MSU PCard Manual
24MAN01v13 | Release Date: 8/14/24 | This document is uncontrolled when printed or saved.
Table of Contents
Getting started ...........................................................................................................................3
Welcome to MSU’s PCard Program!
Activating your card
Global Card Access program
PCard maintenance ..................................................................................................................5
Purchase limits
Requesting a higher limit
Cardholder information changes
Exception requests
Lost or stolen card
Card suspension and cancellation
Card expiration and renewal
Requirements and policies ....................................................................................................8
Compliance overview
University policies
Federal guidelines
Conflict of interest
Prohibited purchases
Using the PCard ........................................................................................................................ 11
Spartan Marketplace
Tax exemption
Recurring payments
Shipping addresses
International transactions
Reconciliation and accounting .......................................................................................... 13
Accounting practices
PCDO processing timeline
Declined transactions and returns
Filing disputes
Issues and misconduct ..........................................................................................................16
Audits
Fiscal misconduct
1-2-3 Strike policy
Printable infographics ........................................................................................................... 18
Cardholder Quick Reference Guide
Fiscal Ocer Quick Reference Guide
MSU PCard Manual | 2
GETTING STARTED
Welcome to MSU’s PCard Program!
Congratulations on receiving your MSU PCard—your first step towards easy,
flexible ordering of low-dollar items!
Using an MSU PCard, faculty and sta can quickly purchase items with any
merchant who accepts MasterCard®. PCards increase eciency by eliminating
small-dollar requisitions, disbursement vouchers, and petty cash funds for
purchases up to (or equal to) the cardholder’s purchase limit.
PCards are issued to individual employees following a simple application
process. Being a cardholder does not aect your personal credit as the
PCard is a commercial account issued by Michigan State University through
University Procurement and Logistics (UPL).
Paired with Section 271 of the Manual of Business Procedures (MBP) and
UPL’s many PCard tutorials, this PCard Manual is an essential resource for
cardholders and fiscal ocers alike.
PCARD BENEFITS
Quick turnaround time Reduced paperwork Order flexibility
MSU PCard Manual | 3
GETTING STARTED
Activating your card
When your new PCard arrives from Bank of America, activation instructions
will be enclosed.
If a verification code is needed, it will be 50357XXXX, where the X’s are the
last four digits of the cardholder’s social security number. The employee ID
is the cardholder’s MSU NetID.
Global Card Access program
Sign up for Bank of America’s Global Card Access program [PDF]
Bank of America’s Global Card Access program is a convenient way to
review PCard information such as your credit limit and recent activity. The
program also provides instant fraud alert notifications via text, email, or app
notification. You can also reset your PIN number via Global Card Access.
MSU PCard Manual | 4
PCARD MAINTENANCE
Purchase limits
At the time of application, the cardholder and an appropriate approver
from their unit (e.g., fiscal officer) select and agree to one of the two
default purchase limit options.
MSU PCard Manual | 5
DEFAULT PURCHASE LIMIT OPTIONS
Single purchase: $5,000
Monthly total: $25,000
Single purchase: $9,950
Monthly total: $50,000
Transactions—including shipping, handling, and transactional fees—that
exceed the cardholder’s single purchase limit will be denied at the point of
sale. It is not permissible to make multiple charges to the same merchant in
order to facilitate a charge that exceeds the single purchase limit*.
Requesting a higher limit
Learn more about editing your PCard [PDF].
The cardholder's single purchase limit can be permanently increased to
$9,950 (with a monthly limit of $50,000) at any time. This is requested via an
edit request in the Notes and Attachments tab of a PCard Maintenance
Document (PCMD) eDoc in KFS.
If needed, cardholders can also request higher purchase limits than the
default options via a PCard Exception Request form. These exceptions can
be granted on a temporary or permanent basis, based on need. Once the
Exception Request form has been approved by the PCard team, the
cardholder must submit a PCMD with the approval attached.
Any PCMD eDocs that affect Contract and Grant Administration (CGA)
accounts should be ad hoc routed to the CGA office for approval.
