PSC Procedural Statement: Wire Transfers

Effective Date: October 3, 2017

Introduction

This Procurement Service Center (PSC) Procedural Statement sets forth requirements to process a wire transfer payment when payment to an international supplier must be made directly to the supplier’s bank account and/or in a non-U.S. currency.

Definitions

  • Wire transfers are payments made by electronically transferring payment from the University’s bank account directly to the international supplier’s bank account.
  • Foreign drafts are warrants (paper documents, similar to the University’s usual warrants, sent physically through the mail system) that provide for supplier payment in a foreign currency. This payment process is used when the payee’s banking information is not available to do a wire transfer. Foreign drafts are drawn on foreign banks and are payable in that bank’s local currency. A need for this type of payment is rare.

Procedural Statement

Wire transfer and foreign draft payments are kept to a minimum due to the complexity of the required information, documentation, risks, and associated costs.

The PSC will process a wire payment upon request from the responsible department if:

  1. Payment is to an international supplier; and,
  2. Payment is $500 or more; and,
  3. Department submits the completed Wire Payment Request (WPR) form.

If the responsible department submits a request for payment of less than $500, the WPR form must include justification as to why wire payment is necessary for this amount. Such requests will be reviewed by the PSC to determine payment processing.

If the invoice is associated with a purchase order over $10,000, the responsible department must complete online receiving regardless of the individual invoice amount. If the invoice is associated with a standing purchase order (SPO), the WPR form constitutes SPO voucher approval.

Exceptions: Wire Payments Associated with NR, PA, and PV Forms

To request wire transfers associated with the Non-Employee Reimbursement (NR), Payment Authorization (PA), and Payment Voucher (PV) forms, select the Handling Code of ‘Wire Payment’ on the NR/PA/PV form and provide the necessary banking information. 

  • The WPR form may be used to provide banking information but is not required if banking information is otherwise conveyed.
  • An NR/PA/PV wire payment must be to an international supplier, and must be $500 or more.

Unless approved by the Associate Vice President/Chief Procurement Officer, there are no other exceptions to this procedural statement.

Processing and Fees

The PSC works with the University Treasurer to accomplish the wire transfer or issue the foreign draft. The requesting department is responsible for mailing the foreign draft to the payee.

The responsible department must cover any processing fees (typically, $20 for a wire payment and $17.50 for a foreign draft). Fees are charged to the invoice payment SpeedType – unless otherwise specified by the department – via a Journal Entry created by the Treasurer.

Related Forms and Other Resources