photo by karl steinbrenner update on card programs presented by valerie j alley, cpcp

Photo by Karl Steinbrenner

Update on Card Programs

Presented ByValerie J Alley, CPCP

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Current “Hot” Topics

– What is a Pcard?

– Commonwealth Program

– 3% Withholding

– 1099’s

– Rebate

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What is a Pcard?

Multi-purpose bank card aimed at streamlining the traditional purchase order and payment processes for lower-dollar transactions

Based on standard, Visa/MasterCard credit card

Provides enhanced internal controls & reporting

Purchasing Cards are given to employees to acquire goods and services for their organization

Central bill / Central pay / Corporate liability

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What is a Pcard?

The majority of states and large corporations have established programs

Not simply a credit card it’s a “payment tool”– The Commonwealth of Virginia uses the term “Charge

Card” so it does not infer they give employees credit

Includes technology to streamline your purchasing process

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Commonwealth of Virginia Program

Sixteen years ago– 2,500 cards– Average spend $6 million for a fiscal year

Today– Over 20,000 cards– Average spend over $30 million per month– FY 2010 spend $426 million

The Commonwealth allows localities and authorities in Virginia to “piggy-back” on the State Contract

– Gives the localities and authorities the benefits of a large contract

– Gives the Commonwealth additional volume to reach higher rebate tiers

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3% Withholding

– Goes into Effect January 1, 2012

– Effect on 1099’s

– Effect on Card Transactions

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1099 Changes

Effective January 1, 2011- December 31, 2011• No longer responsible for 1099 reporting for

card transactions

After 2011• ?????

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Rebate

– Rebate is a viable revenue source• Pcard (SPCC and GOLD) and ATC 1.46%• Individual Liability Travel less of a %

– Volume for FY2012 expected to grow substantially based on being excluded from 3% Withholding

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Conclusion

Questions?