Procurement Card Program
Procurement Card Policy Guide
Process Overview A Procurement Cardholder may use the Procurement Card in the same way as a personal credit card to make purchases of supplies or services for University use. Purchases may be made by telephone, mail, or in person with any supplier that accepts MasterCard as a form of payment. When making a purchase by Procurement Card, it is not necessary to complete and forward a purchase request to Supply Chain Shared Services. The purchase transaction shall normally be accomplished completely between the Cardholder and the supplier. As purchases are made, Cardholders should maintain a log of all transactions using a Procurement Card Transaction Log (also available in PDF). This log should include at a minimum the date of the purchase, the vendor, the dollar amount, and the Fund, Internal Order or Cost Center, and G/L to charge. If kept in an Excel worksheet, the Transaction Log could easily be transmitted to the Approver weekly or as needed. If a Cardholder needs to return any supplies or resolve any billing disputes, the information on the Transaction Log will be helpful in keeping track of all purchases made using the Procurement Card. This information is also needed to document University expenditures of general and sponsored accounts and be available for review by internal and external auditors. Each month, the Cardholder will be provided with a statement from JPMorgan Chase bank summarizing all purchases made with the Procurement Card and identifying any balance due. This information will also be available online in the PaymentNet. An Approver may approve transactions made on a Procurement Card. A person may be a Cardholder, an Approver, or both. However, a person may not be the Approver of the Procurement Card in their name. Return to TOP
PaymentNet PaymentNet is a JPMorgan Chase system for online allocation and approval of Procurement Card transactions. PaymentNet enables Approvers to review, allocate, and approve charges made with the Procurement Card. Any outstanding balance due on the Cardholder's account will be paid in full each month by Accounts Payable. Payment will be made automatically and charged to the Cardholder's designated Fund, Internal Order or Cost Center, and G/L account codes. Cardholders do not have to forward anything to Accounts Payable for their bill to be paid. Costs may be allocated to other budgets during the approval process in PaymentNet by the 25th of the month after the statement month. A transaction will be available to an Approver in PaymentNet for review, allocation, and approval approximately two to four (2-4) business days after the purchase has been made. Cardholders also have access to PaymentNet to review or print transactions or statements. Return to TOP
How to Become a Cardholder - Complete the Online Training Course on Policies and Procedures
The Procurement Card Policy Learning System online course will give you an understanding of the policies and procedures for using the Procurement Card.
- Pass the Knowledge Assessment
The Knowledge Assessment verifies your understanding of the policies and procedures for using the Procurement Card. You'll need to pass the Knowledge Assessment prior to applying for a card.
- Complete an Application Form and an Agreement Form
You'll need to complete a Request for Procurement Card and Procurement Card Cardholder Agreement and forward it to
Supply Chain Shared Services
B001 Eastern
Attention-Procurement Card Administrator (May be emailed to pcard@jhu.edu or faxed to 443-997-5699.)
The Application Form must be signed by your department chair/administrator. By signing the Agreement Form, you acknowledge your understanding of the program and agree to abide by the guidelines established. Any misuse of the card may result in the revocation of the Cardholder's charging privileges. By approving the provision of a Procurement Card for a designated Cardholder, the Cardholder's department agrees to be responsible for all charges made by the designated Cardholder. After a Procurement Card Application and a Procurement Card Cardholder Agreement has been received by the Procurement Card Administrator, they will submit your information to the bank. It will take approximately two weeks to process your application. - Receive the Card
The Procurement Card Administrator will mail a Procurement Card directly to you at the address identified on your application form.
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How to Become an Approver - Complete the Online Training Course on Policies and Procedures
The Procurement Card Policy Learning System online course will give you an understanding of the policies and procedures for using the Procurement Card.
- Pass the Knowledge Assessment
The Knowledge Assessment verifies your understanding of the policies and procedures for using the Procurement Card.
- Complete the PCard Approver Online Training
The Procurement Card Approver Learning System is an online training system for Approvers that teaches you how to review, allocate, and approve Procurement Card transactions.
