Ceridian E-Payables Solution

How to Transform your Accounts Payable Department

into a Revenue Generator

© 2010 Ceridian Corporation. All rights reserved.

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Comdata is a leading provider of innovative, value-added payment and information solutions

40+ years experience Productivity improvement,

cost reduction and expense management

A One-Card Solution for purchasing, travel, fleet, per diem and payables disbursements

Provide strategy, implementation and support services


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Reduce cost and streamline business processes Contribute to revenue development Mitigate risk and simplify accounting processes

Purchasing

Disbursements Management

Corporate Fleet

Treasury Management

Travel

Payroll, Per diem and Incentive

Voice of the Customer


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Today’s Payment Landscape“Manual, paper-based accounts

payable departments are eroding the bottom line of large and mid-market enterprises by an order of millions of dollars each year….and the stage is set for a major financial makeover.”


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Top Factors Driving Electronic Payments


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An Electronic Payment Application

for Every Situation


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Reduce CostsEliminates cost of check processing, averaging $5.14*

Mitigate check fraud and cost of positive pay

Generate monthly revenue on vendor paymentsEx: $3.0M monthly volume @ 1.50% = $45,000

Paid monthly on actual volume

Easily implementedIntegrates as another payment type in your AP application

Vendor enrollment support with worldwide acceptance

Eliminate 1099 ReportingIRC Section 6050W – Effective January 1, 2011

Card-based vendor payments – Merchant acquirers responsible for reporting


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Electronic Payment Delivery

• It is linked to a single vendor payment with a remittance advice

• A Virtual Card is a unique 16 digit MasterCard account number

• The MasterCard number is issued for a specific dollar amount

• Accepted by millions of suppliers worldwide


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Vendor

Company submits a Payables Disbursement File from ERP to Comdata

Comdata distributes and returns a Virtual MasterCard account number for each vendor payment processed.

Example: #1234 4321 3567 8235Expiration 04/2005

CV2 345

The Vendor is paid with the Virtual Card

The merchant authorizes MasterCard transaction based upon pre-defined parameters – date, time, amount.

Your payables disbursement file contains consolidated supplier invoices, amounts and associated MasterCard account number(s). A GL clearing account is assigned to all transactions

Invoice file from Comdata containing all merchant processed transactions

Unprocessed merchant

transactions

Reconciliation Process

Virtual MasterCard Process for AP

Customer


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Traditional AP Check vs. Virtual Payment Timeline

INVOICE DUE DATE

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7

Traditional AP

Check

AP process run - Check is

printed, stuffed and

mailed

Check in transit

Check in transit

Check received by

vendor

Check deposited by vendor

Check being processed

Check clears and funds

debited from Customer

Bank Account

Comdata MasterCard Virtual Payment

AP process run - File sent to

Comdata - Electronic remittance sent and

received by vendor

Vendor runs payment

Payment in process with MasterCard

Payment is settled with MasterCard

Comdata invoices

Customer for settled payments

Comdata initiates

ACH Debit to collect invoice

total

Invoice total is debited

from Customer

Bank Account

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7

Manual prework eliminated (check printing, stuffing, mailing time)

Payment may be initiated on invoice due date

With Comdata MasterCard Virtual Payment, our Customers:

Enjoy the same float as a traditional AP check (est. 5 to 7 days) Earn a cash monthly rebate May initiate payment on the invoice due date Eliminate the manual prework and reconciliation associated with checks


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OFFICE SUPPLIES• Office Depot• Office Max• Staples• Boise Cascade

SHIPPING• FedEx• UPS• USPS• Pitney Bowes

TELECOMMUNICATIONS• Verizon• Sprint• AT&T• Qwest

• Over 8 million vendors in the U.S. accept MasterCard• Here are some examples of vendors our customers are paying today:

UNIFORMS• Aramark• Cintas• Unifirst• Penn Emblem

PAPER / PRINTING• International Paper• Unisource• Xerox• Kinko’s

LABOR / STAFFING• Adecco• Spherion• Kelly Services• Randstad

ADVERTISING• Yellow Pages• Lamar Outdoor

Advertising• Google• Clear Channel

SOFTWARE / SYSTEMS• Microsoft• Oracle• Intuit• Apple

VARIOUS RETAIL• Walmart• Target• Home Depot / Lowes• Costco

Vendor Acceptance


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Credit Card Acceptance The Merchant Value Equation

Value of Acceptance• Increased sales from larger base of potential customers• Electronic payments eliminate check fraud and mailing delays • Lower collection cost and bad debt elimination• Customer loyalty and risk mitigation

Customer Rebate (1.50%)

Suppliercard acceptance(2.45% on average)

Comdata (0.95%)


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Mass Vendor ContactMailings

Check StuffersEmails

WebsiteFaxes

Calling Campaign

Joint Strategic

CallsNew Pay MethodTerms

DiscountsContracts

Proprietary

Internal ProcessesTraining

New VendorsPurchasing

RFPContractsContests

Check Runs

Enrollment Results

Set goalsReporting

RebateProcess

ImprovementIncentives

Strategic Sourcing

Four Pillars of Vendor Enrollment

Executive Sponsorship


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Not-for-profit hospitals in Florida Four facilities (900 beds) Shared-Services Group PeopleSoft ERP

* Example only - based upon billing and payment terms

Avg. Cost Per Check ($5.14) $5.14

Virtual cards/ Nov 09’- March 10’ 3758

Transaction $/Nov 09’- March 10’ $21,145,177

Check Elimination Savings $19,316

*Rebate (1.40%) $296,032

Total 5 Month Return $315,348

Case Study: Health First


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68% Transactions less than $5,000.0086% Spend is greater than $5,000.00

Case StudyHealth First


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• Largest energy storage and pipeline transportation company

• NYSE: KMP and KMR• 8,000 employees

Case Study: Kinder Morgan


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Avg. Cost Per Check $5.14

Virtual Cards / 8 months 31,398

Check Elimination Savings $161,385

Transaction $ / 8 months $72,561,793

*Rebate (1.60%) $1,160,988

Average transaction size $2,282

Total 8 Month Return $1,322,373

Case Study

*Example only – based upon billing and payment terms


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• Vendor enrollment defined and continuously executed• Employees promote program as preferred payment method• Reduced check processing from 3 days to 1 day per week• Program settlements process daily with simple file transfer

Keys to Success

62% Spend > $10K

81% Trx < $5K


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Delivering Value in Corporate Payments

Summary


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Edwin W. BensonDirector, Corporate PaymentsComdata 615-370-7160 Office615-364-8537 [email protected]

Questions?

Brooke DavisMajor Account RepresentativeCeridian 901-746-8726 Office901-848-2636 [email protected]

Date post:	12-Jun-2015
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Ceridian E-Payables Solution

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