Government Charge Card Abuse Prevention Act of 2012
PL 112-194 (S.300), enacted 10/05/2012

126 STAT. 1445 
PUBLIC LAW 112–194—OCT. 5, 2012 
Public Law 112–194 
112th Congress 
An Act 
To prevent abuse of Government charge cards. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Government Charge Card Abuse 
Prevention Act of 2012’’. 
SEC. 2. MANAGEMENT OF PURCHASE CARDS. 
(a) GOVERNMENT-WIDE
SAFEGUARDS
AND
INTERNAL
CON-
TROLS.— 
(1) IN GENERAL.—Chapter 19 of title 41, United States 
Code, is amended by adding at the end the following new 
section: 
‘‘§ 1909. Management of purchase cards 
‘‘(a) REQUIRED SAFEGUARDS
AND INTERNAL CONTROLS.—The 
head of each executive agency that issues and uses purchase cards 
and convenience checks shall establish and maintain safeguards 
and internal controls to ensure the following: 
‘‘(1) There is a record in each executive agency of each 
holder of a purchase card issued by the agency for official 
use, annotated with the limitations on single transactions and 
total transactions that are applicable to the use of each such 
card or check by that purchase card holder. 
‘‘(2) Each purchase card holder and individual issued a 
convenience check is assigned an approving official other than 
the card holder with the authority to approve or disapprove 
transactions. 
‘‘(3) The holder of a purchase card and each official with 
authority to authorize expenditures charged to the purchase 
card are responsible for— 
‘‘(A) reconciling the charges appearing on each state-
ment of account for that purchase card with receipts and 
other supporting documentation; and 
‘‘(B) forwarding a summary report to the certifying 
official in a timely manner of information necessary to 
enable the certifying official to ensure that the Federal 
Government ultimately pays only for valid charges that 
are consistent with the terms of the applicable Government- 
wide purchase card contract entered into by the Adminis-
trator of General Services. 
‘‘(4) Any disputed purchase card charge, and any discrep-
ancy between a receipt and other supporting documentation 
Records. 
41 USC 1909. 
Government 
Charge Card 
Abuse Prevention 
Act of 2012. 
41 USC 101 note. 
Oct. 5, 2012 
[S. 300] 
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126 STAT. 1446 
PUBLIC LAW 112–194—OCT. 5, 2012 
and the purchase card statement of account, is resolved in 
the manner prescribed in the applicable Government-wide pur-
chase card contract entered into by the Administrator of Gen-
eral Services. 
‘‘(5) Payments on purchase card accounts are made 
promptly within prescribed deadlines to avoid interest pen-
alties. 
‘‘(6) Rebates and refunds based on prompt payment, sales 
volume, or other actions by the agency on purchase card 
accounts are reviewed for accuracy and properly recorded as 
a receipt to the agency that pays the monthly bill. 
‘‘(7) Records of each purchase card transaction (including 
records on associated contracts, reports, accounts, and invoices) 
are retained in accordance with standard Government policies 
on the disposition of records. 
‘‘(8) Periodic reviews are performed to determine whether 
each purchase card holder has a need for the purchase card. 
‘‘(9) Appropriate training is provided to each purchase card 
holder and each official with responsibility for overseeing the 
use of purchase cards issued by the executive agency. 
‘‘(10) The executive agency has specific policies regarding 
the number of purchase cards issued by various component 
organizations and categories of component organizations, the 
credit limits authorized for various categories of card holders, 
and categories of employees eligible to be issued purchase cards, 
and that those policies are designed to minimize the financial 
risk to the Federal Government of the issuance of the purchase 
cards and to ensure the integrity of purchase card holders. 
‘‘(11) The executive agency uses effective systems, tech-
niques, and technologies to prevent or identify illegal, improper, 
or erroneous purchases. 
‘‘(12) The executive agency invalidates the purchase card 
of each employee who— 
‘‘(A) ceases to be employed by the agency, immediately 
upon termination of the employment of the employee; or 
‘‘(B) transfers to another unit of the agency, imme-
diately upon the transfer of the employee unless the agency 
determines that the units are covered by the same purchase 
card authority. 
‘‘(13) The executive agency takes steps to recover the cost 
of any illegal, improper, or erroneous purchase made with a 
purchase card or convenience check by an employee, including, 
as necessary, through salary offsets. 
‘‘(b) GUIDANCE.—The Director of the Office of Management 
and Budget shall review existing guidance and, as necessary, pre-
scribe additional guidance governing the implementation of the 
requirements of subsection (a) by executive agencies. 
