Guide to Government Wide Purchase Card

What, where, why, and how: Considerations in using a government wide purchase card
By Jennifer Hunsicker

Government wide purchase card programs reduce paperwork, save money, expedite the procurement process and improve payment time to vendors. The GPC is similar to a consumer credit card but the government gives it to city, state, or federal governments for the purchasing of supplies and services that are micro-purchases.

As with a consumer credit card, you have a credit limit and only certain people have authorization to use the GPC. The Federal Acquisition Act (FAR), particularly Part 13, provides guidelines for the federal government wide purchase card. With a few exceptions, the limit on the GPC is $2,500 for federal governments. Cards at the city or state level have lower limits. City, state and/or federal regulations apply to GPC use, so please check for applicable legislation as well as GPC vendor requirements for use.

1. Check with the vendor for government wide purchase card information to establish internal guidelines for both use and auditing purposes pertinent to your organization.

2. Research legislation that may apply to your organization.

3. Write control guidelines for use, limits, card assignments and other auditing purposes as well as training guidelines, which should be mandatory for all assigned users.

Action Steps

The best contacts and resources to help you get it done

Locate a government wide purchase card provider To find a GPC provider, check with your local bank or financial institution to see if they participate in the program or if they can adapt their corporate program to your use. While there is not an official government wide purchase card list, there are primary vendors for obtaining a GPC.

I recommend: Visa and MasterCard are the two largest GPC providers. The Visa and MasterCard sites contain a GPC list of banks that issue these cards, with links to these banks.

Establish guidelines for use of the GPC Study established guidelines and auditing procedures of other organizations to find the GPC information you need to adapt these to your own organization. GPC vendor programs include reporting and management functions to manage spending efficiently and enforce spending policies. It is important to understand the reporting and tracking limitations of the program in which you participate.

I recommend: The Federal Acquisition Regulation is valuable in establishing your own internal guidelines for GPC use. Reviewing auditing results from the Office of the Inspector General will also help with writing auditing procedures. If you do not feel comfortable writing procedures, try Federal Publications Seminars for training purposes.

Establish ethics training for users of the GPC Without ethics training as well as proper auditing procedures, the potential for misuse of the GPC is enormous. Ethics training is a mandatory part of the training process.

I recommend: Limit card issuance and spending limits. Low-price, single purchase items for personal use are the primary targets for misuse. Require documentation of purchases and monitor monthly. Online ethics training through the USDA as well as the GSA's official federal government ethics training module for the government wide purchase card. 360training.com also provides inexpensive, effective ethics and fraud alert training modules.

Tips & Tactics

Helpful advice for making the most of this Guide

As with a consumer credit card, be aware of convenience checks that often accompany a GPC. These can quickly lead to misuse.