Procurement Card

Procurement Card Information

The State of Maryland Corporate Purchasing Card (VISA) is to be used to purchase goods and services required for daily departmental operation. It cannot be used to make purchases for restaurants, airline tickets, trains or recreation. The Corporate Purchasing Card saves the state time and money by eliminating the need to issue purchase orders, process invoices and issue payments to vendors. It helps the university obtain small dollar value items in a more efficient and cost effective manner. However, the use of the Corporate Purchasing Card is not intended to replace current policies and/or procedures defined by the State of Maryland, the University System of Maryland and Frostburg State University. The State of Maryland mandates the use of the purchasing card for single transactions up to $2,500. The use of purchasing cards will:

• Expedite the ordering and delivery of goods and services
• Eliminate the need for issuing requisitions and purchase orders
• Eliminate the need to process invoices
• Allow departments to have direct contact with suppliers
• Provide payment to vendors normally within two days of the purchase

Procurement Card Request

To request a purchasing card, obtain a Cardholder Agreement Form (PDF) or contact the Procurement Office. Cardholder agreements are completed by the employee requesting a purchasing card, approved by the supervisor and submitted to the Procurement Office for processing. Only employees of Frostburg State University are eligible to receive a purchasing card and are required to attend training.

Restrictions

Vendors who accept VISA credit cards should accept the State of Maryland Corporate Purchasing Card. However, certain categories of merchandise and services are restricted from being purchased using the State of Maryland Corporate Purchasing Card. Vendors register with VISA under a specific Merchant Category Code Group. The MCCG number usually corresponds to the type of merchandise or service a vendor supplies. The following list of MCCG numbers is restricted from purchases using the State of Maryland Corporate Purchasing Card:

1. 6010 through 7033 - Service Providers; total group restriction (financial institutions, security brokers, timeshares, etc.)
2. 7221 through 7299 (except #7296 - clothing, costume and uniform rental) - Personal Service Providers; photographic studios, beauty and barber shops, funeral services and crematories, dating and escort services)
3. 7832 through 7997, and 7999 - Amusement and Entertainment; motion picture theatres, bowling alleys, video game clubs, betting, golf, etc.
4. Miscellaneous - Specific restrictions by individual MCCG number as follows:
   1. Drinking establishments (Alcoholic beverages) - 5813
   2. Eating places (Restaurants) - 5812
   3. Fast food restaurants - 5814
   4. Package goods stores (Beer, wine, & liquor) - 5921

Attempts to purchase from vendors registered under any of the above MCCG numbers will result in rejected transactions. No purchases for these groups and/or items are allowed under the Corporate Purchasing Card Program.

Cash Advances and gift cards are strictly prohibited.

No purchase made using the State of Maryland Corporate Purchasing Card is subject to state sales tax. The state's tax exempt number is located on the front of the credit card.

Procurement Card Manual

FSU-Procurement-Card-Manual(PDF)

Highlights to FSU Procurement Card Manual – Audit Comment Requirements

• Sharing of Purchasing Cards is a violation of university and state policy and is prohibited. Cardholders are encouraged to use their cards to make departmental purchases for other members of their department where appropriate.
• As with the current purchasing regulations, “splitting” purchases to exceed the single purchase limit is prohibited. An example of splitting an order is when an item costs more then the single limit on the card and the cardholder makes two or more purchases to buy them. There will be a 45-day suspension of the state issued procurement card privileges imposed for any cardholder who splits credit card orders.
• State policy requires cardholders who have been inactive for six months to justify to PCPA why they still need a card, and cards that are inactive for a year will be canceled.
• Personnel who routinely make departmental purchases should have their own Purchasing Card if approved by the department.
• The cardholder must provide adequate item description in their monthly activity log submission.

Policy on University Procurement Cards

State of Maryland Corporate Purchasing Card Manual (PDF)