1. GSA SmartPay in More Than One Flavor: Innovative Products & Services
Introduce self – FIRST and LAST name
Explain your role within OCCM, and years with the program
Explain your previous experience
Erin VanDagna
Camesha Everett
Office of Charge Card Management (OCCM) 12th Annual GSA SmartPay Training Conference August , 2010
Atlanta, GA

2. Value to the Customer
Gain a general understanding of the GSA SmartPay Program innovative products and services, specifically:
How they are being piloted
Where they are being piloted
What are the benefits
We hope that this interactive course will help provide you with an overview of GSA SmartPay2 innovative products and services, and more specifically:
-how they are being piloted
-where they are being piloted
-and what are the benefits of using these innovative products and services
This course is recommended for experienced Agency/Organization Program Coordinators (A/OPCs) and cardholders interested in gaining broad exposure to the GSA SmartPay2 program.

3. Agenda GSA SmartPay2 Program Overview Encouraging Innovation
Vision for the Future: Products and Services
Panel: GSA SmartPay in More Than One Flavor
Questions
Briefly go over the agenda, and how you want the discussion to flow.
First we will begin with a general program overview and discuss how GSA SmartPay2 is encouraging innovation.
Then we will engage in a panel discussion that highlights how GSA SmartPay comes in more than one flavor. We will hear from about the following products:
Payment Card – Department of State
Controlled Spend Card – US Air Force
Foreign Currency Card – Department of State
Prepaid Card – Department of Commerce
Cardless Accounts – Department of Veterans Affairs
Go Card – Dept. of Health & Human Services
-Then we will discuss our vision for the future
And wrap up with any questions.

4. GSA SmartPay2 Program Overview
We are going to begin with a program overview of GSA SmartPay2

5. GSA SmartPay2 Program Overview
Enables over 350 Federal agencies/organizations to obtain charge card products and services through master contracts that GSA established with three banks: Citibank, JPMorgan Chase, and U.S. Bank
Agencies/organizations issued task orders against these master contracts to obtain charge card products and services
Agencies/organizations pay no direct fees to use the program
Period of performance for existing contracts is through 2018
DID YOU KNOW…
$943 was spent on the charge cards every second in FY09
GSA SmartPay is the federal government’s charge card program. In general, the charge card is used as a mechanism by the government to pay for commercial goods and services, travel and travel related expenses and vehicle fleet expenses (fuel and maintenance).
The contract with each of the banks is collectively referred to as the “Master Contract”. It is administered by GSA. Other agencies utilize the master contract by placing task orders against it, or tagging onto existing task orders.
The charge cards are on either a VISA or MasterCard platform. Visa and MasterCard are commonly referred to as “associations.” Merchants who accept VISA and MasterCard can also accept the GSA SmartPay® charge card.

6. Program Performance – GSA SmartPay by the Numbers (Omits FY1998 data)
Purchase:
$158.7 B
$19.3 B
Travel:
$63.2 B
$8.9 B
Fleet Card:
$9.4 B
Fleet:
$1.5 B
TOTAL SPEND:
$ B
$29.8 B
TOTAL REFUNDS:
$ 1.1 B
$255.1 M
Past Performance
GSA SmartPay® is the largest charge card program in the world. As you can see with our program statistics, we have grown tremendously in total spend, and total refunds since the program’s inception in 1998.
GSA SmartPay is the largest charge card program in the world! Here are our FY09 program statistics.
Program spend: $29.7 billion
Transactions: 92.6 million
Number of cardholders: 3.0 million
Refunds:
Refunds: $255 million
GSA SmartPay agency/organization refunds totaled $255 million in FY09, a 36% increase over the FY08 total of $187 million, despite a 3% reduction in program spend from FY08 to FY09
This increase is a result in improved refund rates from the GSA SmartPay2 transition
Agencies/organizations have received $1.3 billion in refunds since 1997
Based on the refund opportunities in the GSA SmartPay2 Master Contract, GSA OCCM estimates that over the next 10 years agencies/organizations have the potential to receive an even greater number of refunds
GSA OCCM has reported this data to the White House
Spend by business line:
Purchase card transactions accounted for 65% of total spend in FY09, Travel accounted for 30%, and Fleet accounted for 5%
DID YOU KNOW…
Agencies/Organizations received $1.3 billion in refunds since 1997 (as a net of GSA fees)

