This section will lead you step-by-step through the process of preparing to use your purchase account. Verifying Your Account The purchase account is given to you, the account holder, in trust that it will be kept safe. Unauthorized use of the account due to your failure to secure the account may result in disciplinary action. After receipt of the account the following steps should be taken: • Verify the accuracy of your name and address • Call the toll-free number provided by the contractor bank to confirm receipt of and to activate your account • Sign your card (if required) • Review account holder guide provided by the contractor bank Plan Your Monthly Purchases Decide which items are best handled with the purchase account and decide when to actually buy. When you plan your purchases, you can combine requirements in order to qualify for volume discounts as long as you remain within the authorized per transaction and monthly spending limits. Similarly, you can make small-scale purchases to avoid wasteful stockpiling. Your planning ensures that you are able to most effectively accomplish your mission by purchasing higher priority items before lower priority items. Some agencies require account holders to obtain management approval before each purchase. Ensure Availability of Funds You must establish the amount of your available funds BEFORE making any purchases. Some agencies require account holders to verify the amount of their available funds before each purchase. You must track purchases during the month to ensure that there are sufficient funds available to make all required purchases. Account holders should use a log system to record purchases and the dollar amounts committed. Then they know at a glance the amount of their unobligated funds or certified fund availability. Conduct Market Research How can your contracting activity help in market research? Your contracting activity can provide information on required sources of supply, existing contracts, good merchants and many other areas. Market research allows you to make an informed, responsible, reasonable purchase. Do enough market research to ensure that the Government gets a good value for its money in terms of reasonable price and timely/reliable/quality service. The purchase should represent the best buy that meets the Government's minimum requirements. Use the, to identify environmental attributes, such as energy efficiency or recycled content, applicable to your purchase. The GPC also identifies GSA Sources, such as Multiple Award Schedules or GSA Global Supply, and links to GSA Advantage! Compare prices and check with your contracting activity to see if there are existing contracts that offer you a good price, service, and quality. These existing contracts have been negotiated at your agency or by other agencies and can sometimes offer advantages in time and money savings. Check with the merchant to determine if they accept the purchase account. Select the Best Value When making micro-purchases, identify the supply or service that best satisfies the requirement, weighing both price factors and non-price factors. You can buy a higher priced item if it represents a better value, but it is your responsibility as the account holder to perform basic comparison-shopping and to briefly document the basis for your purchase decisions. For example, check the vendor’s schedule price. Also check the for life cycle cost information, especially for energy using products. GSA SmartPay ® 2 Solutions. Support your organization's policies and processes as you manage your GSA SmartPay® 2 Card Programs. Seek State Tax Exemption Visit the to find out more about the state tax requirements in your state. Centrally Billed Accounts (CBAs) are exempt from state taxes in EVERY state but there may be special requirements in some states. Talk to Merchants You should be as specific as possible when talking to merchants. Ask about: • Price • Whether the price includes shipping • Time of delivery • Discounts for Government purchases • Merchant's return policies (if different) When you have all the necessary information, make the purchase. • A merchant may never require the account holder to complete a postcard or similar device that includes the account holder's account number, card expiration date, signature, or any other account data in plain view when mailed. What Are Point of Sale Discounts? Certain merchants offer automatic discounts when you use your purchase account to make purchases. These merchants recognize the Government purchase account and apply a discount at the time of the sale. Is It Necessary to Distribute Purchases? If you are not required to get quotations, can you always buy from the same source? FAR Part 13.203(a)(1) of the Federal Acquisition Regulations recommends that micro-purchases be equitably distributed among qualified merchants to the extent practicable. Determine Dollar Limits There are generally two types of dollar limits applied to your purchase account: • Single purchase limit • Monthly purchase limit Single purchase limits and monthly purchase limits are established when your account is set up. They are based on your delegation of authority and the budgetary limits of your office. The single purchase limit is the dollar limit for an individual transaction. The monthly limit represents the cumulative dollar limit for your purchases in one month. It may be set to any dollar amount equal to or greater than the single purchase limit. Verify both of your limits with your AO or