P-Card Security and Compliance

P-Card Security and Compliance is a top priority for organizations that use P-Cards. Cardholders must be aware of the risks associated with P-Card misuse and take steps to prevent it.

P-Card misuse can result in significant financial losses for an organization. In 2019, a survey found that 62% of organizations reported instances of P-Card misuse.

To mitigate this risk, organizations can implement controls such as cardholder verification, transaction monitoring, and regular audits. These controls can help detect and prevent P-Card misuse.

Compliance with P-Card policies and procedures is also essential to ensure security and prevent misuse.

A P-Card is a type of corporate credit card issued to employees for business expenses.

P-Cards are often used for small purchases and can be used at a wide range of merchants, including online retailers and restaurants.

You can use a P-Card for any business-related expense, from office supplies to travel expenses.

P-Cards typically have a spending limit that is set by your company, and you'll need to request approval for any purchases over that limit.

You'll also need to keep track of your P-Card expenses and submit receipts for reimbursement.

To keep your P-Card secure, it's essential to set a Personal Identification Number (PIN) when you activate your card. This PIN will serve as your secret code to verify transactions.

Cardholders should call the number on the back of their card if they have trouble setting their PIN, and a customer service representative will assist them. If you're unable to answer your security questions to validate your identity, you'll need to notify Stanford Card Services via a support request.

To avoid any issues, make sure to keep your P-Card properly secured at all times. This means not lending or sharing your Individual PCard with anyone, and also not sharing the department PCard account number with others.

Here are some key P-Card security tips to keep in mind:

Data Security is a top priority when it comes to P-Cards. Cardholders should set a Personal Identification Number (PIN) when activating their card, and follow the automated prompts to ensure it's set before ending the call.

To keep your P-Card information secure, you should never share your PIN or account number with anyone. Lending or sharing of Individual PCards is strictly prohibited, and you should take care to delete stored P-Card information on online sites after completing a business purchase.

A reputable P-Card provider should have industry-standard certifications and security measures in place. Look for flexible card blocking and freezing options to minimize the risk of breach-related compromise of your card number.

You should also be aware of the policies regarding lost or compromised cards. In the event of a lost or stolen PCard, you should immediately contact JPMorgan Chase to request cancellation and reissue of the card, and verify recent activity to ensure there are no fraudulent transactions.

Here are some key steps to follow in case of a lost or stolen PCard:

Alcoholic beverages, including research grade alcohol, are not allowed purchases with a PCard.

Animals, consultants or employees, and controlled substances are also restricted.

Capital equipment, chemicals that require EHSO approval, and hazardous materials are not permitted purchases.

You won't be able to use a PCard for cash advances, employee relocation expenses, or fuel purchases for personal vehicles.

Individual meals, payment to individuals, and pharmaceuticals are also restricted.

Radioactive materials, travel-related expenses, and weapons and ammunition are not allowed purchases with a PCard.

Here's a summary of the restricted purchases:

Virtual purchasing cards offer flexibility in terms of customizing expiry dates and adjusting spending parameters.

Unlike their physical counterparts, virtual purchasing cards don't have a physical form, making them a convenient option for many users.

With virtual cards, you can easily set up and manage multiple cards for different employees or departments, reducing the risk of card misuse or loss.

Virtual purchasing cards function almost exactly the same as standard physical cards, providing a seamless user experience.

Effective p-card management is crucial for businesses to streamline their expenses and maintain control over their finances. P-cards can be used for purchases of $4,999 or less, as long as the purchase does not require a signed agreement and is not travel-related.

To manage p-card expenses, cardholders must verify and approve transactions as soon as practicable after charges are incurred, but no later than 60 days after charges are incurred. Failure to do so may result in card suspension and/or expenditures reported as taxable income to the card user or the cardholder.

You can issue purchasing cards to every employee, but it's essential to ensure that every person who is issued a card has a need for it, thereby reducing the likelihood of unauthorized purchases. This selective card issuance approach simplifies the process of tracking and managing your expenses.

Purchasing cards can be a convenient and secure way to make business purchases, but they must be used responsibly.

You can use a PCard for purchases of $4,999 or less, as long as the purchase doesn't require a signed agreement and isn't travel-related or specifically prohibited.