*Multiple charges may be made in the case of conference registration fee payment, where a cardholder needs to register
multiple attendees for the same conference.
PCARD MAINTENANCE
Cardholder information changes
Learn more about editing your PCard [PDF] or canceling your PCard [PDF].
All changes to a PCard are initiated via the submission of a PCMD by
the cardholder. Changes to the following items require an update to the
cardholder record:
• Physical/mailing address
• Email address
• Phone number
• Purchase limits
• Unit/organization code
• Account number*
Changes will be reflected on the card once the PCard team has approved the
eDoc and the bank has made the changes. The PCard team will then send an
FYI of completion t
o the cardholder and default account fiscal ocer via the
KFS Action List.
Changes to the cardholder’s legal name require a new PCard. If the
cardholder’s legal name has updated, their active PCard must be canceled
and a ne
w PCard applied for.
Any changes to Contract and Grant accounts must be ad hoc routed to the
CGA oce for approval.
Before updating the address or legal name associated with
a PCard, the information must first be changed in the HR
syst
em. This is how the PCard team verifies accuracy.
Exception requests
Cardholders or fiscal ocers may request certain
exceptions to PCard policy via the PCard Exception
Request form. These exceptions are granted on a
limited basis and require detailed justification. Until
a member of the PCard team has approved the
request, the aected purchase should not be made.
*Account number changes must be requested prior to the desired eective date or,
in the case of an expiring account, prior to the expiration date.
MSU PCard Manual | 6
PCARD
TIP
PCARD MAINTENANCE
Lost or stolen card
Follow our step-by-step guide for reporting a lost or stolen PCard [PDF].
If a PCard is lost or stolen, it is the cardholder’s responsibility to notify the
bank and the PCard team. The credit card will be canceled immediately, and
a replacement credit card issued. If the PCard is stolen on campus
property, please notify the MSU Department of Police and Public Safety
(DPPS). Your unit is liable for any charges that may have occurred prior to
the PCard being canceled, so it is important to report lost/stolen cards
immediately.
REPORTING A LOST OR STOLEN CARD
Bank of America
24/7 within the U.S.: (888) 449-2273
Outside U.S. (collect): (509) 353-6656
MSU PCard Team
(517) 884-6080
(517) 355-1700
MSU DPPS
Non-
emergency
(517) 355-2221
Card suspension and cancellation
Learn more about canceling your PCard [PDF].
PCards can be suspended or canceled at any time by the cardholder, their
fiscal officer, or a unit administrator through the submission of a PCMD eDoc
in KFS.
When leaving the university, the cardholder is responsible for canceling their
PCard prior to departure. The cardholder must also cut up and dispose of
the card, as well as provide their fiscal ocer with all documentation for
incomplete PCDO transactions.
Card expiration and renewal
PCards will expire at the end of the month shown on the card. For example, a
card with an expiration date of 07/28 will expire July 31, 2028.
Prior to their current PCard’s expiration date, cardholders will receive a
renewal card at the mailing address in the cardholder record. Once the
renewal card is activated, the cardholder should cut up and dispose of the
old card.
If a renewal card is not received, please check with the business oce in your
respective area and, if necessary, contact the PCard team for assistance.
MSU PCard Manual | 7
REQUIREMENTS AND POLICIES
Compliance overview
Michigan State University is a public, state-funded
institution. All PCard records are subject to FOIA and
are considered in the public realm. PCards must be used
responsibly and in the best interests—service and value
considerations—of the university. Fraudulent or intentional
misuse (including the use of the PCard for personal
purchases) will result in revocation of the PCard, as well
as possible criminal charges and discipline, up to and
including termination.
The PCard program uses internal controls and reporting to manage and audit
cardholder procedures. Despite these built-in controls, there are certain steps
that the cardholder and fiscal ocer should take to ensure the responsible
use of university funds:
• Always check the
Manual of Business Procedures (MBP) and PCard Manual
for current policies and prohibited purchases
• Never share your PCard
Only the authorized cardholder may use the PCard, delegation of
authority is not permitted.
• Avoid faxing and emailing of card details
Instead, include a statement in the billing area of the order form, such
as: “Once order is received, please call [cardholder name and phone
number] for billing information.”