A/OPC. Other restrictions such as number of transactions and merchant category codes (MCC) may apply. MCCs are codes that businesses use to describe the products or services they provide. Certain MCCs are blocked by agencies to prevent fraud and misuse. Exceeding Your Dollar Limit Prior to processing your purchase the merchant will check to see if it exceeds any of your dollar limits. All attempted transactions that exceed your single or monthly limit will be automatically declined at the point of sale. It is your responsibility to know how much you’ve spent against your limits before you purchase. Do not rely on the authorization system to do this for you. Contact your A/OPC or contractor issuing bank immediately if your account is declined. The contractor bank customer service phone number is listed on the back of your charge card or on the. Select Required Sources Use of the purchase account should be consistent with established guidelines for required sources of supply and applicable acquisition procedures, such as those applicable to micro-purchases or to acquisitions below the simplified acquisition threshold. Procurements paid for with the account are subject to the acquisition rules established in the Federal Acquisition Regulations (FAR) and your Agency/Organization policies and procedures. The Federal Acquisition Streamlining Act did not abolish the priorities for use of the Government supply sources as stated in FAR Part 8 (Required Sources of Supplies and Services) of the Federal Acquisition Regulations. Micro-purchases are not exempt from this requirement. The following information from FAR Part 8 lists the priorities for use of Government supply sources: (a) Except as required by 8.003, or as otherwise provided by law, agencies shall satisfy requirements for supplies and services from or through the sources and publications listed below in descending order of priority: (1) Supplies. (i) Inventories of the requiring agency. (ii) Excess from other agencies (see subpart 8.1). (iii) Federal Prison Industries, Inc. (iv) Supplies which are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled (see subpart 8.7). (v) Wholesale supply sources, such as stock programs of the General Services Administration (GSA) (see 41 CFR 101-26.3), the Defense Logistics Agency (see 41 CFR 101-26.6), the Department of Veterans Affairs (see 41 CFR 101-26.704), and military inventory control points. (2) Services. Services that are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled (see subpart 8.7). (b) Sources other than those listed in paragraph (a) of this section may be used as prescribed in 41 CFR 101-26.301 and in an unusual and compelling urgency as prescribed in 6.302-2 and in 41 CFR 101-25.101-5. (c) The statutory obligation for Government agencies to satisfy their requirements for supplies or services available from the Committee for Purchase From People Who Are Blind or Severely Disabled also applies when contractors purchase the supplies or services for Government use. Agencies shall satisfy requirements for the following supplies or services from or through specified sources, as applicable: (a) Public utility services (see part 41). (b) Printing and related supplies (see subpart 8.8). (c) Leased motor vehicles (see subpart 8.11). (d) Strategic and critical materials (e.g., metals and ores) from inventories exceeding Defense National Stockpile requirements (detailed information is available from the DLA Strategic Materials, 8725 John J. Kingman Rd., Suite 3229, Fort Belvoir, VA ). (e) Helium (see subpart 8.5—Acquisition of Helium). If an agency is unable to satisfy requirements for supplies and services from the mandatory sources listed in 8.002 and 8.003, agencies are encouraged to consider satisfying requirements from or through the non-mandatory sources listed in paragraph (a) of this section (not listed in any order of priority) before considering the non-mandatory source listed in paragraph (b) of this section. When satisfying requirements from non-mandatory sources, see 7.105(b) and part 19 regarding consideration of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including 8(a) participants), and women-owned small business concerns. (a)(1) Supplies. Federal Supply Schedules, Governmentwide acquisition contracts, multi-agency contracts, and any other procurement instruments intended for use by multiple agencies, including blanket purchase agreements (BPAs) under Federal Supply Schedule contracts (e.g., Federal Strategic Sourcing Initiative (FSSI) agreements accessible at (see also 5.601)). (2) Services. Agencies are encouraged to consider Federal Prison Industries, Inc., as well as the sources listed in paragraph (a)(1) of this section (see subpart 8.6). (b) Commercial sources (including educational and non-profit institutions) in the open market. With a connection to the internet, you can quickly browse through the GSA on-line shopping mall for thousands of commercial products and services including JWOD/NIB/NISH and UNICOR products. GSA Advantage! ® TM is designed to link GSA schedule products and services, stock items, catalog descriptions, current pricing, and delivery information in a single location to make ordering easier for you. To place an order, you can use your purchase charge card. The address for GSA Advantage! For any questions regarding GSA's Products and Services, call the National Customer Service Center (NCSC) at 1-800-488-3111. Small Business Increasing opportunities for small businesses in Federal contracting is a