Policy.
Approved and Prohibited Purchases updated
Maintenance Responsibility Section updated

Global Payment Card Roles

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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, Legal and Internal Audit teams to ensure that related policies are in alignment.

Card Administrator

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

Card Approver

The individual granted the authority to review in their entirety and approve (or reject) transactions that require the use of University funds. The Card Approver must be either the direct Supervisor; or the Fiscal Officer; or Fiscal Officer team member, or fiscal delegated member of the school / unit. The Card Approver reviews the detailed documentation supporting the Payment Card transactions and approves the transactions for valid business expenses, in accordance with the Purchasing Policies and Procedures Manual, Travel and Expense Policy, Expense Reimbursement Policy, and the Financial Records and Retention Policy for Sponsored Programs.

The Card Approver uses the issuing Bank’s online reconciliation system on a regular basis, as outlined in the Responsibilities of Card Approvers Section.

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.

Payment Card Issuer

NYU’s Payment Cards including Purchasing, Corporate Travel Account, Student Club, and Fleet Cards are issued by our Bank(s) and Card issuer partners to approved employees of New York University. The Card Issuer(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 called GRAM.

Global Payment Card – Responsibilities

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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 Payment Card Bank issuer
Develop and monitor Policy and Procedures
Distribute Payment Cards to schools and units
Monitor and report on compliance with this Policy
Execute Disciplinary Actions associated with this Policy
Assist Internal Audit with data gathering to review compliance and conduct transaction testing with other internal Policies
Support Internal Audit and legal investigations with data on card usage
Develop training material and conduct training sessions
Cancel Cards
Develop and maintain MCC groupings
Manage Payment Card Bank Issuer relationships

Card Administrator

Review and approve/deny new Cardholders in Administrator’s school or unit using the GRAM system
Request cancellation of Payment Cards for Cardholders leaving the University OR switching departments
Cancel or inactivate cards with no use in a consecutive twelve-month period
Review and approve/deny limit increases and escalate exceptions
Initiate journal entries on expired budget or incorrectly debited chartfields
Review and approve/deny requests access to additional MCC groupings for Cardholders via the Global Payment Card Program Manager

Card Approver

Review expense descriptions, receipts, other supporting documentation, and chartfields charged using the GRAM system, at least weekly approving or rejecting transactions according to the timeline described in this Policy
Approver is responsible for ensuring all purchases are in compliance with the Related Policies listed in this Policy and the appropriate payment method was used
Identify and escalate any personal transactions generated by the Cardholder to initiate repayment to the University
Request additional MCCs via the Card Administrator

Cardholder

Use NYU’s Payment Card in compliance with the signed Cardholder Agreement and all Related Policies listed in this Policy
Upload supporting documentation (i.e. detailed receipts) and expense descriptions to the GRAM System and tag to individual transactions
Review transactions on the GRAM system at least weekly
Modify chartfields as necessary
Split transactions via the reconciliation tool as necessary
Dispute transactions with the Bank
Report fraud, lost or stolen Payment Cards to the Bank directly
Whenever possible in New York State, ensure that tax exempt status is announced to the Merchant to avoid sales taxes on the purchase
Maintain receipts in accordance with the SPA Handbook (if applicable)

Cardholders Initiating Purchases on Behalf of Others (Alternate Card Reviewer)

This role is relevant to two populations:
- NYU Student Clubs - Students cannot be Cardholders; an alternate individual who is an NYU employee that manages purchasing and reviewing on behalf of the Student Club
- Administrative Professionals making purchases on behalf of senior NYU employees
The Club President, or NYU employee for whom an Administrative Professional is making purchases, will have the same responsibility as described under the Cardholder Section of this table

Payment Card Bank Issuer

Assist Cardholder on fraud, lost, cyber hacked or stolen Payment Cards
Handle disputes with Cardholder
Invoice NYU for the monthly consolidated invoices
Issue Payment Cards and Card Statements
Maintain GRAM system 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

Treasurer/Assistant Treasurer

Approve/deny exception limit increases over Policy terms
Approve/deny exception purchases outside of Policy terms
Approve/deny exceptions to restricted MCCs
Approve/deny requests for card to be enabled for cash withdrawals
Recommend/enforce disciplinary actions for non-compliance with Policy

Procedures for Implementation

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Card Requests and Usage

Applying for a Payment Card

Any new Payment Card applicant must complete the NYU Payment Card Application Form for Purchasing, Student Club Cards, CTA and Fleet Cards (see NYU Global Payment Card Manual).

Eligibility

Only a full time employee of New York University or its affiliates 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 Campus Safety and Mail Drivers
Procurement Managers
Researchers
School Administrators
Travel Coordinators
Selected Student Clubs

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 iLearn course and sign a mandatory 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 Treasurer or Assistant Treasurer approval. Cardholders will need to submit a detailed request via email approved by the Card Administrator to the Global Payment Card Manager to initiate Treasurer or Assistant Treasurer approval. Splitting purchases of goods or services with cost greater than the Cardholder’s single transaction limit into multiple smaller charges is prohibited. These limits are delimited in US Dollars; the card limits will be different when covered to another currency.

