Purchasing Cards

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Policy Number:
UW-3013
Responsible Office:
Accounting Services, Division of Business Services

University Policy

Rationale/​Purpose:

This policy establishes controls to mitigate the risks associated with purchasing cards, including inappropriate use, fraud, inaccurate funding allocation, noncompliance with state of Wisconsin statutes and administrative codes and UW System Administration purchasing policies, and reputational damage to UW-Madison.

Definitions:
Billing Cycle
The period in which a card program operates on a cyclical basis. The UW-Madison Purchasing Card Program operates on a 2-week billing cycle. Purchasing card credit limits are refreshed according to this cycle.
Business Purpose
The reason for an appropriate, reasonable, and necessary expense that supports or advances the goals, objectives, and mission of the university.
Cardholder
A UW-Madison employee whose name appears on a purchasing card or department card and who is responsible for all purchases made with that card.
Credit Card Administrator
An individual appointed by the Division of Business Services to manage, coordinate, and control the credit card programs for UW-Madison.
Credit Card Transaction Load Date
The date a credit card transaction is loaded into Workday and available for reconciliation. This date is one to two days after the U.S. Bank transaction post date and three to five days after the date of purchase.
Cycle Credit Limit
Maximum amount that may be spent on a purchasing card during a billing period.
Department Card
A university-liability credit card issued by U.S. Bank to a trained UW-Madison employee that may be used by other authorized employees or enrolled students for pre-approved business-related purchases. A department card is a type of purchasing card.
Purchasing Card
A university-liability credit card issued by U.S. Bank to a trained UW-Madison employee (excluding student hourly) for business-related purchases.
Single Purchase Limit
Maximum amount that may be spent on a purchasing card for one transaction.
Supporting Documentation
Any materials required to support a specific purchase as outlined in UW-Madison policies and procedures.
Scope:

This policy applies to faculty and staff cardholders and divisional financial leaders.

Policy:
  1. Introduction
    1. UW-Madison purchasing cards, including department cards, are provided by U.S. Bank and remain the property of U.S. Bank.
    2. Purchasing cards must be canceled immediately upon termination of employment, leave of absence, or by request of an authorized person for any reason (e.g., credit card administrator, controller, divisional business office).
    3. All documents related to a purchasing card may be fully disclosed as public record to the extent required by state and federal open records laws.
    4. All cardholders must complete annual mandatory training to remain current with relevant policies, procedures, and best practices.
  2. General Card Use
    1. For a purchasing card issued to an employee, only the UW-Madison employee whose name is embossed on the card may make purchases.
    2. For a department card issued to an employee/department, only authorized individuals as outlined in Procedure 3013.7: Department Card Use and Account Management may make purchases.
    3. A purchasing card or department card may only be used for business purposes.
  3. Purchase and Credit Limits
    1. Each purchasing card has a single purchase limit and a cycle credit limit approved by the cardholder’s divisional and departmental leadership based on the cardholder’s anticipated purchasing needs.
    2. The maximum allowable single purchase limit is $5,000.
  4. Sales Tax

    Prior to making any purchase with a purchasing card, the cardholder must:

    1. Present a sales tax exemption card/number/letter to the vendor; or
    2. Verify the applicability of out-of-state sales tax for purchases made from vendors outside Wisconsin.
  5. Shipping Address

    Merchandise purchased with a UW-Madison purchasing card must be shipped to a UW-Madison address unless the cardholder can provide business justification for having items shipped elsewhere; the justification must be included in the supporting documentation.

  6. Supporting Documentation
    1. Supporting documentation (e.g., vendor receipt, attendee list, pre-approval form) is required for every purchasing card transaction, regardless of the dollar amount.
    2. A cardholder must provide supporting documentation, including the stated business purpose, during the transaction reconciliation process.
    3. Supporting documentation must be retained for six years plus the current year.
  7. Account Management/Reconciliation

    A cardholder must reconcile purchasing card transactions within 60 days of the credit card transaction load date.

  8. Card Security
    1. All purchasing cards, department cards and associated data (e.g., card number, expiration date, and 3-digit verification code) must always be kept in a secure location.
    2. A cardholder must immediately notify U.S. Bank Cardholder Customer Service of a lost or stolen card.
  9. Unauthorized Transactions/Suspected Fraud
    1. A cardholder must immediately notify the U.S. Bank Fraud Department of any unauthorized transactions or suspected fraudulent activity.
    2. A cardholder suspected of fraud or misuse is subject to UW System Administrative Policy 304, Fiscal Misconduct and related procedures.
  10. Consequences For Noncompliance

    Failure to comply with UW-Madison Purchasing Card Policy or Procedures may result in disciplinary action, up to and including dismissal.

Related UW–Madison Documents, Web Pages, or Other Resources:
External References:

Policy Administration

Approval Authority:
Assistant Vice Chancellor of Business Services and Controller
Policy Manager:
Purchasing Card Program Manager
Contact:
Purchasing Card Program Manager -- Meghann Grove, pcard@bussvc.wisc.edu, (608) 262-3300
Effective Date:
05-08-2017
Revised Dates:

01-09-2018, 03-20-2018, 03-29-2018, 05-18-2018, 07-13-2018, 07-23-2019, 02-04-2021, 12-11-2021, 09-09-2022, 10-04-2023, 07-07-2025

Reviewed Dates:

07-07-2025

Retrieved:
07-29-2025 15:55:55