A-to-Z Index

4125 - Payment Cards

Effective Date:  August 4, 2011

Table of Contents:

    .100 General
    .200 Control Responsibilities
      .210 Departments
      .220 University Business Office
      .230 Assistant Vice President for Finance
    .300 Processing Procedures
      .310 Departments
      .320 University Business Office
      .330 Assistant Vice President for Finance
    .400 Forms Preparation and Submission
      .410 Financial Information System Deposit Transmittal Form
      .411 Required
      .412 Where to Obtain Blank Form
      .413 Numbers of Copies
      .414 Where to Send Completed Form
      .415 Form Preparation Instructions
      .420 Deposit Certificate Sequencing
    .500 Deposit Reconciliation
      .510 Required
      .520 Who Should Perform the Reconciliation
      .530 Reconciliation Differences

.100 General

All payment card activity at James Madison University must be approved by the Assistant Vice President for Finance prior to implementation.

Procedures for payment card activity for Local/Agency Fund accounts are included in Section 3045, "Local/Agency Funds".

.200 Control Responsibilities

.210 Departments

  • Comply with this procedure when authorized by the Assistant Vice President for Finance to sell goods and services.
  • Comply with Virginia Retail Sales and Use Tax Collection requirements once authorized by the Assistant Vice President for Finance to sell merchandise or rent university facilities.
    • Contact the Cash & Investments Office for specific procedures prior to initiating any sales/rentals.
  • Basic Controls for the Payment Card Processing
    • All locations accepting payment cards must obtain written authorization from the Assistant Vice President for Finance prior to implementing a payment card payment option.
    • Once the department has been approved to process payment cards, the University Business Office will obtain merchant numbers for Visa, MasterCard, Discover, and American Express (if the department chooses to accept). All payment card equipment and terminals will be obtained and programmed by the University Business Office for the department. Equipment costs will be billed to the department.
    • Department contacts the merchant processor and the University Business Office with all error messages received on the payment card terminal. Departments may NOT place orders on new or replacement payment card terminals. If the payment card processor recommends a replacement terminal, the department may NOT accept one before contacting the University Business Office first. All terminals are procured through the University Business Office. 
    • Department Head (Merchant) must review, sign and complete JMU Merchant Agreement and PCI DSS Self Assessment Questionnaire (SAQ) on an annual basis with the University Business Office.
    • Department requests training and access, from the University Business Office, for online transaction management sites.
      • Department submits required background check documents for appropriate staff (including students).
    • Department contacts the University Business Office to schedule mandatory Payment Card Acceptance Training for all employees and students designated to handle any area of payment card processing.
    • Ensure responsibility for payments received from time of receipt to time of deposit is clearly defined and documented within each authorized payment collection location.
    • Only the minimum number of trained employees should handle payments from receipt to deposit.
    • Ensure proper separation of duties exists.
    • Payment handling, record keeping, and reconciliations should be assigned to different people.
    • If the size of the department makes proper separation of duties impossible, a second person must verify reconciliations of funds received and accounts maintained.
    • Deposit university funds only into appropriate university accounts, not into accounts such as: personal bank accounts or petty cash accounts.
    • Keep university funds and personal funds separate.
    • All payment card receipts must be deposited on the day received or no later than the next business day, regardless of amount.
    • Document the entire departmental procedure for handling funds received for clarity and training purposes
    • Note: all payment handling operations are subject to review and/or audit by the University Business Office as well as the university's internal and external auditors. The University Business Office surveys university departments regularly to identify all payment collection points. If the controls are inadequate for the volume of funds handled, corrective action is required & monitored.
    • Prepare and distribute the Deposit Transmittal Form daily based on deposits of funds received. The department will obtain the payment card version for the Deposit Transmittal Form from the University Business Office. This payment card version will not be available online. The department will obtain a unique Deposit Certificate (DC) number from the department’s log for each payment card Deposit Transmittal Form. This form must be submitted to Financial Reporting at MSC 5715 in a timely manner for keying into the university finance system. See section .410 for correct preparation instructions.
    • The department must reconcile their departmental budget monthly using the university finance system reports to departmental records.