priority. The Office of Management and Budget (OMB), along with the Small Business Administration (SBA), is improving access by small businesses to the Federal market and to boost communications to small businesses about Federal business opportunities. As part of these efforts, you are reminded of the importance of considering small businesses when buying goods and services at or below the micro-purchase threshold. The Federal Acquisition Regulation (FAR) states that use of the Government-wide purchase card is the preferred method for buying these small purchases. To find small business resources, please consider visiting the GSA Advantage! And DoD e-Mall websites. Shop Smarter • Use GSA Advantage! to conduct quick and easy market research and to order already negotiated low-price items; • Take advantage of the Blanket Purchase Agreements (BPAs) your agency has negotiated to get better prices; • Always ask for discounts at the register - whether or not point-of-sale discounts are given; • Locate merchants that accept MasterCard and VISA by visiting and to use their merchant/supplier locator tools. It shall be the policy of the executive branch to buy American and hire American. • Immediate Enforcement and Assessment of Domestic Preferences According to Buy American Laws: Every agency shall scrupulously monitor, enforce, and comply with Buy American Laws, to the extent they apply, and minimize the use of waivers, consistent with applicable law. • Judicious Use of Waivers: To the extent permitted by law, public interest waivers from Buy American Laws should be construed to ensure the maximum utilization of goods, products, and materials produced in the United States. • Ensuring the Integrity of the Immigration System in Order to 'Hire American.' : The Secretary of State, the Attorney General, the Secretary of Labor, and the Secretary of Homeland Security shall, as soon as practicable, and consistent with applicable law, propose new rules and issue new guidance, to supersede or revise previous rules and guidance if appropriate, to protect the interests of United States workers in the administration of our immigration system, including through the prevention of fraud or abuse. If you are a first time GSA SmartPay travel account applicant, your agency is required to assess your credit worthiness pursuant to Section 846 of the Consolidated Appropriations Act of 2006 (Public Law 109-115), prior to issuing you a travel account. Refer to the Office of Management and Budget (OMB) Circular A-123, Appendix B, Chapter 6, credit worthiness, for more details or contact your agency’s program coordinator to get details on the process used for assessing credit worthiness. To receive a GSA SmartPay travel account, you will need to fill out the appropriate application from the bank. To do this, you must: • Obtain an application through your Agency’s program coordinator (A/OPC) • Provide an address where your GSA SmartPay travel charge card will be mailed (at most agencies, this is your home address). • Provide an identifier to activate your GSA SmartPay travel account. • Indicate whether you will have ATM access (you can find this out from your A/OPC). • Know your responsibilities in accepting a government travel account. Be aware that: • You are personally liable and responsible for all charges whether or not you are reimbursed by your agency; • Your credit rating may be affected if the account has been cancelled; • You may be subject to disciplinary action and/or salary offset for late payment. • Sign the form (you may need to have your supervisor sign it also). • Submit the signed form to your A/OPC who will verify it to make sure all necessary information is provided (your A/OPC will send it to the bank). You will receive your government travel account in the mail within 10 days from the time the application is submitted. If you have ATM authorization, the bank will mail the PIN separately (for security reasons). You should receive your ATM PIN within a few days of receiving your GSA SmartPay travel account. When you receive your travel account, it is important to: • Read the Cardholder Agreement. • Sign the back of your travel charge card. • Follow the instructions to activate your travel account. • Store your travel charge card in a secure location until you are ready to travel. Extended Benefits. Government travel account holders, under the GSA SmartPay Program, are eligible to receive extended benefits coverage. They are automatically covered when the account holder initiates and pays for the entire travel related transaction with their government account. Any/All benefit are agency specific. This means that some agencies may have more benefits due to differences in the task order. Additional restrictions, limitations, and exclusions may apply to the terms and conditions of the insurance provisions. Dollar limitations on services provided may vary depending upon the contractor. For details, please contact your issuing bank’s customer service center. These benefits are provided, free of charge, through the following contractors: • JPMorganChase • Citibank • US Bank. The Travel and Transportation Reform Act of 1998 (Public Law 105-264) mandates Federal Government account holders to use the contractor-issued travel account for official government travel expenses and to receive cash advances unless: • A vendor does not accept the travel charge card; • The Administrator of GSA has granted an exemption (see FTR Section 301-70.704); or • Your agency head or his/her