APPENDIX TO POLICY

Payment Methods

Standard Payment Methods

The following account for the bulk of non-payroll payments made.

Payment MethodDescription
Check System generated check mailed directly to the supplier remit to address. When necessary, special handling may be requested to allow a check to be presented directly to the supplier such as an entertainer.
Procurement Card Procurement card program which allows authorized employees (on payroll) to make business-related purchases for goods and standard (not professional) services < $2,500 on sponsored and non-sponsored accounts.

Special Situation Payment Methods

Payment MethodNotesDescription
ACH (Automated Clearing House) May be established by Disbursement Services for suppliers who have a high volume of invoices Limited to US suppliers with United States bank account at a United States Bank. This option is not available for Single Payment Suppliers (SPV) payments and there are some operational restrictions on allowed suppliers. Contact Disbursement Services at disbsvcs@umn.edu to determine supplier eligibility and to obtain an ACH Authorization agreement form.
EFT (Electronic Funds Transfer)   A commercial card program that allows funds to be transferred electronically to the supplier account or allows the supplier to pull the funds directly from the processor.
Wires   An electronic transfer of funds. A wire transfers money from the University, directly to a payee bank account. Wires made by Disbursement Services are restricted to USD or foreign currency payments to International supplier only. Request Foreign Payment – Wire or Draft UM1732 form.
Drafts   A bill of exchange (paper check) that is drawn on a University bank account and made payable to an individual or company in another currency. Drafts are more costly, and subject to risk of loss or theft en route to destination. Drafts ‘stale date’ at the bank if not cashed after six months. Request Foreign Payment – Wire or Draft UM1732 form.
Zero Balance Account (ZBA) Check Payments   In the rare instance when other University payment options are not feasible and when approved by the University Treasurer, a zero balance account may be established and assigned to a research project for making payments to individual human subjects. In these instances, accounts are established under the direction of the Office of Investments and Banking and in compliance with Administrative Policy: Utilizing University of Minnesota Bank Accounts. All questions about establishing or using a Zero Balance Account for payments to individual human subjects should be directed to the Office of Investments and Banking.

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