Limits	Purchasing (P-Cards)	Fleet Cards (US only)	Student Club Cards (US only)	Corporate Travel Account (CTA) Card
Monthly Transaction Limit Amount	$10,000	$5,000	Determined by Club’s Budget Administration Representative	Up to $20,000 based on the need of Department
Single Transaction Limit Amount	$2,000	$250	Determined by Club’s Budget Administration Representative	N/A
Daily Transaction Limit Amount	Capped by single transaction and monthly limit only	$1,000	Determined by Club’s Budget Administration Representative	Capped by monthly limit only
Daily Transaction Limit Number	20	3	Determined by Club’s Budget Administration Representative	N/A
Cash Advance Limits (ONLY WITH INDIVIDUAL APPROVAL FOR CASH ACCESS)	Determined by Treasurer / Assistant Treasurer	N/A	N/A – Not permitted for Student Clubs	N/A

General Payment Card Guidelines (see Addendum: NYU Student Club Cards)

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.

Payment Cards are university liability cards issued in an employee’s name. Student Club Cards and Fleet 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 NYU business-related 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, in accordance with the University’s Buying and Paying Guide and the Related Policies listed in this Policy.

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 in accordance with the University’s Buying and Paying Guide and the Related Policies listed in this Policy.

Purchasing Cards (P-Cards), Student Club Cards, and Fleet Cards CANNOT be used to purchase any items restricted under the NYU Travel and Expense Policy.

Examples of Prohibited Uses:

Any purchases of goods or services prohibited by Related Policies
Items for personal or non-University purposes
Any purchase requiring a contract or Purchase Order e.g. professional services, consulting, temp agency
Employees, independent contractors and consultants may not be paid with a Payment Card
Purchase of Gift Cards (see below for exceptions)
Purchase of physical gifts
Controlled substances
Laboratory animals
Office supplies, which are directed to be purchased through NYU’s preferred supplier on i-Buy, except in emergency cases
Purchases over mobile payment apps such as PayPal, Venmo and Zelle and other similar payment methods
Uber for Business and Lyft Business accounts
Purchases from auctions and on-line auctions such as eBay
Student travel (Except with the Student Club Card), tuition, scholarships or stipends
Fund 24 and 25 as well as Fund 72 are prohibited to be a default chartfield on any Payment Card
Alcohol with the following exception: The use of alcohol for business meals and entertainment purposes should be kept to a minimum and must comply with the University’s Drug and Alcohol-Free Workplace Policy and the NYU Travel and Expense Policy. When holding events where alcohol is present a guideline of two beverages per employee on average should be followed.
Cash advances are not allowed without prior written approval from Treasurer/Assistant Treasurer. If an exception is approved, ATM receipts must be uploaded to GRAM, details of spend and reconciliation in the audit log are mandatory.

When there are questions about prohibited uses of the P-Card, the NYU Travel and Expense Policy will instruct on required compliance.

Student Club Cards ONLY

Purchasing alcoholic beverages is prohibited

Corporate Travel Account (CTA) Card - Examples

CTA Cards are only eligible for purchases with travel vendors including but not limited to: airlines, hotels, car rentals, rail travel, ground travel (buses, taxis, metro/subway tickets) and travel agencies. When there are questions about prohibited uses of the CTA Card, the NYU Travel and Expense Policy will instruct on required compliance.

Prohibited purchases for CTA Cards include:

Cash advances
Personal purchases
When there are questions about prohibited uses of the CTA Card, the NYU Travel and Expense Policy will instruct on required compliance.

Specific Restrictions on Purchase of Gift Cards

Purchase of Gift Cards of any type is prohibited on all Payment Cards, including P-Cards, CTA Cards, Student Club Cards, and Fleet Cards.

Bank of America prepaid gift cards may be purchased via a request to Accounts Payable only, due to tax implications. Please contact Finance Link or submit an email request to askfinancelink@nyu.edu.
Purchasing of non-cash gift cards, i.e. a gift card to be used at a specific vendor such as Starbucks, etc. is also prohibited on all Payment Cards.

Allowable Exceptions to Gift Card Restrictions:

Purchasing Digital Amazon Gift Cards (e-cards) for research subjects for $200 or less (each) with an annual cap of $600, is allowed on the P-Card but must be identified in GRAM as research subject compensation along with other supporting documentation according to the Human Subjects Compensation: Financial Guidance Memo issued by the Associate Vice Provost, Research Compliance and Administration.
Purchasing Digital Amazon Gift Cards (e-cards) for survey or study participants who are non-US citizens ONLY for $200 or less (each) with an annual cap of $600, is also allowed on the P-Card but must be identified in GRAM as alumni survey participant compensation along with other supporting documentation.
Purchasing Gift Cards for non-US tax payers living abroad and participating in various studies, accompanied by detailed documentation backup, which must comply with NYU’s Anti-Bribery and Corruption Policy

Amazon is a punch-out on NYU i-Buy. Amazon purchases must be completed via i-Buy using the punch-out. However, the process for ordering Amazon E-Gift Cards for research is the Amazon Incentives website with an NYU P-Card as the method of payment is acceptable.