University policies
PCard purchases must be in alignment with university policies as outlined in the
MBP and made in an ethical manner. For example, restaurants are an allowable
expenditure on the PCard, provided this use is not during active travel and the
transaction complies with MBP Sections 45 and 70.
MSU PCard Manual | 8
REQUIREMENTS AND POLICIES
Federal guidelines
The U.S. Treasury Department’s Oce of Foreign
Asset Control (OFAC) maintains a list of countries
with which economic trade sanctions have been
imposed. The sanctions pertain to the importing
and exporting of goods and services to and from
countries whose practices are inconsistent with
U.S. foreign policy and national security. Under
no circumstances should a shipment or purchase
be made from a country that appears on the
sanctioned list regardless of the funding source.
Federally funded contracts further restrict purchases from certain parties
who are excluded from receiving federal contracts, subcontracts, etc. These
individuals and/or businesses can be viewed on the T
reasury Department
website. Never make purchases from these listed parties using a PCard tied
to federal funds.
Conflict of interest policy
Conflicts of interest (COI) exists when an employee’s financial interest
or other opportunities for tangible personal benefit may compromise, or
reasonably appear to compromise, the independence of judgment when the
employee performs their responsibilities at MSU.
If a potential conflict exists, the purchaser should evaluate to determine if other
sources are available at the same or better price. If another source is available at
similar cost and terms, the alternative source must be used to avoid the conflict.
If no other suitable sources exist for the purchase, the purchaser must use the
purchase requisition process. UPL will review the collected information, and if the
transaction is in the university’s best interest, it will be forwarded to the MSU COI
Officer for further review and possible submission to the Board of Trustees.
Learn more about COI at MSU
.
MSU PCard Manual | 9
REQUIREMENTS AND POLICIES
Prohibited purchases
In addition to the current expenditure policies outlined in MBP Section 271
and/or restrictions specified in your contract or grant, the following items are
prohibited from being purchased on a PCard:
Air conditioners or space heaters Lab animals
Alcohol (scientific)
1
Lasers
Amazon Prime
2
Medical services or fees
Ammunitions, guns, weapons, explosives Moving companies
Automobile service or repair Motor freight carriers or trucking services
Bus lines, charters, tour buses Personal purchases
Cable, satellite, or internet services
Plumbing, electrical, mechanical, or
structural materials
4
and services
Capital assets (see MBP Sections 19/224)
Carpeting or window treatments Radioactive material
Controlled substances
Security and access (locks, lock changes,
keypads, security systems and services)
Dehumidifers or humidifiers
Deposits or down payments Tier 3 Software
5
Drones Travel of any kind, including: airlines, auto
rentals, cash advances, lodging, meals or per
diem, money orders, parking, taxis, travelers
checks, tolls, trains, wire transfers, visas
Employment agencies/temp services
Freelance/gig workers (e.g. Upwork,
Fiverr)
Two-way radios
Gas cylinders (incl. rentals) Uncrewed aerial vehicles (UAVs)
Gasoline or fuel Uncrewed submersible vehicles (USVs)
Gift cards (see MBP Section 44)
Wholesale/retail club discount purchases
and memberships (e.g. CostCo)
Internet auction sites (e.g. eBay)
3
1
Consumable alcohol purchases must adhere to Manual of Business Procedures Section 45.
2
Instead, use your PCard for Amazon Business transactions through Spartan Marketplace.
3
Internet auction site listings with a “buy it now” option are allowed for purchase as long as the purchase aligns with
other MBP and PCard policies.
4
Materials are permissible for documented lab research projects.
5
MSU IT maintains an Approved Software List. Tier 3 software is only allowable for purchase on a PCard if Procurement
has approved an IT Readiness form submitted via a requisition. A PCard Exception Request form is not required. Please
see the IT Procurement process page on the UPL website for additional information.
MSU PCard Manual | 10
USING THE PCARD
Spartan Marketplace
Learn more about making purchases with MSU’s Amazon Business Account in Spartan Marketplace [PDF].
