Agency/Organization Program Coordinators (A/OPCs) Fleet Training
Lesson 3: Fleet Card/Account Use and Payment Solutions
What can card/account holders buy using their GSA SmartPay® Fleet card/account?
It is important for card/account holders to understand the limits on fleet card/account use and to manage their purchases against those limits.
The federal government or other authorized employees are permitted to use the fleet cards/account to make authorized purchases as determined by the agency/organization. Typically, fleet cards/accounts are used to purchase fuel, maintenance and repair for government owned/operated vehicles.
Examples of authorized purchases include:
- Regular unleaded self service fuel.
- Immediately consumable items for vehicles (quart of oil, washer fluid, etc.).
- Required preventative maintenance.
- Car washes (not to exceed $25 per month or as determined by your agency).
- Mechanical repairs.
Examples of unauthorized purchases include:
- Premium or full service fueling.
- Maps, air fresheners, food, etc.
- Buying services in excess of required repairs.
- Excessive car washes or details.
- Upgrading tires or accessories (which may vary depending on specific agency policy).
If a purchase appears questionable, card/account holders can reach out to their A/OPC or contracting office for guidance.
What are some of the strategic payment solutions offered under GSA SmartPay 3?
Strategic payment solutions provide agencies/organizations with increased payment flexibilities and strategies for making payments.
Strategic payment solutions offered under the GSA SmartPay 3 Master Contract include:
ePayables
- Replaces the accounts payables process such that electronic transactions take place directly between the government and the supplier.
- Typically used with merchants who are traditionally paid by convenience check or electronic funds transfer (EFT) and do not accept charge card payments.
- Examples include straight-through processing, buyer-initiated payments, supplier-initiated payments, procure-to-pay and other card-not-present solutions.
Mobile Application
- Provides the ability to access the Electronic Access System (EAS), pay invoices, receive text/email alerts and view statement and payment information over a mobile device.
- Upon request, your contractor bank provides mobile application capabilities at no additional cost.
Mobile Payments
- Your contractor bank provides the ability for card/account holders to make secure payments using a mobile device at the point-of-sale (POS).
Net Billing
- The process of ensuring that merchant discounts or refunds offered are deducted at the POS and guaranteeing such discount arrangements.
- The contractor bank ensures that discount information is identified on the invoice and passed to the agency/organization, when available.
- For example: If Mark purchased a toner cartridge for $100 and the merchant offers a government discount of $4.00 to the agency/organization based on existing agreements, the contractor bank shall net bill only $96 for the transaction.
Single-Use Account (SUAs)
- Leverages a single virtual account number for each payment.
- The limit on each account is set to the specific payment amount.
- Internal controls such as Merchant Category Code (MCC) blocks, spend limits, timeframes and account expiration dates can be used for increased control.
- Agencies also have the ability to append accounting data for seamless reconciliation.
- Examples of use include invoice and contract payments, which help to ensure that merchants are not able to charge more than approved amounts.
- Benefits include:
- Accounts can be activated in real time.
- Controls can be placed on account, allowing for increased oversight of spend
- Disposable, one-time use account numbers reduce the risk of fraud.
- Seamless reconciliation.
- Reduces the necessity for using convenience checks.
Tokenization
- Use of a secure, unique “token” in place of a 16-digit account number to provide extra security for transactions.
Virtual Cards
- One-time use account numbers that may be used during a limited time, for a limited amount and possibly for a specific merchant.
Ghost Cards
- For agencies who frequently do business with one merchant and have recurring payments.
- An account number can be assigned to the merchant and authorized agency personnel transactions occur without having to use multiple cards or accounts.
- Many agencies use this product for purchases such as airline tickets.
- Benefits may include:
- Reduced number of open accounts (payment processing and oversight easier).
- Allows for multiple users.
- Allows for a high level of control.
- Reduces the risk of lost or stolen cards.
What is Section 889 and how does it apply to purchases?
Section 889 of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year 2019 (P.L. 115-232 [PDF, 789 pages]) and the Federal Acquisition Regulation (FAR) Case 2018-017 prohibit the purchase of covered telecommunications equipment and services from merchants who sell products containing spyware. These devices could pose a threat to U.S. security by spying on or disrupting communications within the U.S. Therefore, purchase card/account holders should follow their agency’s policy regarding Section 889 compliance.
What is the FASCSA Order Check?
Before making any purchase, buyers should review Federal Acquisition Supply Chain Security Act (FASCSA) orders.
The federal government issued an interim rule that amends the Federal Acquisition Regulation (FAR) to implement supply chain risk information sharing and FASCSA orders. This rule became effective on December 4, 2023.
Accessing FASCSA Orders
The System for Award Management (SAM) is an official website of the U.S. Government that helps users navigate the federal award lifecycle.
The site stores FASCSA order data entered by the Department of Homeland Security (DHS), the Department of Defense (DoD), and the Director of National Intelligence (DNI).
Before making any purchase, including GSA SmartPay Purchase card/account transactions, agency officials should go to SAM.gov and select the “View FASCSA Orders” button to download and review a complete list of the FASCSA orders.
Buyers should:
- Be sure to follow their agency rules and procedures for compliance with applicable FASCSA orders to determine whether the purchase should be made.
- Keep in mind that the FASCSA order review should take place for all purchases at any dollar threshold.
- Note that until DHS, DoD, or DNI create the first FASCSA order in SAM.gov, the downloaded file will be empty.
What is the American Security Drone Act Of 2023?
On December 22, 2023, the President signed the National Defense Authorization Act for Fiscal Year 2024 (NDAA).
As part of the NDAA, Sections 1821 and 1826 contain prohibitions on using the GSA SmartPay purchase card to buy any covered unmanned aircraft systems from covered foreign entities.
Section 1821 - THE AMERICAN SECURITY DRONE ACT OF 2023
Section 1822 - Defines covered foreign entities and covered unmanned aircraft systems.
The term COVERED FOREIGN ENTITY means an entity included on a list developed and maintained by the Federal Acquisition Security Council and published in the System for Award Management (SAM). This list will include entities in the following categories:
- An entity included on the Consolidated Screening List.
- Any entity that is subject to extrajudicial direction from a foreign government as determined by the Secretary of Homeland Security.
- Any entity the Secretary of Homeland Security, in coordination with the Attorney General, Director of National Intelligence, and the Secretary of Defense, determines poses a national security risk.
- Any entity domiciled in the People’s Republic of China or subject to influence or control by the Government of the People’s Republic of China or the Communist Party of the People’s Republic of China, as determined by the Secretary of Homeland Security.
- Any subsidiary or affiliate of an entity described in subparagraphs (A) through (D).
- The term COVERED UNMANNED AIRCRAFT SYSTEM has the meaning given the term ‘‘unmanned aircraft system’’ in section 44801 of title 49, United States Code.
Section 1826 - PROHIBITION ON USE OF GOVERNMENT-ISSUED PURCHASE CARDS TO PURCHASE COVERED UNMANNED AIRCRAFT SYSTEMS FROM COVERED FOREIGN ENTITIES
- Effective immediately, Government-issued Purchase Cards may not be used to procure any covered unmanned aircraft system from a covered foreign entity.
Cleared Drone Vendors
- A cleared list of drone vendors is available from the Defense Innovation Unit.
- https://www.diu.mil/blue-uas-cleared-list
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