Updated: June 1, 2024

1. Introduction

The purpose of the University of Massachusetts Bank Card program (the UMass Bank Card respectively) is to provide an efficient means to procure allowable business related goods, pay for business related travel expenses, and provide a mechanism for emergency purchases for suppliers that do not accept a purchase order.

Definition: The terms Supervisor and/or Manager are used interchangeably throughout this document. This role is responsible for reviewing cardholder’s expense transactions, and receipts. and the supervisor/manager must have the ability and responsibility of initiating HR actions if there is misuse of University funds. This person does not necessarily need to be the PeopleSoft HR supervisor or manager but was delegated the supervisory role by the campus.

Cardholders and their Supervisors are responsible for the review and compliance with all:

  • UMass Policies, Standards, and Procedures including:
    • University Procurement Policy
    • University Business and Travel Expense Policy
    • UMass Bank Card Standard
  • Department internal procedures
  • Funding sponsor requirements

2. How It Works

The UMass Bank Card is a commercial credit card. The card works in much the same way as your personal credit card except the monthly statement amount is paid for by the University. Each card has specific spending limits and card controls:

  • single purchase limit amount
  • spending limit amount per month
  • approved merchant category code (MCC)

Each time a vendor enters the cardholder’s card number for a purchase, an electronic process verifies that the purchase is within these limits. All transactions are approved or declined by the vendor based on the verification results. Limits are set at the department level on the Card Application form. The cardholder purchases directly from the vendor, either in person or by phone, mail, on-line or fax.

3. Eligibility and How to Apply for a UMass Bank Card

A UMass Bank Card may be issued to a any individual that the University has issued an employee identification to, who:

  • Has a frequent need to make purchases on behalf of their department.
  • Has the approval from their Department Supervisor or Manager with the authority over the department budget.
  • Has completed the required UMass Bank Card training.

The employee must complete and e-sign the cardholder information section of the UMass Bank Card application form. The application is then forwarded to the cardholder’s Supervisor/Manager, who will fill out the necessary information regarding card controls and limits and e-sign the form.

All UMass Bank card applicants are required to complete training and both the user, and the supervisor are required to sign off on understanding and complying with the University Bank Card Standard.

Once a complete application is submitted to the UMass Bank Card team, the process to receive a card may take 1-3 weeks. The Bank Card team will initiate a new card for the applicant and the UPST will send directly to the cardholder using the business address from their application form. The Bank Card team upon order of the card, will forward to the cardholder the instructions for activating the account, executing the Cardholder Agreement form indicating they have 1) completed and understand the UMass Bank Card training, 2) read and understand all Policies and Standards related to purchasing and UMass Bank Card use, 3) read and understood the obligations included in the Cardholder agreement, and 4) agree to:

  • Abide by all University Policies and Standards
  • Acceptance of consequences for UMass Bank Card violations

Any UMass Bank Card with eighteen (18) months of inactivity will be closed by the issuing bank due to risk. The cardholder will need to go through training and reapply to receive a replacement card.

UMass Bank Cards are renewed based on the expiration date shown on the card. A renewal card will be sent to the UPST within 30 days of expiration. The UPST will issue the replacement card provided the employee is in good standing and up to date with records and transaction allocation and require attestation of agreement to the Bank Card Standard. All expired cards shall be destroyed by the cardholder upon activation of the replacement card.

4. Cardholder Responsibilities

UMass Bank Cards are issued for the exclusive use and responsibility of the specific individuals to whom they have been issued. The cardholder shall not authorize another University employee to use their card.

Allowable charges incurred on the UMass Bank Card are a University liability. It is the cardholder’s responsibility to ensure their UMass Bank Card is safeguarded from loss, theft, or misuse. This means the card shall be carried on one’s person when use is required and locked in a secure location when not in use.

All incorrect charges or product returns must be resolved promptly with the action taken recorded on the transaction receipt. Cardholders shall not receive cash back for returns or exchanges. Returns or exchanges shall be credited to the respective UMass Bank Card account.

If a problem arises with a transaction that the cardholder is unable to resolve directly with the vendor, please contact the issuing bank of the UMass Bank Card directly using the phone number on the back of your credit card as soon as possible. Transactions should be reviewed, allocated, and/or disputed within 30 days of the transaction ensure proper reporting and management of University funds.

Cardholders must report a lost or stolen card immediately to the issuing bank of the UMass Bank Card and the Bank Card team via email to upst@umassp.edu. Lost/stolen messages should be marked as ‘urgent’.

Cardholders are responsible for submitting all required receipts for all UMass Bank Card purchases into Concur. These receipts should be submitted with the cardholder’s allocated transactions within thirty days. All submitted reports are subject to review and audit. Other supporting documentation may be required depending on the type of transaction. For example, food purchased for University functions, cardholders must follow the campus and University Business / Travel expense policy to report function details.

