1 Annual Meeting April , 2013 Orlando, Florida C ARD P AYMENTS … More than convenience…it a payment strategy Sandy English Card Systems Administrator West Chester University, West Chester, PA should be part of

W EST C HESTER U NIVERSITY Founded in 1871 – Institute for teacher preparation Became a university in 1983 when it joined the Pennsylvania State System of Higher Education (PASSHE) – 4 th largest university in the Philadelphia region – 1,300 employees – 15,000+ degree seeking students from 36 states and 64 countries

# of cards525 Annual spend (CY12) ~$3 million Est. Process Savings$750k annually Avg Per MonthPASSHE % active82%50%80%73% Avg Trans Size$186$234$257$300 # of Trans per card Spend per card$662$703$378$308 Cards to employees26.8%Varies24.4%17.4% W EST C HESTER U NIVERSITY C ARD S YSTEMS D ASHBOARD RPMG Research 2012 Purchasing Card Benchmarking Survey 2012 RPMG Purchasing Card Benchmark Survey Results

H ISTORY OF THE P URCHASING C ARD 1980’s1990’s2000’s 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 Purchasing Card Spending in North America 2007 – 2016 e RPMG 2012 Purchasing Card Benchmark Survey Results; Executive Summary Estimated

Q UESTION According 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

T ODAY ’ S P URCHASING C ARD P ROGRAM Reduces purchase orders, invoices, and checks Provides reporting Helps to monitors compliance Expands negotiating opportunities Offers 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 Annual Meeting April , 2013 Orlando, Florida 7

Check Annual Meeting April , 2013 Orlando, Florida 8 P AYMENT T ECHNOLOGY 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 Transfer Bank Wire Automated Clearing House Card-Based Purchasing Card

Organizational preference is evolving Technology is advancing One size does not fit all Annual Meeting April , 2013 Orlando, Florida 9 C ARD I NTEGRATION F ROM R EQUISITION TO P AYMENT Card Based Payment Purchasing Card Card held by Supplier Card held by Buyer Single Use Account * 2011 RPMG 2012 Purchasing Card Benchmark Survey Results

Annual Meeting April , 2013 Orlando, Florida 10 C ARD I NTEGRATION S INGLE U SE A CCOUNTS (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. SUA

Vendor – SUA acceptance – Communications – Payment processing Systems – Payment instructions sent and received Staff – AP staff trained – Payment strategy developed Annual Meeting April , 2013 Orlando, Florida 11 S INGLE U SE A CCOUNTS G ETTING STARTED

Q UESTION True or False? “same” Organizations that have integrated SUA into their systems report purchases for goods and services are the “same” as purchases made on traditional plastic purchasing cards. Annual Meeting April , 2013 Orlando, Florida 12

Q UESTION What 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 card C.Transactions require additional approval/controls D.None of the above E.A & B & C Annual Meeting April , 2013 Orlando, Florida 13

SUA B ENEFITS - V ENDORS 1.Manage cash flow – payment timing can be better managed isn’t 2.Faster payment – the check isn’t in the mail 3.Reduce check payments –inefficiencies of manual processes & associated costs 4.Eliminate need to provide banking information 5.Lower fraud exposure – check-like control without the paper

SUA B ENEFITS - U NIVERSITIES 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 progr am

P AYMENT T ECHNOLOGY E VOLUTION Processing savings Rebates Better reporting Streamlined pay cycle Improved cash flow Enhanced relationships with vendors