.220 University Business Office

  • Provide departments with forms and instructions for the daily deposit of receipts.
  • Perform periodic analysis of all revenue line items to determine reasonableness to prior year data.
  • Provide Payment Card Acceptance Training to university employees.
  • Facilitate approved departmental requests for payment card merchant numbers.
  • Assist departments in acquiring appropriate payment card processing equipment or implementing approved online payment sites.
  • Assist departments in resolving problems encountered in monthly reconciliation process of payment card transactions.
  • Initiate annual completion of Merchant Agreement and Self Assessment Questionnaire.
  • Perform scheduled and unscheduled audits.
  • Provide departments the payment card version of the Deposit Certificate numbers.

.230 Assistant Vice President for Finance

  • Authorize departments to sell goods and services in accordance with Commonwealth regulations.
  • Approve exceptions to daily requirements as appropriate.

.300 Processing Procedures

.310 Departments

  • Requests authorization from the Assistant Vice President for Finance to accept payment cards using the eMarket Request Form.
  • Completes JMU Merchant Agreement and Self Assessment Questionnaire (annually) to the University Business Office.
  • Ensures appropriate security controls are in place related to payment card transactions:
    • All payment card refunds MUST be placed back on the same payment card as used in the original sale.  Only in cases that the original card has since closed, the department should contact the University Business Office at x87908 for further instruction in how to proceed with the refund process.
    • All employees given access to payment card information have completed payment card acceptance training.
    • Submits required Background Check Form Student Employees to the Student Employment Office (SWEC).  For all Faculty and Classified staff, the Background check is done automatically through Human Resources during Onboard@JMU at new hire and orientation. Submits the Staff Terms of Agreement for all department staff (including students) who have access to payment card information.
    • No customer payment card or personal information is stored on JMU Server or workstation hard drives.
    • Only pre-authorization credit card information is allowed to be stored.
    • All post-authorization credit card information is required to be destroyed by cross-cut shredder or outsourced service.
    • All customer and merchant receipts show only truncated card numbers - the last four digits.
    • Processing credit card information received in email is strictly prohibited. Responds to all email which includes credit card information by deleting the credit card information and including instructions for re-submission through an approved method.
  • Receives and secures monies from customers.
  • Prepares and retains documentation supporting receipts and deposits.
  • Prepares the Financial Information System (FIS) Deposit Transmittal Form in accordance with the instructions in subsection .410 of this section.
  • Deposits receipts daily, using the appropriate deposit transmittal form, with the Financial Reporting Office.
  • If Merchant (Department) wishes to change original intent for which permission was granted to accept payment cards; a Payment Card Change Request form must be completed and submitted to the University Business Office.

.320 University Business Office

  • Provides authorized departments with the appropriate deposit and transmittal forms and instructions for their use.
  • Monitors and audits departmental credit card processing.
  • Updates departmental staff on PCI DSS compliance changes.
  • Provides departments a sequence of numbers to be used for Deposit Certificate numbers.

.330 Assistant Vice President for Finance

  • Authorizes departments to sell goods and services in accordance with Commonwealth regulations and to implement payment card acceptance.

.400 Forms Preparation and Submission

.410 Financial Information System Deposit Transmittal Form

.411 Required:

This form is required to transmit deposit information and payment card refund information for Treasurer of Virginia revenue items for input to the Financial Information System.

.412 Where to Obtain Blank Form:

The payment card version of the Deposit Transmittal Form is only available from the University Business Office and is not available online .

.413 Numbers of Copies:

The original payment card version of the Deposit Transmittal Form is sent to the Financial Reporting Office at MSC 5715. The department must keep a copy for departmental files.

.414 Where to Send Completed Form:

When depositing payment card transactions, the form must be delivered to Financial Reporting on the deposit day.

.415 Form Preparation Instructions:

Following are instructions for preparation of the FIS Deposit Transmittal Form. Enter information in the following categories ONLY.

DC #: Enter the Deposit Certificate number on the Deposit Transmittal Form using a sequence of numbers provided by the University Business Office.

Prepared By: Name of the person completing the form, initial beside typed name.

Dep. Date: Enter the date the deposit is being made.

Date: Enter the date the form is prepared.

Phone/E-Mail: Phone number and/or e-mail address of the preparer.

Bank Code: Enter TV for Treasurer of Virginia deposits. (Consult Financial Procedures Manual section 3045.300, "Local/Agency Funds" for deposits to Deptid#s starting with an 8.)

MSC: Enter the MSC of the preparer.

Bank Acct.: Enter CH03 for Treasurer of Virginia payment card deposits. All payment card deposits, and ONLY payment card deposits, are CH03.