designee has granted an exemption. Government travel accounts are VISA or MasterCard branded and can be used at any location that accepts VISA or MasterCard credit cards, including internationally. The GSA SmartPay travel account may be used only for authorized official travel and authorized travel related expenses. Official travel expenses are transportation, lodging, meals, and incidentals. The travel account may not be used for personal expenses at any time or must not be used by any other person. When you return from your trip, you must submit a claim for reimbursement of the allowed expenses incurred while on travel. You will either use the reimbursed amount to pay the travel account bill or it may be sent directly to the issuing bank (if your agency supports split disbursement). To get started with a GSA SmartPay account, you must: • Apply for a government travel account through your agency's program coordinator. • Read and become familiar with your agency’s travel policy and procedures. • Find out what receipts you will need to keep to be reimbursed. • Become familiar with Federal travel policy: • (41 CFR., Chapters 301-304) • – for DoD civilian employees • Foreign Affairs Manual, Volume 6, Chapter 100 (6 FAM 100) - for members of the Foreign Service, U.S. Department of State Planning/Making Reservations. At most agencies, you will make travel reservations through your agency Travel Management Center (TMC)/ Commercial Travel Office (CTO). Generally, the TMC/CTO pays for airline tickets using your agency's centrally billed travel account. If this is the case, charges booked through the TMC/CTO will not appear on your individually billed GSA SmartPay travel account. You are required to use the Travel Management System selected by your agency for all common carrier, lodging, and car rental arrangements. Only the head of your agency or his/her designee may exempt certain types of travel arrangements from the mandatory use of the Travel Management System. There are several benefits to having the TMC/CTO make your lodging reservations: • Compliance with the Fly America Act, government-wide travel policies, contract city pair fares, electronic ticketing, and ticket delivery, and • Compliance with the Hotel/Motel Fire Safety Act. For lodging reservations, find out: • If the facility is on the FEMA list of fire safe lodging. • The cancelation policy. Be sure to cancel if you will not be using the room (most hotels charge for last minute cancellations or no-shows.) • The late arrival policy if you will be arriving after 6 PM. • When the hotel will charge your travel charge card. This is important because it will affect your ability to receive reimbursement from your agency in time to pay your travel charge card bill before it becomes delinquent. • State policies on tax exemptions. Before, During, and After the Trip. Cash Advance: In accordance with agency policy, you may obtain cash through the use of an ATM to cover all anticipated out-of-pocket cash expenses for the trip before you leave. Airline tickets: Unless your TMC/ CTO mails airline tickets to travelers, pick up your airline ticket as close to the date of departure as possible. Many TMCs use e-ticketing, where you will only receive information about the reservation and not a physical ticket. Phone card: Pick up a government phone card from your agency for telephone calls (ask your program coordinator to find out your agency policy on reimbursing personal phone calls while on travel). Don’t forget to bring: • A government issued picture ID card/ badge or drivers license • A copy of your travel authorization • The government travel account to pay for official travel expenses such as your hotel, car rental and meals • Personal cash or credit card to pay for personal expenses • Lodging tax exempt forms (if available). During your trip, make sure you keep a record of expenses by writing them down or saving receipts. Lodging receipts are required by all agencies. Follow agency policy with regard to other receipts. You must complete and submit the travel claim/voucher immediately, within 5 calendar days or agency specified timeframe, after returning from official travel. Make sure you: • Provide all necessary information and attach or submit receipts as required by your agency. • Know the sign-off process and follow-up. • Set up a direct deposit to your bank account, so you will not have to wait for a check to be mailed. • Use the amount reimbursed by your agency to pay the travel bill. • Pay the balance on your travel bill in full before it becomes delinquent. Green Travel. When traveling, you should be aware of your impact on both the physical and social environment. You should try whenever possible to minimize negative environmental impacts and make positive contributions by choosing eco-friendly options, conserving plants, wildlife and other resources, and respecting local cultures and communities. As a traveler, you have opportunities to preserve and protect the environment of the place you are visiting. Look for green lodging options and earth-friendly transportation such as biking, walking and taking public transit. The government has made environmental sustainability a priority. FedRooms is working with its hotels to promote properties that have sustainable practices in place. You can look for the FedRooms “green” icon when searching for hotels. Some tips to think about before traveling include: • Choose hotels that are locally owned or staffed by local employees • Choose hotels that have recycling