Virtual Card Payments (VCA): Discovering New Flows

Transcription

1 Treasury and Trade Solutions Citi Commercial Cards Innovation, Efficiency, Simplicity Commercial Cards Conference May 18-20, 2015 Virtual Card Payments (VCA): Discovering New Flows Citi Host: Archie Payne Client Speaker: Kathy Gilligan (Allstate)

2 Table of Contents 1. How can Citi s VCA solution assist your organization build a solid case with payment digitization 2. Results in action Allstate Innovation, Efficiency, Simplicity. 1

3 Session Objectives Realize the digital benefits from virtual card adoption Optimize payment digitization using the VCA product while maintaining the payment process in place today Ensuring your organizations are leveraging all of the payment options available at the supplier and commodity levels Maximize working capital efficiencies Transitioning payments to a secure digital type Drive greater benefits by converting to a digital payment option Enhancing the working capital strategy through payment digitization Benefiting from Opportunities to Digitize your Payments Meeting the demands of today Aligning with the trends of tomorrow Innovation, Efficiency, Simplicity. 2

4 Virtual Card Accounts Other Use Cases Use Virtual Cards for an array of payment needs, improving operational processes, customer service and experience while generating profit Distressed Customers Need: Provide immediate payment to customers, avoiding invoicing and reimbursement Solution: Integrate VCA into systems to provide customers real-time secure and controlled payment Example: Airline Vouchers, Roadside Assistance Meetings and Events Need: Manage and pay for internal meeting and event costs Solution: Use VCA to ensure controls on meeting and event spend Example: Trade Shows Distressed Customers Meetings and Events Relocation Online Resellers Relocation Need: Improve employee X-border relocation payments Solution: Provide real time payments from re-location assistance firms for key services needed by employee Example: Expatriate relocation Online Resellers Need: Improve processes for supplier payments for services booked or ordered by the end customer via website Solution: Generate immediate payment to your suppliers across the globe with integration into internal systems Example: Travel Aggregators, online retail aggregator's Third Party Payments Need: Improve processes to receive and settle invoices to third party Solution: Allow third party to generate virtual cards for payment while eliminating invoice process Example: Property Management, Advertising, Transportation 3 rd Party Payments Central Travel Accounts Central Travel Account Need: Improve payment process for centralized travel booking Solution: Use Virtual Card Account at the point of booking to extend credit and generate revenue while capturing additional data elements Example: Centralized Travel Booking Innovation, Efficiency, Simplicity. 3

5 VCA Website Requesting a Virtual Card Number Use VCA s website to increase card spend and eliminate paper-based processes while benefitting from enhanced controls, workflow and data Optionally, if the request is over the value for the group, it is sent for approval 1. Input payment details and set controls Innovation, Efficiency, Simplicity. 2. Add required/optional custom data fields that are linked to the purchase type 3. Receive Virtual Card Number immediately (or after optional approval) 4

6 Virtual Cards as a New Payment Method Virtual Card presents an opportunity to generate more revenue for making payments while having other similar characteristics to other payment methods Costs/Process Cutoff/Receipt Remittance Detail Final Settlement Virtual Card Profit from making payment due to card rebate model Virtual account number sent to supplier Payment received in 2-3 hours Funds settled within 48hrs of authorization Standard option provides enhanced remittance data Customization to allow unlimited remittance All payments subject to 60 day dispute window No liability for fraudulent transactions Ability to recover misuse Check High costs to process/ administer $1-$5/check Same day/next day option Mailing time subject to disbursement location Clearing subject to supplier deposit No limitation Within 48hours of clearing Potential for late return if funds still exist in the account Fraud/counterfeit transactions up to 1 year ACH Low costs for electronic payment ~$0.07/transaction Typically next day settlement to major financial institutions Limited in some formats with option for unlimited Settled upon execution Limited ability to reverse transaction Wire High costs ~$10/wire transfer Late day cutoffs for same day receipt Limited Settled upon execution Limited ability to reverse transaction Best efforts basis that diminishes rapidly with time Innovation, Efficiency, Simplicity. 5

