What is the PO number on a credit card?

Introduction to PO number on the credit card

The Purchase Order (PO) number of the credit card is the number on the PO document that is generated by the purchaser for the authentication of a purchase transaction executed by the credit card. The PO number is a unique identification of the credit card purchase transaction. The buyer matches the PO number in the credit card invoice to authorize the transaction.

The credit card PO document consists of the following details:

• Date of placing the order
• Credit card PO number
• Name and address details of the buyer and seller
• Details of the goods/services ordered
• Terms and conditions of the purchase
• Signature of the authorities

How does the credit card PO number work?

The PO number on the credit card works in the following steps:

1. The credit card company’s purchasing department receives a notification from the management department that a purchase needs to be executed. The company may also issue a purchase requisition form for the notification.
2. Upon approval, the notified department fills in the purchase order details.
3. The vendor receives the purchase order and then proceeds to fulfill the order. Upon approval, the purchase order attains a legal status.
4. The purchaser makes the payment of the price specified in the purchase order. He uses his credit card to pay the agreed-upon amount.
5. The vendor delivers the goods or services, as per orders, and an invoice for the delivery. The credit card company’s finance department compares the invoice number with the credit card purchase order number to make sure that there are no discrepancies.

Difference between PO number and invoice

An invoice is used in conjunction with the purchase order for indicating the amount of money that the purchaser needs to pay to the seller. The invoice usually contains a description of the products delivered to the purchaser, the terms and conditions of payment, and the price of the products. Most businesses send invoices to the customer and receive payment in return from them. The invoice consists of the following details:

• Date of issuing the invoice
• Invoice number
• Credit card PO number
• Price of the purchased product
• Quantity of products purchased
• Discounts (if any)
• Taxes (if any)
• Name and address details of the purchaser and seller
• The total amount that is due
• Signature of the authorized agents

The differences between the invoice and credit card PO number are tabulated below:

Credit Card PO	Invoice
This number is generated by the purchaser.	The invoice number is generated by the seller.
The PO is for the confirmation of an order.	The invoice is for requesting payment from the buyer.
The credit card PO number is generated before the purchase is made.	The invoice document is generated after the purchase transaction.
The PO document gives the definitions of the terms.	This document confirms the terms and conditions of the transaction.
The credit card PO number is legally binding on the seller.	The invoice number is legally binding upon the purchaser.

Conclusion

Suppose you place an order and pay for twenty chocolates at the local confectionery and the seller provides you with ten chocolates instead. If there is no authentic documentation of this transaction, you will not be able to charge the seller with an allegation of fraudulence. This is precisely where the credit card PO number comes in. The credit card PO number confirms the transaction and is legally binding upon the parties as well. It is highly effective in the authorization of transactions and keeps petty fraudulence at bay too.