programs and options for reusing towels and sheets instead of having them changed each day. • Research if the hotel offers energy-efficient lighting, low-flow toilets and showers, or if they take advantage of alternative energy sources. • Select a hotel close to public transportation and or near the places you are going to visit. • When flying, book electronic tickets. • Minimize air travel and choose to stay longer in a destination instead of making many short trips. • For shorter trips, take the train, take the bus, or drive. • When renting a car, choose a small hybrid car. • Share the ride with fellow employees. Ridesharing can include either cabs or shuttle services between airports, hotels, and conferences or meetings. • Pack lightly. Reducing the weight of luggage can significantly cut green house gas emissions and reduce the weight of your individual carbon footprint. • Before leaving home, unplug any unnecessary appliances and set the thermostat and water heater at low settings. During your trip, try to: • Minimize water usage when showering or brushing your teeth. • Turn off air conditioning and other electrical appliances when not in use. • Use your own drinking cups and toiletries. • Tell the hotel how important eco-friendly options are to you. Agencies should raise the awareness of the environmental and health benefits of walking or bicycling between lodging and meetings at the temporary duty site when practical. • Use public transportation. You as a traveler should be familiar with subway/trains and bus routes that are available between meetings, lodging, and other locations at which business is to be conducted. • Grab only the maps and brochures that you will actually use. Visit a farmer’s market, shop at a locally owned grocery store and choose locally owned restaurants that buy local. • Whenever possible, utilize options that do not require batteries. Buy rechargeable batteries for your essential travel items (cameras, razors, and flash lights). • Check out electronically. Most hotels allow travelers to view and approve their bill electronically rather than relying on paper documents. After your trip, eliminate the use of paper by signing up for online or paperless statements and payments. Billing and Payment. Make payment for all undisputed charges on your travel bill in full by the statement billing due date (25 to 30 days after the closing date on the billing statement). The due date is printed on the bill. Failure to pay your monthly bill in a timely manner may result in the loss of your charging privileges. If your account is suspended, you will be unable to use it until your bank receives payment. If your account is canceled due to non-payment, your delinquency maybe reported to credit bureaus, be referred to collection agencies, or lead to other collection actions and you may not be eligible to receive a new account. In addition to your agency's travel policy, you should comply with the following guidelines: • Do use your government travel account to pay for official travel expenses. • Do obtain travel advances for official travel through an ATM if authorized by your agency. • Do track your expenses and keep receipts while on travel so you have accurate information for filing your travel claim. • Do file your travel claim within five days after you complete your trip or every 30 days if you are on continuous travel. • Do submit payment in full for each monthly bill. • Do follow your bank's dispute process for charges which are incorrect. • Do contact your bank's customer service number if you have questions about your monthly bill. • Do be aware that misuse of the travel account could result in disciplinary actions by your agency. • Do be aware that failure to pay your bill in a timely manner can result in suspension or cancelation of your account. • Do destroy your travel charge card if you leave your agency or retire. • Do immediately report your lost or stolen account to your A/OPC and the issuing bank. • Do destroy any lost or stolen cards that are recovered. • Do be aware of identity theft schemes attempting to gain access to financial information. • Don’t use your travel account for personal use. • Don’t obtain travel advances through the ATM which exceed your expected out of pocket expenditures for a trip. • Don’t obtain travel advances through the ATM unless you are on travel or will be on travel shortly. • Don’t allow your monthly bill to become overdue because this could result in suspension or cancelation of your account. • Don’t wait for receipt of your monthly billing statement to file your travel claim. • Don’t forget that the account is issued in your name and liability for payment is your responsibility. • Don’t write your personal identification number (PIN) down or carry your PIN in your wallet. Reporting a Lost or Stolen Account. Immediately report your lost or stolen travel account to your: •; • Agency Program Coordinator; and • Supervisor. Reporting as account as stolen does not relieve you or the Federal Government of payment for any transactions that were made by the account holder prior to reporting it stolen. If the account holder did not make the transactions appearing on the account holder statement, the account holder must submit a dispute form to the bank within 60 days. Failure to submit the dispute form could result in liability you or to the Federal Government. If needed, the bank will mail you a new card within one business day from the time theft or loss was reported and will assign you