If a receipt is lost, the cardholder must make every possible attempt to contact the vendor and obtain a copy. If a copy cannot be obtained, a Missing Receipt Form must be filled out as the absolute last resort. All Missing Receipt Forms must be signed by the cardholder and supervisor. A Missing Receipt Form is required for each line item for which a corresponding required receipt is missing. Excessive use (more than 3 in any 12-month period) of the Missing Receipt Form risks in the termination of the cardholder’s UMass Bank Card.

If bank card transactions are not allocated/submitted on an expense report in Concur within 90 days of the transaction date the cardholder risks temporary suspension of the card until all transactions are in compliance with policy.

Purchases made for the University are exempt from MA state sales tax for goods purchased and shipped to Massachusetts. Forms ST-2 and ST-5 can be found on the Treasurer's Office Tax and Compliance page.

When separating from the University or changing departments, cardholders should return their cards to their supervisor/manager and notify the Bank Card Manager by email.

5. Supervisor Responsibilities

Supervisors are responsible for confirming all transactions are allowable, legitimate business purposes. The supervisor shall also confirm there is no MA state sales tax being charged to the University. When approving the cardholder’s transactions in Concur, the supervisor is confirming they have performed a thorough review, and all transactions are in accordance with the UMass Bank Card Standard (e.g. no restricted purchases were made, and foreign expenditure process followed) as well as the University of Massachusetts Business and Travel Expense Policy and Standards. Questions on expenses should be discussed with the cardholder prior to the supervisor’s approval of the of the Concur expense report. If the supervisor determines the cardholder has misused the UMass Bank Card, the supervisor shall alert the Bank Card team immediately.

The supervisor and/or campus representative is responsible for notifying the Bank Card team when an account needs to be closed due to the termination or departure of an employee or the decision by the supervisor to revoke the card or any other reason.

6. Restricted Items

The following items should not be purchased using the UMass Bank Card:

  • Alcoholic beverages - Please Refer to the Business & Travel Expense Policy and appropriate campus approvals matrix for specific campus allowability (section 1.03)
  • Amazon Prime accounts
  • Animals
  • Any item prohibited by State or University policy
  • Capital equipment (greater than $5,000)
  • Cash advances of any type
  • Cell phones
  • Computers, laptops, tablets, and hard drives
  • Flowers - Please Refer to the Business & Travel Expense Policy and appropriate campus approvals matrix for specific campus allowability (section 1.07)
  • Upholstered Furniture
  • Gasoline for personal vehicle
  • Gifts or Awards – Please Refer to the Business & Travel Expense Policy and appropriate campus approvals matrix for specific campus allowability (section 1.07)
  • Gift cards – Please Refer to the Business & Travel Expense Policy and appropriate campus approvals matrix for specific campus allowability (section 1.07)
  • Insurance
  • Leases and lease-purchases
  • Monthly utility payments
  • Moving services
  • Payments to individuals (example: Honoraria)
  • Personal purchases
  • Prescription drugs and controlled substances
  • Radioactive and hazardous material
  • Rentals (except vehicle rentals for approved travel)
  • Service contracts (paying an individual or company to provide service)
  • Split transactions – transactions over the approved limit on the UMass Card account may not be intentionally ‘split’ to bypass the limit
  • UMass Club memberships unless approved by the University President

* Any purchases that may be considered additional compensation per the IRS require additional review

7. Typical Purchases

Purchases can be made for the individual cardholder or to meet the department needs, provided the card is not shared. The following represents common allowable purchases for UMass Bank Cards when not available through BuyWays:

  • Airline tickets.
  • Books
  • Conference registrations
  • Food for University functions
  • Fuel for State car or rental for University business.
  • Institutional dues and memberships (only if vendor requires a credit card payment)
  • Lodging
  • Postage/Shipping
  • Reprints of journal articles
  • Vehicle rental for University business

8. Foreign Expenditures

The UMass Bank Card may be used for the purchase of tangible goods from foreign vendors or if a faculty/staff member will travel to a foreign country.

However, the BuyWays system should be the primary way to purchase software and services (defined below). Furthermore, using the UMass Bank Card to purchase software and services from foreign vendors is prohibited due to potential United States tax implications. If, however, the vendor refuses to accept a purchase order and will only accept the bank card, contact the UMass Treasury Department prior to making the purchase. Failure to do so may result in the department being responsible for and assuming the federal 30% tax withholding liability in addition to the cost of a tax gross up.

Software and Services

  • Software
  • Royalties/Licenses- This includes the rights to use images, art or text, music or music files, and other intellectual property.
  • Web based services/software as a service (SaaS)- This includes subscriptions/memberships.
  • Publishing services if the location of the services is not defined.
  • Prizes/Awards/Human Subject Payments
  • Services provided by foreign vendors within the United States- This includes:
    • Independent contractor services
    • Conference registration fees paid to foreign vendors for conferences held within the U.S.

