CMP 301 04: Authorization and Procedure for Departmental Credit Card Acceptance

To establish the approval process and procedures for authorization to accept credit cards.

University policy

To be authorized to accept Credit Card payments, you must first obtain permission from the Comptroller. Subsequent to that authorization, you may then initiate arrangements through the Student and Departmental Account Services (Student Accounts) for issuance of a merchant number and credit card machine through JP Morgan Chase.

Departments are encouraged to explore the use the ITS E-Business credit card processing before requesting departmental credit card machines.  Please refer to the ITS E-Business site for more information.

Procedure

Credit Card Point of Sale Charges 

• When will this take effect?
• July 1, 2002

• Who is affected?  
• All Dept/Units that receive credit card revenue from Credit Card receipts processed through the cashiering system or directly through terminals purchased or leased in their department.
• Starting July 1, 2002, All Credit Card Receipts must be processed on their own deposit transmittal form.  You can include multiple settlements in summary on the same transmittal.  DO NOT INCLUDE CASH, CHECKS OR OTHER TENDERS ON A CREDIT CARD TRANSMITTAL.   This will insure that only Dept/Units that have Credit Card sales are correctly charged fees based on their actual sales. 
• Departments must submit their Credit Card Receipts on a transmittal within 5 business days after they settle their terminals.  For Bookstore they must submit their Journal Entry to Peoplesoft Financials within 5 business days.  Exceptions to this policy have to be approved by the Comptroller’s office.

• What are the types of fees assessed by Paymentech Merchant Services our credit card provider?
• All fees listed below are charged Monthly on the 3^rd Business day following the month the sales are settled.

Note #1:        If you lease equipment there is also a Terminal Lease Fee based on the type of equipment you are leasing. 

Note #2:      Discover and American Express have a different Fee structure and are charged daily.

• Policy for allocating fees:
• Old policy
• Allocate “Monthly” Bank Fees assessment by Paymentech
• Formula - Department Sales/Total Sales x Total Fees
• Fees were charged to Account 755115 (with a few exceptions)
• Terminal Fees were charged to a specific Department under Account 755115
• No annual reconciliation occurred.
• New Policy
• Fees will be allocated based on Department Sales
• Formula – Monthly Department Sales x .01791 (estimated rate)
• Fees will be charge to Account  759110 (beginning Jul 2002)
• Terminal Fees will be charged to a specific Department under Account 755115
• An annual reconciliation “will” occur at the end of June each Fiscal year.
• Formula – (Estimated Fees to date less Actual Paymentech Fees to date) X (Annual Sales per Department divided by Total Annual Sales)
• Underpayment/Overpayment Fees are charged to 759110 at year end.
• Web Payments
• Web Credit Card payments will continue to be assessed using the Old Policy Formula