Purchasing Card Overview

Report
State of Nevada: Purchase Card
Overview – Agency intro
April 17, 2014
Agenda
▪ Introductions
▪ Bank of America Overview
▪
Individual rebate program
▪
Each Dept will receive their rebate
▪
How they pay their bills will only impact
their Dept rebate
▪ What we expect from you
▪ You are Purchasing’s ongoing POC for issues
▪
Identifying POCs for implementation to
work with the Bank
▪
Oversight of Dept payment timeliness
▪
Adding and deleting PCA/TCAs
▪ Transition and Implementation
▪
2
Collecting old cards and distributing new
cards
▪ Transition and Implementation, cont.
▪ Contacted by Pamela Stalling to schedule
construction of each agency’s P-card and
T-card program
▪ What information the agencies will need to
have for the program set up
▪ Transaction Management
▪
▪
▪
Online Application in Works
Approval levels determined by agency
Data import into ADVANTAGE for payment
▪ Payment Terms
▪
▪
Options from Bank and determined by the Dept
Err on side of caution, it can be changed to a
quicker payment requirement at a later date to
drive rebate
▪ Questions and Answers
Introductions - Bank of America Merrill Lynch
Offering a dedicated, Nevada focused team…
CLIENT TEAM
Greg Titus
SVP, Senior Client Manager
775-325-9015
[email protected]
Jeff Moore
SVP, Senior Treasury Solutions Officer
702-498-4404
[email protected]
…backed by strong,
committed resources
EXTENDED TEAM - CARD
Holly Campbell
VP, Senior Card Account
Manager
602-448-3044
[email protected]
Leadership
Extended Team
Client Team
State of Nevada
3
Michael Bell
Treasury Services Sr. Advisor
Dedicated Card Servicing
888.715.1000 ext 21651
[email protected]
Beverly Drury
SVP, Senior Product Sales
Specialist
503-795-6478
[email protected]
Implementation
Pam Stallings
VP, Public Sector Business Leader
303-617-9171
[email protected]
Nevada Consortium Overview
Nevada Consortium Public Sector Group Overview
BENEFITS
1
2
Membership provides dedicated support staff, a
forum for peer-to-peer networking, and the ability to
earn additional rebate basis points.
STRONG OUTLOOK
The NVCPSG, introduced in 2006 has
continued to see year over year volume
and membership growth.
REVENUE SHARING
3
4
The NVCPSG volume has more than tripled since 2006.
5
GROWTH
The 2012-13 fiscal year spend
of $55 million resulted in
over $575,000 in revenue
sharing back to qualifying
members.
Current Members
NVCPSG Member Agency
• Carson City School District
• City of Carson City
• City of North Las Vegas
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
6
City of Reno
City of Sparks
Clark County
Clark County School District
Clark County Water Reclamation - (CCWR)
Douglas County
Incline Village General Improvement District
Las Vegas Metro Police
Lyon County
LVCVA
NSHE – UNR
Nye County
RSCVA
State if Nevada ***
Storey County
Truckee River Flood Management Authority
Washoe County
Product
Purchase
Purchase
Purchase, ePayables
Purchase
Purchase
ePayables
ePayables
Purchase
Purchase
Purchase
Purchase, Travel
Purchase
Purchase, Travel
ePayables
Purchase
Purchase
Purchase, Travel
Purchase
Purchase
Purchase, ePayables
Nevada Consortium Contract Overview
•
NV Consortium Contract
•
•
•
In March, State of NV linked to NV
Consortium Contract for Card Services
Approved by State Board of Examiners
NV Consortium Benefits
• Total Annual NV Consortium Volume drives revenue sharing potential
• Annual Rebate eligibility requirements include
•
•
7
Calculation period = Fiscal year - July – June