Processing transactions in a timely manner is crucial to ensure expenditures are correctly reported. PCard expenses should be verified and approved as soon as practicable after charges are incurred, but no later than 60 days after charges are incurred.

Cardholders who don't comply with university policies and procedures may have their Stanford University cardholder privileges revoked. Misuse of the PCard may result in disciplinary action, up to and including termination of employment.

To ensure proper use of PCards, approvers should review the following details:

Emergency calls after 5:00 pm weekdays and weekends should be made to the relevant authorities.

PCard transactions are approved in the Compass Reconcile PCard Statement module.

Application Approvals are a crucial part of the P-Card Management process. The application will route for approval via email and workflow notification to the applicant's manager, department chair or dean, and to the department's financial approver(s).

The approval process starts with the manager and financial approver, who receive an email and workflow notification to review and approve the application. Upon receiving approval from both, the application will then route to Card Services in the university's Procurement Services department.

Here's a step-by-step breakdown of the application approval workflow:

By having a clear and transparent approval process, you can ensure that only authorized employees have access to the P-Card system, and that all expenses are properly approved and tracked.

Activation is a crucial step in getting your P-Card up and running. You'll need to activate your card after receiving a new or renewed one.

To activate online, visit the website ccportal.jpmorgan.com, which is listed on the sticker on the face of the card. This is where you'll enter the required information to complete the activation.

If you prefer to activate by phone, call the number provided on the back of the card. You'll need to provide your four digit access code, which is the last four digits of your employee ID, and your date of birth.

Here are the steps to activate your card in a nutshell:

Vendor acceptance is crucial for the success of p-card payments. Not all vendors will accept card payments.

Even with vendors that accept cards, they may prefer other payment methods like cash, cheque, or electronic transfers for cheaper transaction fees. This can be a challenge for businesses that want to switch to p-card payments.

Ensure that your vendors know that card payments are not only convenient but also secure and fast. A higher acceptance network is always preferable when choosing a card provider.

Notify your vendors in advance if you intend to switch from traditional payment methods to p-card payments. This will help them prepare and avoid any confusion.

P-Card Transactions are a crucial aspect of managing company funds. Encourage employees to document each purchase and attach its corresponding receipt for complete transaction details.

Transaction approval workflow is also essential, where employees send their transaction reports for approval from managers. For bigger purchases, a multi-level approval workflow can be set up.

To ensure proper P-Card use, cardholders must follow university policies and procedures. PCard expenses should be verified and approved as soon as practicable after charges are incurred, but no later than 60 days after charges are incurred.

Here are some examples of business-related purchases that are appropriate to be purchased with a PCard:

Having an assigned transaction verifier is crucial for managing P-card transactions effectively. This person is responsible for verifying transactions in a timely manner and preparing them for proper allocation of expenditures.

The assigned verifier can be either the cardholder or other department staff, but it's essential to note that they should not be an authorized financial approver due to separation of duties.

The verifier's role is to ensure that transactions are accurate and compliant with company policies. This involves reviewing transaction reports and preparing them for approval.

Here are some key responsibilities of the assigned transaction verifier:

In some cases, the verifier may need to contact the cardholder or other department staff for additional information or clarification.

Declined transactions can be frustrating, but there are common reasons why they happen.

If a PCard purchase is declined, it's usually due to one of the following reasons: The card's specified allowable spending limit is exceeded, or the merchant has incorrect information about the card.

Invalid account information is another common reason for declined transactions. This includes things like an incorrect business address, account number, expiration date, or CVV code.

If you're unsure why a PCard purchase was declined, you can contact JPMorgan Chase for clarification. Just call the customer service number on the back of the card.

Here are some common reasons for declined transactions:

Approved Purchases can be a bit tricky, but don't worry, I've got you covered. According to Emory policy, floral arrangements are acceptable purchases with a PCard. This is just one example of a business-related purchase that's okay to make with a PCard.

You can also use a PCard to buy coffee, water, and tea services, as well as courier services. These types of services are considered recurring expenses that are okay to pay with a PCard.

Here are some examples of approved purchases:

These are just a few examples, but it's always best to check with your university's policies to see what's specifically allowed.

Sales Tax is a crucial aspect of P-Card transactions. Cardholders must understand and comply with applicable sales tax rules.

It's the Cardholder's responsibility to ensure taxes are removed from eligible purchases when possible.