a new account number. Common Questions. First contact your Agency/ Organization Program Coordinator (A/OPC). A/OPCs can answer most account related questions including: • How do I apply for a card? • What is considered proper use of my card? • What is my spending limit? • What are merchant codes and how can I request lifting these codes? • What is delinquency? What is fraud? What are the consequences for my agency? • Why has my card been suspended or canceled? • How do I get set up for online access? Account holders can also contact the bank directly using the customer service phone number listed on the back of their card. • Citibank, 1-800-790-7206 • JPMorgan Chase, 1-888-297-0781 • US Bank, 1-888-994-6722 If your issue can not be resolved by your A/OPC or the bank, please forward it to GSA Program Support at (703) 605-2808 or email. Accounts, such as charge cards, need to be obtained through your agency’s payment solutions program. Each agency has different criteria for distributing accounts to employees. Contact your supervisor or your agency’s program management office for more information on applying for a GSA SmartPay account. Depending on the type of payment solution and agency/organization, there are different qualifications for applicants to obtain an account: • For purchase accounts, a supervisor must recommend an employee to apply. Potential purchase account holders must complete purchase account holder training before using their purchase account. • Depending on the frequency of travel, agency or government wide policy may require that an employee obtain a Government travel account to make travel related purchases. Travel account applicants may be subject to a credit worthiness check and must complete travel account holder training before using their travel account. • Fleet accounts are generally assigned to a vehicle, rather than an individual. Users of a Government vehicle should contact their fleet program manager to learn more about how to use vehicle fleet accounts. Purchase Account – Purchase accounts are the preferred contracting and payment mechanism for micro-purchases of supplies and services in accordance with the Federal Acquisition Regulations. Only a few categories of purchases are excluded, such as: • Long-term rental or lease of land or buildings; • Travel related expenses (excluding conference rooms, meeting spaces, and local transportation services such as Metro fare cards, subway tokens, etc.); • Cash advances (unless permitted as a value added service under the agency task order). For purchases above the micro-purchase threshold, the purchase card may be used as an ordering and payment mechanism, not a contracting mechanism. These purchases will require a separate contract. Travel Account – Travel accounts may be used by individual government travelers to pay for all official Government travel and related expenses. Account holders are expected to submit vouchers to their agency for all authorized travel-related expenses within five days after the travel is completed (or within 30 days if on continuous travel) and must pay their travel account bills. Account holders are not authorized to make purchases for anything other than official government travel-related expenses. Some agencies authorize the use of travel accounts for local travel purposes - check with your supervisor or A/OPC to learn more about your agency/organization’s policy. Fleet Account – Fleet accounts may be used for purchasing fuel and maintenance services for government vehicles. Depending on the type of account, different policies may apply. Policies include: • Federal Acquisition Regulations (FAR); • Federal Travel Regulations (FTR); • Federal Management Regulations (FMR); • OMB Circular A-123 Appendix B; • Treasury Financial Manual for Guidance of Departments and Agencies. Additionally, many agencies have additional regulations that are specific to their program and tailored to the agency's mission and operating procedures. Contact your agency program management office for more information regarding agency-specific policies. All program participants must be trained and receive a training completion certificate prior to appointment. In addition, refresher training must be completed every 3 years (or more often if required by your agency training policy). Training certificates serve as proof that an account holder has taken the appropriate training course. Account holders can obtain their training certificate by logging into the. If the account holder has previously taken the course and passed the quiz, they may reprint or save the certificate with the original course completion date by logging into the online training. An account holder can also take a refresher quiz. A passing score will enable the account holder to reprint the certificate with a refreshed date. Intentional use of a government account for other than official government business constitutes misuse, and depending on the situation, may constitute fraud. Each agency develops and implements policies related to employee misuse of charge cards. Examples of misuse include: • Purchases that exceed the cardholder's limit; • Purchases that are not authorized by the agency; • Purchases for which there is no funding; • Purchases for personal consumption, and • Purchases that do not comply with the policies. Potential consequences for the account holder may include: counseling, cancellation of the account, a written warning, notation in employee performance evaluation, reprimand, and/or suspension