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Cardholders, when possible, should use a third party to document “independent” inspection and acceptance (“receipt”) of supplies and services they order or obtain over-the-counter. This simply means having another government employee sign off on the receipt or other purchase documentation verifying that the supplies/services were inspected and accepted. In some cases, such as when making an emergency purchase, or other circumstances where no other government employee is available, may make independent inspection and acceptance impossible. In those cases, the cardholder should annotate the purchase documentation to indicate that independent inspection and acceptance was not possible and why.

For products, the cardholder (and, if possible, a third party as described above) shall inspect the items to verify they are in good condition, with no visible damage or defects, and the items meet the requirements of the purchase (color, size, quantity, etc.). Cardholders should also verify that the purchase documentation (receipts, packing lists, shipping documents, etc.) matches what is provided by the merchant and that the all requirements of the purchase are fulfilled. For services, the cardholder (and, if possible, a third party as described above) shall verify that the work done is satisfactory. If upon inspection, all terms of the order as described above are fulfilled, the products (supplies) or services may be accepted.

In the event the items purchased are defective, damaged, or otherwise do not comply with the cardholder’s order, the cardholder shall attempt to resolve these issues as soon as possible directly with the merchant. Similarly, if services provided are not satisfactory, the cardholder shall address deficiencies immediately and directly with the merchant and prior to presenting the purchase card for payment, if possible.

Should the merchant fail to resolve the issue satisfactorily, and the purchase card has already been used for payment, the cardholder should dispute the transaction as soon as possible within the required timeframes in order to protect the agency’s/organization’s rights under VISA® and MasterCard® regulations. Note that pursuant to Office of Management and Budget Circular A-123, Appendix B, cardholders who fail to timely dispute erroneous or incorrect purchases may become personally liable for that purchase.

Sensitive Property

Because purchase cards are frequently used to obtain sensitive items such as Personal Digital Assistants (PDAs), MP3 players, digital cameras, navigation/GPS units, fax machines, printers, and copiers, an accurate property tracking system should be in place. These items are considered sensitive as they are readily pilferable and can easily be converted to personal use. A chain of custody tracking system is strongly recommended.

Accountability for Items Purchased

Each year, agencies acquire billions of dollars of property with purchase cards. Therefore, cardholders’ responsibilities do not end when an item they purchased is inspected and accepted. The item must be properly accounted for in accordance with applicable Federal and agency policies and regulations. Keep in mind that supplies and services purchased with a government purchase card are for official, and not personal, use. For example, an iPod purchased to view podcasts of work-related presentations and lectures should not also be used to store personal music and photos, nor should it be engraved with the user’s name. The user should be made aware that the property could be taken back by the issuing activity or program and re-issued to another in that program, to meet the purposes of the agency.

Most government agencies have policies governing accountability for “sensitive property” such as IPods, cameras, navigation systems, etc, as well as other property. GSA will be issuing guidance in this area in 2009.

Cardholders shall ensure applicable federal and agency accountability procedures are followed for property for which they are responsible. This activity includes providing information to agency/organization property officers and/or systems on items purchased, excluding consumables.

If the cardholder is purchasing an item for another government employee, that employee is the user of that property and is therefore responsible for ensuring the proper accounting of that property. However, cardholders should ensure they have documentation in their file demonstrating that the property acquired was delivered to another party and is no longer their responsibility.

Cardholders must be familiar with and comply with their organization’s policies regarding property management. This includes coordinating with your servicing property officer and appropriate custodians to ensure that all sensitive and otherwise accountable property is recorded in the applicable property tracking system, consistent with your agency’s policies and procedures. Cardholders shall also familiarize themselves with agency policies for reporting property they acquired with a purchase card that is missing, stolen or damaged after the initial receipt process.

Order Cancellation

If you need to cancel an order, immediately contact the merchant. When the merchant accepts the purchase charge card as payment, he/she must comply with VISA or MASTERCARD regulations. Immediately contacting the merchant allows you to cancel before the item has been shipped. If the merchant has already processed the transaction, a credit should be issued. If the merchant has not processed the transaction, simply cancel the order. Special order items may include a restocking charge.

Returning a Purchase

You can return the purchase to the merchant for a variety of reasons within 60 days after the date on your invoice where the item appears as a charge. By accepting the purchase charge card as payment, merchants also accept this requirement of the contract between the government and the purchase charge card contractor. If the item is damaged in shipment, is not what you ordered, or if you are dissatisfied in any way, return the purchase to the merchant and request either a replacement item or a credit to your account.

Obtaining Redress

By accepting the purchase charge card as payment, merchants agree to refund or replace any defective items. The first step to obtaining redress is to work with the merchant on a resolution. This is usually a refund or replacement of the defective item. If the merchant refuses to issue a credit voucher, you must dispute the transaction through the issuing contractor bank.

Obtaining Sales Drafts Copies

Obtain a copy of your sales draft (purchase charge card receipts) when making a face-to-face purchase. You need a copy of a sales draft in order to verify the purchase when reconciling your purchase card statement. If you misplaced the sales draft and need a copy to verify an item on your statement, submit the required form to your purchase charge card contractor. The purchase charge card contractor will send you a copy of the sales slip.

Unapproved Purchases

What happens if you make a purchase that your Approving Official does not approve?

If it has been determined that the item(s) cannot be returned, the government must pay for the purchase and recoup the amount of the purchase from YOU! That is why it is important to fully understand what CAN and CANNOT be purchased with your purchase charge card, and to ensure that your Approving Official is aware in advance of what you are purchasing.

Reconciling a Credit

On occasion your statement will show a credit for a transaction that took place in a prior billing period. An example would be a credit for a returned item. When you get a credit several months after the original purchase, reconcile back to the original purchase documentation and note that the credit was received.

Convenience Checks

Some agencies allow for the use of convenience checks. Convenience checks are a payment and/or procurement tool intended only for the use with merchants that do not accept purchase cards and for other authorized purposes where charge cards are not accepted. Convenience checks should be used as a payment method of last resort, only when no reasonable alternative merchant is available who accepts the charge card.

If your agency/organization determines a need for convenience checks, your purchase charge card contractor bank will provide a supply of checks to the designated cardholder drawn on the cardholder's purchase charge card account. The checks will be processed as they are presented for payment. Convenience checks are multi-copied (one copy for the cardholder's records; the original for the merchant). Due to the increased potential of fraud and abuse, specialized training on convenience checks is required prior to being authorized to write checks. If any misuse or abuse is discovered, the employee will lose convenience check and purchase card privileges. That employee will then be referred for disciplinary action in accordance with agency procedure.

Convenience checks may NOT be written for purchases above the micropurchase limits as defined in FAR Section 2.1. In addition, convenience checks may NOT be written to:

Vendors who accept the purchase card;
Vendor transactions already under another method of acquisition (purchase orders, contracts, etc);
Employee reimbursements;
Cash advances;
Salary payments, cash awards, or any transaction processed through the payroll system;
Travel-related transportation tickets;
Meals or lodging related to employee travel except as related to emergency incident response; and
Other restrictions as determined by Agency policy.

Checks must be used in sequential order. Each convenience check must be entered in a check register or log for tracking purposes. The following information must be written on each check:

Date the check is being issued
The name of the payee
Amount of the check
An original signature