Financial Services Procedures

Credit Card Payment Accounts

Financial Affairs, Financial Services   |   Approved December 17, 2016

Purpose

Establish a credit card payment account (“merchant account”).

Applicability

UMB Operational Units (schools, departments, divisions) that accept credit card payments for transactions involving UMB Funds.

Instructions

In the course of business at UMB, Operational Units may choose to accept credit card payments for goods and services. In accordance with the State of Maryland General Accounting Division, UMB Funds received through credit card transactions must be processed via a merchant account authorized by the State Treasurer’s Office (STO).   

Establishing a Merchant Account:

  1. Request a Bank of America – State of Maryland Merchant Account Number Form and Instructions by emailing the Department of Financial Services – Student Accounting (FS-SA) or by calling 410-706-1334.
  2. There are two methods for processing credit card payments:
    1. Online – The Operational Unit is responsible for selecting and implementing the payment gateway (software application that authorizes payments for merchants).
    2. Credit Card Terminal – Contact FS-SA for information and equipment costs.
  3. Email the completed form to FS-SA.  Include the Project ID and the Revenue Account to use for crediting the revenue.  Service fees will be charged to the Project ID - Bank Fees Account 4945.
  4. FS-SA forwards the completed form to Bank of America Merchant Services (BAMS).  BAMS forwards the request to the STO for approval.
  5. Upon approval BAMS assigns a merchant number and communicates the merchant number to FS-SA.  FS-SA provides the Operational Unit with the merchant number and contact information for a BAMS Relationship Manager.
  6. A BAMS Relationship Manager works with the Operational Unit to activate the account and will provide information on account management, account fees, and any other assistance needed.
  7. Operational Units are prohibited from establishing merchant accounts that have not been authorized by the STO.

Processing Transactions:

  1. Online Transactions
    1. Payments are processed through a payment gateway.
    2. Funds are deposited into the State of Maryland bank account. 
    3. FS-SA prepares a monthly journal entry to credit the project and revenue account indicated in the email sent to FS-SA with the Bank of America – State of Maryland Merchant Account Number Form.  The journal entry is processed after the month’s activity is transmitted to UMB. 
    4. FS-SA prepares a biannual journal entry to charge assessed bank fees to the project and expense account indicated in the email.  
    5. Credit Card Terminal Transactions
      1. Payments are processed using a credit card terminal.
      2. The Operational Unit batches the transactions and completes a Deposit Summary Form available on the FS-SA website.  The Deposit Summary Form and the Batch Total produced by the credit card terminal are delivered to the Cashier’s Office as indicated on the Form.  When possible, deposits should be made on the day received; but no later than one week after receipt.
      3. Funds are deposited into the State of Maryland bank account.
      4. The project and revenue account listed on the form will be credited after processing.
      5. The Operational Unit is required to provide FS-SA with the project and expense account to charge assessed fees. This information should be emailed to FS-SA with the Bank of America – State of Maryland Merchant Account Number Form.  The fees will be charged biannually.

Questions?  Contact the Bursar at 410-706-2929.


RESPONSIBILITIES

Operational Units

  • Contact FS-SA to establish a credit card merchant account.
  • Complete the required form(s).
  • Provide a project and revenue account to FS-SA for recording the payments.
  • Provide a project and expense account to FS-SA for recording bank fees.
  • Select and setup a payment gateway for online payments.
  • Work with FS-SA to acquire credit card terminals if needed.
  • If using credit card terminals, make timely deposits at the Cashier’s Office.
  • Contact the BAMS relationship manager for assistance with transactions.

 
Financial Services – Student Accounting

  • Assist Operational Units with establishing merchant accounts.
  • Timely submit request forms to Bank of America Merchant Services and timely communicate STO responses to Operational Units.
  • Timely process journal entries to credit revenue and charge fees to Operational Units.
  • Timely process credit card terminal batch deposits received from Operational Units.

DEFINITIONS AND TERMS

UMB Funds- All funds administered by UMB, regardless of fund source.  UMB funds include State appropriated general funds, tuition, fees, and other income, as well as auxiliary funds, revolving/discretionary funds, Designated Research Initiative Funds, gifts, contract or grant revenues, and other restricted funds. 

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