You should inform the vendor that the purchase is for official use of Emory University, and therefore, may not be subject to state or local tax.

If a seller or vendor doesn't have this information on file, you can find the Letter of Authorization online.

One-time use purchasing cards can be a game-changer for vendors you don't intend to make repeat purchases with.

With virtual cards, you can issue single-use cards that expire after their initial transaction, rendering the card data useless in the future.

This introduces a higher level of security, protecting your sensitive information from potential breaches.

You can use one-time use purchasing cards for online transactions or when making a one-time purchase at a physical store.

If an employee's renewed PCard wasn't received, a support request should be submitted.

Cardholders can cancel their PCards through the Credit Card Profiles Change Request tool, but if they experience issues, a support request should be submitted. The card should be destroyed and disposed of upon cancellation, and all transactions should be properly recorded in the PCard module.

Cardholders on extended university leave, such as sabbatical or family leave, should submit a suspension request through the Credit Card Profiles Change Request tool. If they experience any issues, a support request should be submitted.

The PCard will be canceled by Stanford before or on the date the employee separates from the university or due to improper use. The card should be destroyed and disposed of upon cancellation.

A Purchasing Card will be suspended by Stanford for the following reasons:

Cardholders can reactivate their suspended cards through the Credit Card Profiles Change Request tool, but they must follow specific steps depending on the reason for suspension. For example, if the card was suspended for force cleared transactions, they must clear outstanding transactions and attach a new card reactivation attestation form.

The department has a significant role in overseeing P-Card usage. Department PCard Custodians control the PCard issued to their department to make departmental purchases.

Departments and Unit Finance Managers provide oversight of PCards issued in their organization, including budget unit level oversight. They are also granted Expenditure Escalation Authority for the organization.

The department's Card Services Team is part of the Procurement Services department within Financial Management Services.

Here is a breakdown of the department's roles and responsibilities:

Eligibility for a PCard is based on a departmentally-determined business need, which requires approval from both the manager or department chair/dean and the financial approver for the guarantee account.

To apply for a PCard, you'll need to complete an online application, providing required information and approvals. The application will route for approval via email and workflow notification to your manager, department chair or dean, and department's financial approver(s).

A PCard application is initiated online only by the prospective cardholder or designated requester, specifying a Guarantee Account (PTA) to which PCard charges will be force cleared if not verified and approved within 60 days.

To be eligible for a PCard, you must be an active Stanford University employee, as per Example 1. Similarly, at Emory University, the PCard will be mailed to the Cardholder's address noted on the PCard Application form, as per Example 5.

Here's a summary of the required approvals for a PCard application:

As a department, you have a crucial role in overseeing PCard usage and ensuring that expenses are properly documented and recorded. This includes providing oversight of PCards issued in your organization.

Department PCard Custodians are responsible for controlling the PCard issued to their department to make departmental purchases. They also need to ensure that transactions are properly documented and recorded.

Departments and Unit Finance Managers provide oversight of PCards issued in their organization. This includes the person granted Expenditure Escalation Authority for the organization.

Here's a breakdown of the specific responsibilities of each department role:

Your department should also ensure that all PCard transactions are properly approved and recorded, and that all financial transactions adhere to university policies.

To apply for a PCard, you'll need to complete an online application, providing approvals from both your manager and a financial approver, as well as completing required training. This application process is the same for both individual and department Purchasing Cards.

To initiate the PCard application, you or a designated requester must start the process online, specifying a Guarantee Account (PTA) that will be responsible for PCard charges if not verified and approved within 60 days.

A PCard application can be initiated online, and you'll need to specify a Guarantee Account (PTA) that will be responsible for PCard charges if not verified and approved within 60 days.

Here are the situations that may result in a PCard not being automatically reissued:

To apply for a PCard with a guarantee account, you'll need to initiate the online application. This is done by the prospective cardholder or designated requester. A Guarantee Account (PTA) is specified in the application, which will be the account to which PCard charges will be force cleared if not verified and approved within 60 days.

The Guarantee Account PTA is unrestricted, non-sponsored, and chargeable, meaning it's the account responsible for paying the PCard charges. To learn more about the force clearing process, you can check the PCard Policy page.

The online application process is straightforward, and you'll need to provide approvals from both your manager or department chair/dean and the appropriate financial approver for the guarantee account.

