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GSA Federal Supply Service

Citibank and Visa

Citibank and Visa

Citibank® Commercial Cards, Government Services

The Seventh Annual GSA SmartPay Conference

© Copyright 2005 Citigroup Inc. All rights reserved. CITIBANK, CITIDIRECT and CITIGROUP and the Umbrella Device are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.

Chuck Cogar, Melanie Sisler, September 1, 2005

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Goals & Objectives

To provide an update on what’s new from Visa

Learn about: – New ideas on improving your existing program – How Visa supports merchant acceptance for your card program – Visa support for socio-economic data, enhanced data, and 1099

information

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Agenda

Visa’s Commitment to the Federal Government

Visa Products

Visa Information Management

Improving Merchant Acceptance

Improving Your Existing Program

Questions

Citibank and Visa

Melanie SislerVisa

Citibank® Commercial Cards, Government Services

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GSA SmartPay Conference

Melanie SislerDirector, Commercial Solutions –Public Sector

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Agenda

Visa’s commitment to the federal government

Visa products– Purchase– Travel– Fleet– One Card– Visa commerce

Visa information management– 1057 / socioeconomic reporting– 1099 reporting– Qualified Purchasing Card Agent (QPCA)– Supplier locator– Mailboxes– Enhanced data

Improving merchant acceptance– Outreach activities– Visa information tools

Improving your existing program– Visa best practices – Program optimization

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Visa’s Commitment to Supporting Federal Government Objectives

Over 15 years of federal government Purchase Card experience– Developed a range of reporting and information tools– Assist the federal government to meet reporting and mission

requirements

Visa’s support of the GSA SmartPay Program – Providing 1099 and socio-economic reporting

Pilot program with Citibank and others across the country– Targeting federal government vendors– Ensuring federal government vendors receive favorable rates

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Visa — the World’s Largest,Most Reliable, Most Secure,Open Financial Network

Dollar volume last year

Miles of cable in global network

Total transactions last year

Maximum transactions per second

9 million

$2.3 trillion

35 billion

4,000

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Visa — and Citibank

Travel dollar volume last year

Purchase dollar volume last year

$547 million

$6.1 billion

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Visa Products

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Visa Purchase

Background– Purchasing cards developed in 1980s for the

Department of Commerce– Expanded to entire federal government in 1989– First corporate purchasing card program developed

by Visa in 1990*

Purchasing card for procurement spending– Reduces the expense and paperwork vs. traditional

purchasing and payment process– Originally targeted high volume, low dollar

transactions– Positioned as a re-engineering tool

*Source: Celent Communications—Purchasing Cards in the U.S., April 2002

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Visa Travel

Introduced more than 30 years ago

Replacement for petty cash/cash advances for travel expenses

Substantial market growth came with GSA SmartPay program

Source: TowerGroup—Commercial Payment Cards in the US: Product Overview, December 2001

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Visa Fleet

Fleet segment market size– $56 billion spending per year on fuel/maintenance*

from more than 17.3 million commercial vehicles– $22 billion in fuel is processed on credit cards

Fleet segment opportunity– In 2001, fleet card market share was 12 percent of all

commercial cards** – Fleet management segment is growing at 22 percent

annually***– Forty percent of all commercial fleets (with more than

25 vehicles) have no card program in place today

Sources: *Havill & Co. Inc.—The Commercial Fleet Market Forecast: 1999-2001, January 2000**TowerGroup—Commercial Payment Cards in the US: Product Overview, December 2001***The Nilson Report, November 2000

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One Card

One card adoption varies by organization, with mid-sized companies more likely to adopt the solution*

The most popular combination of functionality depends on company size**

Federal, State and local government have been slow to adopt one card solutions

Sources: *2000 Corporate Purchasing Card Benchmark Survey, by Palmer and Gupta**Visa—May, 2001 National Association of Purchasing Managers Survey

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Visa Commerce

Features and benefitsLarger-value,invoice-based purchasesBuyer-initiated payments,deferred settlement,amounts up to $10Mper transactionStreamlined payablesprocesses and direct cost savingsCombines and delivers payment andnonpayment related dataIntegrates with financial systemsFacilitates reconciliation management

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Visa Information Management

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Visa’s Strategy

Visa Information Management– Mailboxes– 1057 / Socioeconomic Reporting– 1099 Reporting– Enhanced Data– Supplier Locator

Visa Information Management

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Visa Information Management

Easy to use: – Single sign-on = one user ID and password to remember– Reader friendly reports

Robust and current:– 25 months historical data online; summary and transactions– Reports updated daily

Flexible:– Run reports online or download data for further analysis– Numerous filters enable targeted analyses

The online portal provides access to Visa’s web-based solutions

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Visa Information Management

Visa Information Management

1057Reports

1099 Reports

SupplierLocator

Central Data Repository

Mailbox

Agency or User

Issuers, Processors / Data Providers

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Visa Information Management

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Visa Information Management Strategy

Payment

Post-Payment

Procure – Increase ordering and sourcing efficiency

– Provide cost-effective solutions for every payment need

– Enable efficient reconciliation, reporting, and control

Visa delivers payment & information solutions to help you:– Increase purchase and payment efficiency– Reduce procurement, payment and related administrative costs– Enhance spending control

Visa’s solutions improve your entire procure-to-pay process:

Visa and Citibank deliver the expertise and support:

– Payment and information management expertise– Global infrastructure and unparalleled acceptance – implementation planning and ongoing program support

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Mailboxes

Large reports and data sets are automatically delivered to the mailbox where they can then be saved on a user’s hard drive

