Upload
truongdiep
View
238
Download
0
Embed Size (px)
Citation preview
Citibank and Visa
Citibank® Commercial Cards, Government Services
The Seventh Annual GSA SmartPay Conference
© Copyright 2005 Citigroup Inc. All rights reserved. CITIBANK, CITIDIRECT and CITIGROUP and the Umbrella Device are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.
Chuck Cogar, Melanie Sisler, September 1, 2005
3
Goals & Objectives
To provide an update on what’s new from Visa
Learn about: – New ideas on improving your existing program – How Visa supports merchant acceptance for your card program – Visa support for socio-economic data, enhanced data, and 1099
information
4
Agenda
Visa’s Commitment to the Federal Government
Visa Products
Visa Information Management
Improving Merchant Acceptance
Improving Your Existing Program
Questions
7
Agenda
Visa’s commitment to the federal government
Visa products– Purchase– Travel– Fleet– One Card– Visa commerce
Visa information management– 1057 / socioeconomic reporting– 1099 reporting– Qualified Purchasing Card Agent (QPCA)– Supplier locator– Mailboxes– Enhanced data
Improving merchant acceptance– Outreach activities– Visa information tools
Improving your existing program– Visa best practices – Program optimization
8
Visa’s Commitment to Supporting Federal Government Objectives
Over 15 years of federal government Purchase Card experience– Developed a range of reporting and information tools– Assist the federal government to meet reporting and mission
requirements
Visa’s support of the GSA SmartPay Program – Providing 1099 and socio-economic reporting
Pilot program with Citibank and others across the country– Targeting federal government vendors– Ensuring federal government vendors receive favorable rates
9
Visa — the World’s Largest,Most Reliable, Most Secure,Open Financial Network
Dollar volume last year
Miles of cable in global network
Total transactions last year
Maximum transactions per second
9 million
$2.3 trillion
35 billion
4,000
10
Visa — and Citibank
Travel dollar volume last year
Purchase dollar volume last year
$547 million
$6.1 billion
12
Visa Purchase
Background– Purchasing cards developed in 1980s for the
Department of Commerce– Expanded to entire federal government in 1989– First corporate purchasing card program developed
by Visa in 1990*
Purchasing card for procurement spending– Reduces the expense and paperwork vs. traditional
purchasing and payment process– Originally targeted high volume, low dollar
transactions– Positioned as a re-engineering tool
*Source: Celent Communications—Purchasing Cards in the U.S., April 2002
13
Visa Travel
Introduced more than 30 years ago
Replacement for petty cash/cash advances for travel expenses
Substantial market growth came with GSA SmartPay program
Source: TowerGroup—Commercial Payment Cards in the US: Product Overview, December 2001
14
Visa Fleet
Fleet segment market size– $56 billion spending per year on fuel/maintenance*
from more than 17.3 million commercial vehicles– $22 billion in fuel is processed on credit cards
Fleet segment opportunity– In 2001, fleet card market share was 12 percent of all
commercial cards** – Fleet management segment is growing at 22 percent
annually***– Forty percent of all commercial fleets (with more than
25 vehicles) have no card program in place today
Sources: *Havill & Co. Inc.—The Commercial Fleet Market Forecast: 1999-2001, January 2000**TowerGroup—Commercial Payment Cards in the US: Product Overview, December 2001***The Nilson Report, November 2000
15
One Card
One card adoption varies by organization, with mid-sized companies more likely to adopt the solution*
The most popular combination of functionality depends on company size**
Federal, State and local government have been slow to adopt one card solutions
Sources: *2000 Corporate Purchasing Card Benchmark Survey, by Palmer and Gupta**Visa—May, 2001 National Association of Purchasing Managers Survey
16
Visa Commerce
Features and benefitsLarger-value,invoice-based purchasesBuyer-initiated payments,deferred settlement,amounts up to $10Mper transactionStreamlined payablesprocesses and direct cost savingsCombines and delivers payment andnonpayment related dataIntegrates with financial systemsFacilitates reconciliation management
18
Visa’s Strategy
Visa Information Management– Mailboxes– 1057 / Socioeconomic Reporting– 1099 Reporting– Enhanced Data– Supplier Locator
Visa Information Management
19
Visa Information Management
Easy to use: – Single sign-on = one user ID and password to remember– Reader friendly reports
Robust and current:– 25 months historical data online; summary and transactions– Reports updated daily
Flexible:– Run reports online or download data for further analysis– Numerous filters enable targeted analyses
The online portal provides access to Visa’s web-based solutions
20
Visa Information Management
Visa Information Management
1057Reports
1099 Reports
SupplierLocator
Central Data Repository
Mailbox
Agency or User
Issuers, Processors / Data Providers
22
Visa Information Management Strategy
Payment
Post-Payment
Procure – Increase ordering and sourcing efficiency
– Provide cost-effective solutions for every payment need
– Enable efficient reconciliation, reporting, and control
Visa delivers payment & information solutions to help you:– Increase purchase and payment efficiency– Reduce procurement, payment and related administrative costs– Enhance spending control
Visa’s solutions improve your entire procure-to-pay process:
Visa and Citibank deliver the expertise and support:
– Payment and information management expertise– Global infrastructure and unparalleled acceptance – implementation planning and ongoing program support
23
Mailboxes
Large reports and data sets are automatically delivered to the mailbox where they can then be saved on a user’s hard drive
30MB of personal storage space
Reports and data archived after 36 days
Share files and reports with other users of the system
Each user of Visa Information Management is provided a mailbox
24
1057 and 1099 Reporting