- Complete an Application Form
You'll need to complete a Request for PCard Approver Access form and forward it to
Supply Chain Shared Services
B001 Eastern
Attention-Procurement Card Administrator (May be emailed to pcard@jhu.edu or faxed to 443-997-5699.)
The Application Form must be signed by your department chair/administrator.
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General Program Information Purchasing Services Responsibilities Purchasing Services is responsible for the overall management of the Procurement Card Program and the administration of the Procurement Card policy and procedures. Return to TOP
Divisional/Departmental Responsibilities Business administration at the departmental and divisional levels is responsible for overseeing the PCard use under its purview and ensuring that the use of the PCard is in compliance with PCard policy. Approving a Card By approving a card for a designated individual, the department chair/administrator agrees to be responsible for all charges made by the Cardholder. Canceling a Card The department chairperson/administrator shall be responsible for notifying the Procurement Card Administrator regarding any change in a Cardholder's employment status via the Procurement Card Update Form. Upon receipt of such notification, the Administrator shall contact the bank and have the card canceled immediately. The department chairperson/administrator shall also be responsible for destroying the card. If a department chairperson/administrator wishes to have a Cardholder's card canceled for any reason, this may be done immediately by calling the Procurement Card Administrator at 443-997-5650 or email pcard@jhu.edu. Return to TOP
Approver Responsibilities Cardholders should be aware of the Approver's responsibilities. The main responsibility of the Approver is to verify and approve all Procurement Card transactions via PaymentNet. The Approver is also responsible for assigning the proper Fund, Internal Order or Cost Center, and G/L account codes to each transaction via PaymentNet. By default, all transactions are automatically assigned to the Cardholder's default account. This account number was provided by the departmental administrator during the application process. The Approver is also responsible for reviewing all Procurement Card documentation such as receipts, packing slips, etc. to verify that the Procurement Card is being used properly and that documentation is being retained by the Cardholder. The Approver should be someone independent of the Cardholder, who has appropriate financial and administrative responsibility within the Cardholder's department. Return to TOP
Cardholder Responsibilities University Procurement Cardholders are responsible for: - Keeping their Procurement Card and card account number confidential. The only person authorized to use a Procurement Card is the person to whom it is issued.
- Using the Procurement Card for University business.
- Making purchases in accordance with established University Procurement Card guidelines.
- Understanding that intentional misuse or abuse of the Procurement Card will result in the immediate revocation of charging privileges and possible disciplinary action.
- Not splitting transactions to evade maximum per transaction dollar limits.
- Obtaining receipts for each transaction.
- Submitting receipts to their Approver upon request.
- Retaining receipts on file for seven (7) years.
- Keeping a Transaction Log of all purchases and submitting it to their Approver upon request.
- Notifying the Procurement Card Administrator if a supplier charges for merchandise which has not been shipped.
- Notifying the Procurement Card Administrator if a supplier indicates a minimum amount of goods or services must be purchased in order to use the Procurement Card.
- Dealing directly with a supplier in the event a problem with a transaction arises. If the problem cannot be resolved, the Cardholder must notify the bank within sixty (60) days of the purchase.
- Reporting a lost or stolen Procurement Card immediately to the Procurement Card Administrator and the bank.
- Surrendering the Procurement Card when changing departments within the University or when terminating employment with the University.
Note: Cardholders are authorized to contact JPMorgan Chase directly for general inquiries, 800-270-7760. Return to TOP
Receiving a Procurement Card After the Request for Procurement Card and Procurement Cardholder Agreement form is received by the Procurement Card Administrator, information will be forwarded to the bank. Procurement Card applications take about two (2) weeks to process. The Administrator will mail a Procurement Card directly to the Cardholder at the address identified on the card application form. Upon receipt of the card, the Cardholder should check to make sure all of the information is correct. If a mistake is found regarding the card's information, the Procurement Card Administrator should be contacted immediately at 443-997-5650. If the card's information is correct, the Cardholder should sign and activate the card. The card may be used immediately thereafter. Return to TOP
Replacement Card University Procurement Cards shall expire every three (3) years. Authorized Cardholders shall be provided with a new Procurement Card automatically. Upon receipt of a new card, it shall be the Cardholder's responsibility to destroy the expired card. Return to TOP
Lost or Stolen Cards The card is University property and should be secured as one would secure personal credit cards. If a card is lost or stolen, a Cardholder should do the following: - Notify the Procurement Card Administrator immediately at 443-997-5650 or pcard@jhu.edu.