7 Allstate Insurance Company Kathy Gilligan Card Program Manager Allstate Insurance Company Proprietary and Confidential

8 Company Information The Allstate Corporation is the largest publicly held personal lines property and casualty insurer in America. Allstate was founded in 1931 and became a publicly traded company in 1993 We are listed on the New York Stock Exchange under the trading symbol ALL Allstate is widely known through the "You're In Good Hands With Allstate" slogan As of year-end 2014, Allstate had $108.5 billion in total assets. In 2014, Allstate was number 92 on the Fortune 500 list of largest companies in America. The company markets private passenger auto and homeowners insurance under the Allstate, Encompass and Esurance brand names The Allstate Corporation encompasses more than 70,000 professionals made up of employees, agency owners and staff Allstate embraces diversity in everything we do - not only the customers we serve and the communities in which we invest, but also the people we hire and the businesses we use as suppliers We are the Good Hands Allstate Insurance Company Proprietary and Confidential 7

9 Allstate Roadside Services (ARS) Roadside Services from Allstate Motor Club Roadside and Towing Service Tire Change Service Fuel Delivery Lockout Service Trip Interruption Benefit Jumpstart Service Custom Trip-Plans Allstate Motor Club s Roadside Assistance Towing Network Primary Towing Assistance Allstate s Network of Contract Towers Secondary Towing Assistance Out-of-Network Towers Allstate Insurance Company Proprietary and Confidential 8

10 Virtual Card Program for ARS Challenges Out of network towers needed to be paid immediately after the call from the dispatcher in a fast and seamless process to ensure timely arrival of the out-of-network tower to the stranded Allstate Motor Club member The dispatch system needed to be integrated with the payment process Needed to address previous provider s system downtime events and card acceptance Solution Benefits Allstate Insurance Company Proprietary and Confidential 9

11 Project Research Researched various Bank providers and their Virtual Card tool and integration capabilities The Sourcing & Procurement Card Commodity Manager and Allstate Motor Club s Roadside Assistance team chose Citi as the provider Citi was already our provider for T&E and Meeting Card Programs MasterCard s InControl virtual card issuance tool provided the most benefits Demonstrated ability to integrate InControl with Allstate Motor Club s Roadside Services Dispatch system Reporting out of GCMS Allstate Insurance Company Proprietary and Confidential 10

12 Virtual Card Program Solution Challenges Out of network towers needed to be paid immediately after the call from the dispatcher in a fast and seamless process to ensure timely arrival of the out-of-network tower to the Allstate Motor Club member The dispatch system needed to be integrated with the payment process Needed to address previous provider s system downtime events and card acceptance Solution Utilize Citi s systems and MasterCard s InControl tool to issue Virtual Card numbers via the dispatch system to the tower Integrate MasterCard s InControl and the ARS Dispatch system via an API Create robust reporting out of Citi s GCMS system for monthly billing and Leadership reviews Benefits Allstate Insurance Company Proprietary and Confidential 11

13 Project Implementation Implementation Team established with members from Allstate Card Program Management, Allstate Motor Club, and Citi Utilized MasterCard s InControl tool to establish appropriate parameters to mitigate risk MCCs Allowed Maximum Dollar Amount Card Expiration Terms Custom Fields Created (Dispatch Claim Number, Customer Name, etc) Approved User Profiles Created Worked with technical teams from Allstate Motor Club and Citi to integrate InControl Virtual Card issuance with Motor Club s Tower Dispatch system Created a monthly invoice in GCMS for download and payment Trained users Implemented in July, 2012 Allstate Insurance Company Proprietary and Confidential 12

