Comdata Overview

How to Transform your

Accounts Payable Department

into a Revenue Generator

© 2010 Ceridian Corporation. All rights reserved.

2

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


3

33

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


4

4

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.”


5

Top Factors Driving Electronic Payments


6

An Electronic Payment Application

for Every Situation


7

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


8

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


9

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 8235

Expiration 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


10

Traditional AP Check vs. Virtual Payment Timeline

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

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


11

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


12

12

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

CustomerRebate (1.50%)

Suppliercard acceptance

(2.45% on average)

Comdata(0.95%)


13

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


14

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


15

68% Transactions less than $5,000.00

86% Spend is greater than $5,000.00

Case StudyHealth First


16

• Largest energy

storage and pipeline

transportation

company

• NYSE: KMP and KMR

• 8,000 employees

Case Study: Kinder Morgan


17

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


18

• 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


19

Delivering Value in Corporate Payments

Summary

Date post:	11-Jul-2015
Category:	Documents
Upload:	appointlink
View:	682 times
Download:	0 times

Comdata Overview

Documents