Credit Card Policies

Policy Statement

The College credit card program is intended to streamline, and simplify, purchasing and accounts payable functions. The College credit card is a tool that reduces transaction costs, facilitates timely acquisition of materials and supplies, automates data flow for accounting purposes, and offers flexible controls to help ensure proper usage. The card may be used with any merchant who accepts Visa, either in-store, by phone, mail, fax, or online, subject to the College’s purchasing and travel policies.

Program Overview

The College credit card program is designed to complement existing purchasing processes including petty cash, check requests, and low dollar purchase orders. The College credit card program is not intended to avoid, or bypass, current payment procedures and purchasing policies. Proper documentation and record keeping is essential.

Definitions:

  • Cardholder – College employee whose name appears on the credit card and is accountable for all charges made and reporting any documentation associated with that card.
  • Department Liaison – Support staff that assists the Cardholder with the compilation and submission of credit card statements/expense reports.

Administration by Business Office

Business Office Administrative Responsibilities

  • Assists the cardholder with administrative tasks related to the card.
  • Reviews, and verifies, the vendor receipts to ensure that they match the transactions listed on the individual statement.
  • Verifies appropriate expense allocations, so that each purchase transaction has the correct accounting information and a specific business purpose for each item.
  • Attempts to resolve any disputes with vendor and/or Fifth Third not resolved by Cardholder.
  • Assists Cardholders with erroneous declines and emergency transactions after they have contacted Fifth Third directly.
  • Downloads monthly credit card charges to Colleague.
  • Activates/Deactivates credit card.
  • Provides all credit card online program administrative maintenance.
  • Provides training to Cardholders.
  • Audits credit card use and charges with regard to compliance with credit card and College policies.

Cardholder and Supervisor Responsibilities

Credit card purchases are governed by Kalamazoo College purchasing policies and other relevant policies. It is the Cardholder’s responsibility to ensure that the card is used within the stated guidelines of the credit card policy, as well as other Kalamazoo College policies relating to the expenditure of College funds.

Cardholder:

  • Understands that the College is liable to PNC for all charges made on the card.
  • Agrees to notify Fifth Third immediately if the card is lost or stolen, and notify the Business Office at the first opportunity during normal business hours.
  • Agrees to notify Fifth Third immediately if a fraudulent charge is discovered and will fill out and file the appropriate paperwork with the Business Office.
  • Understands that the Cardholder is the only person authorized to approve charges made on his/her card.
  • Agrees to use the College credit card for approved purchases only.
  • Agrees not to charge personal purchases. The use of the card for personal purchases may be subject to disciplinary actions. Any personal purchase must be repaid as soon as it’s identified.
  • Agrees to obtain receipts for all card purchases equal to or exceeding $25.00, and maintain proper supporting documentation. Every receipt requires documentation explaining how the expense relates to College business.
  • Agrees to return the card immediately upon request of the College, or upon termination of employment (including retirement).
  • Agrees to notify the Business Office if the cardholder changes departments.
  • Understands the College will audit the use of the card and take appropriate action on any discrepancies found, including reporting of discrepancies to the Supervisor or Vice President.
  • Agrees to follow the established procedures for the use of the College credit card, including timely submission of statements and receipts. While the administration of the card reporting may be delegated, the responsibility for compliance remains with the Cardholder. This may include planning for absences and making oneself available to approve your expense report.

Failure to follow these credit card policies may result in suspension or revocation of the use of the card, additional taxable income reported on Form W-2, and/or other disciplinary actions.

Business Office:

  • Assists the cardholder with administrative tasks related to the card.
  • Reviews and verifies the vendor receipts to ensure that they match the transactions listed on the individual statement.
  • Verifies appropriate expense allocations, so that each purchase transaction has the correct accounting information and a specific business purpose for each item.
  • Attempts to resolve any disputes with vendor and/or Fifth Third not resolved by Cardholder.
  • Assists Cardholders with erroneous declines and emergency transactions after they have contacted Fifth Third directly.
  • Activate/Deactivates credit card.
  • Provides all credit card online program administrative maintenance.
  • Provides training to cardholders.
  • Audits credit card use and charges with regard to compliance with credit card and College policies. Personal use of P-Cards will also be monitored.

Cardholder Disciplinary Actions

The College will seek restitution for inappropriate or fraudulent charges. Misuse of the credit card will also result in revocation of the card, and possible disciplinary action up to, and including, termination of employment from Kalamazoo College. Employees who are found to have inappropriately used the College credit card will be required to reimburse the College for all costs associated with such improper use. The College reserves the right to close a credit card account if a Cardholder (a) moves to a new position in which a card is not required; (b) terminates employment; or (c) for any of the following reasons, which will also subject Cardholder to disciplinary action in accordance with Kalamazoo College policies and procedures relating to discipline:

  • The College credit card is used for unauthorized purposes.
  • The College credit card is used to purchase any substance, material, or service that violates policy, law, or regulation pertaining to Kalamazoo College.
  • The Cardholder allows the card to be used by another individual.
  • The Cardholder splits a purchase to circumvent the spending limits of the credit card.
  • The Cardholder uses another Cardholder’s card to circumvent the purchase limit assigned to either Cardholder or the limitations of the credit card.
  • The Cardholder fails to complete the online monthly reconciliation by the due date.
  • The Cardholder fails to provide, when requested, information about any specific purchase.
  • The Cardholder does not adhere to all College purchasing and travel policies.

Credit Limit Increase Request

To process a permanent or temporary credit limit increase, the Cardholder Supervisor can send an e-mail to BusinessOffice@kzoo.edu. The e-mail should include the Cardholder’s name, amount of increase or the new limit, and indication whether this is a permanent or temporary change. If this is a temporary change, the date the change is no longer in effect should also be included in the e-mail.

