Commercial Cards Purchasing Cards Enabled by Technology

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Commercial Cards Purchasing Cards Enabled by
Technology
Association of Financial Professionals Greg
Hammermaster, SunTrust
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AGENDA

• Commercial Cards General Understanding
• Commercial Cards Enabled by Technology
• Conclusion

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COMMERCIAL CARD PRODUCT SUITE
Customer Segments
Small Companies
Mid-Sized Companies
Large Companies
Public Sector
Corporate TE Card
Charge Card Designed for Travel and Entertainment
Transactions
Purchasing Card
Charge Card Designed for Procurement Transactions
Fleet Card
Charge Card Designed for Vehicle Fuel and
Maintenance Transactions
One Card
Multiple Function Charge Card, with Corporate,
Purchasing and/or Fleet Transactions on One Card
Business Card
Credit or Debit Card Designed for Small Business
Transactions
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THE PROMISE OF COMMERCIAL CARDS

• Providing a foundation towards reducing and
  controlling indirect costs specifically
• Travel Entertainment (TE)
• Non-capital procurement
• A tool towards achieving key cost reduction
  initiatives
• Aggressive management of vendor supplier
  contracts
• Greater employee compliance with TE and
  procurement policies
• Reduction of spend with non-preferred suppliers
• Data capture, aggregation, and analysis
• Needed to support, monitor, and analyze success
  of your cost reduction initiatives

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COMMERCIAL CARDS ENABLED BY TECHNOLOGY
Accounting Expense reporting E-procurement
Card Administration Program Administration Reporti
ng
BACK OFFICE
WEB PLATFORM
DATA MANAGEMENT
CARDS/ACCOUNTS
VISA, MasterCard, American Express Card
Issuance Ghost Accounts
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CARDS/ACCOUNTS
Step 1 Electronifying the Transaction
BACK OFFICE

• Credit cards convert a manual process into
  electronic, actionable, data
• Commercial Cards pass enhanced data a.k.a.,
  Level III, which assists in the accounting,
  audit, and vendor management processes

WEB PLATFORM
DATA MANAGEMENT
CARDS/ACCOUNTS
Routes transaction to Card Issuing bank
Visa/MC
Applies incentive for enhanced transaction data
Financial Transaction
Pays Acquirer and bills company
Issuer/ Processor
Pays Merchant within 48-hours
Acquirer/ Processor
Data Flow
Passes transaction data
Feeds data into ERP system
Company
Merchant

• Transaction workflow/ visibility
• Account allocation
• Vendor reporting

• In Person
• Phone
• Internet
• Subscription

• Regulatory reporting
• Audit reporting
• Earns rebate

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WEB PLATFORM
Controls Visibility
WEB PLATFORM
BACK OFFICE
DATA MANAGEMENT
CARDS/ACCOUNTS

• Card Administration Program Management
• Request, activate, modify, and suspend cards in
  real-time
• Permit or prohibit purchases by pre-defined
  merchant categories and flexible credit limits
• View audit reports of all Card and program changes

• Real-time Financial Controls
• Dynamically fund a Card via an approved purchase
  request
• Link groups of Cards to project-based buying and
  control spending through pre-purchase workflow
• Set, monitor, and trigger notifications for
  spending to financial targets, such as projects

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BACK OFFICE
Accounting, Audit, Reporting
WEB PLATFORM
BACK OFFICE
DATA MANAGEMENT
CARDS/ACCOUNTS

• Streamline and Reduce Manual Activity
• Automate account allocation and matching
  activities
• Export closed transactions to the financial
  application

• Transaction Workflow
• Hierarchal-based routing cardholder - to manager
  - to accounting
• Route non-compliant transactions back to
  cardholder

• Purchasing Dashboard
• 1-click access to a set of pre-defined executive
  type reports
• Graphical views with drill down capability

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DATA MANAGEMENT
Decreasing indirect spend, such as non-capital
procurement, by as little as 5 is equivalent to
a 30 increase in sales. Deloitte Consulting,
Utilizing Data to Manager Indirect Spend, 2002
WEB PLATFORM
BACK OFFICE
DATA MANAGEMENT
CARDS/ACCOUNTS
Complex
PAYMENT DATA CAPTURE TOOLS
Letter of Credit SWIFT Wire Trade
Credit ACH/EDI Check E-Procurement
Central Data Repository
Purchasing Card Corporate Card OneCard Fleet
Card Alternative B2B Payments e.g., Visa Commerce

• Cash
• Personal Card
• Check
• ACH

TransactionType
COMMERCIAL PAYMENTS OPPORTUNITY
Simple
Supplier Relationship
Unknown
Known
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CONCLUSION COMMERCIAL CARDS ENABLED BY
TECHNOLOGY
Technology Checklist
The Promise

• Providing a foundation towards reducing and
  controlling indirect costs specifically
• Travel Entertainment (TE)
• Non-capital procurement
• A tool towards achieving key cost reduction
  initiatives
• Aggressive management of vendor supplier
  contracts
• Greater employee compliance with TE and
  procurement policies
• Reduction of spend with non-preferred suppliers
• Data capture, aggregation, and analysis
• Needed to support, monitor, and analyze success
  of your cost reduction initiatives

• Enhanced spending controls and Web-based program
  visibility increases card utility
• Pre-purchase controls real-time transacting
  drives compliance
• Electronically delivered, enhanced data, enables
  deeper vendor negotiations that can be monitored
  and policed