Rescinded [2009-10-01] - Policy on Using Travellers Cheques, Travel Cards and Travel Accounts

Responsibility Centre Travel Card (RCTC) (Carte de voyage de centre de responsabilité) - a card issued to an employee who is authorized to pay for either approved business travel of groups of individuals not employed by the federal Public Service or for travellers cheques. Departments are responsible for any charges resulting from the use of the card.

Individual Travel Card (ITC) (Carte individuelle de voyage) - a travel card issued to an employee. The employee may use it to pay for authorized business travel and hospitality expenses, except for common carrier transportation. All legitimate charges against the card are payable by the employee (cardholder).

Departmental Travel Account (DTA) (Compte ministériel de voyage) - an account maintained by the card-issuing Company. Departments use it to pay for common carrier transportation of authorized employees. This account is used exclusively to purchase tickets from the Government Travel Service (GTS) contractor. Departments are responsible for all charges against a departmental travel account.

"Cardholder" refers to an individual or responsibility centre that receives and uses the card in accordance with the requirements and policies issued by the Treasury Board and the appropriate department.

"Department" refers to:

• a department or agency whereof the Treasury Board is the Employer and the employees of which are governed by the Public Service Staff Relations Act; and
• any department, agency, entity or Crown corporation, as defined in the Financial Administration Act, that decides to participate in the Government Travel Card Program.

"Departmental Co-ordinator" refers to a departmental official responsible for acting as liaison with the Company and representing the department in all matters related to its participation in the program.

"Authorized charges" refer to charges made against an individual travel card, a responsibility centre travel card or a departmental travel account issued in the name of an individual or a department, in accordance with the requirements and policies issued by the Treasury Board and the appropriate department.

"Travel authorization number" (TAN) refers to the number that authorizes the Company selected by the Government Travel Service (GTS) to reserve and deliver tickets or other documents related to air, rail, sea and land transport, reserve hotel accommodations and rent vehicles. Departments use it to help reconcile expenses that appear on DTA statements.

(a) Departmental Travel Accounts (DTA)

Opening and cancelling an account

• A departmental travel account will be established as directed by a department, in consultation with Traffic Management Directorate (TMD). No DTA will be opened without the approval of TMD.
• Upon receipt of an application from TMD, the Company will open a DTA and communicate the DTA number to the appropriate department and TMD within10 working days of receiving such application.
• The department may ask the Company to cancel a departmental travel account with the approval of TMD.

Monthly statements

• The department will receive monthly statements in an electronic format, unless otherwise requested by the department.
• Statements will be in either English or French (or bilingual), as determined by the department.
• The department will receive a monthly bill from the Company, in Canadian dollars, within five days following the last day of the month. Hard copies of the statement will be sent to an address designated by the department, or the Company will inform departments how to access electronic statements. The statement will contain the following information:
  • DTA number;
  • for each transaction, all information on available reservations for airline, rail or land transport tickets, such as TAN, the ticket's issue date, the ticket number, the price, the name of the airline or transportation provider, the passenger's name, the transaction reference number and routing information;
  • applicable taxes (i.e. PST, GST or HST) shown separately;
  • total GST/HST applicable to all air/rail transport;
  • total fees, if applicable;
  • delinquency charges, if applicable;
  • other credits or debits;
  • closing balance for the previous month;
  • information relating to payments made in the previous month;
  • payment due date;
  • total amount due;
  • total cost not including GST/HST;
  • total cost including GST/HST;
  • unique statement number; and
  • explanation on back of statement (or as part of the statement in electronic format) to facilitate payment that is customized to the government.

(b) Individual Travel Cards (ITC)

Card issuance and cancellation

• The account number is unique to each card.
• Each card will have a credit/charge limit of $3,000. Transactions at point of sale will be refused if they cause the monthly credit limit to be exceeded.
• Industry standard daily, weekly and monthly cash withdrawal limits will be available for each card. Transactions at the point of sale will be refused if they cause one of these limits to be exceeded.
• The monthly cash limit and the monthly credit limit may be increased upon written request by the Departmental Co-ordinator (or designate). The Company may refuse such increases if the cardholder's account is not in good standing.
• The card will be valid for the duration of the contract, unless otherwise indicated by the appropriate department, or unless it is cancelled.
• The Company will not undertake, or have undertaken on its behalf, credit checks on card applicants or cardholders prior to or subsequent to issuing a card.
• If requested by a cardholder to reinstate a card cancelled due to non-payment of account, the Company may undertake or have undertaken on its behalf, credit checks on the cardholder, if the cardholder has authorized it to do so in writing.
• A card will not be issued or re-issued without the approval of the Departmental Co-ordinator (or designate).
• The card will be delivered to the cardholder or designated departmental official, as directed, within 10 working days of receipt of an application for the card and, in an emergency, within 24 hours.
• In cases where the card has been lost or stolen, it will be replaced, assigned a new card number and delivered to the cardholder within 72 hours. However, if the employee is in travel status, the Company will arrange for emergency credit, as required, for business travel expenses.
• The Company will cancel the card as directed by the individual cardholder or the Departmental Co-ordinator (or designate).

