To: University Credit Card holders, Administrators, and Reviewers
From: Greg Oler
Re: Increased risk of fraud related to consumer-to-consumer payment processors such as Square and PayPal
The use of consumer-based payment processors, such as Square and PayPal, has limited the transparency of transactions, making it difficult to verify the end recipient of payments. This lack of transparency often results in inadequate documentation and increased risk of fraud.
We are requesting that credit card users, when made aware that a merchant is using consumer-to-consumer credit card processors such as PayPal or Square, inquire if the merchant has alternative payment processing methods. In the event that the merchant does not have alternative methods, the card user should ensure the presence of adequate documentation including receipts and thorough explanation of business purpose.
Realizing that in many instances a card user will not know what credit card processing method is being used at the point of sale, we are requiring credit card administrators to ensure that all receipts related to PayPal and Square be attached in “Works” and that expenses be scrutinized. This process will be migrated to Concur once our Travel and Expense solution is available.
Procurement will be producing a monthly report of all PayPal and Square transactions greater than $100 and distributing them to the financial lead of each college and department to help ensure that documentation is sufficient and the business purpose is bona fide. In instances where receipts are non-existent or do not meet appropriate standards, we are requiring that an affidavit be signed by the employee and approved by their supervisor and attached in Works at the transaction level.
Failure to comply may result in the withdrawal of use of the University of Delaware purchasing card. The affidavit can found at www1.udel.edu/procurement/forms/PayPal-Missing-Receipt-Statement.xls.
Thank you for continued support in ensuring a safe and effective Credit Card program.