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U.S. General Services Administration Stored Value Products Chris Pieroth GSA SP2 Program Manager, Citi July 2012
Transcript

U.S. General Services Administration

Stored Value Products

Chris Pieroth

GSA SP2 Program Manager, Citi

July 2012

2012 GSA SmartPay Conference

“Fine Tune Your Payments Program with GSA SmartPay”

This material is intended for use by the GSA only

3

House Rules

®

Stored Value Products

(agency name)

To ensure the best possible learning experience for participants, please adhere

to the following house rules:

• Turn electronic devices to vibrate

• No video-taping or audio recording is allowed

• Hold questions to end of session

• Ensure your participant badge is scanned to receive CLP credits

− For each course

• Take advantage of opportunities to provide feedback

− Please select the “Citi Q&A” icon on any Citi PC at the conference

− Answers to be e-mailed after the conference within 60 days

All Audiences

®

Schedules Available at the Welcome Center All Agencies

4

Stored Value Products

Stored Value Products

Visit the Citibank Welcome Center–Governor’s Lobby

Visit the Citibank One-on-One Lab–Governor’s Chambers D&E

Citi Q&A Link–Tell us your thoughts

®

Reminders All Agencies

5

®

Interactive Training Events – DoD Al l Agencies

Citi offers on-site 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 www.defenseTravel.dod.mil/passport to view and register for these sessions

Upcoming Training

– Visit www.defenseTravel.dod.mil/passport to view and register for these sessions

On-site at your base or installation

– 20-participant minimum

– Visit www.citimanager.com/dodhome under Resources to download the On-site Training Request Form

Distance Learning–Video Conferences

Please e-mail us at [email protected] and a Citi training coordinator will work with you directly for on-site or Distance Learning sessions.

Stored Value Products

6

®

Interactive Training Events – GSA All Agencies

Citi offers Computer-Based Training (CBT) via the Citi Commercial Card Learning

and System Support (CLASS) in CitiManager.

Visit home.cards.citidirect.com and from the Web Tools tab select the CLASS

link

Please contact your Account or Client Manager if you are interested in setting up a

training session. Training can be conducted at a Citi Training Location, on-site at

your office or via the web.

Regional Citi Training Locations

– Norfolk, VA

– Washington, DC

Stored Value Products

7

8

• Provide an overview of the various products

that are available to agencies and

organizations from Citibank

− Charge Cards

− Declining Balance Cards

− Debit Cards

− Prepaid Cards

• Develop a basic understanding of how to

match the capabilities of these products to

different needs and requirements within an

agency or organization

Goals & Objectives

®

Stored Value Products

Department of

DefenseAll Agencies

9

1. Product Descriptions

2. Usage

3. Which Products Work the Best?

4. Examples

Agenda

®

Stored Value Products

All Agencies

1. Product Descriptions

®

Stored Value Products

10

11

Product Descriptions–Charge Cards

®

Stored Value Products

All Agencies

• Charge cards have an assigned credit line,

which renews as payments are made

• The cards can be individually or centrally

billed with individual or central payment

• Bills are generated on a cycle basis with

payment due by a certain date

• There are strong controls on how and

where the card can be used

• There is a separate electronic access

system to support charge cards

12

Product Descriptions–Declining Balance

®

Stored Value Products

All Agencies

• Declining balance cards work similar to

charge cards except that:

− The credit line does not renew when

payments are made

− They must be centrally billed and centrally

paid

• Declining balance cards use the same

electronic access system as charge cards

13

Product Descriptions–Debit Cards

®

Stored Value Products

All Agencies

• Debit cards are tied to a bank account

• As transactions are incurred, the amount of the transaction is withdrawn from the

account

• If multiple cards are issued, all cards withdraw from the same account

• Only limited authorization controls are available on this product

• There is no separate electronic access system to support debit cards; debit

cardholders rely on the online banking infrastructure that supports the underlying

bank account to access account and transaction information

14

Product Descriptions–Prepaid Cards

®

Stored Value Products

All Agencies

Prepaid Cards are a standalone product.

• The accounts are paid in advance and the value of the payment is loaded onto

the card

• Cards can be single-use or reloadable

• Generally, there is a one-to-one relationship between each card and the

corresponding account that holds the funds, but other configurations are available

• Moderate controls, at a program level, are available for this product

• Prepaid cards have a separate electronic access system to support the product

(e.g. to load value, to view transaction activity, etc.)

®

2. Usage

Stored Value Products

15

16

Usage–Charge Cards

®

Stored Value Products

All Agencies

Charge cards are designed for use by individuals who have an undefined and

continual need to make various business-related purchases, whether travel,

purchase or fleet related.

17

Usage–Declining Balance

®

Stored Value Products

All Agencies

Declining balance Cards are a variation of the charge card, where the total

spending limit is predefined based on what the card will be used for and does

not renew when payments are made. These cards are often used for relocation

or project-related expenses, where a budget or spending limit is established up

front and the cards are used until the money is spent.

