As of October 2021, the Single Use Virtual Card (SUVC) Program was in pilot phase and this phase ended as of November 19,2021.
How does the Single Use Virtual Card Program work?
A supplier taking part in the program will receive payment in the form of a single-use virtual credit card with a credit limit matching the amount of the corresponding invoice. When a payment is processed, the supplier receives a notification from J. P. Morgan Chase (Chase) with payment information, including the virtual card number. The supplier can then process the virtual credit card via their merchant terminal just as they would for a physical credit card number. At the end of each monthly billing cycle, the University will issue a single payment to Chase covering all virtual credit cards processed by suppliers during that monthly billing cycle.
For Suppliers enrolled in the Pilot Launch
The system will recognize the suppliers taking part in the pilot launch and automatically use a new mail code configured specifically to pay these suppliers using the virtual credit payment method. Departments preparing payment vouchers on any open invoices for participating suppliers will no longer need to enter mail codes manually.
What changes will departments see in *DEFINE?
From the perspective of someone creating a payment voucher, there will only be a few small changes in the process of paying a supplier enrolled in the Single Use Virtual Card Program. It is not necessary to know which suppliers are enrolled in the Single Use Virtual Card Program before creating a payment voucher.
When creating payment vouchers, entering the UT EID of a supplier enrolled in the Single Use Virtual Card Program automatically causes the system to select the supplier’s virtual credit mail code. The supplier’s address section will then display ** Virtual Credit Bank ** as the supplier’s “preferred address.”
Note: If there is a reason not to use a supplier’s virtual credit mail code for a specific payment, departments will have the option to select a different mail code but will need to explain this action in the notes. The voucher will then route to Accounts Payable for review.
The “check numbers,” known as virtual credit payment IDs for virtual credit payments, will look different than the University check numbers or state warrant numbers. When reviewing transactions on the *DEFINE GT screens for a Single Use Virtual Card Program supplier, the virtual credit payment ID will appear in the Chk.Nbr column. The payment ID will start with a “V” followed by an eight-digit number, e.g., “V00000024”. If you know the virtual credit payment ID for a payment, you can find all transactions for a given virtual credit payment ID using the *DEFINE GTB command.
What processes remain the same for payments to Single Use Virtual Card Program suppliers?
Other than mail code selection, the process to prepare a payment voucher will not change. Departments will follow their standard procedures to prepare and route payment vouchers to final approval.
Suppliers on hold with the state will have their payment held the same way they are for printed checks.
What are the benefits of the Single Use Virtual Card Program?
Chase provides the program at no cost to the University. The University benefits by deferring the outflow of funds by combining University invoices into a single payment to Chase each monthly billing cycle. Suppliers will benefit from the program by having the option to receive payments more quickly from Chase than they would via our payment scheduling procedures. Chase benefits by collecting merchant processing fees when the virtual credit cards are processed, which incentivizes them to recruit as many suppliers into the program as possible.
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