State of Texas

1
JPMorgan Chase Commercial Card Solutions

• State of Texas
• Procurement Card Reissue
• Tele-conference

2
Todays Agenda

• Overview of the JP Morgan Chase Re-branding
  Strategy
• The New JP Morgan Chase Card Design for the State
  of Texas Procurement Card
• JP Morgan Chase Reissue Process
• Phase I
• Phase II
• Other Details
• Timeline Key Dates
• QA

3
JP Morgan Chase Reissue/Re-branding Strategy

• The new JP Morgan Chase card design will be in
  place by July 1, 2005
• Any new account or reissue processed after July
  1, 2005 will be issued the new JP Morgan Chase
  card
• This includes reissues for expiration,
  lost/stolen, embossing changes, damaged cards,
  etc.
• Most State of Texas cards expire August 2005 and
  will be reissued with the new JP Morgan Chase
  card design.
• Cards that expire August 2005 are good through
  August 31, 2005

4
The New JP Morgan Card Design
5
Procurement Card Reissue Process Phase I

• Phase I - Pre-reissue / Evaluation Process
• Cards will be evaluated and flagged for reissue
  on June 19, 2005 if they meet the pre-reissue
  criteria.
• All procurement cards will meet the pre-reissue
  criteria except those that fall into the
  following categories on June 19, 2005
• Individual accounts that are over the credit
  limit
• The PA can call Customer Service to get these
  cards manually re-issued

6
Procurement Card Reissue Process Phase II

• Phase II Card Reissue Process
• File of cards will be pulled on July 5, 2005 for
  the August reissue based on two criteria
• Card is flagged for reissue (based on June 19
  evaluation)
• Card is open
• If the card is closed for any reason on July 5
  when the file is pulled, the card will not be
  reissued even if it has been flagged for
  reissue during the pre-reissue evaluation.

7
P Card Reissue- Other Details

• Cards will be issued with the same 16-digit
  account number with same MCC restrictions and
  limits as today.
• Only the look of the card, the CVV2 security code
  and the expiration date will change 24 months
  from date of reissue, i.e. July 2007
• Entity name agency number (Name Line 2) will
  be the same as it is currently.
• Reissue cards will be BULK SHIPPED to the PA
  unless you have requested otherwise.
• The new card will need to be activated by the
  cardholder once received by calling the
  activation number provided on the card sticker.
• Once the new card is activated, authorizations
  will no longer be approved on the old card. Old
  cards MUST be destroyed.
• Because the expiration date will change, you will
  need to update vendor files for any automatic
  payments or debits to your card once your new
  card is activated.

8
P Card Reissue Cardholder Communication

• The new JP Morgan Chase card design as well as
  the reissue criteria should be communicated to
  your cardholders.
• Prevent them from mistaking the new card for an
  unwanted solicitation that may cause them to
  discard the new card.
• Help them understand why
• They may have received a reissue card that had
  been closed after July 5. Even though the card
  was reissued, it will still be closed and cannot
  be used.
• They may have received a card without requested
  embossing changes made after July 5
• They may not have received a reissue card at all
  ( in the case of an over the limit). The PA
  can call to get these cards manually reissued.

9
P Card Reissue Cardholder Communication

• JP Morgan Chase will assist by including a
  statement message on p-card memo statements
  beginning with the July 05 statement and ending
  with the March 06 statement
• Is your card expiring soon? Your card will be
  good through the last day of the expiration
  month. Look for your new JP Morgan Chase branded
  card to arrive by the 15th of the expiration
  month.

10
P Card August Reissue Timeline Key Activities

• June 19 Phase I - Pre-reissue / Evaluation
• By June 27 Make final maintenance changes to
  cardholder accounts or card delivery
  instructions.
• July 5 Phase II Reissue Cards Created
• July 5 Statement messages begin to run July
  05 - March 06
• July 15-20 JP Morgan Chase Bulk Ships cards to
  PA address on record
• August 15 Cardholder receives cards no later
  than this date