18

Usage–Debit Cards

®

Stored Value Products

All Agencies

• Debit cards are rarely used within the

government

• Because debit cards must be tied to a

deposit account, the only way a debit card

can be used is if the government deposits

funds in an outside account. Since there are

very strict Treasury regulations on how and

when this can be done, these cards are

impractical for most government needs

• Only agencies with the authority to deposit

funds outside of the government can use

debit cards. One possible use might be grant

administration

19

Usage–An Additional Word on Debit Cards

®

Stored Value Products

All Agencies

If an agency is unable to use debit cards, there are other product configurations that can deliver

functions that are similar to a debit card:

• Centrally billed charge cards can be set up to bill and be paid on a daily basis. This replicates

the effect of the agency having the funds withdrawn on a daily basis. The agency or

organization has the added benefit of being able to review and approve the daily bill before

the funds are disbursed.

• A declining balance can provide the same level of control as a prepaid card, but without the

need for the agency or organization to actually prefund the account. The agency or

organization only makes payment when charges are actually incurred. Different liability, billing

and payment options are available

• Prepaid cards can be funded in advance and used as required by the cardholder. The agency

or organization is able to add funds to these cards as needed for specific purchases

20

Usage–Prepaid Cards

®

Stored Value Products

All Agencies

Prepaid cards are used as cash or check replacement. One of the key elements of

the applicability of a prepaid card is whether or not the funds placed on the card

can be used in their entirety and are truly the “property” of the cardholder. These

cards are often used for benefit payments or other cash payments.

21

Usage–An Additional Word on Prepaid Cards

®

Stored Value Products

All Agencies

Citibank has two prepaid card offerings, of which only one is

currently available on the GSA SmartPay 2 Master Contract.

• Standard Prepaid Card (on Master Contract)

− Runs on the same platform as charge cards

Essentially a charge card with a zero credit limit

When prepaid is made, this creates a credit balance on the

account–the cardholder can spend up to the amount of the

credit balance

− Fully compliant with all SmartPay 2 requirements for charge

cards

− Limited flexibility

22

Usage–An additional word on Prepaid Cards

(continued)

®

Stored Value Products

All Agencies

• Enhanced Prepaid Card (not on Master Contract)

− Runs on a separate platform

− Not fully compliant with all GSA SmartPay requirements for charge

cards

− Extremely flexible

Custom website for cardholder access

Custom code to meet specific client needs

− GSA SmartPay is willing to work with Citibank to add the enhanced

prepaid card solution to the GSA SmartPay 2 Master Contract if an

agency or organization has a need for this product

®

3. Which Product Works Best?

Stored Value Products

23

24

Which Product Works Best?–Control

®

Stored Value Products

All Agencies

ControlCharge

Card

Declining

Balance

Debit

Card

Prepaid

Card

Strong merchant category and

transaction limit controls on an

account-by-account basis.X X

Strong merchant category and

transaction limit controls are the

same for all accounts in the

program.

X X X

No merchant category or transaction

limit controls are required. X X X X

25

Which Product Works Best?–Funding

®

Stored Value Products

All Agencies

FundingCharge

Card

Declining

Balance

Debit

Card

Prepaid

Card

Funds must stay within the Treasury

and can only be disbursed after

transactions have occurred. X X

Funds must stay within the Treasury but

can be disbursed when the obligation is

created but before transactions have

occurred.X X X

Funds can be deposited outside the

Treasury. X X X X

26

Which Product Works Best?–Liability and Billing

®

Stored Value Products

All Agencies

Liability and BillingCharge

Card

Declining

Balance

Debit

Card

Prepaid

Card

Individual liability is required. X

Central liability is required. X X

Individual billing is required.X

Central billing is required.X X

No billing is required–funds are

disbursed upon entitlement eligibility. X

Initial entitlement is only estimated and

must be reconciled with final

entitlement after transactions have

occurred.

27

Which Product Works Best?–Other

Considerations for High-Control Products

®

Stored Value Products

All Agencies

Certain merchants (hotels and car rental companies) will authorize for more

than the anticipated transaction amount, which can tie up available funds/limits

on prepaid and declining balance cards

The timing between charges and credits (such as airline refunds) can also tie up

available funds/limits on prepaid and declining balance cards

®

4. Examples

Stored Value Products

28

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Examples

®

Stored Value Products

All Agencies

Invitational Travel

– Guest speakers traveling on a predetermined

travel allowance

Project Accounts

– Projects with a predetermined budget that

cannot be exceeded

Infrequent Travelers

– Employees who need to travel on an

infrequent basis and do not qualify for a

standard government travel card

Emergency/Disaster Accounts

– Individuals due relief payments as a result of

an emergency or disaster

IncreaseEfficiency& Control

ReduceCosts

Stored Value Products

Chris Pieroth

®

Department o

DefenseAll Agencies

30

Stored Value Products

Survey

®

Department o

DefenseAll Agencies

31

Please take the course survey online by visiting:

www.gsasmartpayconference.org/survey

or by using the link sent to you via email from Feedback Systems.

Surveys can be taken through any mobile device.

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issue of climate change by: (a) targeting $50 billion over 10 years to address global climate change: includes significant increases in investment and financing of alternative energy, clean technology, and other carbon-

emission reduction activities; (b) committing to reduce GHG emissions of all Citi owned and leased properties around the world by 10% by 2011; (c) purchasing more than 52,000 MWh of green (carbon neutral) power

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Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks.

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used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby

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