The renewal process for your P-Card is a straightforward one. Your card will be automatically renewed, but there are some situations where this won't happen.

The renewed PCard will be sent by the bank to your business address about four weeks before the expiration date. This is standard practice, and you can expect to receive your new card in the mail.

However, there are a few scenarios where your PCard won't be automatically renewed. These include if the card has had no transaction activity for 18 consecutive months, if the university has found improper use of the card, or if the card charges haven't been processed in a timely manner.

Here are the specific situations where your PCard may not be automatically renewed:

P-cards offer several benefits, including eliminating expensing, spending control, and visibility into each employee's transactions. This ensures a high level of budgetary control and eliminates guesswork and extra reporting at month-end.

P-cards also provide user-controlled limits, allowing finance to set and change limits directly through an online platform. This eliminates the need for a call to the card provider for every change to spending privileges and limits.

One of the main drawbacks of p-cards is the risk of misuse and fraud. Without proper procedures and guidelines, there's a higher risk of misuse and fraud with purchasing cards. Employees will have easy access to company funds when equipped with cards, so it's essential to ensure that card usage is tracked in real-time.

Transaction fees are another con of p-cards, with the provider charging a percentage on each transaction made. This can add up, especially for frequent or high-value purchases.

Using p-cards can eliminate the hassle of expensing, allowing employees to make purchases without tying up their personal funds.

This is particularly helpful for small orders, subscriptions, or corporate travel, making it easier for employees to get what they need without delay.

P-cards also offer spending control, allowing finance to set dynamic controls on the amount and types of purchases, which sets spending expectations for employees and reduces the risk of fraud.

With p-cards, finance can set and change spending limits directly through an online platform, eliminating the need for phone calls to the card provider.

This level of control creates a clear record of each employee's transactions, providing a high level of budgetary control and eliminating guesswork at month-end.

Purchasing cards can be a convenient and efficient way to make purchases, but they're not without their drawbacks.

One major issue is user administration, which can be a hassle when purchases need to be approved by a department head. This can slow down the procurement cycle and make small purchases take longer than necessary.

Slower procurement cycles are a common problem, especially when purchases exceed pre-approved limits. This can lead to delays and frustration for employees trying to make purchases.

Lack of integration with other financial reporting tools or card processing systems can also be a challenge. This can require workarounds or alternate methods of payment, which can be time-consuming and inconvenient.

Unless restrictive controls are implemented in advance, buyers can source goods from any supplier, reducing strategic sourcing and creating potential risks. This can be a concern for companies that want to maintain control over their supply chain.

Risk of misuse and fraud is a major concern with purchasing cards, especially if employees have easy access to company funds. This can lead to data security concerns and non-compliance with company or industry policies.

Transaction fees can also be a drawback, as purchasing card providers charge a percentage on each transaction. This can add up quickly and be a burden on the company's finances.

Not all suppliers accept purchasing cards as a payment method, which can limit their use. This can be a problem for companies that need to make purchases from a wide range of suppliers.

Using a p-card can streamline the procurement process, making it more efficient than traditional bank transfers. This is because employees can easily swipe the card or enter card data online to make a purchase.

With a p-card, you can eliminate the admin costs associated with procurement, such as paperwork and storage. This can help reduce costs and make business operations more efficient.

The more streamlined your vendor payments are, the happier your vendors will be. You'll ensure that payments are accurate and timely with a p-card, avoiding late fees and instilling trust in your vendors.

One of the benefits of p-cards is the ability to set individual spending limits for each card issued. This can help prevent overspending and reduce the risk of fraud.

Using a p-card can make it easier to track expenses, as every purchase made through the card will be automatically recorded on the card management and tracking dashboard. This can save time and reduce the need for manual tracking.

However, there is a risk of misuse and fraud with purchasing cards if proper procedures and guidelines are not in place. This can be mitigated by tracking card usage in real-time.

Transaction fees are also a consideration when using purchasing cards, as the card provider will charge a percentage on each transaction made. These fees can add up over time and may be passed on to vendors.

Not all suppliers accept purchasing cards as a payment method, which can limit their use. Additionally, some vendors may charge a card surcharge when payments are made using a card.

Issuing a purchasing card can also create accountability challenges, as the money used comes from company funds and the cardholder is responsible for the expenses. This requires establishing clear guidelines and procedures for card usage.