‘‘(c) PENALTIES FOR VIOLATIONS.— 
‘‘(1) IN GENERAL.—The head of each executive agency shall 
provide for appropriate adverse personnel actions or other 
punishment to be imposed in cases in which employees of 
the agency violate agency policies implementing the guidance 
required by subsection (b) or make illegal, improper, or erro-
neous purchases with purchase cards or convenience checks. 
‘‘(2) DISMISSAL.—Penalties prescribed for employee misuse 
of purchase cards or convenience checks shall include dismissal 
of the employee, as appropriate. 
Review. 
Reviews. 
Records. 
Reviews. 
Records. 
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126 STAT. 1447 
PUBLIC LAW 112–194—OCT. 5, 2012 
‘‘(3) REPORTS
ON
VIOLATIONS.—The guidance prescribed 
under subsection (b) shall direct each head of an executive 
agency with more than $10,000,000 in purchase card spending 
annually, and each Inspector General of such an executive 
agency, on a semiannual basis, to submit to the Director of 
the Office of Management and Budget a joint report on viola-
tions or other actions covered by paragraph (1) by employees 
of such executive agency. At a minimum, the report shall set 
forth the following: 
‘‘(A) A summary description of confirmed violations 
involving misuse of a purchase card following completion 
of a review by the agency or by the Inspector General 
of the agency. 
‘‘(B) A summary description of all adverse personnel 
action, punishment, or other action taken based on each 
violation. 
‘‘(d) RISK ASSESSMENTS AND AUDITS.—The Inspector General 
of each executive agency shall— 
‘‘(1) conduct periodic assessments of the agency purchase 
card or convenience check programs to identify and analyze 
risks of illegal, improper, or erroneous purchases and payments 
in order to develop a plan for using such risk assessments 
to determine the scope, frequency, and number of periodic 
audits of purchase card or convenience check transactions; 
‘‘(2) perform analysis or audits, as necessary, of purchase 
card transactions designed to identify— 
‘‘(A) potentially illegal, improper, or erroneous uses 
of purchase cards; 
‘‘(B) any patterns of such uses; and 
‘‘(C) categories of purchases that could be made by 
means other than purchase cards in order to better aggre-
gate purchases and obtain lower prices (excluding trans-
actions made under card-based strategic sourcing arrange-
ments); 
‘‘(3) report to the head of the executive agency concerned 
on the results of such analysis or audits; and 
‘‘(4) report to the Director of the Office of Management 
and Budget on the implementation of recommendations made 
to the head of the executive agency to address findings of 
any analysis or audit of purchase card and convenience check 
transactions or programs for compilation and transmission by 
the Director to Congress and the Comptroller General. 
‘‘(e) RELATIONSHIP
TO DEPARTMENT
OF DEFENSE PURCHASE 
CARD REGULATIONS.—The requirements of this section shall not 
apply to the Department of Defense. See section 2784 of title 10 
for provisions relating to management of purchase cards in the 
Department.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 19 of title 41, United States Code, is 
amended by adding at the end the following new item: 
‘‘1909. Management of purchase cards.’’. 
(b) CONFORMING AMENDMENTS TO DEPARTMENT OF DEFENSE 
PURCHASE CARD PROVISIONS.—Subsection (b) of section 2784 of 
title 10, United States Code, is amended— 
(1) by moving paragraph (8) to the end of the subsection 
and redesignating that paragraph as paragraph (14); 
Reports. 
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126 STAT. 1448 
PUBLIC LAW 112–194—OCT. 5, 2012 
(2) by redesignating paragraphs (2), (3), (4), (5), (6), and 
(7) as paragraphs (3), (4), (5), (6), (7), and (8), respectively; 
(3) by inserting after paragraph (1) the following new para-
graph (2): 
‘‘(2) That each purchase card holder and individual issued 
a convenience check is assigned an approving official other 
than the card holder with the authority to approve or dis-
approve transactions.’’; 
(4) by adding after paragraph (10) the following new para-
graphs: 
‘‘(11) That the Department of Defense uses effective sys-
tems, techniques, and technologies to prevent or identify poten-
tial fraudulent purchases. 
‘‘(12) That the Department of Defense takes appropriate 
steps to invalidate the purchase card of each card holder who— 
‘‘(A) in the case of an employee of the Department— 
‘‘(i) ceases to be employed by the Department, 
immediately upon termination of the employment of 
the employee; or 
‘‘(ii) transfers to another unit of the Department, 
immediately upon the transfer of the employee unless 
the Secretary of Defense determines that the units 
are covered by the same purchase card authority; and 
‘‘(B) in the case of a member of the armed forces, 
is separated or released from active duty or full-time 
National Guard duty. 
