Questions on new travel card requirement answered

Federal travelers must use government-issued charge cards to pay for travel expenses beginning Jan. 1, under a new law.

The 1998 Travel and Transportation Reform Act created the requirement in the hopes that the government would be able to take more advantage of rebates from charge card companies. In addition, Congress hopes that the requirement will help the government better track travel expenditures.

GovExec.com has received numerous questions from readers about the new requirement. Jim Harte, travel team leader in the General Services Administration's Office of Governmentwide Policy, provided answers to the most common questions.

Q: What is the rationale for the new requirement?

A: By adopting best practices and requiring the use of the charge card, the government is expected to save millions of dollars in administrative costs associated with providing cash advances to travelers, to improve cash flow and to provide agency flexibility in managing their travel funds.

Additionally, the government receives substantial cash rebates from the charge card vendors. The more the charge cards are used, the greater the rebate.

Q: Are there exceptions to the new requirement?

A: Yes, the law (Pub. L. 105-264) permits the Administrator of General Services and the head of a federal agency or designee of such head to exempt any payment, person, type or class of payments, or type or class of personnel from the mandatory provisions.

On a governmentwide basis the Administrator has provided the following exemptions:

Location where the card is not accepted; laundry/dry cleaning; parking; local transportation systems; taxi; tips; meals (only when use of the card is impractical, i.e. group meals or card not accepted); phone calls (when Government calling card is available for use in accordance with agency policy); employees who have an application pending; individuals on invitational travel orders; new appointees; employees performing local travel.

The head of the agency or designee of such head may make any additional exemptions if determined such exemption is necessary in the interest of the agency.

Q: Can employees use the credit card to get cash advances while on travel to pay expenses that cannot be paid directly with the card?

A: Use of any amenities offered by the charge card vendor, such as the ATM feature to obtain cash, meet the mandatory use requirements. The same applies to centrally billed accounts.

Q: Will the government now try to discourage travelers from using the card to obtain cash advances?

A: The government will not discourage use of the amenities offered by the charge card vendors, such as the ATM feature.

Q: What is the penalty for using personal credit or cash?

A: The law does not provide for any penalty, however, an agency may take any disciplinary action it deems necessary and appropriate.

For more in-depth information about the travel charge card requirement, you can review the interim final rule issued by the General Services Administration and the Travel and Transportation Reform Act of 1998 (Public Law 105-264).

If you have additional questions about the requirement, e-mail webmaster@govexec.com. GovExec.com will update this article with answers to new questions.