photo by karl steinbrenner update on card programs presented by valerie j alley, cpcp
TRANSCRIPT
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Photo by Karl Steinbrenner
Update on Card Programs
Presented ByValerie J Alley, CPCP
![Page 2: Photo by Karl Steinbrenner Update on Card Programs Presented By Valerie J Alley, CPCP](https://reader035.vdocuments.mx/reader035/viewer/2022070409/56649e905503460f94b94d55/html5/thumbnails/2.jpg)
AGA February 2011 Charge Card Administration 2
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?