GSA SmartPay 2010 Conference. Alternative Cards. Stacy Eslich Adam Jackson Melissa Landis Account Management/Citi

Transcription

1 GSA SmartPay 2010 Conference Alternative Cards Stacy Eslich Adam Jackson Melissa Landis Account Management/Citi

2 12 th Annual GSA SmartPay Conference Atlanta, GA August 10-12, 2010

3 House Rules To ensure the best possible learning experience for participants, please adhere to the following house rules: Turn cell phones to vibrate Hold questions to end of session Ensure your participant badge is scanned to receive CLP credits For each course Must leave room and re-enter Take advantage of opportunities to provide feedback Please select the Ask Citi icon on any Citi PC at the conference Answers to be ed after the conference within 45 days 3

4 Goals & Objectives This course is designed to assist you in achieving the following objectives: Learn about products available outside of the traditional travel card 4

5 Agenda 1. Traditional Card History 2. Virtual Cards 3. Declining Balance Cards 4. Citi Controlled Spend Account 5. WorldLink 5

6 1. Traditional Card History 6

7 Traditional Card History st Diners Club card the first widely accepted plastic card was issued the first general-use credit card that allowed balances to be paid over time was issued By there were 159 million credit cardholders in the US, 173 million in 2006 and 181 million projected for 2010 In 2006 the US Census Bureau also determined there were nearly 1.5 billion credit cards in use in the US A stack of those credit cards would reach 70 miles into space and would almost be as tall as 13 Mount Everests (source: NY Times Feb 23, 2009) Do you still write checks?? Use cash?? What is the future of payments?? 7

8 2. Citi Virtual Cards 8

9 Citi Virtual Cards - Traditional Card History An extension to existing card programs, Citi s Virtual Card generates unique account numbers that are used instead of a physical card account number for cardholder not present transactions such as online, telephone, mail order and post-invoice payments. Citi s Virtual Card Solutions provides: Security - the merchant will never receive an actual card account number Control - clients can set controls on each account for usage guidelines Clarity - each transaction corresponds to a unique account number, streamlining reconciliation

10 Citi Virtual Card Accounts Overview A next generation payments tool, Citi Virtual Card Accounts increase transaction security and control Replace a real card account with a unique Virtual Card Account (VCA) for purchases and payment settlement Transparent to the merchant at the point-ofsale 16-digit account number, expiration date, 3- digit security code The real card account number is never shared with suppliers and an unlimited number of virtual card numbers (VCNs) can be created Clients request VCNs in real-time, set authorization controls and receive live virtual card account numbers

11 Citi Virtual Cards Virtual Card Account Level Controls VCA offers a range of flexible control parameters that can be configured at the user level and modified until the card expires Single or Multi use - Configure card to be shut down after single or multiple authorization/purchase Spend limit - amount that can be charged on card, plus tolerance Tolerances - Set a tolerance or collar at card setup as either a percentage or fixed amount deviation from the spend limit Single or Multi Use Validity Period - Only transactions that fall within a set date range will be authorized MCC Groupings - Virtual cards can be limited to specific merchant category codes to ensure that unauthorized transactions are restricted Supplier - Set up preferred suppliers and restrict card usage to a specific supplier Spend Limit Configure card to be shut down after single or multiple authorization/purchase Real-time card deactivation and re-issuance - Same custom data elements can be associated with replacement card, including optionally a code indicating replacement status Tolerances Total amount that can be charged on card, plus tolerance Set a tolerance or collar at card setup as either a percentage or fixed amount deviation from the spend limit Validity Period Only transactions that fall within a set date range will be authorized MCC Groupings Virtual cards can be limited to specific merchant category codes to ensure that unauthorized transactions are restricted Supplier Set up preferred suppliers and restrict card usage to a specific supplier Real-time card deactivation and re-issuance Same custom data elements can be associated with replacement card, including optionally a code indicating replacement status

12 3. Declining Balance Cards 12

13 Declining Balance Cards Features Centrally Billed Accounts Specific purposes and or time periods Accounts have a set credit limit and do not refresh Once the balance is used the card becomes inactive Merchant Category Code restrictions can be placed on the card 13

14 Declining Balance Cards Uses of Virtual Card Accounts And Declining Balance Cards MEPS meal tickets Uniform Allowance Cards Invitational Orders Foreign Nationals Infrequent Travelers Exempt GTC Employees Employees who no longer qualify for the GTC Problems with delinquency Credit Score Wounded Warrior Programs Participating Agencies

15 4. Citi Controlled Spend 15

16 Citi Controlled Spend Account The Background Air Force identified 40% of their travel spend was not being placed on the GTCC Commanders want out of the delinquency business Being a GTCC APC is a collateral duty and time consuming GTCC Limits are not based on travel orders and standard cards are always open for spend whether on travel or not Younger generation adopting debit card products The Gift Card Generation 16

17 Citi Controlled Spend Account The Basic Ask Declining Balance Individually Billed Account Account limit amounts based on approved travel authorizations Accounts set up with no limit Less work on the APCs so they can focus on missions No creditworthiness requirements everyone can use the card Open Merchant Category Codes for Permanent Change of Station Move expenses (dislocation allowance spend) 17

