Section V: Preventative Measures

6. What tools do the banks provide to assist agencies in minimizing instances of misuse and fraud?

GSA, in developing the GSA SmartPay® 2 Master Contract, took into account the need for program management tools and required the banks to provide those tools at no cost to the Government.

• Credit limits - Credit limits restrict single purchase, daily, weekly, or monthly expenditures by the cardholder. In accordance with agency/organization policy, an A/OPC may set the limits which best meet the agency's needs. Setting limits that are realistic but not excessive will deter cardholder misuse. By reviewing cardholder spending patterns, you may be able to lower limits without disrupting the agency's mission. A/OPCs also have the authority to raise limits at any time in response to emergency or unforeseen situations.
• Merchant Category Code (MCC) Blocks - Merchant Category Codes (MCCs) are established by the bankcard associations or banks to identify different types of businesses. Merchants select the codes best describing their business. You may limit the types of businesses where the charge card will be accepted by limiting the MCCs available to the cardholder. Your bank has established sample templates that may assist you in determining which MCCs should be restricted. In the event that a cardholder needs to make a purchase outside of his/her restricted MCCs, as the A/OPC, you are authorized to override the restriction for a transaction by contacting the bank's Customer Service Representative. Agency/organization policy should specify who is authorized to perform overrides.
• Internet Reports - As discussed in Section IV, A/OPCs have access to many reports via the Internet. The banks provide standard reports and ad hoc reports. Please refer to Section IV of this training for an overview of the reports available to you from the banks.
• Account Deactivation - In those instances when the Purchase Charge Card is not needed on a continuous basis, deactivation of the account may serve as a deterrent to fraud and/or misuse. You may deactivate the account when a cardholder is not using or is not planning to use the Purchase Charge Card. By understanding the cardholder's need and use of the card, you can work with the cardholder to establish deactivation guidelines. Deactivation and reactivation can be completed through the bank's EAS or by calling the bank's customer service phone number.
• Guides - The banks have developed written guides for A/OPCs and cardholders, as follows:

A/OPC Guide - This guide addresses issues of concern to the A/OPC, including responsibilities of program participants, account setup and maintenance, account suspension/cancellation, disputes, reports and invoicing procedures. The guide is available from the banks in hard copy and/or via the Internet.

Cardholder Guide - This guide addresses authorized uses of the Purchase Charge Card, disputes and billing.