The Company may:

• unilaterally cancel cash advance privileges if there is an outstanding balance over 60 days from the statement date;
• unilaterally cancel the individual cardholder's credit privileges if there is an outstanding balance over 90 days from the statement date, and if the Departmental Co-ordinator (or designate) is advised.

Monthly statements delivered to cardholders

• The Company will provide detailed monthly statements, which will be mailed, as directed, to the individual cardholder's home address or in care of his or her office.
• Statements will be in either English or French (or bilingual), as determined by the cardholder.
• The Company will bill the cardholder in Canadian dollars. The statement will contain the following information:
  • purchases (date, name and location of supplier, amount);
  • other credits or debits;
  • total cash advances;
  • total fees, if applicable;
  • total delinquency charges, if applicable;
  • closing balance for the previous month;
  • information relating to payments made in the previous month;
  • payment due date; and
  • total amount payable.
• The Company will apply no interest charges or late payment fees against an outstanding balance on an individual cardholder statement until at least 60 days after the statement date. Please note that the monthly invoices are to be paid within 30 days of the date of issuance. The additional 30 days of grace are to allow for minor delays in getting reimbursed by the employer and mailing time. Paying the invoices on a 30 day basis (or faster) will improve the overall rebate available to departments from the card company.
• Departments will reimburse travellers for interest charges or late payments fees only in the event that the department is responsible (i.e., the employee submitted his or her travel reimbursement claim in accordance with the policy but the department did not issue the reimbursement in a timely manner).

(c) Responsibility Centre Travel Card (RCTC)

Card issuance and cancellation

• The account number is unique to each card.
• The department will set a pre-determined credit limit for each card. Transactions at point of sale will be refused if they cause the monthly credit limit to be exceeded.
• Industry standard daily, weekly and monthly cash withdrawals will be available for each card. Transactions at point of sale will be refused if they cause one of these limits to be exceeded.
• The monthly cash limit and the monthly credit limit may be increased upon written request of the Departmental Co-ordinator (or designate).
• The card will be valid for the duration of the contract, unless otherwise indicated by the appropriate department, or unless it is cancelled.
• The Company will not undertake, or have undertaken on its behalf, credit checks on card applicants or cardholders prior to or subsequent to issuing a card.
• A card will not be issued or re-issued without the approval of the Departmental Co-ordinator (or designate).
• The Departmental Co-ordinator (or designate) may approve all changes to the name or delivery address of the cardholder.
• Departmental Co-ordinators (or designates) will fill out the Company's application form and include the following information for each card requested:
  • name of applicant;
  • maximum dollar value and credit limit;
  • other restrictions, as applicable (e.g. merchant category);
  • name of department and responsibility centre;
  • billing address;
  • statement address; and
  • financial code.
• The card will be delivered to the cardholder or designated department official, as directed within 10 working days of receiving an application for the card and, in an emergency, within 24 hours.
• In cases where the card has been lost or stolen, it will be replaced, assigned a new card number and delivered to the cardholder within 72 hours. However, if the employee is in travel status, the Company will arrange for emergency credit, as required, for business travel expenses.
• The Company will cancel the card as directed by the Departmental Co-ordinator (or designate).

The Company may:

• unilaterally cancel cash advance privileges if there is an outstanding balance over 60 days from the statement date;
• unilaterally cancel the individual cardholder's credit privileges if there is an outstanding balance over 90 days from the statement date, and if the Departmental Co-ordinator (or designate) is advised.

Monthly statements delivered to cardholders

The department may, at its discretion:

• Ask the Company to provide detailed monthly statements that will be mailed to the individual cardholder's business address, in accordance with instructions. In this case, the following procedure applies:
  • All statements will be in either English or French (or bilingual), in accordance with the cardholder's expressed preference.
  • The Company will produce monthly invoices in Canadian dollars.
• The statements will provide information on:
  • purchases (date, supplier's name and location, amount);
  • other credits or debits;
  • cash advances;
  • other fees, if applicable;
  • delinquency charges, if applicable;
  • closing balance for the previous month;
  • information relating to payments made in the previous month;
  • payment due date; and
  • total amount due.

A blank line will follow each item.

• Ask the Company to provide an electronic version of the statement described in (a) above, in the format requested by the department, and take responsibility for transmitting the information to cardholders. The electronic statement will be sent to an electronic address designated by the department, at no additional cost.