On-time payments in full to maintain eligibility
Nevada 2014 Rebate Grid
NVCPSG
Cycle days
Standard Transaction Multiplier Table
Grace days
Excludes Large Ticket
Annual USD Card Volume Tiers
$500,000
$9,999,999
$10,000,000
$14,999,999
$15,000,000
$19,999,999
$20,000,000
$24,999,999
$25,000,000
$29,999,999
$30,000,000
$34,999,999
$35,000,000
$39,999,999
$40,000,000
$44,999,999
$45,000,000
$49,999,999
$50,000,000
$65,000,000
$80,000,000
$95,000,000
$110,000,000
$125,000,000
$140,000,000
$155,000,000
$175,000,000
$200,000,000
$225,000,000
$250,000,000
$275,000,000
$300,000,000
$64,999,999
$79,999,999
$94,999,999
$109,999,999
$124,999,999
$139,999,999
$154,999,999
$174,999,999
$199,999,999
$224,999,999
$249,999,999
$274,999,999
$299,999,999
+
Large Ticket Interchange Multiplier Table
Qualified Transactions
Annual Volume
8
$0
Cycle Days
Grace Days
+
(1 BPS = 0.01% or 0.0001 or 60 BPS = 0.60% or 0.0060)
7
3
14
3
14
7
30
3
30
7
REBATE BASIS POINTS
120
118
123
121
133
131
136
134
139
137
142
140
145
143
148
146
151
149
30
14
30
20
30
25
114
117
127
130
133
136
139
142
145
110
113
123
126
129
132
135
138
141
107
110
120
123
126
129
132
135
138
127
130
140
143
146
149
152
155
158
125
128
138
141
144
147
150
153
156
123
126
136
139
142
145
148
151
154
160
158
156
153
151
147
143
140
162
164
166
168
170
172
174
176
177
178
179
180
181
160
162
164
166
168
170
172
174
175
176
177
178
179
158
160
162
164
166
168
170
172
173
174
175
176
177
155
157
159
161
163
165
167
169
170
171
172
173
174
153
155
157
159
161
163
165
167
168
169
170
171
172
149
151
153
155
157
159
161
163
164
165
166
167
168
145
147
149
151
153
155
157
159
160
161
162
163
164
142
144
146
148
150
152
154
156
157
158
159
160
161
7
3
14
3
14
7
30
14
30
20
30
25
70
69
68
63
62
60
30
30
3
7
REBATE BASIS POINTS
67
65
Nevada 2014 Rebate Grid
NVCPSG
Cycle days
7
14
14
30
30
30
30
30
Standard Transaction Multiplier Table
Grace days
3
3
7
3
7
14
20
25
Excludes Large Ticket
REBATE BASIS POINTS
Annual USD Card Volume Tiers
$50,000,000
$64,999,999
160
158
156
153
151
147
143
140
Large Ticket Interchange Multiplier Table
Cycle Days
7
14
14
30
30
30
30
30
Qualified Transactions
Grace Days
3
3
7
3
7
14
20
25
63
62
60
REBATE BASIS POINTS
Annual Volume
$0
+
(1 BPS = 0.01% or 0.0001 or 60 BPS = 0.60% or 0.0060)
9
70
69
68
67
65
Rebate Calculation criteria
(1.) Volume (standard) Tier = $50,000,000 - $64,999,999
●
3. Cycle/Grace – (Speed of Pay)
●
2. Your (standard transaction) program volume
●
4. (Large Ticket vol) cycle/grace – (if applicable)
Vol
$500,000
Cycle / grace
30 / 25
30 / 14
BPS
1.40%
1.47%
Vol
$1,000,000
Cycle / grace
30 / 25
30 / 14
BPS
1.40%
1.47%
(1 BPS = 0.01% or 0.0001 or 60 BPS = 0.60% or 0.0060)
10
Rebate
$7,000.00
$7,350.00
Rebate
$ 14,000
$ 14,700
Works
- Card Management Platform
Works: All-inclusive
Program Management
A solution that meets all of the State’s
requirements ... and offers even more.
 Seamless integration into your business processes
 Easy to navigate with minimum clicks to:
o Define accounting codes and cost allocations
o Manage roles and access
o Administer cards and profiles
o Control spending and access at multiple levels
o Create customized reports
o Enable simplified cardholder reconciliation
o Provides robust audit and control functionality
 Convenient spend control profiles apply to multiple cards
o Saves time
o Increases control
system availability
We can meet all of your required technical elements. Let us demonstrate.