‘‘(13) That the Department of Defense takes steps to recover 
the cost of any illegal, improper, or erroneous purchase made 
with a purchase card or convenience check by an employee 
or member of the armed forces, including, as necessary, through 
salary offsets.’’; and 
(5) by adding at the end the following new paragraph: 
‘‘(15) That the Inspector General of the Department of 
Defense conducts periodic audits or reviews of purchase card 
or convenience check programs to identify and analyze risks 
of illegal, improper, or erroneous purchases and payments and 
that the findings of such audits or reviews, along with rec-
ommendations to prevent abuse of purchase cards or conven-
ience checks, are reported to the Director of the Office of 
Management and Budget and Congress.’’. 
(c) DEADLINE FOR GUIDANCE ON MANAGEMENT OF PURCHASE 
CARDS.—The Director of the Office of Management and Budget 
shall prescribe the guidance required by section 1909(b) of title 
41, United States Code, as added by subsection (a), not later than 
180 days after the date of the enactment of this Act. 
SEC. 3. MANAGEMENT OF TRAVEL CARDS. 
Section 2 of the Travel and Transportation Reform Act of 1998 
(Public Law 105–264; 5 U.S.C. 5701 note) is amended by adding 
at the end the following new subsection: 
‘‘(h) MANAGEMENT OF TRAVEL CHARGE CARDS.— 
‘‘(1) REQUIRED SAFEGUARDS AND INTERNAL CONTROLS.—The 
head of each executive agency that has employees that use 
travel charge cards shall establish and maintain the following 
internal control activities to ensure the proper, efficient, and 
effective use of such travel charge cards: 
41 USC 1909 
note. 
Audits. 
Recommenda- 
tions. 
Reports. 
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126 STAT. 1449 
PUBLIC LAW 112–194—OCT. 5, 2012 
‘‘(A) There is a record in each executive agency of 
each holder of a travel charge card issued on behalf of 
the agency for official use, annotated with the limitations 
on amounts that are applicable to the use of each such 
card by that travel charge card holder. 
‘‘(B) Rebates and refunds based on prompt payment, 
sales volume, or other actions by the agency on travel 
charge card accounts are monitored for accuracy and prop-
erly recorded as a receipt of the agency that employs the 
card holder. 
‘‘(C) Periodic reviews are performed to determine 
whether each travel charge card holder has a need for 
the travel charge card. 
‘‘(D) Appropriate training is provided to each travel 
charge card holder and each official with responsibility 
for overseeing the use of travel charge cards issued by 
the executive agency. 
‘‘(E) Each executive agency has specific policies 
regarding travel charge cards issued for various component 
organizations and categories of component organizations, 
the credit limits authorized for various categories of card 
holders, and categories of employees eligible to be issued 
travel charge cards, and designs those policies to minimize 
the financial risk to the Federal Government of the 
issuance of the travel charge cards and to ensure the 
integrity of travel charge card holders. 
‘‘(F) Each executive agency has policies to ensure its 
contractual arrangement with each travel charge card 
issuing contractor contains a requirement that the credit-
worthiness of an individual be evaluated before the indi-
vidual is issued a travel charge card, and that no individual 
be issued a travel charge card if that individual is found 
not creditworthy as a result of the evaluation (except that 
this paragraph shall not preclude issuance of a restricted 
use, prepaid, declining balance, controlled-spend, or stored 
value card when the individual lacks a credit history or 
has a credit score below the minimum credit score estab-
lished by the Director of the Office of Management and 
Budget). The Director of the Office of Management and 
Budget shall establish a minimum credit score for deter-
mining the creditworthiness of an individual based on rig-
orous statistical analysis of the population of card holders 
and historical behaviors. Notwithstanding any other provi-
sion of law, such evaluation shall include an assessment 
of an individual’s consumer report from a consumer 
reporting agency as those terms are defined in section 
603 of the Fair Credit Reporting Act (15 U.S.C. 1681a). 
‘‘(G) Each executive agency uses effective systems, tech-
niques, and technologies to prevent or identify improper 
purchases. 
‘‘(H) Each executive agency ensures that the travel 
charge card of each employee who ceases to be employed 
by the agency is invalidated immediately upon termination 
of the employment of the employee (or, in the case of 
a member of the uniformed services, upon separation or 
release from active duty or full-time National Guard duty). 
Assessment. 
Evaluation. 
Reviews. 
Record. 
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126 STAT. 1450 
PUBLIC LAW 112–194—OCT. 5, 2012 
‘‘(I) Each executive agency shall ensure that, where 
appropriate, travel card payments are issued directly to 
the travel card-issuing bank for credit to the employee’s 
individual travel card account. 
