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Citi Presents:Alternative Card Products
Tim Sheridan
Citi® Commercial Cards, Government Services
GSA SmartPay Conference
Denver, Colorado
July 22nd - July 24th, 2008
The Tenth Annual GSA SmartPay® ConferenceTowards New Horizons!
Goals and Objectives
Provide awareness of alternative card products
Identify key features of each product
Provide applications and uses of these products
Encourage dialog to drive program efficiency, reduce costs, and increase rebates
Agenda
1. Prepaid cards
2. Declining Balance Cards
3. Single Use (Virtual Cards)
4. Foreign Currency Cards
5. Ghost Cards
6. Paylink for Cards
Discussion of Alternative Card Products
Why Use Alternative Card Products?
Improve efficiency – employee satisfaction
Reduce payment processing costs
Increase rebate payments
Greater security
Electronic reporting
1. Prepaid Cards
Prepaid Cards – Embossed with Cardholder Name
Custom-designed prepaid Visa® Card and MasterCard® Card– Re-loadable with USD via multiple channels – Good everywhere Visa® Card and MasterCard® debit cards are accepted– Signature/PIN based
ATM Access
Cardholder Website– Real-time account balance– Transaction history – Alerts (text message/e-mail)
Zero liability protection
FDIC Insured
Prepaid Cards – Embossed with Cardholder Name
Issuance Card loaded via web or fileEmbossed with cardholder name and mailedReloadable once funds are expended via web or file5-7 days to issue card
ActivationImmediate use upon activation Sent with sticker with activation instructions (phone)
DeactivationCard typically not deactivated by program manager
ReissueCard can be reissued by Citi if lost or stolen
Prepaid Cards – Instant Issue
Custom-designed prepaid Visa® Card and MasterCard® Card– 1x use – cannot be reloaded – Good everywhere Visa® Card and MasterCard® cards are accepted– Signature/PIN based
ATM Access
Cardholder website– Real-time account balance– Transaction history – Alerts (text message/e-mail)
Same as cash – no zero liability
FDIC insured
Prepaid Cards – Instant Issue
Issuance Card stock held by agencyCard loaded via web or fileCannot be reloadedInstant use upon activation
ActivationActivation via phoneCardholder given PIN which can be changed
DeactivationCard typically not be deactivated by program manager
ReissueCard can be reissued by Citi if lost or stolenBalance may be recouped if user reports before use
Prepaid Cards – Program Administration
Prepaid Cards – User Support
Prepaid Cards – Reporting
Citi offers both a wide range of standard reports as well as custom reporting services:– Detailed Issuance Report– Aggregate Issuance Report– Aggregate Spending Report
Reply file– Account creation information– Deposit confirmation
Reports are available to download through the Internet via our Client Zone tool– Formats include: PDF, Excel, XML, CSV
In addition, reports can be scheduled for automated delivery via FTP
Prepaid Cards – Applications and Uses
Per diem payments
Invitational travel and other advances
Creditworthiness issues
Reimbursements of employee out-of-pocket expenses
Reduction or elimination of cash advances and travelers checks
Primarily used when ownership of the funds is passing to the cardholder
2. Declining Balance Card
Declining Balance Card - Features
Specific purposes and/or time periods. Accounts are established with a set credit limit, set to refresh on a specific interval or never refresh
Once the balance is used the card becomes inactive and cannot be used
Agencies can authorize the cardholder to spend only an approved amount over the pre-determined life of the card
Agencies can also specify of Merchant Category Code (MCC) inclusions for the card, as a means of ensuring that cardholders can only use the card at approved merchants
Declining Balance Card - Features
Issuance Card Issued via web or fileEmbossed with cardholder name and mailed5-7 days to issue card
ActivationSent with sticker with activation instructions (phone)
DeactivationCard easily deactivated by program manager
ReissueCard can be reissued by Citi® if lost or stolenZero Liability protection
Declining Balance Card – Applications and Uses
Restricted spending card
One time use or low frequency refresh
Uniform allowances
Relocation payments
Primarily used when ownership of the funds remains with the agency
3. Single Use Accounts (Virtual Cards)
Single Use Accounts (Virtual Cards) - Features
Limited time or a single purchase account
Pre-established accounts available for instantaneous issue
