• Working on a PC
  • Looking through a window to the Wallace Monument
  • Palm Pilot
  • Castle Business Park
You are in: Business » Contracts » Purchasing Cards

Procurement - Purchase Cards

Stirling Council use Purchasing Cards as the preferred payment method for goods and services.  This reduces administrative effort on the part of both buyers and suppliers.

For the buyer it removes the requirement to raise a purchase order, match an invoice and enter payment details in the Councils' financial system.

For the supplier it removes the need to raise an invoice and operate payment-chasing departments.  It also gives the supplier payment for the goods or services within 3 days.

The Council is actively encouraging both new and current suppliers to switch to this payment method.  The requirement appears in all tender documentation and suppliers' response to their ability to accept Purchasing Cards is one of the criteria that are scored when evaluating tenders.

There are currently 45 contracted suppliers who are Purchasing card capable and the expected spend this year using this payment system is in excess of £5 million.

Why can suppliers not use their normal credit card terminals?

A Purchasing Card terminal is different from a credit card terminal because it allows more detail about the transaction to flow through the credit card system.

Stirling Council receives this information electronically and uses it to replace the manual input normally associated with processing invoices.

There are 3 types of card terminal which are generally classed as Level 1, 2 and 3 terminals.

Level 1
This is a normal credit card terminal.  We would not receive any Line Item Detail.

Level 2
With a Level 2 terminal there is additional VAT information that flows.  This allows us to automatically reclaim the VAT.  We still would not receive Line Item Detail.

Level 3
Level 3 terminals provide the VAT information as with Level 2 and in addition also provide Line Item Detail.  This detail assists the cardholder to reconcile their transactions and is an Internal Audit requirement for transparency.

For suppliers wishing to do business with the Council and use Purchasing Cards as the payment method the best starting place for advice is their own bank.  If this is not possible then advice can be obtained from Streamline.  This is the acquiring branch of the Royal Bank of Scotland who are the Council's bankers.  www.streamline.com