5008 Credit Card Purchases

Georgia State Seal

Georgia Division of Aging Services
Administrative Manual

Chapter:

5000 Purchasing & Procurement

Effective Date:

02/16/2023

Section Title:

Credit Card Purchases

Reviewed or Updated in:

MT 2023-03

Section Number:

5008

Previous Update:

MT 2017-01

Summary Statement

The State of Georgia Visa Purchasing Card is used for small value, regular operating purchases

Basic Considerations

Visa Purchasing Cards are for official state business only.

Cards may not be transferred between employees.

Cardholders are responsible for reconciliation of billing statements to purchases.

Cards may be cancelled because of disuse, misuse, abuse, or any other use not consistent with the mission, values and goals of the Division of Aging Services.

The Department of Human Services determines how many purchasing cards are in the Division; currently there is only one purchasing card for the Division of Aging Services (DAS). The Division Director designates the card holder for DAS.

Procedures

Request a New Account: Follow the steps below to request a new account:

Step 1: The Applicant must complete a Department of Human Services New Cardholder Account Application Form and Background and Credit Check Form (Form G-1)

Step 2: The Section Manager must approve and submit to the Division of Aging Services Purchase Card Administrator(s) for review and approval.

Step 3: The DAS Purchase Card Administrator will notify the Department of Human Services, Office of Financial Services immediately.

Step 4: The Department of Human Services Office of Financial Services will:

  1. Request Bank of America to establish a new cardholder account. Once the account is established, the Purchasing Card will be sent to the Office of Financial Services for Processing.

  2. The DAS Purchase Card Administrator will coordinate scheduling the required cardholder training session with the new cardholder or appropriate training coordinator.

Purchasing: Follow the Steps below when making purchases with the State of Georgia Visa Purchasing Card:

Step 1: The cardholder must ensure that all purchases made with the card are authorized in advance. Advanced authorization, specific to conference registrations, includes ensuring that the vendor is an approved state vendor and a requisition/purchase order can successfully be created by the DAS Business Operations unit. Any unauthorized use of the card, such as dividing large purchases into multiple card purchases to avoid bid regulations, sharing use of the card to circumvent established limits, or personal use, may result in disciplinary action, up to and including termination. Cards may not be shared, and may not be used by any individual other than the card holder.

Step 2: The cardholder places the order for merchandise by telephone, requisition, or facsimile and presents the VISA Purchasing Card as method of payment.

If ordering by telephone, facsimile, or online, provide the vendor the Purchasing Card number.

  1. If the merchandise is to be shipped, the cardholder must give the vendor complete delivery information, including contact, address and telephone number.

  2. The purchaser must advise the vendor that the purchase is for the official use of the State and exempt from sales tax. The DAS Purchase Card Administrator provides the vendor with a signed copy of the Sales and Use Tax Certificate of Exemption, if requested.

  3. The cardholder must always check the charge slip before signing it. If the cardholder is charged sales tax, the cardholder must request that the tax be credited back to the card. Should the vendor refuse the credit request, the cardholder must return the merchandise and request that the sale be completed a second time absent the sales tax. The cardholder may be required to reimburse Aging Services for sales tax charged to their card.

Step 3: The cardholder retains all receipts as proof of purchase.

  1. For over the counter purchases, the proof of purchase is the cardholder’s copy of the charge slip that contains an itemized description of the purchase. The cardholder must review the receipt to see that it adequately describes the item purchased. If not, the cardholder must note a description on the receipt in sufficient detail to identify and account for all items purchased.

  2. For e-mail, telephone or facsimile purchases, the documentation is the invoice. This documentation should contain a description of the item(s) purchased, price and total cost, including freight or shipping charges.

  3. All precautions must be taken to secure the cardholder’s receipt(s), just as if paying from a Field Purchase Order or requesting reimbursement. In the event that the cardholder loses the receipt(s), the cardholder must contact the vendor(s) to secure copies. The cardholder must have documentation for audit purposes. The cardholder may have to reimburse Aging Services for the amount of purchases for which no receipt is provided.

