Convenience Checks

Description:

C.O.D./Convenience Checks (C-checks) are a product of JPMorganChase. They are checks drawn on a BYU Purchasing Cardholder’s VISA account, and are processed as a Purchasing Card (P-card) transaction. C-check transactions appear in PaymentNet with all P-card transactions, to be reviewed and approved timely. Unlike the Purchasing Card, JPMorganChase assesses a transaction fee for each C-check written.

Purpose:

C-Checks are to pay vendors who do not accept VISA credit cards, on a Cash-and-Carry or Cash-on-Delivery basis, and only when Fast Track is not an option C-Checks are not to be mailed.

Most vendors accept Purchasing cards. For those vendors who do not accept VISA, Fast Track should be used when possible. Where a check is to be mailed, Fast Track should be used. Convenience Checks can only be used for purchases up to $2,000, and will be rejected if either the single transaction or monthly credit limits are exceeded.

Fees:

The transaction fee is 2% of the check amount ($2 minimum, $30 maximum fee). Treasury Services will pay the fee for appropriate transactions where the C-check and C-check fee are reviewed and approved prior to the last business day of the month at 4:00 p.m. in each cut-off period. Campus departments will be assessed the fee for all other checks written.

Restrictions:

Unlike the P-card, BYU gives up many controls when C-checks are used. Because of increased risks, C-checks are not intended for, and therefore should not be used for:

• Vendors who accept VISA credit cards (Use P-card)
• Vendors who do not accept VISA where a Fast Track category exists (Use Fast Track)
• Out of Pocket Reimbursements (Use Extensity)
• Payments to Individuals (Use form PO, Fast Track)
• Travel Reimbursements (Use Extensity)
• Payments for services (Fast Track 1099 IC)
• Restricted purchases for the Purchasing Card. Anything restricted on the P-card is restricted on C-checks.

Penalty:

A $20 penalty in addition to the transaction fee will be assessed for each C-check written for any of the restricted payments defined above. Misuse of C-checks may result in the loss of C-check and P-card privileges.

Distribution:

C-checks are not issued distributed across campus. Most cardholders will not need C-checks. In most cases C-checks will be issued to College/Division Controllers. Should a business need be demonstrated, the College/Division Controller can submit a request to the Procurement Card Administrators for consideration.

Receipts:

Original receipts for C-check purchases should be maintained within the Department in the same manner as P-card transactions. Receipts should be reviewed and approved carefully, and any return of product should be noted on the documentation and deposited back into the account in which the funds were expended.

Documentation:

A template will be provided in the Transaction Note field in PaymentNet for required transaction documentation for both the C-check and the C-check Fee.