‘‘(2) GUIDANCE
ON
MANAGEMENT
OF
TRAVEL
CHARGE 
CARDS.—Not later than 180 days after the date of the enactment 
of the Government Charge Card Abuse Prevention Act of 2012, 
the Director of the Office of Management and Budget shall 
review the existing guidance and, as necessary, prescribe addi-
tional 
guidance 
for 
executive 
agencies 
governing 
the 
implementation of the requirements in paragraph (1). 
‘‘(3) INSPECTOR
GENERAL
AUDIT.—The Inspector General 
of each executive agency with more than $10,000,000 in travel 
card spending shall conduct periodic audits or reviews of travel 
card programs to analyze risks of illegal, improper, or erroneous 
purchases and payments. The findings of such audits or reviews 
along with recommendations to prevent improper use of travel 
cards shall be reported to the Director of the Office of Manage-
ment and Budget and Congress. 
‘‘(4) PENALTIES FOR VIOLATIONS.—Consistent with the guid-
ance prescribed under paragraph (2), each executive agency 
shall provide for appropriate adverse personnel actions to be 
imposed in cases in which employees of the executive agency 
fail to comply with applicable travel charge card terms and 
conditions or applicable agency regulations or commit fraud 
with respect to a travel charge card, including removal in 
appropriate cases. 
‘‘(5) DEFINITIONS.—In this subsection: 
‘‘(A) EXECUTIVE AGENCY.—The term ‘executive agency’ 
means an agency as that term is defined in subparagraphs 
(A) and (B) of section 5701(1) of title 5, United States 
Code. 
‘‘(B) TRAVEL CHARGE CARD.—The term ‘travel charge 
card’ means any Federal contractor-issued travel charge 
card that is individually billed to each card holder.’’. 
SEC. 4. MANAGEMENT OF CENTRALLY BILLED ACCOUNTS. 
(a) REQUIRED INTERNAL CONTROLS
FOR CENTRALLY BILLED 
ACCOUNTS.—The head of an executive agency that has employees 
who use a travel charge card that is billed directly to the United 
States Government shall establish and maintain the following 
internal control activities: 
(1) The executive agency shall ensure that officials with 
the authority to approve official travel verify that centrally 
billed account charges are not reimbursed to an employee. 
(2) The executive agency shall dispute unallowable and 
erroneous charges and track the status of the disputed trans-
actions to ensure appropriate resolution. 
(3) The executive agency shall submit requests to servicing 
airlines for refunds of fully or partially unused tickets, when 
entitled to such refunds, and track the status of unused tickets 
to ensure appropriate resolution. 
(b) GUIDANCE.—Not later than 180 days after the date of the 
enactment of this Act, the Director of the Office of Management 
and Budget shall review the existing guidance and, as necessary, 
prescribe additional guidance for executive agencies implementing 
the requirements of subsection (a). 
Deadline. 
Review. 
Verification. 
5 USC 5701 note. 
Recommenda- 
tions. 
Reports. 
Deadline. 
Review. 
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126 STAT. 1451 
PUBLIC LAW 112–194—OCT. 5, 2012 
LEGISLATIVE HISTORY—S. 300: 
HOUSE REPORTS: No. 112–376, Pt. 1 (Comm. on Oversight and Government 
Reform). 
SENATE REPORTS: No. 112–37 (Comm. on Homeland Security and Governmental 
Affairs). 
CONGRESSIONAL RECORD: 
Vol. 157 (2011): July 22, considered and passed Senate. 
Vol. 158 (2012): July 31, Aug. 1, considered and passed House, amended. 
Sept. 21, Senate concurred in House amendment. 
SEC. 5. DEFINITIONS. 
In this Act: 
(1) EXECUTIVE AGENCY.—The term ‘‘executive agency’’ has 
the meaning given such term in section 133 of title 41, United 
States Code. 
(2) EMPLOYEE.—The term ‘‘employee’’ has the meaning 
given such term in section 2(d)(3) of the Travel and Transpor-
tation Reform Act of 1998 (Public Law 105–264; 5 U.S.C. 5701 
note). 
SEC. 6. CONSTRUCTION. 
(a) EXECUTIVE AGENCY ACCOUNTING.—Nothing in this Act, or 
the amendments made by this Act, shall be construed to excuse 
the head of an executive agency from the responsibilities set out 
in section 3512 of title 31, United States Code, or in the Improper 
Payments Information Act of 2002 (31 U.S.C. 3321 note). 
(b) PERSONAL INFORMATION.—Nothing in this Act, or the 
amendments made by this Act, shall be construed to require the 
disclosure of personally identifying information that is otherwise 
protected from disclosure under section 552a of title 5, United 
States Code (popularly known as the Privacy Act of 1974). 
Approved October 5, 2012. 
5 USC 5701 note. 
5 USC 5701 note. 
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