It is crucial to comply with tax regulations to avoid any legal and financial repercussions.

If there are questions on taxation, please send an email to UMass Treasury Department and they will assist you.

9. How to Activate the Card

UMass Bank Cards must be activated upon receipt by the Cardholder. Cardholders can either call the issuing Bank directly using the number listed on the back of the card to activate or go online. Cardholders will also need to create a pin number for the chip and pin card. Only a cardholder may retrieve this pin so the pin must be something the cardholder will remember. If the pin is forgotten, the cardholder must call the bank to have it reset.

Cardholders will be sent a Cardholder Agreement form for each card. Card activation will not be completed until the form is e-Signed and returned to the UPST by the cardholder.

10. How to Use the UMass Bank Card

Prior to making a purchase, the cardholder must:

  • Be sure that there is sufficient budget available for the purchase.
  • Verify if the purchase can be made utilizing BuyWays instead of the UMass Bank Card
  • Check the list of restricted items to ensure the purchase is for an allowable item.
  • Be sure that the total amount of the purchase (including shipping) will not exceed the card’s applicable limit.
  • Always let the vendor know that the cardholder is making a purchase for the University. This will make the vendor aware the purchase is eligible for any applicable discounts.
  • Be sure to have any necessary authorization specific to the cardholder’s department to make the purchase.

Purchases in person:

  • Verify the price.
  • Emphasize the tax-exempt status of the University (some vendors may require a copy of tax-exempt form, available on the Treasurer's Office Tax and Compliance page. For convenience, the tax-exempt number is on the credit card, however a vendor may require a hard copy of the tax-exempt form.
  • Obtain sales receipt or packing slip for UMass Bank Card records.

Purchases by phone, mail, or fax:

  • Cardholder shall identify themselves as a UMASS employee making a purchase on a UMass Bank Card.
  • Verify the price.
  • Emphasize tax-exempt status. If the vendor requires proof, send a copy of the University’s tax-exempt certificate, available on the Treasurer's Office Tax and Compliance page.  For convenience, the tax-exempt number is on the credit card, however a vendor may require a hard copy of the tax-exempt form.
  • Provide vendor with name, department, phone number, and delivery instructions.
  • Provide purchase card number and expiration date and CVV security code.
  • Confirm the total price of the order including shipping charges.
  • Request that receipts/invoices be sent with the order or sent to your attention.
  • Obtain name of person taking the order.
  • Inspect the order when it arrives to verify order accuracy, quality, and price.
  • Attach all receipts/invoices with Concur expense submissions.

11. Sales Tax Exemption

The University is exempt from paying Massachusetts state sales tax for the purchase of goods delivered or picked up in Massachusetts, and, in most instances, from other states as well. It is the responsibility of the cardholder to ensure that sales tax is not charged when the University is exempt when making a purchase with the UMass Bank Card.

The sales tax exemption number must be given to the vendor at the time of the transaction to exempt sales tax. Copies of the ST-2 and ST-5 forms can be found on the Treasurer's Office Tax and Compliance page. For convenience, the tax-exempt number is printed on the bank card, however a vendor may require the form to be submitted.

If a UMass Bank Card is charged tax, the cardholder is required to request a credit from the vendor as soon as the error is discovered. The cardholder is responsible for the follow-up until the vendor’s credit is received.

12. Receipts

Each transaction is required to have a corresponding receipt. The only exception to the receipt requirement would be receipts for travel related items (parking, tolls, taxi, etc.…) that are under $25.00, this is consistent with the Business and Travel Expense Standard. Receipts include the transaction’s proof of purchase (charge slips, cash register receipts, invoices, or packing slips that note the price paid). For subscriptions, a copy of the renewal notice, or the initial subscription request may be used as a receipt.

Receipts should include the following information:

  • Vendor name
  • Description of item purchased.
  • Transaction date
  • Transaction total
  • Beginning and expiration dates for subscriptions
  • Proof that charge was billed to the UMass Bank Card (i.e., last 4 digits of card number)

For a meal (when allowed on the UMass Bank Card), the receipt that shows the details of the items that were purchased is required, not just the charge receipt showing the total cost. Please refer to the business and travel expense policy for additional information required to support the justification of the expense.

13. Returning an Item Purchased on UMass Bank Card

Items that are being returned shall be promptly sent back to the vendor to avoid any return time limits. Credit for the return should be applied by the vendor to the credit card used for the purchase. Cash refunds are prohibited however a check reimbursement from the vendor is acceptable in some cases. The check shall be made out to the University of Massachusetts. The cardholder is responsible for ensuring receipt of materials and to follow-up with vendors to resolve any delivery problems, discrepancies, or damaged goods.

