What is split disbursement?
Split disbursement provides for payments to be made by the agency on behalf of the cardholders. At the cardholder’s direction and in accordance with agency policy, disbursement is split. The bank receives a direct payment by the agency of the cardholder specified/claimed amount. The rest of the payment is disbursed to a cardholder account or directly to the cardholder. Large ticket items such as common carrier, hotel and rental care charges are commonly paid directly to the bank on behalf of the cardholder while other disbursements are paid to the employee. Split disbursement is an effective tool to reduce delinquency and improve refunds paid to the agency. It will require coordination with the bank to ensure proper payments are made by the government and properly posted to a cardholder’s account. A pilot to test the process is highly recommended before implementation.
