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Credit Card Policy

Purpose

The New School provides university-issued credit cards, also known as Purchasing Cards or P-Cards, to eligible individuals on an as-needed basis. The New School Credit Card Program has been established to provide a convenient means to make small dollar purchases. The use of the card will:

  • Streamline the procedure for processing, reviewing, approving and paying for small dollar purchases.
  • Eliminate small dollar purchase orders, thereby increasing the effectiveness and efficiency of the Purchasing and Accounting departments, resulting in fewer purchase orders and checks.
  • Significantly reduce paperwork. Purchase requisitions and check requests are not needed when you use a credit card.
  • Obtain goods and service via internet-only suppliers.
  • All purchases will be tracked and better managed through the online reporting tool.

Scope

This policy applies to anyone who holds a University credit card, anyone who acts as an Budget Manager or approves transactions, or anyone that authorizes an individual to obtain or use a University credit card.

Responsibilities

Administrator: Procurement Services is responsible for managing the program, including the distribution of cards, processing requests for name changes, department transfers, and temporary limit increases. The Administrator also responds to reports of transaction disputes, fraudulent activity, or lost/stolen cards.

Controller: Reviews and approves requests for credit lines above $50,000.

Department Managers: Each academic or administrative department is responsible for managing its cardholder accounts and establishing the card limit for cardholders.

Cardholders: The cardholder will not be billed directly for the charges, but will receive all necessary information to reconcile the charges. See Cardholder Responsibilities below for additional responsibilities.

The New School: The university will be liable for all appropriate charges made using the card.

Policy

The New School works with the Visa card program at Bank of America. Eligible individuals must complete the University Credit Card Application and be approved. Eligibility is determined by manager authorization, purchasing need, and access to MyDay for expense reconciliation.

There are two of credit cards issued by The New School:

  1. Monthly Limit: A card with a monthly credit limit that resets on the first day of the month.
    1. Recommended for individuals who need to make regular departmental purchases where other purchasing methods are not available, host recruitment or development activities, or engage in business travel or make travel accommodations on the behalf of others.
  2. Declining Balance: Cards with a spending limit that declines with each purchase.
    1. The balance of this card does not replenish. Cardholders will need to reapply or contact their Budget Manager if a new Declining Balance is needed.
    2. Recommended for individuals who need to use the card infrequently or for a finite amount of money.

Limits on your line of credit will be established by your manager or approver. Justification is required for all spending limits above $50,000 and approval must be granted by the Controller. A temporary limit increase, such as for activities related to university commencement, may be requested by contacting your appropriate Budget Director.

Once you receive a university-issued credit card, you must accept responsibility for its protection and proper use as outlined below in Cardholder Responsibilities. The university will audit the use of the card. You understand that the card is to be used for approved New School purchases and that you will source the purchases through New School-preferred vendors and contracted suppliers.

University credit cards should be used for legitimate business purchases under $250. If the vendor will not accept a credit card, contact the Procurement Department. The New School issued credit card must never be used to purchase items for personal use or for non-university purposes, even if the card holder intends to reimburse the university. A cardholder who makes an unauthorized purchase or uses the card in an inappropriate manner will be subject to disciplinary action including possible card cancellation, and/or termination of employment with The New School.

All charges will be linked to MyDay Expense for online expense reporting. Receipts are required for all credit card purchases. Credit card transactions must be reconciled within 30 days of the transaction date.

The New School has the right to terminate a university-issued credit card at any time for any reason. The following events will result in revocation of The New School credit card:

  • Violation of card holder agreement
  • Purchase of goods and services for personal use or non-university purposes
  • Failure to provide supporting reconciliation documentation and to process reports in a timely manner

Cardholder Responsibilities

  1. Card Activation: All cards must be activated before use. The Administrator will provide you with an activation number when you receive the card.
  2. Card Holder: You may not transfer the card to anyone else. Only the cardholder whose name is embossed on the card is authorized to use the card, and is responsible for ensuring that all charges made with the card are in compliance with the Business Travel & Expense Policy.
  3. Name Changes: If you legally change your name while holding a credit card account, you must notify the Card Administrator by completing the first portion of the University Credit Card Application. You will receive a new card from BOA reflecting your changes. Your old card is valid until your new card is activated. Once the new card is activated, please return the old card to the Administrator.
  4. Business Use Only: The card holder must only use The New School issued Visa card for legitimate business purposes. The credit card may not be used for personal expenses. Misuse of the card will subject the cardholder to disciplinary action.
  5. Card Limit: Adhere to the purchase limits and restrictions of the card. Managers may request a temporary limit increase for their employees by contacting their Budget Manager.
  6. Reconcile Expenses: Obtain all receipts and provide to the department approver reconciled transaction reports through the online MyDay Expense tool. Notify department approver if the default Cost Center, Org or Program should be changed on a transaction. Ensure that an appropriate credit for reported disputed item(s) or billing error appears on a subsequent statement.
  7. Lost/Stolen Cards: Keep the card in a secure place as you would your own personal credit card. Immediately report lost or stolen card to Bank of America at 1-888-449-2273 or Collect #509-353-6656 (outside the U.S.). Please also notify your department approver and Administrator.
  8. Fraudulent Charges: If you believe your statement has fraudulent transactions, contact Bank of America at 1-888-449-2273 or Collect #509-353-6656 (outside the U.S.). They will deactivate your card and issue another one. Be sure to notify the Administrator after you contact BOA.
  9. Disputes with Vendors: For disputes such as overbilling (not fraud) with vendors, make good-faith efforts to settle a claim for purchases directly with the merchant. Notify Bank of America if the dispute or billing error is not satisfactorily resolved. If assistance is required, please contact the Administrator.
  10. Changing Departments: Your card is linked to your department. If you move to a different department, contact the Administrator to update the card to your new department.
  11. Leave of Absence: If you will be on leave from the University, you must notify the Administrator who will suspend your card during your leave.
  12. Leaving the University: Return the New School issued credit card to your department approver upon terminating employment with the university.
  13. Cancelling Your Card: If you need to cancel your card, please contact the Administrator.
  14. Expiration: Cards generally expire within 2 years of issuance. The Administrator will contact you a month before your card is scheduled to forward your new card.

Procedures

1) Apply for a University Credit Card

Approved individuals and their managers should complete the University Credit Card Application and submit to Jocelyn Montero.

2) Receive Card & Accept Cardholder Responsibility

You will be contacted when your card is ready. There are two options to receive your physical credit card:

  1. The card can be mailed to the card holder's home address, as listed on the application.
  2. The card holder may pick up the card in the Mail Room.

3) Attend Training

We recommend you complete MyDay Expense training to learn how to properly reconcile your expenses. See Expense Reports for training information.

4) Reconcile Expenses

Expenses must be reconciled within 30 days via expense report. See Expense Reports for instructions on reconciling credit card expenses.

5) Report any Issues or Request Updates

Please contact Jocelyn Montero in Procurement Services to report any issues with your card including fraudulent charges, disputes with vendors, etc. or if you need to request any of the following:

  • Change of name on your card
  • Change of department
  • Temporary spending limit increase
  • Suspend your card due to a leave of absence

Contact Gay Florio or Jocelyn Montero for additional information.

Related Topics

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