11
JP Morgan Chase Reissue Timeframes by Month
12
Question Answer

• Is there some report that will tell the status of
  the cards after June 19 so that we can tell if
  they will be automatically re-issued?
• You can run statement reports in SDOL or Pathway
  Net to provide the balance that has been posted
  on your cards from June 7 (beginning of June
  cycle) through June 19th to determine if you have
  procurement cards that are over the limit as of
  that date and will not be automatically
  re-issued.
• Will the new procurement cards be the same color
  as the new travel cards?
• No. The new JP Morgan Chase P-card will be a
  teal green color. The new JP Morgan Chase Travel
  card will be a silver-blue color. Both will have
  the State of Texas logo in black.
• You stated during the presentation that if new
  cards come to the PA, then we are set up for Bulk
  Ship and the re-issue cards will also come to the
  PA via Bulk Ship. Our lost/stolen cards go
  directly to the cardholder but the new cards come
  to me. How are we set up for the re-issue?
• If you receive NEW cards via bulk ship, then your
  re-issue cards will also be delivered via bulk
  ship. Lost/Stolen cards are considered
  replacement cards (vs. new/reissue) and are
  always mailed directly to the cardholder unless
  you specify differently when reporting the card
  as such.
• Are the new JP Morgan Chase commercial cards the
  same color as JP Morgan Chases consumer/personal
  cards?
• JP Morgan Chase has a variety of consumer card
  designs on the market, depending on the type of
  card (rewards, check cards, etc). Our JP Morgan
  Chase commercial products card designs are unique
  to commercial card and can be differentiated
  further by the word Purchasing in the upper
  left hand corner.

13
Question Answer

• If I set up my account to have all cards go bulk
  ship for the re-issue, will my new cards
  requested after that point then go bulk ship as
  well?
• Yes. Once you set up your account to go bulk
  ship, it will do so until you request otherwise.
  However, replacement cards such as lost/stolen or
  additional cards such as embossing change
  replacements and replacements for damaged cards
  will continue to be mailed direct to the
  cardholder unless you specify differently when
  requesting the replacement.
• What is the customer service number that
  cardholders call to get balance and other
  information on their card, is it on the
  statement?
• The customer service number, 800-890-0669 appears
  on the statement as is also on the back of the
  card.
• For how long will the new cards be good? When
  will they expire?
• The cards will expire 24 months from when they
  are issued.
• When will the new cardholder application forms be
  available?
• New forms will be available on the TBPC website
  by July 1, 2005
• Will our on-line system (SDOL or Pathway Net)
  change?
• Your on-line system will not change at this time.
  
• What is a statement message?
• A statement message is a notice that is printed
  on individual billing and memo statements
  received by cardholders. Statement messages
  appear in the statement message section of the
  bill which is just below the cardholder address.

14
Question Answer

• What is a procurement card memo statement?
• A memo statement is a statement that is available
  for corporate billed accounts that provides the
  cardholder with their transaction information for
  the cycle. A memo statement looks very similar
  to a bill but it always reflects a 0 amount due.
  PAs have the option of turning statements on or
  can leave them turned off.
• How will cards that are returned undeliverable be
  handled?
• Normally, when cards are returned we destroy the
  card and await a call from the PA with a good
  address. For this August re-issue, we will
  contact the PA with any cards that were
  undeliverable by August 15, 2005.
• Because we are getting new cards, will there be
  duplicate entries for each account in SDOL or
  Pathway Net?
• No. Since the account numbers are the same and
  only the expiration date and CVV2 security code
  are changing, there will not be duplicate entries
  in your reporting tools.
• Will temporary closed (T2) accounts be re-issued?
• No. Only open accounts will be re-issued. Any
  account closed for any reason on July 5 will not
  be re-issued. However, you can call customer
  services to get an account that has been closed
  temporarily manually re-issued.
• Can the cardholder activate the card as soon as
  they receive it?
• Yes. A cardholder can activate their new card as
  soon as they receive it even if they do so before
  the old card actually expires. However, once the
  new card is activated, the old card will not be
  good and will not accept charges (I.e. it will
  decline).

15
Question Answer

• How will Bulk Ship cards be sorted?
• Cards sent via bulk ship will not be sorted in
  any particular order.
• When you say that cards over the limit will not
  be automatically re-issue, are you talking about
  individual accounts or corporate accounts?
• Individual accounts under your procurement card
  program.
• Will we receive CEU credit for attending this
  teleconference?
• This teleconference does not meet the
  qualifications for CEU credits because attendance
  can not be documented.
• When does the State of Texas Credit Card contract
  with JP Morgan Chase expire?
• The base contract ends June 2006. However the
  State of Texas has 3 one-year renewal options
  that could extend the contract as far out as June
  2009.