(The Board of Governors approved policy can be found at (http://www.usask.ca/university_secretary/policies/operations/4_24.php?heading=menuPolicies)
To ensure all monies received by the University are handled in a secure manner, deposited on a timely basis to a University account and are subjected to the appropriate internal controls and accounting treatment.
"Monies" includes currency, cheques, money orders, bank drafts and debit and credit card payments.
These monies must be:
Departments are responsible for maintaining the security of monies until deposited with the Treasury Office or the bank.
Deposits should be made regularly in the interest of:
At a minimum, monies should be deposited:
|Information Technology Services||
Electronic payment is a common payment method that improves customer service, reduces the risk associated with processing cash and can bring efficiency to the cash collection process. In particular, the use of technology in conjuction with the internet provides easy access for many and the use of credit or debit cards is essential when sales are conducted electronically. Inquiries related to establishing electronic banking can be directed to the Treasury Office at 966-6688. There are two major types of electronic payments:
Remote customers of University departments often prefer to transfer funds by means of a wire transfer. This payment method speeds up the payment process and ensures the monies are deposited in a valid University account. Details on providing the correct wire transfer instructions must be obtained from the Treasury Office.
Departments are encouraged to establish accounts to accept debit cards at locations where cash is routinely handled. The cost associated with processing debit cards is small in comparison with the reduction in risk associated with cash. Departments must establish debit and credit card accounts through the Treasury Office.
Certain credit and debit card activities are prohibited by credit card companies. Prohibited activities include, but are not limited to:
University wide rates based on the type of card, the number of transactions, the average dollar amount of transactions and the total dollar value of all card sales are negotiated by the Treasury Office. Merchants are charged a merchant discount rate on all credit card transactions and transaction and rental fees depending on the method of processing selected. Refer to RATES section for the fees currently in effect. At month end these fees, which are charged to the University by the bank, are posted to the Financial Information System ("UniFi") FOAPAL that was identified by the department when the merchant account was established. Units must not negotiate their own contracts for these services. For more information, contact the Treasury Office at 966-4648.
Debit and credit card transactions must be treated with the same level of security as when dealing with cash. Individual credit card information is confidential. Failure to maintain strict controls over this information could result in unauthorized use of a credit card number, financial problems for the customer and liability for the University.
Credit card information should be treated as carefully as any other confidential information.
To provide assurance that all monies received are deposited to University accounts, departments must establish a procedure to record the receipt of all monies and ensure subsequent deposit of those monies. If you need assistance establishing a system, contact the Treasury office at 966-4648.
Issue a numbered receipt with the date and amount of payment to the payee for all payments received in the form of cash. Cash and cheques on hand should balance to these receipts. The receipt may be in the form of a cash register slip, license, certificate or similar document. Receipts for donations are issued through University Advancement. All monies received as donations must be sent to University Advancement, Room 227, Kirk Hall.
Cash received in the department represents income, expense recovery or a deposit, e.g. key deposit. It should be deposited in its entirety and appropriately recorded in the accounts.
Under no circumstance can it be used for expenditures, e.g. to supplement petty cash or to cash personal cheques.
Cheques should not be made payable for an amount greater than the service or goods being paid for. Change is not to be disbursed for payments made by cheque.
Before accepting cheques, money orders, bank drafts or traveller's cheques, verify the following details:
Personal cheques are only valid for a period of six (6) months.
The written amount (body) must agree with the numeric amount (figures).
All personal cheques, certified cheques and travellers cheques must be signed. Bank drafts and money orders do not require signatures.
The currency of the cheque must be the same currency used by the bank from which it is drawn. For example - cheques that are drawn on a bank in the U.S. cannot be changed to Canadian dollars.
Cheques normally have a micro encoding line on the bottom of the cheque. This line contains the information necessary for our bank to recover monies from the issuing bank. If there is no encoding line, our bank must send the cheque for collection. The University is charged a minimum $50 service fee in these cases. Contact the Treasury Office prior to accepting cheques without an encoding line as they may not be negotiable.
Any changes to a cheque must be initialed by the person who signed the cheque.
Immediately upon receipt, all cheques must be restrictively endorsed. The endorsement stamp should identify the department depositing the cheque to assist in tracing NSF cheques.
Stamp or write on the back of each cheque:
Determine if accepting credit cards would benefit the unit:
Departments should evaluate the cost and benefits to the unit of accepting debit and credit cards. To assist in determining the costs, please refer to RATES section of this procedure.
