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Bank and Merchant Accounts Policy

  • Unit Responsible:  Financial Services
  • Owner: Chief Financial Officer
  • Approver: President
  • Issued Date: October 2007
  • Review / Revision Date(s): January 2025

I.    Purpose

The purpose of this policy is to ensure clear accountability and proper Account management by defining the management approval structure governing University Accounts.

II.    Scope and Application

This policy applies to all academic and administrative Departments of the University, and all Accounts established by, or on behalf of the University.

III. Definitions

“Accounts” means all bank accounts and merchant accounts including payment and credit card processing accounts established with third-parties.

“AML” means Anti-Money Laundering.

“Departments” means all divisions, societies and groups of the University.

“Financial Authority” means the respective University authority within a unit, department or division that has the authority to approve the purchase of goods and/or services in accordance with University policy.

“PCI” means Payment Card Industry     

“PCI-DSS” means Payment Card Industry Data Security Standard.

“University” means Toronto Metropolitan University.

IV.    Policy

1.    The University’s Chief Financial Officer (or their designate) must approve the establishment or closure of any Account for the University.

2.    Departments are responsible for any third party fees associated with the opening and/or maintenance of an approved Account for their unit.  

3.    Departments will be charged a refundable setup fee, determined by Financial Services upon the opening of the account. This fee will be refunded after one year provided that the account remains open and active for the full year. To maintain the account’s open and active status, it must be used regularly.    

4.    Departments are required to ensure compliance with relevant regulations and standards, such as AML and PCI-DSS. Departments are also required to implement procedures for assessing and managing risks associated with operating their Accounts. Departments may be charged a fee related to compliance and risk management audits. Departments that are deemed to be non-compliant will be charged a penalty and the associated Account will be closed at the discretion of the Chief Financial Officer (or their designate).

IV.    Roles and Responsibilities

1.    Department responsibilities:

a.    Providing prior approval for the incurrence of fees associated with the establishment and maintenance of Accounts for their unit. 

b.    Training on use of point-of-sale terminal and technology updates.

c.    Participation in the PCI Compliance Training Program and maintaining awareness of control and handling of point-of-sale machines, as well as fraud awareness tips.

d.    Participation in annual testing and audits.

e.    Inventory and safekeeping of point-of-sale terminal(s).

f.    Setup of the e-commerce website and linking to the merchant identification number.

g.    Daily settlement for debit and credit funds to be transferred into the University bank account, including a reconciliation of the settlement.

h.    Monthly reconciliation of transactions.

i.    All costs related to merchant accounts and point-of-sale terminals.

j.    Managing the relationship with third-parties such as payment vendors and gateway providers.

2.    Financial Services responsibilities:

a.    Oversight of managing all of the University’s Accounts.

b.    Managing the relationship with the University provider for merchant services.

c.    Requesting of merchant identification numbers and closure of accounts with the University provider for merchant services.

d.    Coordination of ordering and returning point-of-sale terminals.

e.    Maintaining records of active merchant identification numbers.

f.    Maintaining inventory of point-of-sale terminals being used across campus.

g.    Answering questions related to PCI standards.

h.    Providing training as needed or requested