18 Citi Controlled Spend Account The Result The account spending limits do not revolve Payments from DFAS will not refresh the amount available to spend Daily file feeds from the Air Force will load limits, and amendments will adjust the limits When final payment for a trip is received, Citi does a reconciliation of the amount loaded to the amount filed for reimbursement 100 percent of trip payment is made to Citi Any residual amount can be charged to the card or returned to the cardholder 18

19 Citi Controlled Spend Account Key Components Feature Traditional Declining Balance Card Traditional Government Travel Card Controlled Spend Account Liability Central Bill Only Central and Individual Individual Credit Limit Controls Strict Controls Persistent Credit Limits Strict Controls Payment Centralized Split Disbursement 100% to Citi Delinquency Possible Significant Virtually eliminated 19

20 Citi Controlled Spend Account How it Works Air Force member identifies the need for a trip Reservations are made and obligations are reported in CRIS and DTS A Maintenance File is provided daily to Citi to increase the available credit on the card Citi raises the available credit to the amount designated by CRIS/DTS Traveler incurs expenses related to travel 20

21 Citi Controlled Spend Account How it Works Upon return, traveler submits expenses for the trip to DoD Approved expenses are paid in full to Citi, without the option to split the payment to an individual s bank account Citi reconciles the payments to the trip authorization to pay any balance and provides any residual (out of pocket expenses) to the individual - This reimbursement can be a withdrawal via ATM, an ACH refund to a personal account or personal transactions placed on the card For longer duration travel (multiple months) interim payments are sent directly to Citi Failure to use the card appropriately results in the individual not having funds to reach their required duty station with subsequent disciplinary actions 21

22 5. WorldLink Payment Services 22

23 WorldLink Payment Services - Overview WorldLink Payment Services enables clients to issue cross-border payments in more than 130 currencies via a single window without having to maintain local currency accounts. Solution incorporates foreign exchange, reconcilement, and global support network with local service hubs Payment Options Funds Transfers 135 Currencies Remote Cheques 30 Currencies Globality Over 4,000 clients in over 150 countries More than $21 million payments each year About $760 billion in annual disbursements Connectivity CitiDirect Online Banking SWIFT File Transmission XML Onsite Cheques 16 Currencies Cross-Border ACH 11 Currencies Benefits Streamlined payment processing and service via a single window Reduced costs and risks with a non-account based solution Full reconciliation of all transactions daily Currency purchases are aggregated across payments for better rates Cash (via Western Union) 190 Countries and 220,000 Locations 23

24 WorldLink Payment Services - Overview Benefits at a Glance No lifting fees Same-day delivery of funds 2 Increased flexibility No bank account needed Security features Tracking capability One file, many payment options A one-stop shop Convenience 24

25 WorldLink Payment Services - Overview Potential Applications for WorldLink Cash Payroll payments Expatriate payments T & E payments Petty cash payments Payments to non-banked beneficiaries Insurance payments 25

26 WorldLink Global Presence North America Canada US Latin America Argentina Bahamas Brazil Chile Colombia Costa Rica Dominican Republic Ecuador El Salvador Guatemala Haiti Honduras Jamaica Mexico Panama Paraguay Peru Puerto Rico Trinidad & Tobago Uruguay Venezuela Europe Austria Belgium Bulgaria Channel Islands Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Luxembourg Netherlands Norway Poland Portugal Romania Russia Slovakia Spain Sweden Turkey UK Ukraine Middle East and Africa Algeria Lebanon Bahrain Morocco Cameroon Nigeria Congo Senegal Egypt South Africa Gabon Tanzania Israel Tunisia Ivory Coast Uganda Jordan UAE Kenya Zambia Kuwait Asia Pacific Australia Bangladesh Brunei China Hong Kong India Indonesia Japan Kazakhstan Korea Malaysia New Zealand Pakistan Philippines Singapore Sri Lanka Taiwan Thailand Vietnam 26

27 Summary This session was designed to assist you in achieving: A basic understanding of alternative card products being used today outside of the traditional travel card 27

28 Reminders DoD Travel APC s Thank you for attending! Visit the Citibank Welcome Center Across from Room#B212 National Industries for the Blind will have a display of products Conference Slide Show come see yourself shine! Visit the Citibank One-on-One Lab - B210 Visit the Citibank Mini Sessions B209 Ask Citi Link Tell us your thoughts 28

29 Stacy Eslich, Adam Jackson, Melissa Landis

30 Interactive Training Events Citi offers onsite training at no cost for agencies meeting the required minimum participant level of 20 or more as set forth in the GSA SmartPay2 Master Contract. Regional Citi Training Locations Norfolk, VA Washington, DC Visit to register for these sessions Upcoming Training San Diego, CA September 21st October 1st Grafenwoehr, Germany October 18th October 22nd Kaiserslautern, Germany October 25th October 29th Visit to register for these sessions On-Site at your office 20 participant minimum Distance Learning - Video Conferences Please us at CommCard.Training@citi.com and a Citi training coordinator will work with you directly for On-site or Distance Learning sessions.

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