1 annual meeting april 7 - 10, 2013 orlando, florida c ard p ayments … more than convenience…it...
TRANSCRIPT
1Annual MeetingApril 7 - 10, 2013Orlando, Florida
CARD PAYMENTS…
More than convenience…it a payment strategy
Sandy EnglishCard Systems AdministratorWest Chester University, West Chester, PA
should be part of
WEST CHESTER UNIVERSITY
• Founded in 1871– Institute for teacher preparation
• Became a university in 1983 when it joined the Pennsylvania State System of Higher Education (PASSHE)– 4th largest university in the Philadelphia region– 1,300 employees– 15,000+ degree seeking students from 36 states and
64 countries
WEST CHESTER UNIVERSITYCARD SYSTEMS DASHBOARD
RPMG Research 2012 Purchasing Card Benchmarking Survey
2012 RPMG Purchasing Card Benchmark Survey Results
HISTORY OF THE PURCHASING CARD
Widespread adoption to manage employee purchases &
reduce transaction costs
Corporations used the card as an expense management tool
Purchasing card integration into ERP
systems
GSA introduced for maintenance, MRO goods & business
supplies
2007 2008 2009 2010 2011 2012 2013 201420062005 2015 2016
RPMG 2012 Purchasing Card Benchmark Survey Results; Executive Summary
Estimated
QUESTIONAccording to the RPMG 2012 Purchasing Card Benchmark Survey …
For every XXX of purchasing card transactions, 63% of organizations report being able to shift routine work of one full-time Procurement or AP employee to more strategic tasks?
–7,108–10,012
–2,525–5,429
TODAY’S PURCHASING CARD PROGRAMReduces purchase orders, invoices, and checksProvides reporting Helps to monitors compliance Expands negotiating opportunitiesOffers growth opportunities:
Existing contracts Standard university bills (e.g. shipping, electric, water, credit checks, etc.) New ways to use the same card platform (e.g. candidate interview, staff
development)
Technology Has Changed Our World
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PAYMENT TECHNOLOGY
Card held by Buyer
Card held by Supplier
Single Use
Account
None are mutually exclusive, but combined they can meet all business requirements
Electric Funds Electric Funds TransferTransferBank Wire
Automated Clearing House
Card-BasedCard-BasedPurchasing Card
• Organizational preference is evolving• Technology is advancing• One size does not fit all
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CARD INTEGRATIONFROM REQUISITION TO PAYMENT
Card Based Payment
Purchasing Card Card held by
Supplier
Card held by Buyer
Single Use Account
* 2011
RPMG 2012 Purchasing Card Benchmark Survey Results
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CARD INTEGRATIONSINGLE USE ACCOUNTS (SUA)
• Electronic credit card-based payment• Provides one-time-use account number to vendor
– Rotating pool of accounts– e.g. 7 digit static number (provided at setup); 9 digit varying number (provided
in payment instructions)
• Credit limit set to specific amount of payment authorized by Accounts Payable
• Credit card account open for payment processing for a limited number of days.
SUASUA
• Vendor – SUA acceptance– Communications – Payment processing
• Systems– Payment instructions sent and received
• Staff– AP staff trained – Payment strategy developed
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SINGLE USE ACCOUNTSGETTING STARTED
QUESTION
True or False?
Organizations that have integrated SUA into their systems report purchases for goods and services are the “same” “same” as purchases made on traditional plastic purchasing cards.
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QUESTIONWhat are the primary differences in reported purchases made on the traditional “plastic”
purchasing cards and SUA accounts?
A. Transactions are for higher dollar amounts B. Transactions are for goods and services which are not
allowed on a traditional purchasing cardC. Transactions require additional approval/controlsD. None of the aboveE. A & B & C
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SUA BENEFITS - VENDORS
1. Manage cash flow – payment timing can be better managed 2. Faster payment – the check isn’tisn’t in the mail3. Reduce check payments –inefficiencies of manual processes
& associated costs4. Eliminate need to provide banking information 5. Lower fraud exposure – check-like control without the paper
SUA BENEFITS - UNIVERSITIES
1. Optimize cash flow – hold on to cash longer
2. Reduce check payments –inefficiencies of manual processes & associated costs
3. Eliminate need for vendor banking information
4. Increase spend & payment visibility – “see” the transaction every step of the way
5. Reduce communications with vendors – vendors “know” when the invoice was paid
6. Lower fraud exposure – check-like control without the paper
7. Additional rebate opportunity – receive a financial return on every dollar you spend
Integrating card into payables should complement – not replace – a traditional
purchasing card program
PAYMENT TECHNOLOGY EVOLUTION
Processing savings
Rebates
Better reporting
Streamlined pay cycle
Improved cash flow
Enhanced relationships with vendors