For any exceptions to the above guidelines, please contact the Global Payment Card Program team at payment.cards@nyu.edu or use ServiceLink. Please note that each exception requires the written approval of the Card Administrator and Fiscal Officer first. The University Treasurer or Assistant Treasurer must approve all exceptions. See NYU Global Payment Card Procedure Manual.

Accidental Personal Charges on the NYU Payment Card

Payment Cards should not be used for personal expenses. Any and all personal transactions that are erroneously charged to a payment card must be flagged as such in the Bank’s GRAM system by the Cardholder (see NYU Global Payment Card Procedure Manual).

Training and Cardholder Agreements

New Cardholders and Card Approvers must complete mandatory training prior to receiving a Payment Card. The Global Payment Card Program team will contact applicant Cardholders to schedule training once the approved application has been processed by the Card Administrator and the Bank. Training may be completed in person, online or over the phone. Once the Cardholder completes the training, he/she must sign and date the Cardholder Agreement. Please note that the Cardholder Agreement is part of the card application form. Cardholders are required to take a refresher training course and re-sign the Cardholder Agreement every three years upon renewal of the card.

Policy Compliance and Transaction Audit

Payment Card transactions are subject to planned and spot audits and other monitoring activities.
The Global Payment Card Program team will utilize various reports by using the GRAM portal and NYU’s internal reporting systems to monitor compliance with the Related Policies.
Cardholders may be asked to provide appropriate backup documentation to support transactions that are selected for audit.

Disciplinary Actions for Violation

The card may be used to pay for approved NYU business related purchases only, in accordance with the Related Policies and applicable law and terms and conditions of the Payment Card Bank Issuer, as well as the NYU Cardholder Agreement. If the Cardholder or Card Approver does not adhere to this Payment Card Policy or any of the Related Policies identified in this Policy, such action(s) may result in disciplinary action, including termination of employment and/or criminal prosecution for the Cardholder. A Payment Card will be cancelled for lack of timely reconciliation as well as any other violation.

Note: The Card Approver is responsible for the appropriate review of expenditures on the Payment Cards for compliance with Related Policies and if the Card Approver validates any purchases violating those Related Policies, the Card Approver may be subject to disciplinary action, including termination of employment and/or criminal prosecution.

Violations Relating to Late Reviews or Approvals

Specifically, if the Cardholder does not adhere to this this Payment Card Policy with respect to timely reviews and/or approvals, and trending of violations, such actions(s) may result in disciplinary action, including:

Receipt of a written warning with copy to Card Approver and Card Administrator
Suspension of the Cardholder’s card with notification to the Dean or Vice President of the School or Unit
Cancellation of the Cardholder’s card and termination of employment and/or criminal prosecution for the Cardholder, if applicable

P-Card and CTA Card activity is subject to Internal Audit and other monthly monitoring activities. Instances of non-compliance will be communicated and escalated up to and including the Chief Financial Officer (CFO) or Treasurer regarding violations. The CFO or Treasurer may revoke a Cardholder’s Payment Card at any time for any reason in his or her sole discretion. The Cardholder must reimburse the University for all personal, non-approved transactions that they made on the Payment Card.

NYU Student Club Cards

The Center for Student Activities, Leadership and Service (CSL) oversees the NYU Clubs. There are additional Student Clubs that are directly tied to an NYU School e.g., Tandon School of Engineering, Stern School of Business, School of Dentistry, etc.

To create efficiencies for students participating in NYU Student Clubs, the University will offer Payment Cards to pay for approved club related expenditures. The use of this Payment Card process will remove personal outlays of funds and reduce the frequency of reimbursements and payment of petty cash to the student.

The Clubs will be issued departmental cards called Student Club Cards that will be shared by the President, Treasurer and other students. Although the card will be issued to a full time NYU employee in the club office, the students will be entitled with Alternate Approver with Reviewer Access roles to be able to upload receipts, modify chartfields, include the expense description and review the expenses.

Merchant Category Grouping will be limited. The Single Transaction Limit and Monthly Credit Limit will be determined by the Club Student Affairs Representative, although the limits will generally be much lower than as specified therein.

If a personal or non-business charge is made using the NYU Student Club Card, or accidental or emergency charges are made on the NYU Student Club Card by a student, the student user is required to contact their Card Administrator to provide reimbursement to the University as described under the Accidental -Personal Charges on the NYU Payment Card section in NYU Global Payment Card Procedure Manual.