500.7 - Statewide Accounting Policy - Authorization for Merchant Card Transactions

Policy Area:  eCommerce
Policy Sub Area:  N/A
Authority:  G.S. 143B-426.39(1) and (5); G.S. 147-86.11(a); G.S. 147-86.22(b); and Chapter 66, Article 11A (G.S. 66-58.1 through 66-58.19)
Effective Date:  8/16/2000
Last Revision Date:  N/A
Policy Owner/Division:  Statewide Accounting

Policy

All State agencies or other participants utilizing Merchant Card services, whether through the OSC’s Master Services Agreement or under separate arrangement, shall develop procedures to ensure compliance with the Processor’s operating guide regarding the obtaining of authorizations. Prior to the finalization of a merchant card transaction, an authorization approval code must be obtained from the merchant card processor. Real-time authorization shall be the preferred method, with the telephone authorization being the alternative method. Finalization of a transaction shall include both fulfillment of a sale or acceptance of an accounts payable, and the monetary settlement of the transaction.

Each participant shall be responsible for developing and documenting procedures to handle merchant card exceptions. The procedures shall include the handling of transactions for which an approval is denied, unauthorized card use, non-match of address verification, the use of an alternative payment if authorization is denied, and charge backs.

Procedures

N/A

Accounting Guidance

N/A

Related Documents (Memos/Forms)

N/A

Revision History

  • None to date