14. Disputing a Transaction

The cardholder is responsible for follow-up with the vendor in the event of erroneous charges, disputed items within 30 days of the transaction. Disputed billing can result from failure to receive goods, misuse, fraud, defective merchandise, duplicated charges, incorrect amounts or unprocessed credits. The vendor should always be contacted first in attempting to resolve disputes. If the issue cannot be resolved, cardholders shall contact the Bank Card team immediately with supporting documentation. Unresolved issues that are not reimbursed by US Bank or vendor are the responsibility of the cardholder if there was a delay in disputing the transaction.

15. Audits

UMass Bank Card expenditures are subject to audit by internal and/or external auditors. The UMass Bank Card team will review transactions to ensure the cardholders and supervisors are following the UMass Bank Card Standard as required. Any non-compliance noted by the UMass Bank Card Auditor will be recorded in the UMass Bank Card Audit file for the cardholder with repercussions based on the frequency or severity of the non-compliance issue.

16. Misuse of the UMass Bank Card

The Board of Trustees has issued a Policy Statement on Fraudulent Financial Activities (Doc. T00-051, adopted August 2, 2000). 

Cardholders assume the responsibility for the protection and proper use of the UMass Bank Card.

The following are a few specific examples of “misuse” of the UMass Bank Card:

Examples of personal misuse:

  • Purchases made for the sole personal benefit of the employee, whether through a vendor or directly.
  • Assignment or transfer of an individual’s card to another person.
  • Use of card to purchase restricted commodities, or for purchases that are inappropriate for the account charged.

Examples of administrative misuse:

  • Lack of proper and timely expense allocation of the individual cardholder’s account.
  • Excessive use of the Missing Receipt Form.
  • Failure to respond to requests for more information on transactions from the UMass Bank Card Manager or UMass Bank Card Auditor.
  • Failure to monitor and correct budget errors that arise on bank card transactions.

UMass Bank Card activity is monitored by the UMass Bank Card team and the UMass Bank Card Auditor.

At times, cardholders may receive communications from the UMass Bank Card team or UMass Bank Card Auditor for clarification or for additional information related to transactions on a cardholder’s UMass Bank Card. The UMass Bank Card team has the duty to report suspected misuse and non-compliance findings to the appropriate campus Controller. The Controller is bound by University policy to escalate the review of the findings to the University Internal Audit department, as appropriate. If the Controller is the employee involved in the misuse, the UMass Bank Card Manager will report the misuse to the appropriate A&F leader for the campus or the Senior Vice President for Administration and Finance (SVP A&F) if it occurred in the UMass President’s Office.

17. Cancellation, Suspension or Revocation of Cards

In the event that it becomes necessary to cancel a UMass Bank Card, the cardholder must surrender the card to the department head who will destroy the card and notify the UMass Bank Card team to close the account immediately.

The department shall provide written notification to the UMass Bank Card team that the card is to be cancelled on a specific date along with an explanation why the card is being cancelled. The UMass Bank Card team will then close the account in the issuing bank’s web portal system.

Reasons for cancellation, suspension or revocation include but are not limited to:

  • Cardholder is no longer employed by department or University.
  • Cardholder goes on leave without pay.
  • Cardholder or department decides to discontinue participation in the program.
  • Purchasing restricted commodities.
  • Splitting transactions to avoid the single purchase limit.
  • Repeated use of the UMass Bank Card when contracted or preferred vendors are available (e.g. BuyWays).
  • Failure to respond to requests for more information on transactions.
  • Using UMass Bank Card for purchases for personal use.
  • Exceeding available budget.
  • Violation of other University purchase policies and guidelines.
  • Excessive use of the Missing Receipt Form.
  • Repeated failure to have sales tax removed promptly.
  • Issuing bank’s mandatory closure of card after eighteen (18) months of inactivity
  • User has failed to allocate transactions and/or submit receipts within 90 days of the purchase.

If a violation is believed to have occurred, a formal warning notification from the UMass Bank Card Manager will be issued. The user must respond with a corrective action within 7 days of receiving the warning. If the corrective action is not deemed appropriate or if the user is in further violation after the warning, the card will be subject to revocation.

18. Lost or Stolen Cards

The cardholder must immediately report a lost or stolen card to the issuing bank. Representatives are available 24 hours a day, 7 days a week.

For any lost or stolen cards, the cardholder must also inform the UMass Bank Card team within 24 hours. Please contact the UMass Bank Card team by emailing UPST directly. If the card has fraudulent charges, the bank will send the cardholder a form to begin a dispute of those charges. If the cardholder does not notify the bank as soon as possible, the University may be liable for any charges made.

 

Doc. T92-031, Appendix A, as amended | Procurement Policy
Passed by the Board of Trustees June 3, 1992
Revised:
December 4, 1996
August 7, 2002
June 12, 2008
June 8, 2011
September 17, 2014
December 15, 2021