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Fiscal Policy 715 » Cash Receipts and Deposited


Cash Receipts (Monies Received) and Deposited

Supplemental Fiscal Policy (FPS 05-020-05)

General Policy

Departments or activities that regularly receive payment for goods and/or services in routine operations are eligible to accept credit and debit cards as an additional method of payment.

Credit Card Processing Options

Electronic Data Capture—Point of Sale (POS) Terminal

For each transaction, cardholder and transaction information is scanned or keyed into a POS terminal and electronically submitted to the processor (the University’s bank) for authorization/approval. At the close of each business day, the department reconciles all transactions processed through the POS terminal to the actual sales drafts, transmits the batch of transactions to the Processor for settlement, and prepares a report of collections (ZK document in IRIS) to forward to the Bursar ’s Office for posting to University records. Paper copies of sales drafts must be maintained for a minimum of seven (7) years. Cash registers with POS capabilities can be utilized in lieu of POS terminals.

Electronic Data Capture—Internet

Under this method, card information is captured via the Internet and transmitted electronically to the processor (the University’s bank) for authorization/approval. Each day at a predetermined time all approved transactions are submitted to the processor for settlement. Each department will receive a daily Batch Release Report detailing any/all transactions processed by its web site. This report must then be reconciled with orders received and processed during that same time period and a report of collections (ZK document in IRIS) prepared and forwarded to the Bursar ’s Office for posting to University records. Documentation must be maintained for seven (7) years.

Fees

The bank sends the Treasurer’s Office a monthly statement of charges. The Treasurer’s Office pays the discount fees, equipment rental fee, form usage, and server use charges. The Treasurer’s Office then charges the general ledger account specified in the requesting memo.

Requesting Approval for Accepting Credit or Debit Cards

Departments interested in accepting credit and debit cards complete the following steps:

  1. The department head submits a written request to the Vice Chancellor for Finance and Administration. The request should include the justification for accepting credit and debit cards, the general ledger account to charge the discount fee, and a signature approval line. If payments will be received across the Internet, please see the policy below regarding Internet.
  2. If the request is approved, the original is forwarded to the Treasurer’s Office and a copy is returned to the department. If the request is not approved, the reason for the rejection is written on the request document and returned to the department.
  3. Upon receiving the approved request, the Treasurer’s Office will arrange for a bank representative to contact the department regarding equipment rental and setup. Departments processing credit or debit cards under both options (POS Terminal and Internet) of this policy must have a distinct merchant number for each processing option.
  4. Departments must have written policies and procedures approved by the Office of the Vice Chancellor for Finance and Administration and Auditing & Consulting Services before accepting the initial credit or debit card payment. Questions regarding the supplemental policy on Entertainment should be directed to the Vice Chancellor for Finance and Administration 865-974-4204.

Requesting Approval for Accepting Credit or Debit Cards on the Internet

It is recommended that departmental web sites (storefronts) reside on a server operated and maintained by the Office of Information Technology (OIT). OIT has the option to charge for its services. Any OIT rate structure must be applied uniformly and approved in advance by the Vice Chancellor for Finance and Administration. Departments that have the expertise or resources to design, implement, and maintain a customized web site may do so by following the instructions below. The following minimum standards are required for each web site:

  1. Each storefront must be designed so that transactions will move to a secure area of the website when the consumer enters credit card information. A secure area of the website includes, at a minimum, data encryption.
  2. All collecting and processing of credit/debit card information must take place on a secure server with a web credit card processing system that is certified by the bank.
  3. The department is responsible for maintaining/updating the information on the departmental storefront. Maintaining current storefront information is critical to the success and credibility of electronic commerce.
  4. All departmental websites must link to the University’s homepage.
  5. To request approval to accept credit/debit cards over the Internet, complete the following steps above for Requesting Approval for Accepting Credit or Debit Cards.

Written Departmental Procedures

The department’s written procedures should address the following issues:

  1. Procedures and reports generated to account for every transaction.
  2. Examples of the receipt/confirmation the customer receives.
  3. Procedures for processing of transactions for out-of-stock merchandise.
  4. Procedures for reporting deposits (including University cost centers and WBS elements to be credited).
  5. Procedures for handling voids, returns, and chargebacks.
  6. Responsibility and frequency of updating the storefront.
  7. Description of the help or assistance available to the customer on the website.

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Contact

Office of Budget and Finance
407 Andy Holt Tower
Knoxville, TN 37996-0141
Phone: 865-974-4204
Fax: 865-974-8131