Step 4: The cardholder is required to maintain a Purchasing Card Activity Log each month and attach the log to the signed statement forwarded to the DAS Purchase Card Administrator before the 23rd of each month. Refer to Billing Statement Reconciliation in this section.
Step 5: If there is a problem with an item purchased with the VISA Purchasing Card, the cardholder should first try to reach a resolution with the vendor that provided the item or service. In most cases, disputes can be resolved directly between the cardholder and the vendor. The Purchasing Card Activity Log should reference any credit transactions. If agreement cannot be reached with the vendor, complete a Purchasing/Corporate Card Statement of Disputed Item form and e-mail to the DAS Purchase Card Administrator. The DAS Purchase Card Administrator will review the discrepancy and fax the appropriate documents to Bank of America. Bank of America will process a charge back to the vendor and give Aging Services credit on the next statement.

SPECIAL NOTE about Sales Tax: Should the cardholder have a dispute with a vendor because sales tax was charged, the bank will not charge the sales tax back to the vendor and credit your account. A sales tax dispute can only be resolved with the vendor directly.

Billing Statement Reconciliation: Concluding each billing cycle, the cardholder will receive a Memo Billing Statement listing all transactions with his/her card for that billing cycle. Bank of America generally posts all transactions to the cardholder’s account within two working days from the date the vendor submits the transaction. When received, the cardholder must:

Step 1: Attach receipts/invoices for the purchases listed on the Memo Billing Statement for that month. Some receipts/invoices may not show up until the following month. Hold receipts/invoices until the statement is received for that charge.

Step 2: Note on the Memo Billing Statement any charges that are in dispute. A Purchasing/Corporate Card Statement of Disputed Item form must be filled out and e-mailed to the DAS Purchase Card Administrator for a charge to be in dispute.

Step 3: Verify that the items have been billed for the correct amount.

Step 4: Verify that the merchandise has been received. VISA merchant regulations mandate that merchants delay processing of a transaction until the purchased merchandise has been shipped. If a cardholder receives a statement that lists a transaction for merchandise that has not been received, the cardholder must notify the DAS Purchase Card Administrator through a Purchasing/Corporate Card Statement of Disputed Item form. The dispute form must be forwarded to the DAS Purchase Card Administrator by e-mail as soon as the discrepancy occurs. Additional documentation may be required by Bank of America to resolve the dispute. Once supporting documentation has been received, Bank of America will credit the transaction until the dispute is resolved.

Step 5: The original Memo Billing statement, itemized invoice(s) or proof(s) of purchase must be submitted to the DAS Purchase Card Administrator before the 23rd of each month. The statement must be signed by the cardholder and his/her supervisor. Field staff not co-located with their supervisor may obtain his/her supervisor’s approval by facsimile to comply with the deadline. The supervisor’s facsimile signature must accompany the original statement to the program administrator.

Step 6: If a billing error is noted on the Memo Billing Statement, call the Bank of America Customer Service number on the statement and try to get a resolution. If the issue is not resolved, complete a Purchasing/Corporate Card Statement of Disputed Item form.

Cancellation of Account: Follow the Steps below to cancel a cardholder account:

Step 1: The cardholder must complete the Aging Services Cardholder Cancellation Form upon resignation, transfer or retirement. Send an email to the Purchasing Administrative Assistant to cancel the card. Destroy the old card.

Cards may NOT be transferred between employees.

Step 2: The Section Manager must approve and submit to the Division of Aging Services Purchase Card Administrator(s) for review and approval

Step 3: The card must be returned to the DAS Purchase Card Administrator.

Step 4: The DAS Purchase Card Administrator will notify the Department of Human Services, Office of Financial Services immediately.

Step 5: The Department of Human Services, Office of Financial Services will notify Bank of America to cancel the card.

References

State of Georgia P-card Policy and related documents: doas.ga.gov/state-purchasing

DHS Office of Procurement, Contracts and Vendor Management