(d) Travellers cheques

Issuance of travellers cheques

The Company agreed to guarantee delivery of travellers cheques within five (5) days after receipt of the order.

Delivery procedures

The Company agrees that travellers cheques will be delivered after being signed by the authorized financial representative(s). The Company must ensure secure delivery.

Replacement of travellers cheques

Travellers cheques must be replaced within 24 hours after being reported lost or stolen.

Travellers cheques in foreign currency

• Travellers cheques will be available in Canadian and U.S. dollars. The company shall provide other international currencies.
• If the Company is unable to provide travellers cheques in the required currency, departments may obtain the required cheques from another source.

Insurance

• Security of travellers cheques prior to delivery to the department is the responsibility of the Company.
• After delivery, the Company agrees to guarantee the value of travellers cheques held by the department against loss due to theft or loss of the travellers cheques.
• The Company agrees to guarantee the value of travellers cheques provided to employees against loss due to theft or loss of the travellers cheques, provided that the issuance form (or purchase form) was signed and the instructions were followed.
• The Company agrees to guarantee the value of travellers cheques that have been entrusted to couriers against loss due to destruction, damage, theft or loss of the travellers cheques.
• In the event of an incident, the Company will issue an alert with respect to the missing cheques and deliver copies of cheques that may have been redeemed to the department for comment and investigation. The original of the cheque will be delivered to the department upon request.

Invoices delivered to departments

• The department will receive detailed invoices, produced and delivered by the Company in accordance with instructions. Under these circumstances, the following conditions will apply:
  • The invoices will be either in English, in French (or bilingual), as determined by the department.
  • The invoices will be issued in Canadian or U.S. dollars and will provide information on:
    • purchases (dates and amounts);
    • other credits or debits;
    • currencies;
    • the amount of any fees, if applicable;
    • payment due date; and
    • total amount due.

(e) Common Points

Management information - Departments

• All information will be provided in an electronic format unless otherwise requested by the department. This database will be made available in the format required by the department.
• All management information will be provided in either English or French, as requested by the department.
• The Company will provide on a monthly basis, to each department, management information in accordance with the hierarchy identified by the department.
• Management information will include detailed and summary information of activity for the current month (by cardholder, including cardholder name and card number):
  • purchases (transaction date, name and location of supplier, related amount and total);
  • payments made;
  • other credits and debits;
  • previous and current balance; and
  • delinquency charges.
• for DTAs and RCTCs only:
  • interest charges;
  • applicable taxes (i.e. PST, GST and HST); and
  • delinquency charges, if applicable.
• for ITCs only:
  • number and amount of cash advances; and;
  • charges related to cash advances (if applicable).
  • for travellers cheques only:
  • number and amount of travellers cheques; and;
  • applicable charges.
• Management information will also include other types of information, such as:
  • full listing of all cards issued to the department, including such information as employee name, card number, card expiry date, credit/charge limit, reference number (if applicable);
  • a list of lost or stolen cards;
  • a list of cards inactive for the last twelve months;
  • a list of cards to be renewed in the next 60 days;
  • other information by supplier and merchant category;
  • other exception reports as identified by the department; and
  • any other information the Company can provide that would assist the Departmental Co-ordinator to manage the overall travel card program in the department.
• for DTAs and RCTCs only:
  • purchases in foreign currencies;
  • accountholders (or cardholders) that did not make their payment within the deadline prescribed in the agreement. The information will be aged by time interval, for example thirty (30) days past due, sixty (60) to ninety (90) days past due, and over ninety (90) days past due.

Government, Cardholder and Company liability

• The Company assumes full financial liability for the actions, including fraud, of its employees, agents, franchisees and subcontractors in the delivery of travel card services under the contract.
• for DTAs only:
  • The Company assumes liability for illegitimate charges.
  • The government is liable for authorized charges on a departmental travel account.
  • It is the accountholder's responsibility to report any disputed charge or item to the Company.
• for RCTCs only:
  • The department will assume responsibility for all legitimate charges.
  • The Company will not, under any circumstances, hold the cardholder liable for any transaction. Personal employee information, including home addresses and home telephone numbers will not be provided to the Company under any circumstances.
  • The maximum government liability for any unauthorized use of the card will be a maximum of $50. Unauthorized use means a use that did not benefit the government and was made by someone other than the cardholder.
  • The government will not be liable for any charges against lost or stolen cards that occurred after notification of loss, theft or cancellation has been received by the Company.
• for ITCs only:
  • All legitimate charges against the card will be the responsibility of the individual cardholder in whose name the card was issued; however, the individual cardholder will not be responsible for illegitimate charges.
  • The Government will not be liable for any unpaid charges on individual cardholder accounts nor shall the Government be held liable for any charges against lost or stolen cards.
  • The Government shall not be liable for any charges against Individual Travel Cards including ATM cash advances and any fees associated therewith. The company reserves the right to take legal action in situations where the account becomes delinquent.
  • The Company assumes liability for illegitimate charges.
  • Departments may, without incurring any liability, assist in the resolution of disputes relating to collection of amounts owing on all cards and accounts.
  • It is the cardholder's responsibility to report any disputed charge or item to the Company.
• for travellers cheques only:
  • Security for travellers cheques prior to delivery is the responsibility of the Company.
  • Notwithstanding the other provisions of this agreement, the Company is not liable for any loss, destruction, damage, theft, burglary or robbery of travellers cheques which results from intentional wrongdoing on the part of any employee of the Government of Canada.