7. How We are Encouraging Innovation
Comprehensive and flexible master contract
Strong customer orientation and frequent customer contact/support
Test and share best practices
Ongoing market research and regular meetings with industry
“Beyond Plastics” strategy and conferences
Balanced customer advocacy and program leadership
Training workshops, guides and GSA SmartPay Annual Training Conference
GetSmart quarterly newsletters Quarterly meetings Available desk officers Strong web presence
Ad hoc working groups Customer satisfaction surveys Monthly conference calls Social networking exploration
OCCM continues to encourage innovation for the GSA SmartPay program. We are doing this through:
Comprehensive and flexible master contract
Strong customer orientation and frequent customer contact/support
GetSmart quarterly newsletters
Quarterly A/OPC meetings
Strong web presence
Ad hoc working groups such as the JPMorgan Chase working group, USAspending.gov Working Group
Testing and sharing best practices
Ongoing market research and regular meetings with industry
“Beyond Plastics” strategy and conferences
Balanced customer advocacy and program leadership
Training workshops, guides and the GSA SmartPay Annual Training Conference

8. GSA SmartPay Center for Charge Card Innovation
Mission
The mission of the Center for Charge Card Innovation is to identify, develop, test and offer, through the GSA SmartPay2 Master Contract, new products and services to meet evolving agency/organization needs.
The Federal government is a unique commercial card and payment customer with requirements that are mission sensitive
The vision of the Center for Charge Card Innovation is a virtual center that serves as a leader in identifying, developing, and piloting Federal payment solutions
As new products and services are introduced in the industry, the Center for Charge Card Innovation will collaborate with industry to serve as the launching pad for experimenting with new products and services to ensure high quality and successful results
The GSA SmartPay2 program provides agencies/organizations with innovative products and services to advance their respective charge card programs beyond traditional card services
The GSA SmartPay Center for Charge Card Innovation is a virtual center that serves as a leader in identifying, developing, and piloting Federal payment solutions.
The mission is to identify, develop, test and offer, through the GSA SmartPay2 Master Contract, new products and services to meet evolving agency/organization needs.
-As new products and services are introduced in the industry, the Center for Charge Card Innovation will collaborate with industry to serve as the launching pad for experimenting with new products and services to ensure high quality and successful results
-The GSA SmartPay2 program provides agencies/organizations with innovative products and services to advance their respective charge card programs beyond traditional card services 8

9. Hallmarks of an Innovative Charge Card Program
Challenging the Status Quo:
Have you analyzed your business processes?
GSA SmartPay2 products and services can be utilized to provide more streamline, efficient, and transparent solutions for your agency/organization
Have you considered the information management implications?
Open Government Initiative (M-10-06)
Have you considered sustainable practices?
Federal Leadership in Environmental, Energy and Economic Performance (Executive Order 13514)
Are you utilizing all the services available to you?
Reach out to your GSA SmartPay point of contact and/or your contractor bank to discuss business challenges and potential solutions
Are you challenging the status quo???
Listed are some food for thought on how to establish an effective charge card program. NOTE: Interact with the audience to obtain their answers to these questions. 9

10. Vision for the Future – Products & Services
Now we will discuss the vision for the future – new products and services, and what that means to the GSA SmartPay Program.

11. Contact & Contactless Chip Cards
Contact Chip Cards
Features:
Chip and antenna integrated within the plastic card product; can also be integrated into personal cell phones and ID cards
Waved over a RFID (Radio-Frequency Identification) reader in order to capture the transaction data and complete the purchase
Creates a unique transaction number rather than transmitting the card number itself
Benefits:
Rapid transactions
Highly secure data transmission standards that are difficult to copy and reuse
Unique and separate transaction number generated for every transaction
Specialized chip integrated within the plastic
Transactions authenticated using a secret key that is securely stored on the chip
Cardholder enters a PIN number, which helps protect against fraud
Meets Europay MasterCard Visa (EMV) standards for secure payments
Payment authenticated with secure PIN number
Improved data security and worldwide interoperability
Contactless Chip Cards
Features:
Chip and antenna integrated within the plastic card product; can also be integrated into personal cell phones and ID cards
Waved over a RFID (Radio-Frequency Identification) reader in order to capture the transaction data and complete the purchase
The RFID chip within the card product creates a unique transaction number rather than transmitting the card number itself
Contact Chip Cards
Specialized chip integrated within the plastic
Transactions authenticated using a secret key that is securely stored on the chip
Cardholder enters a PIN number, which helps protect against fraud
Meets Europay MasterCard Visa (EMV) standards for secure payments
Chip and PIN is the name of a government-backed initiative in the UK to implement the EMV standard for secure payments (EMV comes from the initial letters of Europay, MasterCard, and VISA and sets chip standards) Until the introduction of Chip and PIN, credit/debit transactions occurred under a magnetic strip or mechanical imprint, which proved to be highly susceptible to fraud
-In the case of magnetic strip or mechanical imprint, in order to authenticate the transaction, the clerk must verify that the signature matches that on the back of the card
-Most merchants in the UK historically had a floor limit for purchases that required authorization which lead to a large increase in fraud (e.g. 60 euro total purchases and below would not go online for authorization therefore a thief could make multiple purchases below the 60 euro threshold without authorization)
-This system proved to be very ineffective and cards were easily cloned and used without the owners’ knowledge
Chip implementation can range from very basic to highly complex and provide worldwide interoperability coupled with enhanced security and protection against fraud
Contact chip cards are a new form of plastic with a specialized chip integrated; transactions are authenticated using a secret key that is securely stored on the chip
Contactless chip cards use RFID (Radio-Frequency Identification) technology to capture transaction data in order for a purchase to be completed
Contactless chip cards use highly secure data transmission standards and are considered to be very difficult to compromise
Contactless chip within the card creates a unique transaction number for every transaction that is included with the card number details, which makes it very difficult for any data to be copied or reused
While Chip and PIN cards are on the rise, magnetic strip remains the default technology for global standard interoperability 11
Note: The GSA SmartPay2 Master Contract offers the use of chip technology for customer agencies/organizations

