Accounting Policy Meeting
Wednesday, Feb. 4, 2026

Payment and travel card procedures apply to state agencies and institutions of higher education using the statewide financial systems.

The most common reason payments are rejected is incorrect formatting of the INVOICE NUMBER field information. Examples include:

• Agencies entering fewer than 16 digits.
• Transposing digits/entering the wrong account number.
• Improper use of spaces.

See page 13 of the Feb. 4 Accounting Policy meeting handout (PDF) for sample transactions accepted by U.S. Bank with correct invoice number field formatting.

For state agencies and intuitions of higher education, the billing period ends on the third day of each month, with statements available the business day after the cycle date. Under prompt payment law, payments are due 30 days after this date, assuming the agency has already received the purchased goods/services. State credit card payments may be scheduled for payment distribution on the due date listed on the statement. Early payments are permitted based on contract terms, with additional rebate based on how quickly payments are made.

No! The corporate/managing account number on the billing statement for procurement and travel card transactions is used for billing purposes only and is not an actual credit card number. Credit card numbers should never be entered in the INVOICE NUMBER field, per USAS and CAPPS Financials Invoice Number Field Requirements (FPP E.023).

Correct. Third-party transaction processing requires agencies to record the TIN of the vendor where each purchase was made. The vendor TIN is captured on each 264 T-code line and generates a payment in the voucher/document.

• Mail code 045 — Payment card transactions
• Mail code 046 — Central billed account (CBA) travel account
• Mail code 047 — Corporate liability individual billed account (CLIBA) travel card
• Mail code 048 — Virtual card accounts

A centrally billed travel card is in the name of the state agency. A corporate liability individual billed travel card is issued in the name of the traveler. In both cases, the state agency is responsible for making payment to U.S. Bank.

These should not be confused with individually billed travel cards, which are issued in the name of the traveler and the sole responsibility for payment lies with the traveler. The Comptroller’s office does not maintain payment procedures for these accounts because there is no state liability for payment.

SWA6100A — Direct Deposit Funds Received provides a series of reports for each agency that receives funds from direct deposit payments that have been returned. Direct deposit funds are received due to successful reversal and reclamation requests and returned money items.

SWA6100B — Rejected Reversals/Reclamations, Returned Money Items provides a series of reports to notify agencies of their direct deposit reversals and reclamation requests that are rejected, as well as payments that are automatically returned by the payee’s financial institutions.

If your agency has not received any returned money items for a specific payment and the payment is not posting to the correct account, may call the U.S. Bank program administrator support team at (877) 452-8083 or use the U.S. Bank online secure message portal.

See Reversal/Reclamation Reports for more information.

T-code pair 264/905 must be used to process payment and travel card payments. For more information, see Processing Third-Party Transactions in USAS for Payment/Travel Cards, Direct Bill Payments and Reimbursements (FPP A.043) (login required).

The TIN of the traveling employee must be recorded on the 264 transaction line for travel card transactions.

A payment distribution type (PDT) of DC (Direct deposit – Cross funds but not documents) is acceptable for making payments to U.S. Bank.

No. Agencies in the executive branch of state government are required to use the state travel contracts unless an exception exists, as required by Texas Administrative Code, Title 34, Section 20.408. Agencies that are not required to participate in the state travel contracts may use the contracts as provided by Texas Government Code, Section 2171.055.

Under current rules, travel services for lodging, rental vehicles and other necessary travel expenses shall be charged to state travel credit cards, when feasible. Current travel statute and policy allow for traveling employees to use personal funds to pay for travel expenses and receive reimbursement from the agency for the actual amount of expenses incurred. Alternatively, agencies have the option of paying a vendor directly for travel expenses or advancing travel funds to an employee to pay for projected travel expenses.

However, the state travel credit card is the mandatory method of payment for airfare under Texas Administrative Code, Title 34, Section 20.413 and as required by the State Travel Management Program airfare contracts.

For processing instructions and required coding blocks (mail codes, T-codes, TIN, PDT, etc.) for payment and travel card payments, see Processing Third-Party Transactions in USAS for Payment/Travel Cards, Direct Bill Payments and Reimbursements (FPP A.043) (login required).

This is a function of the T-code pairs used to process third-party transactions.

• Each 264 (detail) T-code line establishes a voucher payable and records the TIN of the vendor/employee associated with the expense.
• The 905 (summary) T-code line records the TIN of the entity receiving the payment (U.S. Bank) and totals all the detail transactions in the document.

State agencies and universities are liable for any interest that accrues on an overdue payment under the prompt payment law. The following profiles determine whether payments are subject to prompt payment interest:

Transaction Code Decision Profile (28A) — determines whether a T-code submitted on a payment transaction is subject to prompt payment.