12
99.96%
Purchase Card Implementation
Streamlined Agency Implementation
implementation
▪ Builds reporting platform and
hierarchies to support
reporting, data integration
▪ Provides training to program
administrators
▪ Effective resource
coordination from a single
source
▪ Proven timely project
delivery
▪ Updates throughout to track
progress and ensure
satisfaction
14
servicing
▪ Cardholder/company-level
support
▪ Local card, language support
in local time zone
▪ Coordinated by a team you
know and trust
▪ Specialists assist with
operational questions
▪ Technical resources to
complement your current
team
▪ Company-level servicing
provides in-region support;
key point of contact for the
program administrator; and
assists with card program
management
relationship
▪ Global & regional account
managers share:
− Best practices
− Overall growth strategies
and program optimization
▪ Acts as a point of escalation
▪ Develops an approach to
address specific client
challenges
▪ Identifies and improves
processes
▪ Provides a roadmap for reengineering
▪ Performs process reviews
Four phases of a successful implementation
define
▪ Define project goals,
team roles &
responsibilities
▪ Agree on program
scope: phases,
timeline for card
issuance, data
integration and
project completion
▪ Execute the
documentation
required
▪ Finalize the project
statement and issue
project plan
15
design
▪ Collect the data
needed to configure
your program, to
support your
automation, control
and spend processes
objectives
▪ Review existing
policies, procedures
for card use
▪ Prepare the
communication plan
▪ Data integration file
specification
deliver
▪ Verify the solution
supports the
operational
processes to
achieve the project
goals
▪ Complete systems
configuration
▪ Build the data
integration file and
set-up connectivity
▪ System training
▪ Deploy the solution
and issue cards
review
▪ Post go-live
monitoring &
validation
▪ Initiate the transition
to “business as usual”
sustaining operations
▪ The Account Servicing
team takes over
▪ Post-implementation
review
Program Optimization and Marketing
Program Optimization
Maximize your Card Usage
Are you getting the most benefit from your Card program? Do
you have the ability to move additional approved spending from
check to Card?
• Is my agency utilizing the Card in all departments?
• Are all departments using Card whenever possible?
• Is the Card being used for travel related expenses?
• Is my agency including in bids that Card is the preferred form of payment?
• Question PO’s for low dollar purchases
17
Individual Program Optimization and Consulting
Opportunity
Consultative analysis & planning
Supplier target & enrollment services
 Provides benchmark and best
practice information
 Identifies and helps you prioritize
suppliers who accept card payments at
the amounts you need to pay
 Identifies opportunities, benefits of
expanding your card program
 Develops a tactical card expansion
plan to help you achieve your
financial goals
 Provides periodic reviews
18
 Engages our Merchant Services group
to discuss enrollment opportunities for
suppliers who do not accept card
payments
 Enables key suppliers to accept card
payments
Program Marketing
How do you increase key Agency participation?
• As primary state bank for over 25 years we know all key agencies
• We will meet directly with agencies to outline the benefits of
program participation
• We can personalize Works demonstrations to address individual
Agency issues
• Regularly scheduled member user group meetings to promote
ongoing peer networking and gain industry knowledge
• This has been key to the success of the Nevada Consortium
• No other bank offers this level of marketing support!
19
A Track Record of Growth
Nevada Consortium
Oregon Consortium
$60,000,000
$140,000,000
$50,000,000
$120,000,000
$40,000,000
$100,000,000
$80,000,000
$30,000,000
$60,000,000
$20,000,000
$40,000,000
$10,000,000
$20,000,000
$-
$-
2007
2008
2009
2010
2011
2012
2013
2007
Washington Public Sector Group
2008
2009
2010
2011
2012
Idaho Consortium
$300,000,000
$50,000,000
$250,000,000
$40,000,000
$200,000,000
$30,000,000
$150,000,000
$20,000,000
$100,000,000
$10,000,000
$50,000,000
$20
$0
2007
2008
2009
2010
2011
2012
2013
2012
2013
2013
Benefit Summary
▪ Better Fraud Control
▪ Improved fraud monitoring
▪ Improve process efficiencies
▪ Integration with accounting system
▪ Decrease operational expenses
▪ Increase revenue without increase spending
▪ Shift of existing spending
▪ Strong support network through agency & local government peers
21
Appendix
Works®
▪ One of the most innovative web-based travel and
purchasing card solutions available
▪ Data can easily be integrated into ERP systems
Works®
▪ Tools to make card the payment method of
choice:
– Real-time card controls
– Funds pre-approval process
– Declining balance card issuance
– Merchant Category Code (MCC) restrictions
and transaction limits to purchasing authority