Choose method of processing transaction:
There are three accepted methods for processing transactions at the University. Departments may choose one or more methods depending upon sales volume, convenience or cost. The three processing methods are detailed below:
Complete Merchant Application Form:
To establish a merchant account, complete the Merchant Account Application form.
Establish proper internal controls:
Receive Merchant Information:
Moneris Solutions, the University card processor, will send an information package related to the merchant account number and setup required directly to the merchant. The Moneris merchant manuals are also available in PDF format in the Downloads section of the Moneris web site. In addition to the merchant manual, Moneris also publishes an e-Select Plus User Guide for merchants wishing to accept payments over the internet.
Training on the account initialization and processing steps is available through Moneris Solutions and the Treasury Office.
Process Debit or Credit Card Payments:
All cards are designed with special security elements to deter counterfeiting and alteration. When presented with a card, look for the following:
Do not alter any faxed or mailed credit card information
Departments may choose to accept credit card information when the card holder is not physically present. Any increase in the amount being paid must be authorized by the card holder.
Transmit Information to Bank:
Funds are not transmitted to the Bank until the Batch is closed. Batches must be closed and balanced to your department's internal records daily. Information on batch closing procedures is contained in the Moneris Merchant Manual. To close a batch:
Issue a numbered receipt to the payee identifying the date, amount and the payee.
Balance individual sales slip totals to the Moneris batch totals. Batch totals are available as follows:
Refunds may be processed back to the credit card which was originally charged with the transaction for an amount up to the original authorized amount. Refer to the Moneris Merchant Manual for information on processing refunds.
Chargebacks and Sales Draft Copy Requests:
A chargeback is a debit to a merchant's account from a previous sales transaction. The reasons for chargebacks can be due to:
When a cardholder dispute occurs, Moneris will send the merchant a "Sales Draft Copy Request" which asks for a copy of the receipt as proof that the cardholder authorized the sale. Please respond to the notices within the timeframe indicated on the notice and provide a copy of the transaction record (on-line receipt or email), waybills or proof of delivery (with signature of recipient). If you do not reply to these requests and can't provide the proof of purchase/delivery, the chargeback will remain on your account.
Telephone/Mail order and e-commerce orders may have a higher risk for chargebacks if the guidelines for accepting Card Not Present transactions are not follewed. The fact that you obtained an Authorization approval number does not mean that the transaction is a guarantee of payment. The authorization only tells you that the card is a valid credit card and that there is enough funds remaining on the card for the amount of the transaction.
Why prepare a Daily Cash Report?
When monies are received in any department in the University, the objective is to deposit them promptly and record the information correctly in the University's financial system. The Daily Cash Report collects all of the required information for the Treasury Office, the bank and the department submitting the report. By retaining a copy of the report, the department has a detailed record of the amounts deposited to verify to the accounting records.
When to use a Daily Cash Report:
Grants and contracts are examples of the types of payments which are required to be entered individually in UniF in order to ensure proper internal and external reporting. When it is necessary to have an individual payment itemized in UniFi, the department may choose to either use a separate Cash Report for each item, or submit the cheque with a memo containing the coding to the Treasury Office. The department must include a contact name and number and keep a record of the item forwarded for deposit in case additional information is required.
The Daily Cash Report form is available on the FSD web page.
To see a sample Daily Cash Report see the Forms section of this procedure. Cash, cheques and electronic payments of credit and debit cards may all be included on one Daily Cash Report. Exceptions to this are itemized in the Separate Cash Reports section below.
Separate Cash Reports:
Separate Cash Reports are required in the following cases:
Bills and Coins
Monies can be deposited in one of three ways
A crucial step in ensuring University monies are safely deposited and correctly recorded is to check each deposit to the accounting records. This final step is important in the financial control over monies and must not be overlooked or delayed.
Segregation of duties:
The responsibility for checking the processed Daily Cash Report and the department UniFi funds should be separated from the persons responsible for receiving monies and preparing the deposits. Receive Cashier's Receipt: The Treasury office returns the yellow copy of the Daily Cash Report along with a cashier receipt to the department after it has been processed.
Check Cashier's receipt:
The responsibility for reconciling the bank accounts is segregated from the persons responsible for receiving and preparing the deposits.
Bank accounts are reconciled routinely and promptly. The reconciliation is reviewed and approved by a senior official of the department.