12. Grants Funding Pilot
DID YOU KNOW…
If 10% of Federal discretionary grant spending transacted with a GSA SmartPay solution, the Federal government could realize ~$260 million in annual refunds*
*Applied an average 40 refund basis points to eligible population
Grant-making agencies face challenges of efficiency, cost-effectiveness, and transparency*
There is an increased need for improved internal controls, oversight, and evaluation**
OCCM has been engaged in discussions with Grants Subject Matter Experts and has identified discretionary grants as the target population for the grants funding pilot
The GSA SmartPay grants funding initiative aligns with the Administration’s Priorities:
Procurement savings of $40 billion annually (M-09-25)
Transparency and Open Government Directive (M-10-06)
Innovation, Operational Excellence, Customer Intimacy, and Responsible government (GSA Administrator’s Priorities)
The Office of Charge Card Management (OCCM) is pursuing a GSA SmartPay grants funding card or cardless solution to meet customer needs in the area of Federal grants management.
Grant-making agencies face challenges of efficiency, cost-effectiveness, and transparency as stated in a series of GAO reports.
There is an increased need to improve internal controls and enhance grantors’ ability to oversee and evaluate their grant programs.
OCCM is committed to meeting customer needs in the area of Federal grant funding by developing related systems, requirements, and operational procedures for a grants funding solution. As part of this effort, OCCM has been engaged in discussions with Grants Subject Matter Experts and has identified discretionary grants as the target population for the grants funding pilot. Extending the GSA SmartPay program’s card/cardless solution for financing to Federal grants could help address key grantor/grantee challenges and provide agencies/organizations a significant opportunity to realize cost savings through refunds
DID YOU KNOW…
Agencies/organizations awarded $650 billion in federal discretionary grants and cooperative agreements. If 10% of Federal discretionary grant spending was transacted with a GSA SmartPay solution, the Federal government could realize ~$260 million in annual refunds
This estimate is based on applying an average 40 refund basis to eligible population to identify value of potential refunds
Refunds are calculated based on total dollars spent not number of transactions incurred
More information on Grants data obtained from USAspending.gov
*Source: GAO Grant Management: Grantees’ Concerns with Efforts to streamline and Simplify Process
**Source: GAO Grants Management: Enhancing Performance Accountability Provisions Could Lead to Better Results 12

13. Grants Funding Pilot (cont’d)
There are numerous benefits to extending the GSA SmartPay program to Federal discretionary grants programs
Grantor Benefits
Grantee Benefits
Refunds – obtain refunds based on charge volume
Transparency – utilize powerful reporting tools with superior analytical capabilities and data quality control tools
Efficiency – streamline payment process through consistent, automated process
Internal Controls – provide greater financial controls on Merchant Category Code (MCC) blocking
Oversight – increase ability to account for and separately monitor grant spend and performance
Savings – reduce resource reliance on grants specialists and grants office personnel
Efficiency – reuse existing GSA SmartPay technology to potentially reduce transaction processing costs and time
Reporting – automate reporting of grant funding usage and disbursement
Savings – decrease administrative processing costs
Accountability – improve ability to separately track and report grant funds
There are numerous benefits to extending the GSA SmartPay program to Federal discretionary grants – both for the grantor and the grantee.
Refunds – obtain refunds based on charge volume
Transparency – utilize powerful reporting tools with superior analytical capabilities
Efficiency/Savings – streamline payment process and reduce administrative burden on grants office personnel.
Internal Controls – provide greater financial controls on Merchant Category Code (MCC) blocking
Oversight/Accountability – increased ability to monitor and track grant activity
Reporting – automate reporting of grant funding usage and disbursement