– Card issuance or suspension
– Add or close cards in real-time
▪ Simplifies management reporting
– Online, on-demand, configurable reporting
– Spend by vendor reports
▪ Accommodates unique cardholder, manager,
auditor, accountant and administrator permissions
▪ Existing HR data feeds for account, addition,
deletion, and maintenance
▪ Level III purchasing and travel data
23
Real-time
manipulation
of credit
availability
Easy
integration
into your ERP
system
Online
hierarchy
management
Card
maintenance
and Active
Card Controls
Pre-approval
and postapproval
workflows
Spend
monitoring for
encumbered
funds and
discretionary/
incremental
funds
Works: Differentiators
Active Card
ControlTM
▪ Flexibility to make onetime purchases for
optimized control
▪ Increase/decrease
funds on card, disable
cards in real-time
▪ Enforce corporate and
individual spending
policies by blocking
specific Merchant
Category Codes (MCCs)
24
Accounting
support
▪ Ability to monitor
spending towards
projects or grants with
spend monitor
▪ Map, configure GL
segments or use GL
assistant to enable
cardholders to pick
from a list of cost
center codes
▪ Upload changes or
additions to GL
Segments or Valid
combinations
Pre-purchase
approval
▪ Ability to move largedollar transactions to
purchasing cards by
using electronic prepurchase approval by
management
Credit refresh
feature
▪ Ability to control when
a cardholder’s credit
line will refresh even
with central payment
option
Comprehensive card program management
Why Works?
web-based
solution
▪ 24x7 online access
▪ Permissions-based signon
▪ Intuitive, user-friendly
navigation
▪ Works Resource Center
– Individual account status
– Central starting point for
tasks
– Alerts and updates
▪ No software installation
or maintenance
25
self-service
administration
▪ Request, activate and
close cards online
▪ Modify card settings in
real-time
▪ Enforce card controls at
the point of purchase
– MCC Group restrictions
and limits
– Transaction & credit
limits
▪ Audit logging of card
program changes and
actions
streamlined
reconciliation
▪ Enables distributed or
centralized tasks
▪ Automates and improves
accuracy of allocation
▪ Hands-free reconciliation
reduces manual activities
to exception handling
▪ Supports post-purchase
transaction details,
reallocation and
approval
▪ Offers transaction file
export to financial
application
▪ Improve reconciliation
with transaction
matching
timely data &
reporting
▪ Transaction data
updated daily for
immediate access to
spending information
▪ Permissions-based
online access to data
and reports
▪ Visibility into individual
or group spending
activity
▪ Full transaction data
export for further
analysis
Robust payment management capabilities
Why Works?
transaction
workflow
▪ Facilitates user review
and accountability
▪ Enables appropriate
approvals and controls,
both pre- / postpurchase
▪ Streamlines crossdepartmental data flow
26
business rule
engine
▪ Enables policy
enforcement at the time
of request and the point
of purchase
▪ Facilitates spending
authority matrix
▪ Reduces process flow
bottle-necks by
automating certain
decisions
▪ Applies policies to
transaction types
generating alerts
dynamic credit
management
▪ Offers flexible credit limit
management –
discretionary vs. preapproval
▪ Facilitates dynamic
adjustment of individual
credit limits for preapproved purchases
▪ Enables credit limit
restoration based on
user compliance
hands-free
reconciliation
▪ Automation reduces
manual activities to
exception-handling
▪ Enforces cardholder
reconciliation activities
via delayed restoration
of funds feature
Configurable reports options
Why Works?
Reporting made simple
Select from
650+
data
fields
to create an endless
variety of report
templates
Report
categories
Filter
examples
650+ data
fields
Card
Defined groups
Purchase request
Employees
Fields include, but are not limited
to:
Audit
Card numbers
Allocation
Spend
Card profiles
Cardholder
Card status categories
Card
Card statement periods
Transaction
Card decline
Card profile
Card renewal date
Cardholder spend limits
27
Exact Authorization Override
Make specific purchases outside of
normal card controls, while retaining
strict controls over the card program.
Value
drives efficiencies and provide flexibility
to Purchasing, Travel, Commercial, and
One Card cardholders
Before Exact Authorization Override
After Exact Authorization Override
In order to enable a purchase outside of standard
card controls, the PA would move the card out of
the existing profile to a specific profile and then
schedule the card to move back to the last profile
after a period of time
EAO drives efficiencies for card clients by
eliminating the need to move cards in and
out of profiles, instead, enabling exception,
one-off purchases by placing the card in an
exact auth profile
28
Uploading receipt images
Uploading receipts into Works:
1. Once enrolled in the program, a
cardholder logs into Works.
