Acquisition cards

An acquisition card is a charge card issued under a contract between a card issuer and the Government of Canada. It is used to procure and pay for goods and services that are authorized official government-business transactions. The Government of Canada sets out this definition in its directive on acquisition-card purchases. In French, the term is carte d'achat.

An acquisition card is a purchasing and payment mechanism. It is not a supplier certification, and it is not a separate contracting vehicle. Treasury Board describes acquisition cards as a convenient and practical way to procure and pay for goods and services while maintaining financial control, in its acquisition card policy instruments. They are generally intended for routine, low-dollar purchases.

Treasury Board rules that govern acquisition card use

Federal use is governed by Treasury Board requirements, including the Directive on Payments and the Standard on Acquisition Card Payments. Purchases made by card are not exempt from other rules. They remain subject to applicable contracting policies, Acts, regulations, trade agreements and Comprehensive Land Claim Agreements, as the Treasury Board text states.

The Treasury Board directive recommends acquisition cards for day-to-day maintenance, repair and operational goods and services. It excludes the following:

• Large-dollar purchases
• Complex transactions
• Fleet-related operating expenses
• Travel
• Capital assets

Departmental limits and typical purchases

Departments apply the Treasury Board framework through their own policies, so thresholds and examples differ from one organization to the next. The following examples come from published government documents:

• National Research Council Canada: acquisition cards are used for low-dollar goods and non-professional services, such as maintenance services, laboratory supplies, office equipment, hospitality expenses and certain information-technology items. The policy cites a threshold below $500 for the relevant category, according to the NRC audit of acquisition card management.
• Canada Border Services Agency: cards are used for authorized, business-related, low-dollar purchases, with a limit of under $9,900 for low-value purchases. The CBSA audit also requires approval, transaction reconciliation, supporting documentation and financial coding.
• Canadian Heritage: cards are a preferred procurement method for certain goods and services below $10,000, as described in its audit of procurement practices.
• Correctional Service Canada: the financial directive permits cards for goods and services below $10,000 per single transaction, including delivery, installation, taxes and related costs.

A payment method, not a contract

The Canadian Heritage audit treats the acquisition card as a payment method rather than a formal contract. Correctional Service Canada also permits the card as the means of payment for contracts whose terms identify it as the preferred payment method. In practice, an authorized cardholder places an eligible order and pays for it directly by card, without a separate purchase order process for that transaction.

What acquisition cards mean for suppliers

A supplier selling to a federal department may be paid by acquisition card for eligible purchases. The supplier delivers the ordered goods or services, accepts the card if it is the agreed payment method, and provides an invoice or receipt where the department's process requires one. Departments reconcile card transactions against supporting documentation, so clear itemized records help.

Card payment does not remove ordinary procurement requirements. The Treasury Board policy instruments keep these purchases subject to applicable policies, legislation, regulations and trade agreements. Suppliers should expect acquisition cards to cover small, routine orders, while large-dollar, complex or capital purchases follow other contracting routes.