Payments with Prepaid Cards

WVU has contracted with U.S. Bank to deliver a prepaid card solution for certain types of payments to individuals. To ensure compliance with tax and financial aid rules, WVU Tax Services and Procurement, Contracting & Payment Services (PCPS) have limited the use cases for prepaid card payments. Effective July 1, 2023, prepaid cards may only be used for human subject payments where the dollar amount of a single payment exceeds $500 or multiple payments will be made to the same individual, foreign travel per diems, athletic travel per diems, and athletic official payments. Payments for other purposes are only permitted if an exception is granted in writing by PCPS. These restrictions apply regardless of the funding source of the payments. Additional information on the prepaid card system is available on the PCPS website.

The following types of payments are no longer permissible through the prepaid card program:

1. Human subject payments under $500: Human subject payments where the individual will receive a single payment less of less than $500 must be made through the gift card program. See Payments with Gift Cards for additional information.
2. Stipend payments to WVU and non-WVU students: Stipend payments must be made through either the student's Banner student account or through Mountaineer Marketplace, based on the individual's enrollment in classes at WVU. See Stipend Payments for guidelines on the appropriate payment method.
3. Prizes and awards: Prize and award payments must be made through the gift card program. See Payments with Gift Cards for additional information.
4. Services: Payment for services rendered may not be paid on a prepaid card under any circumstances. Payment for services tied to an individual's employment must be processed through payroll (whether as a secondary assignment or payment on an element). Payment for non-employment services (i.e., an approved independent contractor) should be processed through Mountaineer Marketplace. See Employee or Independent Contractor for guidance on determining the appropriate classification of payment for services.

If an individual receives more than $500 in payments from a department in a calendar year, the department must collect and retain IRS Form W-9, Request for Taxpayer Identification Number and Certification [PDF], for United States citizens and lawful permanent residents or IRS Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) [PDF], for foreign nationals. The $500 threshold applies even in situations where a department is making multiple payments throughout the year of less than $500 (but that cumulatively exceed the threshold) and even when payments are split between the prepaid card system and gift cards.

Because the information contained on Form W-9/W-8BEN is personal, sensitive information including the individual's Social Security number it is vital that the payor Department/Unit secure the information. Completed W-9/W-8BEN forms should be scanned and saved to a University secure drive (such as the N Drive) and the original paper forms securely shredded once scanned.