As good stewards of MSU resources, cardholders should
check Spartan Marketplace to see if an item can be purchased
through one of our strategic suppliers, prior to making a
PCard purchase. With the exception of Amazon Business in
Spartan Marketplace—which uses the PCard—all other Spartan
Marketplace suppliers invoice MSU against a purchase order.
Procurement’s Buying Methods page can help you determine
the best way to procure the item or service you need.
Tax exemption
Refer to the Oce of the Controller’s FAQ on Sales and Use Tax [PDF] and MBP Section 50 for further guidance.
Michigan State University is exempt from the
payment of sales and use taxes on purchases
of tangible property and applicable rentals.
The university’s Federal Tax Identification
Number (38-6005984) is included on every
PCard.
Cardholders should ensure that sales tax is not
charged on PCard transactions by providing
suppliers with a copy of the Sales and Use
Tax Exempt Status Certificate. A pocket-sized
version of this certificate is included with each PCard.
Additionally, cardholders should contact the vendor for a tax credit in cases
where sales tax was incorrectly assessed on purchases of $1,000 or greater.
Attempts to rectify incorrect sales tax assessment should be documented in
the Notes and Attachments section of the PCard transaction eDoc.
If a vendor is not accepting MSU’s tax exempt status, please contact the
Oce of the Controller for assistance.
MSU PCard Manual | 11
USING THE PCARD
Recurring payments
The PCard may be used for recurring payments for items or services that do not
exceed $2,000 per month—provided the items or services are not prohibited
from purchase per PCard policy.
Shipping addresses
PCard orders can ship to an official MSU address, research facility location,
or home address, as authorized by your unit leadership. PCard deliveries
should not be made to MSU Central Shipping and Receiving unless special
arrangements have been made in advance. The cardholder is responsible for
ensuring receipt of materials as well as any follow up efforts required to
resolve delivery problems, discrepancies, damaged goods, billing problems,
and returns.
International transactions
PCards may be used for international transactions, as long as the
requirements and policies outlined throughout the Manual of Business
Procedures are met. If an international transaction is declined at the point of
sale, it may have been flagged by the bank as potential fraud. Please contact
Bank of America’s Fraud Department at (800) 432-1000 for assistance.
A 1% international transaction fee will be automatically assessed by the bank
and added as a separate line to the PCard transaction eDoc. No receipt or
documentation is necessary for this fee.
MSU PCard Manual | 12
RECONCILIATION AND ACCOUNTING
Accounting practices
Although not required, the PCard Activity Log [PDF] can be helpful in reconciling PCard transactions.
PCard transactions are routed to the cardholder’s Action List in KFS on a
PCard Document (PCDO) eDoc for approval and reallocation. These daily
PCDOs consolidate all purchases from each PCard number into one eDoc.
All purchases must have an itemized receipt and a business purpose. The
itemized receipts for PCard purchases must be scanned and attached to the
corresponding eDoc in KFS. Before submitting the PCDO, please ensure the
scanned receipt is legible from top to bottom. The business purpose must
be indicated either on the receipt, the description line, or in the Notes and
Attachments tab of the PCDO. A business purpose means a clear explanation
of how and why the item or service will be used or was needed.
PCARD
TIP
Did you lose your itemized receipt? You can contact the
merchant for a new copy and then attach the new copy to
your PCDO. Make sure that your scanned receipt is legible
and itemized, and don’t forget to attach a legible business
purpose to the PCDO, too.
In addition to receipts and a business purpose, the Object Code for every
transaction should be updated from the default (6559) to an appropriate
category. Updated Object Codes will allow for better audit trails and ledger
reviews.
All associated approvals (cardholder, fiscal ocer, and ad hoc approvals)
are to take place in KFS within 45 days of the PCDO creation date. In cases
where the cardholder and FO are the same employee, the FO is required to
ad hoc route the eDoc to their supervisor for approval.
MSU PCard Manual | 13
RECONCILIATION AND ACCOUNTING
PCDO processing timeline
Please refer to PCard Transaction Overview [PDF] for detailed information about PCDO routing.
Please refer to the Oce of the Controller’s website for Year-End Cut-O Procedures.