or termination of employment. In the case of purchase account or centrally billed accounts (CBA) travel misuse, the employee may be held personally liable to the Government for the amount of any unauthorized transactions. Depending on the agency and the circumstances, there are a number of applicable laws that can result in fines or imprisonment. Additionally, the contractor banks are authorized to take certain actions against account holders whose accounts are cancelled for delinquency, such as: • Assessing late fees; • Utilizing collection agencies to recover the delinquent balance; • Reporting the delinquency to national credit bureaus, and • Salary offset. In some cases, when using certain types of cards, government account holders are exempt from taxes on their purchases. Please visit the for more information on taxes. • Centrally Billed Accounts (CBA): CBAs are purchase accounts where payment is made directly to the bank by the Government. Currently, all states except Arizona, Illinois, and Hawaii exempt Federal Government employees with CBA purchase accounts. • Individually Billed Accounts (IBA): IBAs are travel accounts where payment is made directly to the bank by the individual. The state determines the exemption status for Individually Billed Accounts. • Integrated Accounts: Integrated accounts are CBAs. The payment process called split disbursement is defined in the GSA SmartPay 2 master contract as the process of dividing a travel voucher reimbursement between the contractor (bank) and the traveler. The balance designated to go to each is sent directly to the appropriate party. Note: Although OMB Circular A-123, Appendix B in Chapter 4.4 requires all executive branch agencies to implement split disbursement, it may not yet be operational in your agency/organization. Please contact your Agency/Organization Program Coordinator (A/OPC) for further details. Both VISA and MasterCard state in their guidelines that a merchant is allowed to make/store a photocopy of a charge card provided they do NOT record or copy the PIN and/or CVC data in any manner or for any purpose. State: A merchant must not require a cardholder to provide any supplementary cardholder information as a condition of honoring the card including photocopying the card, unless it is required or permitted elsewhere in the US Regional Operating Regulations. State: The merchant must absolutely not copy the back of the card because the merchant is not allowed to record the CVC data. Although there is no rule prohibiting making a copy of the card front, there are standards regarding storing and destroying account data, which would include a copy of the card front. Note: According to US Code Title 18, Part 1, Chapter 33, 701, it is illegal for a merchant to photocopy your Government ID. The Travel and Transportation Reform Act of 1998 (Public Law 105-264) mandates Federal Government account holders to use the contractor-issued travel charge card for official government travel expenses and to receive cash advances unless: • A vendor does not accept the travel charge card; • The Administrator of GSA has granted an exemption (see FTR Section 301-70.704); or • Your agency head or his/her designee has granted an exemption. Government travel accounts are VISA or MasterCard branded and can be used at any location that accepts VISA or MasterCard, including internationally. The GSA SmartPay travel account may be used only for authorized official travel and authorized travel related expenses. Official travel expenses are transportation, lodging, meals, and incidentals. The travel account may not be used for personal expenses at any time or must not be used by any other person. General Administration. The Federal Government saves on processing costs and generates revenue through volume refunds. The amount of refund your agency receives is calculated during task order negotiation. Agencies must verify their own refunds. You can do this by comparing the base points in the task order with the quarterly refund report received from your bank. If you need a copy of the quarterly report, contact your point of contact at the bank. With GSA SmartPay, split disbursement will allow agencies to receive productivity and sales refunds for IBA accounts in addition to CBA accounts. Reporting Tools. Program Coordinators should use electronic reports to monitor and track delinquency. The following is a list of reports available to you from the banks: • Pre-suspension/Pre-cancelation Report: Provides a listing of accounts eligible for suspension or cancellation. • Suspension/Cancelation Report: Provides a listing of accounts that have been suspended or cancelled. • Delinquency Report: Provides account status for each range of days accounts are past due (30, 60, 90, 120 or more days). • Charge Off/Write Off Report: Lists the amounts charged off/written off for non-payments. • Exception Report: Provides information on declined authorizations, Merchant Category Code (MCC) reports for non-travel expenditures, ATM withdrawals, high-volume accounts, etc. These reports may vary from bank to bank. • Ad Hoc Reports: Your bank may offer an ad hoc reporting tool that enables you to create customized reports with the data elements you specify. The Electronic Access System (EAS) provides many useful reports to assist in the effective management of the GSA SmartPay program. The EAS allows AOs to review an account holder’s transactions online. Purchase account holders can maintain electronic purchase logs through the EAS