Accounts can be activated in real time, using a secure web site
Payment controls can be predefined or established at the time ofactivation, providing for increased control of spend
Enhanced data capture provides detail for reconciliation
Single Use Accounts (Virtual Cards) - Features
Issuance Accounts created via web or file (as needed or in advance)Limits refresh on cycleNo card issued
ActivationImmediate use upon activation
DeactivationAccounts can be deactivated by program manager
ReissueYes
Single Use Accounts (Virtual Cards) – Applications & Uses
The Single Use Account can be created for designated purchase amount, time period, merchant or geography
Potential Uses– Project related spend– Temporary spend categories– Individual remuneration
4. Foreign Currency Cards
Foreign Currency Cards - Features
Cards are issued and billed in local currency
Product features are in alignment with local customs and practices
All collateral, supporting materials and customer service are available in local language
Authorization and settlement of transactions is in local currency
Availability in 38 countries
Foreign Currency Cards - Features
Issuance Card Issued via web or fileEmbossed with cardholder name and mailedLimits refreshed on cycle dateApproximately 5-7 days to issue card
ActivationImmediate use upon activation Sent with sticker with activation instructions (phone)
DeactivationCard easily deactivated by program manager
ReissueCard can be reissued by Citi if lost or stolen
Foreign Currency Cards – Applications and Uses
For organizations with extensive operations outside the U.S., foreigncurrency cards provide an additional payment option that assists the localstaff in meeting their procurement objectives
Primary driver for use is reduction in FX fees
For use with employees and operations stationed overseas for long periods of time
For use with overseas employees who will need support in local language
Can be used to decentralize management of the program
5. Ghost Cards
Ghost Card - Features
Non-card account for preferred supplier relationship
Account number held by vendor
Allows many employees to purchase without issuing multiple cards
Integrates with ERP systems or Electronic Purchasing Systems
Ghost Card - Features
Issuance Account set up via web or fileEmbossed with cardholder name and mailedLimit refreshes on cycle5-7 days to issue card
ActivationImmediate use upon activation
DeactivationEasily deactivated by program manager
ReissueNew numbers can be created if compromised
Ghost Cards – Applications and Uses
Central travel airline accounts
Purchases made via internet or intranet
Elimination of low value invoices (i.e. UPS, FedEx etc.)
Primarily used for preferred suppliers or commodities with few suppliers
6. Paylink for Cards
Paylink for Cards - Features
Uses an automated file process, which enables our clients to initiate payments to vendors via purchase cards in the same way they now settle invoices via ACH or check
Agencies send a single file with multiple payment types - checks, wires, ACH, and purchase cards for both domestic and international payments
Virtually no changes to business processes for most clients, particularly if clients currently make payments via ACH
No need to transmit credit card numbers to merchant
Agency fully controls the amount, timing, and invoice(s) covered by the payment instruction
Paylink for Cards – Process Flow
Paylink for Cards – Applications and Uses
Centralized accounts payable and disbursement operations that produce file-based payments
Purchases where current purchase order and invoice process needs to stay intact
Used to maximize card spend/rebates - More effective in driving card spend than communication to change purchasing behavior
Strategic initiatives to reduce check payments
Summary
Awareness of various alternative card products
Overview of uses and applications
Promote thinking about where you may be able to apply solutions in your organization to gain efficiencies, reduce costs, and increase rebate
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Reminders
Visit the Citi® Welcome Center– Exhibit Area Entrance, Sheraton Denver– Conference slide show – come see yourself shine
Visit the Citi® One-on-One Mini-Sessions– Governor’s Square Room 10 and 11
Please take a moment to complete your GSA survey for this session
Citi® party is tonight– Hyatt Regency Denver: Centennial Ballroom & Foyer at 7:00 PM– Western Theme
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