Day 0: PCDO Created
During the overnight batching
process, the PCDO is created
and added to the KFS Action
List of the cardholder.
Day 30: Email Reminder Issued
If all approvals have not been
completed, KFS will send an
automatic notification to the
cardholder and account FO
regarding the approaching deadline.
Days 0-45: Transaction Review
The cardholder, fiscal ocer, and
any ad hoc approvals are required to
be completed, including verification
of accounting lines, attachment of
itemized receipt(s), and inclusion of
a legitimate business purpose.
Day 46: Strike Given
If all approvals have not been
completed, the PCard team will
assign a strike to the cardholder
per the 1-2-3 Strike Policy and
will notify the cardholder and
FO of noncompliance. The
PCDO still needs to be reviewed
and approved at this time.
Declined transactions and returns
If a PCard charge is denied by a merchant, call Bank of America Customer
Service at (888) 449-2273 for an explanation.
Cardholders are responsible for ensuring receipt of materials as well as any
follow-up eorts required to resolve any delivery problems, discrepancies,
damaged goods, billing problems or returns. If you need to return an item,
contact the merchant to determine their return policy. If the merchant
gives you a return authorization number or a name, include it on the return
package. If the item is returned for credit, watch for the credit to appear as
an eDoc in the Finance System. If the item is being returned due to merchant
error (i.e. damaged item, wrong item received), the merchant should pay for
return shipping and/or arrange for an item pick-up and return.
MSU PCard Manual | 14
RECONCILIATION AND ACCOUNTING
Filing disputes
There is a 60-day period following a transaction in which transaction
disputes may be filed with the bank; if filed after this 60-day period, the
dispute may not be considered. Disputes should be discussed first with the
merchant, and referred to the bank only after attempts to resolve the matter
with the merchant have failed. You can file a dispute with the bank by calling
(888) 449-2273.
In the corresponding PCDO, you must check the Dispute with Bank box;
however, this checkbox is used for tracking purposes only and you must
still formally file the dispute with the bank. If the Dispute with Bank box is
checked, the cardholder is required to include a dispute reason in the Notes
and Attachments tab and approve the PCDO.
The PCDO that includes the disputed transaction is still required to be fully
routed and approved within 45 days. Once the dispute is settled, the bank
will provide a credit via a second PCDO. The disputed eDoc should be
referenced in the credit eDoc's Notes and Attachments tab.
MSU PCard Manual | 15
ISSUES AND MISCONDUCT
Audits
It is important for your unit to determine a process, document it, and follow it
consistently. It is recommended that the FO or appropriate designee perform
periodic reviews for each cardholder following our PCard Audit Requirements
guide [PDF]. By completing this review every four to six months, your unit
can ensure university policies are being followed on a collective basis, as
compared to the snapshot view provided by daily eDoc reviews.
PCARD
TIP
The PCard team recommends that FOs use the FIN017-PCard
Transaction Data Extract and UPL010-Spending Limits Report
from Cognos when conducting their periodic PCard reviews.
Periodic audits of cardholder eDocs are conducted by the Oce of Audit,
Risk and Complianc
e (OARC). In addition, the PCard team conducts
compliance reviews, using various reports and transaction audits to ensure
that cardholders are adhering to MSU, MasterCard®, and Bank of America
policies and procedures. Questionable activity is referred to OARC for further
investigation. Anyone who suspects possible PCard misuse should report it
to the PCard team (inattentiveness to PCard policy, possible strike/violation)
and/or the Misconduct Hotline (criminal or large misconduct such as buying
with PCard on MSU funds for personal use).
Fiscal misconduct
All administrators, faculty members, support sta,
and other employees should promptly report any
known or suspected fiscal misconduct to OARC’s
anonymous Misconduct Hotline at (800) 763-0764.
Alternatively, reporters may contact the Chief Audit,
Risk and Compliance Ocer via email or telephone
at (517) 355-5036.
MSU PCard Manual | 16
ISSUES AND MISCONDUCT
1-2-3 Strike policy
As a cardholder, compliance with the Manual of Business Procedures and the
PCard Manual are required—and policy violations may result in the loss of
PCard privileges. A 1-2-3 Strike policy is in place, aimed to correct infractions.
