0. Stored Value Cards
TREASURY OPERATIONS

1. What Is a Stored-Value Card?
It is a payment card with a pre-paid monetary value stored on the card itself:
can be discarded when the balance reaches $0, or reloaded with value;
not a debit or credit card;
generally used for small-dollar purchases;
purchase occurs “offline” – i.e. the $ value resides on the mag stripe or chip, so no telecommunication with consumer’s bank is required and the merchant avoids certain bank fees;
plastic stored-value cards cannot be used for online, telephone, catalog/mail order or other “card not present” transactions, because the value resides on the mag stripe or the chip.
Types of cards offered by Treasury Operations:
Plastic “Instant issue” (one-time use or reloadable, no cardholder name)
Plastic Personalized (bears name of cardholder, reloadable)
Virtual (sent by secure , can be used online only).
Not in an external account maintained by a financial institution.
Differs from debit card:
Where money is on deposit with the issuer, and bears the name of the cardholder;
Differs from a credit card
Which are subject to credit limits set by the issuing bank, and bears the name of the cardholder;
Stored-value cards may be anonymous, as in the case of gift cards.

2. Why We Use Bank-Issued Plastic Cards
Capability
Banks
Non-Banks
PNC, BAML, US Bank, Wells Fargo, etc. (Citi, Chase)
Hyperwallet, Greenphire.
COST TO NU
Treasury can work with banks to create a $0 cost to the University.
High implementation fees, card fees, load fees, reload fees. We pay for functionality that we don’t need.
COST TO PARTICIPANTS
Treasury can work with banks to create a program with lower (or $0) cost to Cardholders. Example: $0 ATM fees at PNC ATM.
Use external sources to produced cards, have their own banks in the background, and share in card fee revenue.
ONLINE SYSTEM
Generally have a strong online system with sufficient functionality.
Online systems represent a much higher capital investment.
FUNCTIONALITY
Would address most requirements.
Niche solutions that will not address all campus needs.
Secure credit card and mobile pay acceptance across all campuses;
Enable Remote Check Depositing to all departments;
Provide stored value cards to student athletes, research teams, and student groups;
Centralize and/or outsource cashiering and check-cashing to suitable 3rd party(ies);
Explore cash recycler and other 3rd party innovations that allow for temporary cashiering for special events.

3. To Summarize, Treasury Operations provides Stored Value Cards which:
have no ($0) cost to departments
use co-brand VISA or MASTERCARD to increase acceptance
minimize fees to cardholders
have immediate value once they are loaded online (no delay)
can be replaced if lost or stolen
provide core functionality and capability
are centrally administered, supported and reconciled
Secure credit card and mobile pay acceptance across all campuses;
Enable Remote Check Depositing to all departments;
Provide stored value cards to student athletes, research teams, and student groups;
Centralize and/or outsource cashiering and check-cashing to suitable 3rd party(ies);
Explore cash recycler and other 3rd party innovations that allow for temporary cashiering for special events.

4. What research participants receive (front of insert)
Co-branded card
Safety and usage guidelines to reduce fees
What to do if Lost or Stolen

5. What research participants receive (back of insert)
FAQ’s
Balance-check instructions
A schedule of fees and limits
Note: cash withdrawals from PNC ATM’s are free.
Note: Help your participants by letting them know
To register their cards in case of loss or theft;
They have access to ATM cash;
Best practice: use your entire balance at a retailer as soon as possible.

6. High-level process and workflow
Unloaded card stock can reside in your office, or ours;
Online request for plastic (instant issue vs. personalized) or virtual cards
must be completed
Signed by PI or administrator;
Bear secondary signature/approval from VP/Dean/Senior Administrator;
Urgent requests can be provided same-day up to 10 AM CST;
Communication from Treasury that cards are loaded;
Once loaded, cards have immediate value – can be used right away.
Key Benefits
Secure credit card and mobile pay acceptance across all campuses;
Enable Remote Check Depositing to all departments;
Provide stored value cards to student athletes, research teams, and student groups;
Centralize and/or outsource cashiering and check-cashing to suitable 3rd party(ies);
Explore cash recycler and other 3rd party innovations that allow for temporary cashiering for special events.
Immediate value on cards;
More secure than cash or checks;
Visa/MC brand increases acceptance;
Recipients like them!

7. Payment Policies and Procedures
The Human Subject Payments Policy should be consulted for details on the recommended payment methods:
Under no circumstances should investigators’
personal funds be used to pay human
subjects!

8. Payment Policies and Procedures
For payments of $100 and less (in aggregate -per person per calendar year) disbursements should be made via:
Stored Value Cards
Petty cash (cash or checks)
Non-travel advances
Gift card* (vendor purchase)
* Off the shelf gift cards very often contain restrictions and limits designed to generate fees and reduce the actual amount loaded to the card at the cash register.

9. Payment Policies and Procedures Exceptions
For payments greater than $100 (in aggregate –per person per calendar year) disbursements should be made via:
Checks through Northwestern’s Accounts Payable procedures
Payment thresholds are set to ensure appropriate reporting of taxable payments to an individual totaling $600 or more in a calendar year; our system of record is Accounts Payable (W-9 is obtained with recipient tax information, taxable payments are automatically accumulated for each individual across all chartstrings/units; tax forms and filings are automatically generated by the system)

10. Payment Policies and Procedures
Expense Account Codes:
Research Subject Fees account code should be used for human subject payments.
Sundry Payments account code should be used for human subject travel related expenses*
* Travel expense are not taxable and can be combined with subject fees on the request form as long as the JV separates the amount using above account codes, travel expenses are reasonable, and travel receipts are available.

11. Payment Policies and Procedures
Payments–exceeding $100
Principal Investigators or research personnel must apply for an exception to provide payments that exceed $100. Limited exceptions may be granted by Accounting Services for Research and Sponsored Programs (ASRSP) depending on facts and circumstances. Requests should be sent to Karen Spina.
Process for an exception:
The requestor may submit an exception request by addressing the following:
The reason for the exception and the rationale for the payment exceeding $100
The number of participants in the study who will receive payments in excess of $100
The dates of the study
Please attach copy of approval with the stored value card request and reconciliation.

12. Summary: Research Subject Payment Options
Secure credit card and mobile pay acceptance across all campuses;
Enable Remote Check Depositing to all departments;
Provide stored value cards to student athletes, research teams, and student groups;
Centralize and/or outsource cashiering and check-cashing to suitable 3rd party(ies);
Explore cash recycler and other 3rd party innovations that allow for temporary cashiering for special events.

13. Questions About Stored Value Cards?
Thank you!
Richard Emrich, Director of Treasury Operations,
Cindy Regner, Treasury Operations Supervisor,