30MB of personal storage space

Reports and data archived after 36 days

Share files and reports with other users of the system

Each user of Visa Information Management is provided a mailbox

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1057 and 1099 Reporting

Developed in 2002 to meet the needs of government agencies

Industry leading features and functionality

Online report generation

Merchant Profile Database built specifically for 1099 / 1057 reporting

Visa’s 1057 / 1099 online reporting solution provides the information you need to streamline your reporting processes

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1057 and 1099 Reporting

Purchase card transactions are matched to supplier demographic information weekly

Supplier information updated daily in the Visa Merchant Profile Database

Reports can be run with numerous filters providing you maximum analytical flexibility

Used in conjunction with the Supplier Locator, measure progress against goals then seek out the type of merchants you need to do business with

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1057 and 1099 Reporting

25 months of transactional history online allows year over year analysis

Reports at the summary or detail level

Data can be downloaded in various formats and pulled by either transaction or posting date

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1057/Socioeconomic Reporting

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1099 Reporting

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QPCA Definition

Qualified Payment Card Agent (QPCA) is an IRS designation granted to payment card organizations that demonstrate the ability to meet IRS standards surrounding the collection, validation, maintenance and distribution directly or through their members -IRS 1099 information

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QPCA Regulations

Permits a card organization (Visa, MasterCard or American Express) to apply to the IRS for QPCA status

QPCA optional, card companies not required to apply

IRS makes the determination if the card company’s processes and systems meet their qualifications, no deadline for the IRS to complete their determination

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QPCA Data Responsibilities(Visa acting as QPCA)

Obtain merchants 1099 information

Visa Merchant Registration Program

Ensure the accuracy and reliability of the merchant information– VMPD validation and edit processes

Validate the accuracy of the merchant information– IRS TIN Matching Program

Maintain the merchant information– VMPD data quality process

Provide company with a merchant qualification report

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Enhanced Data

Additional data provided by charge card transactions but not required for settlement

Agency benefits– Supports pricing agreements with key suppliers– Streamlines card administration– Supports accounting and reconciliation functions– Assist in sales and use tax management

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Improving Merchant Acceptance

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GSA Smartpay Outreach Program to improve Merchant Acceptance

Federal government Small Business SupplierOutreach Value to supplier

Cash flow story

Value to the federal government– Procurement savings

Education outside the “beltway”– Topic = “How to do Business with the federal government”– Use local partners to reach small businesses

– GSA sites, Chamber of Commerce’s, Minority Business Development Centers, Government Agencies Conferences, and Educational Institutions

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Visa Information Tools

Supplier Locator Service– Provides the ability to locate businesses that accept

Visa by:Name and location Socio-economic profileEnhanced data provision

– Value to you Locating small businesses to meet your procurement preference program goals

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Visa Information Tools

Supplier Matching Service (SMS)– Identifies your suppliers card acceptance capability

AcceptorsNon-acceptors

– Value to you Able to identify card acceptors among your current suppliersIncrease your savings by expanding acceptance

– During the last five months, SMS statistics1.4M suppliers submitted643K suppliers accepted cards728K suppliers did not accept cards

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Visa Information Tools

Supplier Enrollment Program (SEP)– Visa matches up suppliers with card acceptance

service providers (Banks)Provides the “best of breed” service providers to suppliers Saves time for all parties

– Value to youAble to motivate ‘non-acceptors” to accept the GSA SmartPay Card for paymentIncrease your savings by expanding acceptance

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Improving Your Existing Program

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Help the agencies get greater value from Purchase card programs

Provide a predictable framework and assistance for integrating Best Practices and Visa tools

Provide a value-added resource for program optimization engagements

Visa partners with Citibank to optimize existing programs and promote best practices

Improving your Existing Program with Best Practices & Program Optimization

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What is Program Optimization?

Purchase Card Program Optimization assists federal agencies in improving the effectiveness of their procurement programs

The program:Identifies opportunities to increase the use of the purchase card

Provides insight for improvement opportunities within the program

Generates recommendations for improving the program

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Program Optimization Approach

Strategic assessment & link to business goals

Detailed accounts payable analysis

Supplier analysis guidance

Best Practice assessment

Program recommendations– Targeted cardable spend opportunities– Specific supplier recommendations– Implementation guidance

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Accounts Payable Analysis ToolThe A/P analysis reports facilitate identification of non-card transactions - resulting in actionable expansion opportunities

$5.6 MM (and 21,000 transactions) is with only 20 Merchants

Visa U.S.A. Confidential

Policy Tiers

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Visa has created online consultative tools to complement the program optimization efforts, including:

Estimates financial benefits of improving procurement efficiencyCalculates potential benefits of reducing paper and electronic purchase orders

Rates program performance against best practicesRecommends and quantifies benefit of implementing best practices

Benefits CalculatorPerformance Gauge

Procure-to-Pay Consultative Tools

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Summary

Visa’s commitment to the federal government

Visa products

Visa information management

Improving merchant acceptance

Improving your existing program

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Citibank and Visa

Questions?

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Reminders

Thank you for attending this session!

Visit the Citigroup Welcome Center– Hynes Ballroom 306, on the third floor– National Industries for the Blind will have a display of products

Visit the Citigroup Technical Demonstration Center– Hynes Ballroom 305, on the third floor

Citibank hands-on training sessions– Hynes Ballroom B, on the third floor

Please take a moment to complete your GSA survey for this session

© Copyright 2005 Citigroup Inc. All rights reserved. CITIBANK, CITIDIRECT and CITIGROUP and the Umbrella Device are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.