Amount: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.

Line Count: This field will automatically populate.

Explanation: Indicate any additional facts related to the origin and/or the nature of the deposit. The batch settlement confirmation number may be listed here.

Payment Cards: Only option available on the payment card version of the Deposit Transmittal Form.

Discover/MasterCard/Visa: Select if the deposit is for Discover/MasterCard/Visa transactions. The deposit will arrive from FNBO (First National Bank of Omaha).

American Express: Select if the deposit is for American Express. The deposit will arrive from American Express.

Dept. ID #: Enter the six-digit department identification number. Refer to Section 2010, "Department Numbers" Numerical Listing.

Account #: Enter the six-digit revenue source code. Refer to Section 2020, "Revenue Account Codes and Definitions".

Description of Deposit: Indicate the origin and/or nature of the deposit.

Amount: Summarize the receipts by revenue account codes and Deptid#s and enter the amount for each code. For unidentified items, list each amount collected separately. Payment Card amounts must be recorded, by day, on a separate Deposit Transmittal form. These amounts should not be included with cash and check receipts.

D/C: Enter a "C" if the deposit is a credit to Dept. ID # ; enter a "D" if the deposit is a Debit to the Dept. ID.

Total: Enter and verify the total amount of the deposit, if completed electronically this total is automatically calculated.

Notes for payment card deposit preparation:

>  Payment card terminal sales are always batched once a day at the end of the day for every payment card machine within an authorized departmental location.

>  All refunds must be made by payment card only – no refund checks. If the deposit you are making has refunds included in the total, list the sales on the deposit transmittal as a "C" credit and the refunds as a "D" debit to get a "net" total.

>  The department MUST utilize www.merchantsummary.com and www.americanexpress.com (if American Express is accepted) everyday to retrieve actual Deposit Dates and Deposit Totals. All departments have been given access to these sites for their respective merchant numbers. Step by step procedures or access to these sites can be obtained by contacting the E-Commerce Coordinator in the University Business Office at x84674. By using these sites correctly, James Madison University ensures it is in compliance with the Commonwealth of Virginia’s CAPPS manual which states:

"There MUST BE A ONE-TO-ONE MATCH between the deposit entry that posts to the Treasurer's bank account [a deposit from FNBO or American Express] and the deposit total reported in CARS [as prepared by the department on the Deposit Transmittal Form]. The AMOUNTS MUST BE THE SAME regardless of the method of input to CARS. DEPOSITS MUST BE SEGREGATED BY TYPE so that different types of deposit activity are not commingled on a deposit form (i.e., cash deposits should be separated from credit card receipts)."


.420 Deposit Certificate Sequencing

Treasurer of Virginia Deposit Certificate numbers are obtained through the University Business Office. The department should maintain an Excel spreadsheet of these numbers to keep track of the DC # used, deposit date, amount, and card type deposit. The department must only use the numbers within their sequence and restart the sequence each July 1. If a department runs out of numbers within their designated sequence within the Fiscal Year, contact the University Business Office for another set of numbers—do not go past your designated numbers!

.500 Deposit Reconciliation

.510 Required:

A written reconciliation is required comparing revenue deposited to University monthly FIS reports. Auxiliary Enterprises accounts (Nos. 3xxxxx) are reconciled by comparing the department's internal records to University monthly FIS reports. Educational and General Accounts (Nos. 1xxxxx) are reconciled by comparing revenue transaction documents to University monthly FIS reports.

NOTE: Payment card chargebacks (when the bank retrieves funds from the university's local bank account due to a customer disputed payment card charge) must be reimbursed by the department immediately regardless of resolution issues. The University Business Office will prepare a deposit transmittal form to record the debit transaction to the local bank account. An accounting voucher will be prepared charging the department that the chargeback belongs to and forwarded to the department for coding completion and authorizing signature. The department must then forward these forms to Accounts Payable to MSC 5712 for payment processing.

.520 Who Should Perform the Reconciliation:

Departments processing payment card activity on–site are responsible for reconciling their FIS Monthly detail reports as described in Financial Procedures Manual Section 3035. The individual responsible for preparing the deposit should NOT be assigned this responsibility.

.530 Reconciliation Differences:

If differences other than timing differences are encountered, contact the University Business Office to determine the proper adjustment. For transaction research assistance, contact e–commerce@jmu.edu.