1Annual MeetingApril 7 - 10, 2013Orlando, Florida

CARD PAYMENTS…

More than convenience…it a payment strategy

Sandy EnglishCard Systems AdministratorWest Chester University, West Chester, PA

should be part of

WEST CHESTER UNIVERSITY

• Founded in 1871– Institute for teacher preparation

• Became a university in 1983 when it joined the Pennsylvania State System of Higher Education (PASSHE)– 4th largest university in the Philadelphia region– 1,300 employees– 15,000+ degree seeking students from 36 states and

64 countries

WEST CHESTER UNIVERSITYCARD SYSTEMS DASHBOARD

RPMG Research 2012 Purchasing Card Benchmarking Survey

2012 RPMG Purchasing Card Benchmark Survey Results

HISTORY OF THE PURCHASING CARD

Widespread adoption to manage employee purchases &

reduce transaction costs

Corporations used the card as an expense management tool

Purchasing card integration into ERP

systems

GSA introduced for maintenance, MRO goods & business

supplies

2007 2008 2009 2010 2011 2012 2013 201420062005 2015 2016

RPMG 2012 Purchasing Card Benchmark Survey Results; Executive Summary

Estimated

QUESTIONAccording to the RPMG 2012 Purchasing Card Benchmark Survey …

For every XXX of purchasing card transactions, 63% of organizations report being able to shift routine work of one full-time Procurement or AP employee to more strategic tasks?

–7,108–10,012

–2,525–5,429

TODAY’S PURCHASING CARD PROGRAMReduces purchase orders, invoices, and checksProvides reporting Helps to monitors compliance Expands negotiating opportunitiesOffers growth opportunities:

Existing contracts Standard university bills (e.g. shipping, electric, water, credit checks, etc.) New ways to use the same card platform (e.g. candidate interview, staff

development)

Technology Has Changed Our World

Annual MeetingApril 7 - 10, 2013Orlando, Florida

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Annual MeetingApril 7 - 10, 2013Orlando, Florida

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PAYMENT TECHNOLOGY

Card held by Buyer

Card held by Supplier

Single Use

Account

None are mutually exclusive, but combined they can meet all business requirements

Electric Funds Electric Funds TransferTransferBank Wire

Automated Clearing House

Card-BasedCard-BasedPurchasing Card

• Organizational preference is evolving• Technology is advancing• One size does not fit all

Annual MeetingApril 7 - 10, 2013Orlando, Florida

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CARD INTEGRATIONFROM REQUISITION TO PAYMENT

Card Based Payment

Purchasing Card Card held by

Supplier

Card held by Buyer

Single Use Account

* 2011

RPMG 2012 Purchasing Card Benchmark Survey Results

Annual MeetingApril 7 - 10, 2013Orlando, Florida

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CARD INTEGRATIONSINGLE USE ACCOUNTS (SUA)

• Electronic credit card-based payment• Provides one-time-use account number to vendor

– Rotating pool of accounts– e.g. 7 digit static number (provided at setup); 9 digit varying number (provided

in payment instructions)

• Credit limit set to specific amount of payment authorized by Accounts Payable

• Credit card account open for payment processing for a limited number of days.

SUASUA

• Vendor – SUA acceptance– Communications – Payment processing

• Systems– Payment instructions sent and received

• Staff– AP staff trained – Payment strategy developed

Annual MeetingApril 7 - 10, 2013Orlando, Florida

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SINGLE USE ACCOUNTSGETTING STARTED

QUESTION

True or False?

Organizations that have integrated SUA into their systems report purchases for goods and services are the “same” “same” as purchases made on traditional plastic purchasing cards.

Annual MeetingApril 7 - 10, 2013Orlando, Florida

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QUESTIONWhat are the primary differences in reported purchases made on the traditional “plastic”

purchasing cards and SUA accounts?

A. Transactions are for higher dollar amounts B. Transactions are for goods and services which are not

allowed on a traditional purchasing cardC. Transactions require additional approval/controlsD. None of the aboveE. A & B & C

Annual MeetingApril 7 - 10, 2013Orlando, Florida

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SUA BENEFITS - VENDORS

1. Manage cash flow – payment timing can be better managed 2. Faster payment – the check isn’tisn’t in the mail3. Reduce check payments –inefficiencies of manual processes

& associated costs4. Eliminate need to provide banking information 5. Lower fraud exposure – check-like control without the paper

SUA BENEFITS - UNIVERSITIES

1. Optimize cash flow – hold on to cash longer

2. Reduce check payments –inefficiencies of manual processes & associated costs

3. Eliminate need for vendor banking information

4. Increase spend & payment visibility – “see” the transaction every step of the way

5. Reduce communications with vendors – vendors “know” when the invoice was paid

6. Lower fraud exposure – check-like control without the paper

7. Additional rebate opportunity – receive a financial return on every dollar you spend

Integrating card into payables should complement – not replace – a traditional

purchasing card program

PAYMENT TECHNOLOGY EVOLUTION

Processing savings

Rebates

Better reporting

Streamlined pay cycle

Improved cash flow

Enhanced relationships with vendors