14 Virtual Card Issuance Process Flow Roadside Assistance InControl Tool Network Stranded Allstate Motor Club Member Requests Service ARS creates VCN request via API to Citi VCN created and record stored VCN routed to MC VCA system Real Card Number (RCN) routed back to Citi Citi Global Data Repository Out-of-Network Tower Acquiring Bank Tower assists stranded Member Virtual Card No / Approved $$s Sent to Merchant (Tower) VCN and $$s flow through Bank CitiManager/GCMS Allstate Insurance Company Proprietary and Confidential 13

15 Virtual Card Program Benefits Challenges Out of network towers needed to be paid immediately after the call from the dispatcher in a fast and seamless process to ensure timely arrival of the out-of-network tower to the Allstate Motor Club member The dispatch system needed to be integrated with the payment process Needed to address previous provider s system downtime events and card acceptance Solution Utilize Citi s systems and MasterCard s InControl tool to issue Virtual Card numbers via the dispatch system to the tower Integrate MasterCard s InControl and the ARS Dispatch system via an API Create robust reporting out of Citi s GCMS system for monthly billing and Leadership reviews Benefits Increased acceptance rate from towers Streamlined processes from Virtual Card issuance to tower acceptance Substantially reduced downtimes Automated Invoice Generation out of GCMS Increased Rebate Allstate Insurance Company Proprietary and Confidential 14

16 Conclusion The Allstate Roadside Services team is very satisfied with the program The program has expanded along with the Allstate Motor Club memberships Expanded the program to allow Call Center personnel to issue emergency virtual card numbers directly out of the InControl tool Increased Allstate s rebate Substantially reduced downtime versus the previous provider Allstate Insurance Company Proprietary and Confidential 15

17 Questions? Allstate Insurance Company Proprietary and Confidential 16

18 Innovation, Efficiency, Simplicity Commercial Cards Conference May 18-20, 2015 IR S C ir c u la r 230 D is c lo s u r e : C itig r o u p In c. a n d its a ffilia te s do n o t p r o v id e ta x or le g a l a d v ic e. A n y d is c u s s io n of ta x m a tte r s in th e s e m a te r ia ls (i) is n o t in te n d e d or w r itte n to be u s e d, a n d c a n n o t be u s e d or r e lie d u p o n, by y o u fo r th e p u r p o s e of a v o id in g a n y ta x p e n a ltie s a n d (ii) m a y h a v e b e e n w r itte n in c o n n e c tio n w ith th e " p r o m o tio n or m a r k e tin g " of a n y tr a n s a c tio n c o n te m p la te d h e r e b y (" T r a n s a c tio n " ). A ccordingly, you should seek advice based on your particular circum stances from an independent tax advisor. A n y te rm s s e t fo rth h e re in a re in te n d e d fo r d is c u s s io n p u rp o s e s o n ly a n d a re s u b je c t to th e fin a l te rm s as s e t fo rth in s e p a ra te d e fin itiv e w ritte n a g re e m e n ts. T h is p re s e n ta tio n is n o t a c o m m itm e n t or firm o ffe r and d o e s n o t obligate us to e nter into such a com m itm ent, n or a re w e acting as a fiduciary to you. B y accep ting this p re sen ta tion, subject to ap plicable law o r regula tion, yo u a gree to keep con fiden tial the in fo rm ation con tained he rein and the existence of and proposed term s for any T ransaction. We a re re q u ire d to o b ta in, v e rify a n d re c o rd c e rta in in fo rm a tio n th a t id e n tifie s e a c h e n tity th a t e n te rs in to a fo rm a l b u s in e s s re la tio n s h ip w ith us. We w ill a s k fo r y o u r c o m p le te n a m e, s tre e t a d d re s s, a n d ta x p a y e r ID n u m b e r. W e m ay also request corporate form ation docum ents, or other form s of identification, to verify inform ation provided. [TRADEMARK SIGNOFF: add the appropriate signoff for the relevant legal vehicle] 2015 Citibank, N.A. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world Citibank, N.A. London. Authorised and regulated by the Office of the Comptroller of the Currency (USA) and authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world