- Notify JPMorgan Chase Cardholder Support immediately at 800-270-7760. A bank representative is available 24 hours a day, 365 days a year. Upon verbal notification of a lost or stolen Card, the bank will block any further use of the card until a replacement has been provided. A replacement card with a new account number will be mailed. The University/Cardholder will not be held liable for any purchase(s) or charge(s) incurred by use of the card following receipt by the bank of notice in writing of the loss or theft of a card.
- It is also recommended that the University Security Office be notified.
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Changes or Revisions Regarding Card Use If a Cardholder or department chair/administrator requires a change in a card's monthly credit limit, charging privileges, or Cardholder contact information, they should submit to the Procurement Card Administrator the Procurement Card Update Form available on the Shared Services Supply Chain web site. The Procurement Card Administrator will work with the Cardholder, Department Chair/Administrator, and the bank to implement any appropriate changes. Return to TOP
Using the Card Use of the card must be consistent with good purchasing practices and with University purchasing policies and procedures. The card may be used with any allowable supplier that accepts credit cards as a form of payment. Ideally, a supplier solicited to provide a needed supply or service should be one with a historically good business relationship with the University. Acceptable Procurement Card Purchases The card may be used for most of the types of purchases necessary to conduct the University's research and teaching activities. Any purchase $2,500 or less in unit price, or total aggregate value, for the categories listed below may be considered to be an acceptable use of the card. Splitting a single order greater than $2,500 in total value into multiple orders to evade the $2,500 Procurement Card transaction limit is contrary to University policy and should not be done. Such practices violate University competitive bidding policy, and unnecessarily increase administrative costs. - Office supplies
- Laboratory supplies
- Housekeeping/Maintenance supplies
- Computer supplies/software
- Small equipment and appliances
- Subscriptions
- Conference/Seminar registrations
- Dues
- Publications/Reprints
- Delivery services (e.g., UPS, FedEx, etc.)
- Equipment repairs
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Unacceptable Procurement Card Purchases - Travel/Hospitality expenses
- Alcoholic beverages
- Cash advances
- Cell phones & cell phone enabled devices
- Automotive repairs
- Controlled substances
- Radioactive material
- Hazardous material
- Animals
- Personal items
- Items available from the University Supply Store
- Independent contractors or consultants
A Cardholder determined to have made unauthorized purchases using the University's Procurement Card may be held liable to the University for the total amount of all unauthorized purchases. The University is responsible for making payment to the bank for any unauthorized purchases made by a Cardholder and must seek repayment from the Cardholder. Unauthorized use of a University Procurement Card may result in the Cardholder losing all charging privileges and additional disciplinary action. Return to TOP
Blocked Suppliers Some categories of suppliers have been "blocked" from usage with the program. If a Cardholder attempts to make a purchase from one of these suppliers, the transaction will be declined. Examples of blocked suppliers include: automobile rental agencies, hotels, airlines, etc. Return to TOP
Using the Card to Make a Purchase in Person When using the Procurement Card to make a purchase in person at a supplier, present the merchandise and the card to the cashier. Inform the cashier that the merchandise being purchased is for use by the University and that the purchase is exempt from sales tax. The University's Retail Sales Tax Exemption number is 31006126 and is printed on the card. The cashier should then process the sales transaction and present the Cardholder with a transaction receipt to sign for the net value of the merchandise being purchased. This receipt should be retained to document the transaction. The receipt may also be needed should it be necessary to return or exchange the merchandise purchased or resolve any billing disputes. Return to TOP