Due Dates

Fully approve expense reports with all original receipts are due to the Business Office by the 10th of the month.

It is strongly recommended, and considered best practice, that Cardholders review their transactions on a weekly basis. If the 10th falls on a weekend, the due date is the following business day.

While the administration of the card reporting may be delegated to a Department Liaison, the responsibility for complete and timely submission of statements remains with the Cardholder.

Cardholders should consider planned absences and travel schedules, and plan accordingly to meet these deadlines, including making oneself available to sign statements. Cardholders that do not meet the deadlines may lose their credit card privilege. Cardholders, Supervisors, and Vice Presidents will be notified of delinquent statements and receipts.

Fraudulent Charges

If you discover fraud on your Mastercard account, please follow these steps:

  • Immediately call Fifth Third using the phone number on the back of your card and report the fraudulent charge.
  • Complete the Billing Inquiry Form and email it to the Business Office.
  • On your Visa expense report, please mark the charge as fraudulent in the description. Please also note the date that you sent the Billing Inquiry Form to the Business Office.

Missing Documentation

Receipts are required for all transactions equal to or exceeding $25.00. In the event that a receipt is lost for a purchase equal to or exceeding $25.00, Cardholders should make every attempt to contact the vendor for a duplicate receipt. If a duplicate receipt cannot be obtained, a Lost/Missing Receipt Form should be completed by the Cardholder and approved by the Vice President for their area. The Lost/Missing Receipt Form is to be used only in rare situations when a receipt cannot be obtained or replaced. The College reserves the right to revoke College credit card privileges and may require the Cardholder to reimburse the College for the transaction in which a receipt cannot be produced.

Obtaining a Credit Card

Only employees of the College are eligible to receive a College credit card. Contractors, temporary employees, and students are not eligible to receive a College credit card, pursuant to the card agreement with Fifth Third Bank. Cardholders are responsible for the security of the card and all transactions made against the card. Cardholders will be required to sign a Cardholder Agreement as part of the application for a credit card, which can be found on the Business Office website at www.kzoo.edu/business.

Process for Obtaining a Credit Card

  • College employee completes the application/agreement
  • Supervisor:
  • reviews the application/agreement
  • approves the application/agreement
  • assigns a Departmental Liaison, if applicable
  • forwards to the Business Office
  • The Business Office will request a credit card from Fifth Third Bank
  • The Business Office contacts the employee when the card arrives to arrange training related to the use of the card

The College credit card will have no impact on the Cardholder’s personal credit. Although the card lists an individual’s name, the card is actually a corporate charge card issued to the College.

Vehicle Rental

VISA provides insurance if car is rented using the Purchasing Card. In the event of an accident with a rental vehicle contact VISA Enhancement Services @1-800-253-5664.

Sales Tax

Kalamazoo College is a tax-exempt institution and is not subject to State of Michigan sales tax. Cardholders must remind all vendors of our tax-exempt status and make sure sales tax is not added to the invoice. If needed, copies of the College’s tax exemption certificate may be obtained from the Business Office. Any questions regarding sales tax should be directed to the Business office.

Purchase Returns and Credits

Vendors will issue credits to the individual College credit card account for any item they have agreed to accept for return. This credit will appear on a subsequent statement. Under no circumstances should a Cardholder accept cash in lieu of a credit to the credit card account.

Restriction on Use

The College credit card is not a personal credit card and remains the property of Kalamazoo College. The liability for all outstanding charges on the card is with the College. Therefore, the credit card must only be used for purchases required in the normal course of business and comply with all College purchasing policies.

Cardholders may not use the credit card for personal purchases with the intent of reimbursing the College at a later date. Personal use of College credit cards may result in disciplinary action, including possible termination of employment.

The College credit card may not be used in the College Mail & Copy Center or any of the College’s Food Service Dining outlets. Instead, give these internal locations your departmental GL account number to be billed at month’s end.

The College credit card will have the cardholder’s name embossed on it. It may not be transferred to, assigned to, or used by anyone other than the designated cardholder.

Security & Storage

The College credit card should be maintained in a secure location, and the card account number should be carefully controlled. The only person entitled to use the card is the person whose name appears on the face of the card. The card may not be loaned to another person for any reason.

Set-Up, Maintenance and Closure

Lost, Misplaced, or Stolen Cards

Cardholders are required to immediately report any lost or stolen College credit cards to Fifth Third at 800.375-1747. Cardholders must also email BusinessOffice@kzoo.edu

Erroneous Declines

Should a vendor erroneously decline a College credit card, the Cardholder should contact Fifth Third at the number on the back of the card. The Fifth Third representative will explain why the sale was declined. 

Supporting Documentation

It is the Cardholder’s responsibility to gather and retain supporting documentation for card purchases. This documentation will take the form of a supplier produced document that contains detailed information regarding the transaction. This includes cash register receipts, charge slips, invoices, and/or computer screen prints. The documentation should always contain the following information:

  • merchant name and address
  • unit prices
  • transaction total amount
  • transaction date
  • transaction details: item description(s), quantities ordered and received

Transactions that relate to travel, food or entertainment must have supporting documentation that includes:

  • The names of participants. For large groups, the name of the group is acceptable
  • Date and location(likely already provided on the receipt)
  • The business purpose for the expense
  • Purchases for gasoline must indicate a rental or College vehicle

Unresolved Disputes & Billing Errors

The Cardholder is responsible for contacting the vendor to resolve any disputed charges or billing errors. If the matter is not resolved with the vendor, the Cardholder/Departmental Liaison should complete a Purchasing/Credit Card Dispute/Billing Inquiry Form within 60 days. Attach the form to the relevant statement and send it to the Business Office.