Simple
Receipts can be attached directly from
the desktop to the transaction,
reimbursement*, or expense report.
2. The cardholder selects the transaction,
reimbursement request or expense folder
which corresponds to a receipt image.
3. The accountholder clicks on the Single
Action Menu (SAM), and selects “Manage
Receipts”.
4. The user clicks “Add”, selects the receipt
image to be uploaded, and clicks “OK”.
Retrieving receipts:
1. A cardholder/manager logs into
Works.
2. The cardholder/manager selects a
transaction, expense report to view
attached receipts.
3. The user clicks on the name of the
image to view the image.
4. The user can then print and save PDF
images on their computer.
*
* With deployment of Reimbursements project; expected in December 2013
 Users can upload receipts from their
desktop directly into Works.
 Receipts can be attached to the
transaction, reimbursement* or
expense folder.
 Additional receipts can be stored in
the Receipt Store until needed.
29
Declining balance card features
Value
for business expenses
Declining balance
Common uses for events, projects, grants, etc.
Funded with a single amount for a specific businessrelated purpose and time period.
Funds are not restored with a payment or on a cycle
date.
Funds decline as purchases are made until the funds
are spent (or the time period is passed).
Used only by employees and only for business
transactions.
Detailed reporting on all transactions in Works.
Need a fixed value card for personal use?
For a fixed value card for a non-employee or for consumer-related purchase
activity, our personal funds prepaid card solution is a perfect fit.
30
provides greater control and
visibility in all card programs
*
Prepaid Card
BofAML also offers business
funds prepaid cards for
employees with business
expenses. Receive reporting on
purchase and transaction
activity by cardholders.
Works Card Shuffler
Value
convert check payments to
electronic payments
▪ Use purchasing cards for non-recurring, high-volume
payments securely and efficiently
▪ Card number is only available to that vendor once
payment is approved
▪ Using Works Active Card ControlTM, cards lay dormant
with no available funds until they are funded for vendor
payment by an organizations claims/warranty or
eProcurement system
▪ Control card limit/expiration date of each payment
▪ Each card account number can correspond to one
payment enabling ease of reconciliation
Automated reconciliation
31
Convert additional spend
to cards
One-time payments to
single vendors
Generating purchase requests
Card Shuffler
Simple & Secure
Automatic
Manual
Automatically generated purchase requests
Manual purchase requests
▪ Shuffler selects a card account to be used for
the payment when a purchase request is
generated through ePayables.
▪ Account number is automatically assigned and
available to be viewed through a secure
method.
▪ Notify the vendor of the card account
number.
▪ Using the patented Active Card Control™
technology, each card is funded with the
exact amount to be paid.
▪ Select the shuffler as the
payment method.
▪ Once Shuffler selects a card
account, authorized users may
run a configurable report or view
the purchase request details to
locate the selected full account
number.
▪ Communicate the account
number to the vendor.
32
Why MasterCard for Purchasing and
Travel Card Programs
MasterCard Information Advantage
•
•
•
•
Manages a full range of global payments brands and related products
Sets and enforces policies and rules
Establishes standards and procedures for merchant acceptance and settlement
MasterCard has a global data repository using a standardized global format, Visa does NOT
Acceptance
MasterCard Branded Cards Are Accepted Globally at Nearly 36 Million Locations
Total MasterCard Acceptance Locations*
(in Millions)
Worldwide
APMEA
Europe
United States
Latin America
Canada
35.9
10.6
10.1
9.2
5.0
1.0
• MasterCard has a material and quantifiable acceptance advantage over Visa in the US
due to Visa’s lack of acceptance at Sam’s Club and Visa’s weaker acceptance in industries
like utilities, education and healthcare
• Purchase Card Level 3 Line Item detail from over 400,000 B2B suppliers*
• Currently 3 out of the top 5 largest utilities accepts MasterCard and not Visa*
• Southern California Edison (Los Angeles metro), Florida Power & Light (state of Florida)
and Con Edison (New York metro) do not accept Visa
* source: MasterCard Worldwide Q4, 2012 SEC report
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rating or a specific price target or offering to change a research rating or price target as consideration for or an inducement to obtain business or other compensation.
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