Credit Card Use Policy & Procedures
General Policy
Credit cards are issued at the discretion of Donate Life Northwest’s Executive Director to current employees occupying positions that frequently require the use of a credit card as a tool for purchasing materials and services for less than $2,500. Cards are usually issued after at least three months of employment. The cardholder agrees to comply with all applicable Donate Life Northwest policies and procedures and this Cardholder Agreement. When signed and accepted, this form acts to assign the formal delegation of purchase authority to a current Donate Life Northwest employee to execute credit card purchases.
Each Organizational Credit Card will be issued to a specific person, who will remain personally accountable for the use of the card. Cardholders will sign the attached declaration (Appendix A).
Only the authorized signatory may use the card. No more than one card shall be issued per cardholder. Credit limits as appropriate shall be set for each card by the issuing authority.
Ownership and Cancellation of the Credit Card
The credit card remains the property of the Organization. It may not be transferred to, assigned to, or used by anyone other than the designated Cardholder. The Cardholder is accountable for the activity on the card. The bank or Donate Life Northwest may suspend or cancel Cardholder privileges at any time for any reason. The Cardholder will surrender the credit card upon request to Donate Life Northwest or an authorized agent of the Bank.
Spending Limits
Each credit card has its own pre-set limit that may not be exceeded under any circumstances.
Receipts
It is the Cardholder's responsibility to obtain detailed transaction receipts from the merchant each time the credit card is used to validate the expense. These individual transaction receipts are to be kept safe and turned in to the Finance Manager as soon as possible and no later than the end of the month in which a purchase is made. If for some reason a receipt cannot be obtained, reprinted, resent, or recovered, the Cardholder shall in lieu provide a statutory declaration (explanatory note) noting the amount, date, and reason for the expense. These receipts and declarations are attached to the periodic statements and reconciled by the Finance Manager.
Receipt Coding and Processing
For each purchase, the Cardholder is responsible for verifying in the following ways that the goods and services listed were received:
- List the appropriate Account Code and Class on the receipt.
- Initial the receipt - this is particularly important if the receipt does not indicate the last four numbers on the card.
- When meals are charged:
- all persons in attendance must be noted
- tip amount must be noted
Credit Card Expenditures
The Card will only be used for those activities that are a direct consequence of the Cardholders’ function within the organization. Where doubt exists as to whether or not an item is function-related, prior authorization should be obtained from the direct supervisor or the Executive Director.
Where coincident and/or private expenditure occurs on the same transaction (where, for example, a person incurs a debt for personal telephone calls during a hotel stay) the cardholder must settle the private expense prior to charging the balance on the Organizational Credit Card.
The use of the corporate card for “services of a dubious nature” is expressly prohibited. “Services of a dubious nature” are defined as any goods or services that might bring the name of the organization into disrepute.
The Cardholder shall not:
- purchase items for personal use
- use of the credit card for cash advances
- use the card for any prohibited purchases
- authorize their own expenditures
- claim double allowances (i.e. request reimbursement for an expense already paid by the card).
- Fail to turn in packing slips, receipts, or other backup documentation to the Finance Manager within 30 days of the purchase.
Disputed Items
It is the Cardholder's responsibility to follow up on any erroneous charges, returns, or adjustments to ensure proper credit is given on subsequent statements.
Protecting the Credit Card
The credit card is valuable property that requires proper treatment by the Cardholder to protect it from misuse by unauthorized parties. The Cardholder agrees to take adequate measures to ensure the security of the card and will be personally liable for any unauthorized transaction unless the card is lost, stolen, or subject to fraud on some part of a third party.
Validation and Safekeeping
Sign the credit card immediately upon receipt. The credit card should always be treated with the same care as personal credit cards, bank cards, cash, and checks. Keep your card(s) in an accessible, but secure location. When using a credit card for internet purchases, cardholders should ensure that the site utilizes industry-recognized encryption transmission tools.
When the expiration date is passed and/or after you have received a new credit card, cut the old credit card in half and dispose of it. Make sure the credit card is returned to you after each charge and verify that the returned credit card has your name on it.
Lost or Stolen Credit Cards
Notify the bank and the Finance Manager immediately if the card is lost or stolen or if any unauthorized transaction is detected or suspected.
Compliance with Policy, Violations, and Consequences
Employee violations to this agreement or to any policy regarding the purchase of goods or services will be investigated and may result in either one or more of the following actions:
- verbal or written warning
- revocation of credit card privileges
- disciplinary action
- termination and/or criminal prosecution.
Human error and extraordinary circumstances may be taken into consideration when investigating any violation of this agreement.
Receipt of Credit Card Use Policy & Procedures:
Please download these policy and guideline documents for future reference. They can also be found on the X drive here: X:\OHSU Shared\Restricted\DLNW\POLICIES