as well. There are many other functions of the EAS that are beneficial for AOs, including electronic reconciliation and certification, editing account allocation, multi-account allocation and assignment of account codes. Value Added Product and Service Offerings are provided from the contractor banks to customer agencies.Those offerings that are most beneficial for AOs include data-mining tools to detect patterns, trends, and/or anomalies, and automatic email alerts for a given transaction. Contractor banks are required to provide various reports to agencies, to help manage the program and to assist agency representatives with identifying and investigating possible misuse of payment solutions. Additional information regarding the GSA SmartPay Program and AO responsibilities can be found via the following links: • The GSA SmartPay Master Contract • OMB Circular A-123, Appendix B • Billing and Payment. For Individually Billed Accounts (IBA): Account holders must make payment for all undisputed charges on their travel charge card bill IN FULL by the statement billing due date printed on the bill (25 to 30 days after the closing date on the billing statement). Failure to pay the monthly bill in a timely manner may result in the loss of their charging privileges. If the account is suspended, the account holder will be unable to use it until the bank receives payment. If the account is cancelled due to non-payment, the delinquency maybe reported to credit bureaus, be referred to collection agencies, or lead to other collection actions and the account holder may not be eligible to receive a new account. The agency/organization is never responsible or legally liable for the account. For Centrally Billed Accounts (CBA): The Federal Government accepts liability only for those proper charges made by an authorized centrally billed account holder using the account, but is not liable for any unauthorized use. Unauthorized use means the use of an account by a person, other than the account holder, who does not have actual, implied, or apparent authority for such use and from which the account holder receives no benefit. When the centrally billed account has been used by an authorized account holder to make an unauthorized purchase, the centrally billed account participant is liable for the charge. Realizing Cost Savings. The GSA Office of Charge Card Management (OCCM) and GSA SmartPay contractor banks are dedicated to identifying opportunities to provide customers with GSA SmartPay solutions to help address agency payment challenges. OCCM seeks to increase awareness of available payment solutions under the GSA SmartPay master contract and help agencies continue to find ways to increase payment efficiencies and earn refunds. In the current budgetary environment, OCCM is committed to providing information to agency executives and card managers to identify innovative ways to help realize cost savings. Responsibilities and Risk Management. As the travel program coordinator (A/OPC), your primary responsibility includes overseeing the travel program for your agency/ organization to best support your agency’s mission. You will serve as a liaison between the account holder, the bank, the agency’s management, and GSA’s Office of Charge Card Management. There are several preventative actions you can take to help manage and minimize risk within your travel program. These include: • Determining credit limits – Review the credit limit of account holders to determine what is appropriate based on the frequency of travel. • Deactivating accounts when not in use. • Establish ATM withdrawal limits. • Monitor delinquency and unauthorized charges more effectively by decreasing the number of days for suspension, cancelation, or late fees. • Blocking certain Merchant Category Codes (MCCs) to prevent unauthorized use. • Suspending and/or canceling an account for inappropriate use or failing to pay the bank on time. • Implementing salary offset. • Ensuring the use of split disbursement • Reviewing accounts periodically to ensure that all unused travel accounts are closed (this includes closing accounts for employees who leave the organization). • Reporting delinquency and misuse/abuse to the appropriate officials. Delinquency is the result of an employee’s failure to pay the charges incurred on his/her individually billed travel account in accordance with the terms and conditions of the issuing bank’s account agreement. The account holder must pay all undisputed charges directly to the issuing bank in full by the billing due date as printed on the statement of account, regardless of whether or not reimbursement has been received from the agency. The billing due date varies between 25 and 30 days after the closing date on the statement of account. In the event a statement of account contains a charge that is incorrect or unrecognizable by the account holder, the account holder must dispute the charge by filing a dispute form with the bank within 60 days from the statement of account date on which the charge first appeared. The following can be used as a guide for determining the status of an account. (Please remember to refer to your agency policy for specific delinquency stages). • 45 days past due: Pre-suspension • 61 days past due: Suspension/ pre-cancelation • 126 days past due: Cancelation • 180 days past due: Charge off/ write off It is important to notify employees that a canceled individually billed travel charge card account.
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