Using the Card to Make a Purchase by Telephone After confirming the price, availability and specifications of the needed merchandise, the Cardholder should advise the supplier's representative that they wish to place an order using a Johns Hopkins University Procurement Card. The Cardholder should inform the supplier not to charge the Card until the item(s) being purchased is actually shipped. Provide the supplier with appropriate Procurement Card account number and Card expiration date. Also advise the supplier that the merchandise being purchased is for use by the University and that the purchase is exempt from sales tax. If requested, provide the supplier with the University's Retail Sales Tax Exemption Number: 31006126. Confirm the final total price of the transaction with the supplier including the cost of the item(s) being purchased and any shipping charges. Advise the supplier that all packages/packing slips must identify the Cardholder's name and University address. All mailing labels/packing slips should state “Procurement Card” as the method of payment. The Cardholder's account number should not appear on any mailing labels or packing slips. This number needs to be kept as confidential as practicable. Vendors should be advised not to send separate invoices for the item(s) purchased to the University's Accounts Payable office. The supplier will receive payment directly from the bank. Return to TOP
Using the Card to Make a Purchase by Mail Occasionally, it may be necessary or convenient to place an order through the U.S. Mail. In instances of this kind, any required Procurement Card information, e.g., account number, Card expiration date, etc., should be mailed to the supplier in a sealed envelope. To protect the confidentiality of the Cardholder's Procurement Card information, this information should never be sent by postcard. Return to TOP
Using the Card to Make a Purchase by Fax, Email, or via the Internet Occasionally, it may be necessary or convenient to place an order by fax or email. These means of ordering are not recommended as the Cardholder's Card information can be compromised. Using the Card to make a purchase via the Internet is discouraged, unless the Cardholder is using a secure link on a trusted vendor's Web site. Return to TOP
Special Purchasing Circumstances Declined Transactions Transactions may be declined by MasterCard either for "blocked" suppliers or for transactions that exceed the dollar limits of a card. If a transaction is declined, the Cardholder should review the decline in PaymentNet or contact JPMorgan Chase at 800-270-7760 to determine the reason for the decline and contact the Procurement Card Administrator at 443-997-5650 or pcard@jhu.edu if assistance is needed. The Administrator will then discuss the matter with the bank. Return to TOP
Procurement Card Payments Reconciling Monthly Statements Each Cardholder will receive a monthly statement from the bank. This statement will identify each transaction made with the card during the previous billing cycle. If there has been no activity on the card during a billing cycle, no statement shall be received. Items should not appear on the statement that have not been shipped by the supplier. The supplier has been instructed to enter an item for payment only after it has been shipped. Each month, the Cardholder should reconcile their monthly statement with their receipts and monthly log of Procurement Card transactions. Monthly statements should be kept on file for seven (7) years along with other Procurement Card transaction documents such as receipts, packing slips, etc. Monthly statements may also be viewed real-time and printed by Cardholders from the JPMorgan Chase web site, PaymentNet. Instructions on accessing and using the bank's web site are available on the PaymentNet Quick Reference. Return to TOP
If a Cardholder's Records Do Not Agree With the Monthly Statement (Disputed Items) There may be occasions where purchase transactions listed on a Cardholder's monthly statement do not correspond to the Cardholder's records. Should such an instance occur, the Cardholder may contact the supplier involved to resolve the error or file a formal dispute form with the bank. If a supplier agrees an error has been made, it will credit the Cardholder's account. If a supplier does not agree that an error had been made, the Cardholder should initiate the dispute process via PaymentNet or by calling JPMorgan Chase at 800-270-7760. The Cardholder must notify JPMorgan Chase within sixty (60) days of the first statement on which a disputed charge has occurred. JPMorgan Chase will research the disputed charge and make any necessary adjustments or issue appropriate credits. Return to TOP
Defective Items If an item purchased with the Procurement Card is found to be defective, the Cardholder has the responsibility to alert the supplier and to obtain a replacement item as soon as possible. If a supplier refuses to replace or correct a defective item, then the purchase transaction will be considered to be in dispute. If such a situation arises, the Cardholder should initiate the dispute process via PaymentNet or by calling JPMorgan Chase at 800-270-7760. Return to TOP
Procurement Card Audits Purchases made using the Procurement Card are subject to audit/review by appropriate University personnel. Outside auditors may also review Procurement Card documentation if warranted. For these reasons, it is important that all Procurement Card documentation such as receipts, packing slips, etc. be retained on file by Cardholders for seven (7) years.
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