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State of Texas Terms and Conditions
The State Payment Card PCC – H

Introduction State agencies may only use credit cards issued under a contract between CPA and a card issuer or a contract between an institute of higher education and a card issuer(1). CPA has established Term Contract 946-A1 PAYMENT CARD SERVICES (2) for credit card services (3).   

Using the Payment Card The payment card may be used to pay for commodities and services for dollar amounts within your agency’s delegated purchasing authority. Make certain that you:

1. Adhere to all purchasing statutes, rules, policies, and procedures when using the payment card. The use of a payment card does not automatically exempt a state agency, its officers or its employees from any purchasing requirement of state law or CPA(4).

2. Keep all payment card receipts in your procurement files. Each receipt must contain a description of the good or service that is sufficient to support the office of the Texas Comptroller of Public Accounts expenditure object code used. Credit card receipts must be made available to the office of the Texas Comptroller of Public Accounts upon request(5).  The payment card may be used to pay for capital or controlled assets, but any capital asset payment must be coded to the object code established for the type of items being purchased. (Note – for TWU purposes controlled and capital purchases are NOT allowed on the purchasing card.)  Also, the Texas Identification Number/Payee Identification Number/Vendor Identification (TIN/PIN/VID) of the vendors from whom the purchases were made must be entered into USAS instead of the TIN/PIN/VID of the credit card issuer.

Prohibited Uses of the Payment Card

Per Texas Administrative Code, Title 34, Part 1, Chapter 5, Subchapter E, Section 5.57(g), a participating state agency may not use a procurement card and may not reimburse an officer or employee for the use of a procurement card for:

• A purchase of a personal nature or any other purchase not connected with official state business.

• A cash advance.

• A purchase of a consulting service.

• A purchase of a good or a service that may not be purchased without the prior approval of another state agency, including purchases that require a pre-audit by CPA or the office of the Texas Comptroller of Public Accounts

• A purchase that the office of the Texas Comptroller of Public Accounts audits before payment.

• A purchase from a vendor if a payment to the vendor is prohibited by:

  • Government Code, §403.055 or §2107.008.
  • Education Code, §57.48, or §57.482.
  • Family Code, §231.007.

Furthermore, a participating state agency may not use a procurement card and may not reimburse an officer or employee for the use of a procurement card for:

• A purchase that violates any provision of the General Appropriations Act regarding the occurrence of excess obligation provisions(6).

• Purchasing automotive fuel(7).

Paying the Payment Card Issuer

Procurement card statements are to be paid in full, less credits or disputed transactions, within 30 days of receipt, per the Texas Prompt Payment Act. Payments processed within the Prompt Payment Act(8) requirement qualify for a rebate payment to the state. A participating state agency may not accept a cash refund for a purchase if the agency paid for the purchase with a payment card(9).

 Liability

Participating agencies may be liable for late payment fees and transactions charged to lost and stolen cards if lost or stolen cards are not reported immediately. See Term Contract 946-A1 PAYMENT CARD SERVICES for the specific terms.

Historically Underutilized Business (HUB) Reporting and 1099 Reporting

To receive HUB credit for procurement card purchases, submit a HUB Subcontracting report per the instructions provided in Term Contract 946-A1 PAYMENT CARD SERVICES, link titled Smart Data On-Line - HUB, 1099, SDB Exports Guide (2-18-04)(10). Smart Data Online is a reporting system created by the current contractor and MasterCard to provide unique reporting requirements for the State of Texas. These include:

• HUB Exports • 1099 Exports • Small & Disadvantaged Business (SDB) Exports (pertain only to federal funds).

These file exports were developed to provide each participating agency with accurate and complete procurement card data needed to prepare reports. 

(1) Texas Administrative Code, Title 34, Part 1, Chapter 5, Subchapter E, Section 5.57 (e)(5)

(2) http://www.window.state.tx.us/procurement/contracts/gci/946-M1.php

(3) The authority to establish this contract is provided by Texas Government Code, Title 10,

Chapter 2155, Section 2155.385, Texas Government Code, Title 4, Chapter 403, Section

403.023(b) and Texas Administrative Code, Title 34, Part 1, Chapter 5, Subchapter E,

Section 5.57.

(4) Texas Administrative Code, Title 34, Part 1, Chapter 5, Subchapter E, Section 5.57(h)

(5) Texas Administrative Code, Title 34, Part 1, Chapter 5, Subchapter E, Section

5.57(q)(2)

(6) Texas Administrative Code, Title 34, Part 1, Chapter 5, Subchapter E, Section 5.57(p)

(7) 2003 State Vehicle Fleet Management Plan, p. 8. The State Vehicle Fleet Management

Plan is mandated by Texas Government Code Chapter 2171, Subchapter C, Sec. 2171.104

(8) Texas Government Code, Title 10, Chapter 2251

(9) Texas Administrative Code, Title 34, Part 1, Chapter 5, Subchapter E, Section 5.57(j)

page last updated 9/12/2014 10:48 AM