Telephone service

• The Company provides a dedicated, bilingual customer service mechanism, including a separate toll-free telephone number, to assist government cardholders with billing and card acceptance inquiries, emergency travel assistance, card replacement and other services. This service is available on a 24-hour per day, 365 days per year basis at no cost to individual cardholders.
• Cardholders and Departmental Co-ordinators (or designates) must have the ability to report a lost or stolen card and cancel the card instantly by telephone 24 hours a day.
• The toll-free telephone number(s) will also provide cardholders and Departmental Co-ordinators (or designates) with assistance for billing enquiries and will be available between 7 a.m. and 5 p.m., Ottawa time, Monday to Friday inclusive. Departmental Co-ordinators (or designates) can also obtain responses to enquiries on card acceptance and replacement and other questions, and obtain assistance, at the toll-free number(s).
• for travellers cheques:
  • The Company provides a dedicated, bilingual customer service mechanism, including a separate toll-free telephone number, to assist travellers on government business and departments with information, emergency assistance, cheque replacement and other services. This service is available on a 24-hour per day, 365 days per year basis at no cost to travellers or the government.
  • Travellers, cardholders and Departmental Co-ordinators (or designates) must have the ability to report lost or stolen cheques by telephone 24 hours a day.
  • The toll-free telephone service will also provide travellers, cardholders and Departmental Co-ordinators (or designates) with assistance for billing enquiries and will be available between 7 a.m. and 5 p.m., Ottawa time, Monday to Friday inclusive. The service will also provide Departmental Co-ordinators (or designates) with assistance on other questions related to travellers cheques.

Disputed items (DTAs and RCTCs)

• Disputed items may arise as a result of a number of situations, such as errors in addition, altered amounts, incorrect account number, credit posted as debit and vice versa, incorrect transaction amount, or multiple processing.
• The existence of disputed items will not result in an account being in default. Notification by Her Majesty of an objection under the method of payment conditions contained herein will be deemed to constitute a disputed item under this clause.
• Interest will not be charged for items included on the monthly statement which do not accurately reflect a cardholder's transaction with a supplier (i.e. disputed items).
• Some departments may choose a payment option that requires the department to pay within a shorter period than the 30 days specified in the standard terms of payment. Departments will be able to report disputed items up to 60 days from the billing date and claim credit on the next billing until the item is resolved.

Disputed items will be settled as follows:

• If the dispute relates to a supplier, the individual account holder or cardholder will attempt to settle the dispute directly with the supplier.
• If the dispute does not relate to a supplier, the account holder or cardholder may contact the Company directly to settle disputes related to charges on his or her statement, or the account holder or cardholder may bring the matter to the attention of the Departmental Co-ordinator (or designate), who will contact the National Co-ordinator or the local responsible official, depending on the case.

The detailed dispute settlement procedure includes the following steps:

1. The account holder or cardholder or the Departmental Co-ordinator (or designate) identifies the disputed item on the account and informs the Company.
2. The Company examines the item in order to determine whether the transaction was incorrectly recorded. If so, the Company will cancel the sale and any interest incurred on a subsequent statement. If the correction does not appear on the next statement, the Company will inform the Departmental Co-ordinator (or designate) and indicate why the credit will not be recorded and when it will be.
3. If the transaction was not incorrectly recorded, the Company will inform the Departmental Co-ordinator (or designate), charge the item to the account again, and charge the related interest. If need be, the Departmental Co-ordinator (or designate) or the account holder will deal directly with the supplier to settle the dispute. In the case of RCTCs, if the transaction was not incorrectly recorded, the Company will send a copy of the bill to the Departmental Co-ordinator (or designate), charge the item to the account again, and charge the related interest. If need be, the Departmental Co-ordinator (or designate) or the cardholder will deal directly with the supplier to settle the dispute.
4. If, after steps (i) through (iii) have been performed, a cancellation issue still has not been settled, the Company will ask the account holder to provide a letter describing the situation and then settle the dispute in the appropriate manner.