Verify that amounts deposited in bank correspond with receipts received from Cashier and the monthly FRS reports.
Investigate discrepancies between the bank's records and the University records. Advise departments of any problems if applicable. Advise Audit Services of ongoing problems or financial irregularities.
Use of the internet to accept credit card payments brings with it additional responsibilities in the areas of privacy, security, disclosure and business integrity
The University requires that departments choosing to accept credit cards via the internet use the University designated payment processing service. In setting up their web sites, units are required to reference and access this service for payment processing. Use of the central service assures the strictest controls are kept over electronic credit card information and the University is protected from liability.
The University of Saskatchewan has adopted minimum standards to be used in the above areas including minimum technical standards which must be adopted to connect to the University e-payment provider. The current technical standards required to connect to the approved e-payment provider are contained in the Technical Standards Guide produced by Information Technology Services.
The department's application is responsible for providing an on-line receipt to each customer. In accordance with credit card company regulations, the following information must be included with the receipt:
Ensure that your department web site discloses to the customer:
Departments accepting payments on line must:
The department must take reasonable precautions to protect the information from loss, misuse, unauthorized access, disclosure, alteration and destruction. Include security information on the Disclosure page.
In addition to the security standards required for hard copy files, additional security is required for the maintenance of electronic data files:
Ensure that your department takes reasonable care to ensure that the information it collects is relevant for the purposes for which it is to be used and disclose how the information is used in the Disclosure
Give the customer information:
Ensure that your department takes reasonable care to ensure that the web page is readily available to the customer during the hours stated.
The department must take reasonable care to ensure that the information is kept confidential.
The number returned by the credit card provider that tells you that the credit card number entered is valid and that there is a credit remaining on the card for the amount of the transaction. It does not authenticate the person using card is the card holder.
The deduction of a disputed sale previously credited to a department's account when the department fails to prove that the customer authorized the credit card transaction.
An individual or other entity that makes a payment to the University for goods or services.
The minimum transaction amount that can be processed by credit card without receiving authorization from the credit card company.
A college, department or other University entity that accepts credit cards as a method of paying for goods, services, information or gifts.
An account established for a merchant by the bank. Separate merchant accounts for each department are required in order to credit sale amounts, and debit processing fees, to the appropriate department.
A percent of the transaction or sale that is paid to the credit card processor for the total transactions each month. The negotiated Merchant Discount Rate is based on the University's average monthly VISA/MasterCard dollar volumes and the average transaction dollar size.
Information about an identifiable individual. It can include your full name, address, telephone number, date of birth, email address and any other information that identifies who you are or would allow someone to contact you.
SSL Secure Sockets Layer (SSL)
Protocol which provides a high level of security for Internet communications. SSL provides an encrypted communications session between your web browser and a Web server. When sensitive information is being sent over the Internet between your browser and a web server SSL verifies that the information has not been altered in any way en-route.
Electronic Banking Inquiries
UniFi Account Codes
|Establish Electronic Banking||Treasury Assistant||966-4648|
|Moneris Equipment Problems||Moneris Solutions||1-866-802-2637|
|Establish E-Payment Web Page||Treasury Assistant||966-4648|
E-Payment Pay Page Problems
|ITS Epay Support|
|Card||Merchant Discount Rate||Transaction Rate|
|Visa||1.62% to 1.97% *
|MasterCard||1.64% to 2.8% *
|American Express||1.75%||$.05 / transaction|
|Debit Card||$.0832 / transaction|
|Web Based Processing:
|$.12 / transaction
$.80 / transaction
$45.00 / month
|* Discount rate varies depending on card type and processing method. Contact Treasury office for details.|
|Equipment Rental Charges||Transaction Rate|
|IVR Fee||$6.00 / month|
|Transelect (Interac) Terminal and Printer **
(electronic authorization and processing)
|$35.00 / month|
|On-line Account||$35.00 / month|
|** Plus telephone line charges - contact Facilities Management for quote|
|Other Charges||Transaction Rate|
|Web Based Processing Set-up Fee (one-time flat fee)
Temporary accounts (less than 6 months usage)
Permanent accounts (greater than 6 months usage)
|Chargeback Fee||$15.00 / item|
|MasterCard Chargeback Fee||$80.00 / item|
|Daily Cash Report|
|E-Select Information Form|
|Merchant Account Application|
|Sample Disclosure Statement (click on Help)|