Comptroller Object Profile (D10) — determines whether a particular COBJ submitted on a payment transaction is subject to prompt payment. The Interest Object (INT OBJ) field identifies the COBJ that interest will post to. The defaults on the D10 profile instruct USAS on if interest is automatically paid when a payment is late:

• These defaults are not meant to be legal advice about whether individual payments are subject to prompt payment law.
• Not every single payment processed under a specific COBJ is treated correctly by USAS. USAS cannot properly determine if every payment is subject to prompt payment law.
• Agencies must submit an Interest Control indicator (when necessary) to correct how USAS treats a payment with respect to the prompt payment law. For example:
  • Agencies must use an interest control flag of F on all travel payments that are directly payable to vendors, including those payable to credit card companies, along with the interest control reason code DT.
  • This is because travel expenditure objects do not generate prompt payment interest by default on the D10 profile.

Program Cost Account Profile (26) — the required interest chargeable (INT CHARGEABLE) field indicates if late payment interest may be charged against the program cost account (PCA). The default interest PCA (DEFAULT INT PCA) is required if the INT CHARGEABLE field is marked that no late payment interest may be charged.

Yes. All four mail codes were added for U.S. Bank to all business units in CAPPS.

When feasible, always use the Procard voucher style when paying U.S. Bank mail codes 045, 046, 047 and 048. There are edits to ensure correct formatting of the INVOICE ID on the Procard voucher style that are not in place for the multi-vendor voucher style.

The INVOICE ID in CAPPS defaults in from the Procard systems codes table. If this is an incorrect number, your Procard systems codes table can be updated by submitting a CAPPS service desk ticket.

This is under consideration. If your agency is interested, a CAPPS service desk ticket can be opened to suggest this enhancement.

This is a user preference in CAPPS. A service desk ticket can be opened to update your user preference to allow this voucher style.

On a CAPPS Procard voucher, the accounting entry template sets the USAS document type to 2 by default. If paying a travel credit card, the accounting entry template can be changed to a template that sets the USAS document type to 1.

No. Only the managing account number at the transaction line level is sent to U.S. Bank.

While local funds can be tracked through the General Ledger module in CAPPS, payment transactions using local funds cannot be made via CAPPS. If your agency makes a purchase from a vendor using a state payment card and issues a payment to U.S. Bank from local funds, the agency can request reimbursement to their local account from state funds using the T-code 247/904 pairing. For more information, see Processing Third-Party Transactions in USAS for Payment/Travel Cards, Direct Bill Payments and Reimbursements (FPP A.043) (login required).

If the payment was returned to your agency, you should double-check the account number before resubmitting the payment to U.S. Bank. For more information, see Returned Money Items.

If your payment has not yet been returned (for example, if the payment was distributed yesterday), you can contact U.S. Bank online via the secure message portal. Alternatively, you may call the U.S. Bank program administrator support team at (877) 452-8083.

The managing account statement will include the total of all card transactions under that account. A program administrator can enable notifications by logging into your U.S. Bank account online and selecting Profile; Notifications. Program administrators also receive automated email notifications when account statements are available.

Direct deposit payments to U.S. Bank typically post within two/three banking days. If a special payment circumstance requires a payment to be issued via check (warrant), it should post within three-to-five banking days of receipt.

The state of Texas charge card contract with U.S. Bank requires this notice to occur at 60 days. While U.S. Bank is not required to override account suspensions, they have agreed to temporarily override these suspensions while agencies learn the new payment requirements. This will not occur indefinitely — and it is extremely important that agencies work towards total compliance with the current payment procedures as soon as possible.

Most issues with the application of prompt payment interest payments to U.S. Bank were resolved. Though it requires an additional step on U.S. Bank’s end, they have stated that prompt payment interest should not remain an issue throughout the duration of the contract.

For corporate bill accounts, the payments are applied at the managing/billing account level, using the managing account number entered in the USAS INVOICE NUMBER field at the transaction level.

No. While the Voyager Fuel Card is part of the U.S. Bank contract, the fuel card carries its own payment processing requirements separate from the payment and travel credit cards.

Payments to U.S. Bank for the fuel card are made using T-code 225 and paid to U.S. Bank, mail code 012. The 9-digit account number must be entered in the INV NO field. For more information, see the State of Texas Retail Fuel Card section in Processing Third-Party Transactions in USAS for Payment/Travel Cards, Direct Bill Payments and Reimbursements (FPP A.043) (login required).

For questions related to the U.S. Bank contract, call the Fuel Card Program at (512) 463-3435.

Contact the individuals below at U.S. Bank by calling (855) 250-6421:

• Adam Trimbo, ext. 1566296
• Jennifer Jones, ext. 1566264

State agencies and universities should not set up new U.S. Bank mail codes to make payment on payment and travel credit cards. U.S. Bank provided specific direct deposit instructions to the Comptroller’s office, which were used to establish the U.S. Bank mail codes 045-048 listed in Processing Third-Party Transactions in USAS for Payment/Travel Cards, Direct Bill Payments and Reimbursements (FPP A.043) (login required). These mail codes must be used and will not result in payment rejections as long as the agency ensures proper transaction coding and the correct managing account number is entered.

If U.S. Bank receives a payment without sufficient information to post the payment to the correct account, the payment is (in general) returned to the agency. If you have not received any returned money items for such a payment, contact U.S. Bank by calling the Account Management Team at (877) 452-8083 or by using the secure message portal in your online account.