The cardholder and their FO will be notified of all strikes given; however,
a warning may be given to cardholders only prior to the incurrence of a
strike. Strike 1 will result in a 30-day card suspension; Strike 2, 90-day card
suspension; and Strike 3 will result in card cancellation, and the employee will
not be able to apply for a new PCard for a period of 12 months.
Example policy violations that may incur a strike include:
• Any violation of any section of the MSU Manual of Business Procedures
• Missing business purpose or itemized receipt on the eDoc
• Purchase of a restricted item, without prior approval from the PCard team
• Splitting charges to skirt the single transaction limit
• Failure to have the PCDO fully approved within the 45-day time limit
• Failure by FO to ad hoc route their own PCard transactions to supervisor
• Exceeding the monthly spending limit
• An audit finding by the Oce of Audit, Risk and Compliance
• Inappropriate charge of sales tax without documented attempts to rectify
• Sharing card information
Note that certain violations, such as fraudulent or intentional misuse, will
result in immediate revocation of the PCard, possible criminal charges, and
discipline up to and including termination.
WRITTEN
WARNING
May be issued.
STRIKE 1
Results in a
30-day PCard
suspension.
STRIKE 2
Results in a
90-day PCard
suspension.
STRIKE 3
Results in PCard cancellation;
employee unable to apply for
new card for 12 months.
30
90
1-2-3 STRIKE POLICY
MSU PCard Manual | 17
Cardholder
Quick Reference Guide
Use the PCard responsibly and ethically for university business purposes
only. Always try to achieve the best value for MSU, by checking Spartan
Marketplace first and asking for educational discounts.
NEVER...
...share your PCard with others.
...fax or email your PCard information.
...use the PCard for personal use.
Always get a
legible itemized
receipt.
Document the
transaction’s
business purpose.
Carefully review the Manual of
Business Procedures Section 271
and the PCard Manual.
TAX
Notify merchants that MSU is tax
exempt and provide supporting
documentation as applicable.
Review PCDOs promptly
so that all approvals can be
completed within 45 days.
Try to resolve disputes with
merchants immediately.
If that doesn’t work, file a
dispute with the bank within
60 days of the transaction.
Always request a card cancellation through a KFS
PCMD if leaving MSU. After submitting the card
cancellation request, cut up and dispose of your
PCard. You are responsible for all purchases up to the
point of cancellation.
IMMEDIATELY REPORT A LOST OR STOLEN CARD
Bank of America
24/7 within the U.S.: (888) 449-2273
Outside U.S. (collect): (509) 353-6656
MSU PCard Team
(517) 884-6080
(517) 355-1700
MSU Police
Non-emergency
(517) 355-2221
Fiscal Ocer
Quick Reference Guide
Review PCDOs promptly
ensuring all approvals
are completed within
the 45-day limit.
Perform periodic reviews of
transactions, using the PCard
Audit Requirements guide and
Cognos reports like UPL-010.
TAX
Double-check that no tax was
charged as MSU is tax exempt.
Ensure itemized receipts
are legible. Confirm that
the documented business
purpose is allowable.
Verify the accounting string
is accurate and includes an
appropriate object code for audits.
If you are the cardholder, ad hoc route the eDoc to
your supervisor for PCard transaction approval.
Always confirm that your cardholders have canceled
their PCard via a PCMD in KFS if they are leaving the
university. Ask for the receipts of any incomplete
PCDO eDocs to complete on the cardholder’s behalf.
Encourage your cardholders to regularly revisit the PCard Manual and
MBP Section 271. Ensure cardholders know best practices for saving
MSU funds, such as shopping first in Spartan Marketplace.
IMMEDIATELY REPORT A LOST OR STOLEN CARD
Bank of America
24/7 within the U.S.: (888) 449-2273
Outside U.S. (collect): (509) 353-6656
MSU PCard Team
(517) 884-6080
(517) 355-1700
MSU Police
Non-emergency
(517) 355-2221