Developed in 2002 to meet the needs of government agencies
Industry leading features and functionality
Online report generation
Merchant Profile Database built specifically for 1099 / 1057 reporting
Visa’s 1057 / 1099 online reporting solution provides the information you need to streamline your reporting processes
25
1057 and 1099 Reporting
Purchase card transactions are matched to supplier demographic information weekly
Supplier information updated daily in the Visa Merchant Profile Database
Reports can be run with numerous filters providing you maximum analytical flexibility
Used in conjunction with the Supplier Locator, measure progress against goals then seek out the type of merchants you need to do business with
26
1057 and 1099 Reporting
25 months of transactional history online allows year over year analysis
Reports at the summary or detail level
Data can be downloaded in various formats and pulled by either transaction or posting date
29
QPCA Definition
Qualified Payment Card Agent (QPCA) is an IRS designation granted to payment card organizations that demonstrate the ability to meet IRS standards surrounding the collection, validation, maintenance and distribution directly or through their members -IRS 1099 information
30
QPCA Regulations
Permits a card organization (Visa, MasterCard or American Express) to apply to the IRS for QPCA status
QPCA optional, card companies not required to apply
IRS makes the determination if the card company’s processes and systems meet their qualifications, no deadline for the IRS to complete their determination
31
QPCA Data Responsibilities(Visa acting as QPCA)
Obtain merchants 1099 information
Visa Merchant Registration Program
Ensure the accuracy and reliability of the merchant information– VMPD validation and edit processes
Validate the accuracy of the merchant information– IRS TIN Matching Program
Maintain the merchant information– VMPD data quality process
Provide company with a merchant qualification report
32
Enhanced Data
Additional data provided by charge card transactions but not required for settlement
Agency benefits– Supports pricing agreements with key suppliers– Streamlines card administration– Supports accounting and reconciliation functions– Assist in sales and use tax management
34
GSA Smartpay Outreach Program to improve Merchant Acceptance
Federal government Small Business SupplierOutreach Value to supplier
Cash flow story
Value to the federal government– Procurement savings
Education outside the “beltway”– Topic = “How to do Business with the federal government”– Use local partners to reach small businesses
– GSA sites, Chamber of Commerce’s, Minority Business Development Centers, Government Agencies Conferences, and Educational Institutions
35
Visa Information Tools
Supplier Locator Service– Provides the ability to locate businesses that accept
Visa by:Name and location Socio-economic profileEnhanced data provision
– Value to you Locating small businesses to meet your procurement preference program goals
36
Visa Information Tools
Supplier Matching Service (SMS)– Identifies your suppliers card acceptance capability
AcceptorsNon-acceptors
– Value to you Able to identify card acceptors among your current suppliersIncrease your savings by expanding acceptance
– During the last five months, SMS statistics1.4M suppliers submitted643K suppliers accepted cards728K suppliers did not accept cards
37
Visa Information Tools
Supplier Enrollment Program (SEP)– Visa matches up suppliers with card acceptance
service providers (Banks)Provides the “best of breed” service providers to suppliers Saves time for all parties
– Value to youAble to motivate ‘non-acceptors” to accept the GSA SmartPay Card for paymentIncrease your savings by expanding acceptance
39
Help the agencies get greater value from Purchase card programs
Provide a predictable framework and assistance for integrating Best Practices and Visa tools
Provide a value-added resource for program optimization engagements
Visa partners with Citibank to optimize existing programs and promote best practices
Improving your Existing Program with Best Practices & Program Optimization
40
What is Program Optimization?
Purchase Card Program Optimization assists federal agencies in improving the effectiveness of their procurement programs
The program:Identifies opportunities to increase the use of the purchase card
Provides insight for improvement opportunities within the program
Generates recommendations for improving the program
41
Program Optimization Approach
Strategic assessment & link to business goals
Detailed accounts payable analysis
Supplier analysis guidance
Best Practice assessment
Program recommendations– Targeted cardable spend opportunities– Specific supplier recommendations– Implementation guidance
42
Accounts Payable Analysis ToolThe A/P analysis reports facilitate identification of non-card transactions - resulting in actionable expansion opportunities
$5.6 MM (and 21,000 transactions) is with only 20 Merchants
Visa U.S.A. Confidential
Policy Tiers
43
Visa has created online consultative tools to complement the program optimization efforts, including:
Estimates financial benefits of improving procurement efficiencyCalculates potential benefits of reducing paper and electronic purchase orders
Rates program performance against best practicesRecommends and quantifies benefit of implementing best practices
Benefits CalculatorPerformance Gauge
Procure-to-Pay Consultative Tools
44
Summary
Visa’s commitment to the federal government
Visa products
Visa information management
Improving merchant acceptance
Improving your existing program
46
Reminders
Thank you for attending this session!
Visit the Citigroup Welcome Center– Hynes Ballroom 306, on the third floor– National Industries for the Blind will have a display of products
Visit the Citigroup Technical Demonstration Center– Hynes Ballroom 305, on the third floor
Citibank hands-on training sessions– Hynes Ballroom B, on the third floor
Please take a moment to complete your GSA survey for this session