14. Point of Sale Discount Recognition
Pursuing a point of sale discount initiative to establish discounts for GSA SmartPay cardholders from merchants doing business with the Federal Government
Ensuring that GSA SmartPay purchase cards are recognized at the point of sale and that GSA Schedule prices are automatically applied, as well as any other applicable merchant discounts
Leverage the Federal Government’s purchasing scale
Increased cardholder buying power and refund potential
Requirement for the new Federal Strategic Sourcing Initiative (FSSI) Blanket Purchase Agreements (BPAs) for office supplies
OCCM is pursuing a point of sale discount initiative to establish discounts for GSA SmartPay cardholders from merchants doing business with the Federal Government.
Ensuring that GSA SmartPay purchase cards are recognized at the point of sale and that GSA Schedule prices are automatically applied, as well as any other applicable merchant discounts
The Federal Strategic Sourcing Initiative (FSSI) is focused on analyzing government spend to help the government buy goods and services more effectively
The initial FSSI Office Supply award was given in August 2007, and consisted of 13 Blanket Purchase Agreements (BPAs) emphasizing socioeconomic factors
GSA OCCM is coordinating efforts with the Chief Acquisition Officer to leverage government spend for common purchases under FSSI
Requirement for Level III Data – greater data detail will assist in spend decisions
Mandate Point-of-Sale discount – will ensure GSA SmartPay cardholders obtain a pre-determined discounted price at the Point of Sale (POS)
Agencies/organizations strengthen role of cards as a control mechanism
GSA OCCM is engaged in discussions on how to improve office supplies acquisition and is seeking agency/organization input 14

15. Green Purchase Reporting
Federal agencies are required to use sustainable practices when purchasing goods and services, as specified in a series of Executive Orders* and in the Federal Acquisition Regulation (FAR)
The Federal green purchasing program requires cardholders to purchase recycled content products, energy efficient products and environmentally preferable products
Using the GSA SmartPay purchase charge card to buy "green" products helps agencies/organizations promote environmental stewardship and meet mission goals in a cost-effective manner, enhancing energy security, creating markets and increasing worker safety
The Office of Management and Budget (OMB) and the Office of the Federal Environment Executive (OFEE) is seeking improvements in the reporting of green purchases
With over 3.1 million cardholders there is an opportunity to improve green reporting information provided by the GSA SmartPay purchase card
GSA SmartPay program is exploring opportunities with industry to create a green purchasing indicator
The Federal green purchasing program requires cardholders to purchase recycled content products, energy efficient products and environmentally preferable products (source: Executive Orders and 13423)
The Federal green purchasing program requires cardholders to purchase recycled content products, energy efficient products and environmentally preferable products
-Using the GSA SmartPay purchase charge card to buy "green" products helps agencies/organizations promote environmental stewardship and meet mission goals in a cost-effective manner, enhancing energy security, creating markets and increasing worker safety
OMB and the Office of the Federal Environmental Executive (OFEE) is seeking improvements for a better way to identify green purchases made by cardholders
OCCM recognizes an opportunity to improve green reporting information provided by the GSA SmartPay purchase card and would like to explore opportunities with industry to create a green purchasing indicator
With over 3.1 million cardholders there is an opportunity to improve green reporting information provided by the GSA SmartPay purchase card
GSA Advantage!® is a valuable tool for making green purchases with the GSA SmartPay purchase card and track those purchases through Advantage Spend Analysis Program (ASAP) tool
A/OPCs can visit: to run a report on your agency/organization (note: GSA Advantage!® registration is required to run ASAP reports)
*Executive Order – Federal Leadership in Environmental, Energy and Economic Performance
Executive Order – Strengthening Federal Environmental, Energy, and Transportation Management 15

16. GSA SmartPay: More Than One Flavor
Now we will discuss GSA SmartPay and the different flavors that it comes in, beyond the traditional magnetic strip card

17. Innovative Products & Services in Action
PANELISTS:
Payment Card – Department of State
Controlled Spend Account – US Air Force
Prepaid Card – Department of Commerce
We will hear from a variety of panelists to learn about how they are implementing the use of innovative products and services at their agency/organization, and what the benefits are. Panelists include:
Payment Card – Department of State
Controlled Spend Card – US Air Force
Foreign Currency Card – Department of State
Prepaid Card – Department of Commerce
Cardless Accounts – Department of Veterans Affairs
Go Card – Dept. of Health & Human Services

18. Payment Card – Department of State
Presented by:
Margaret Colaianni
What are the features of a payment card?
How does your agency/organization use the payment card?
What are the benefits of payment cards?
What are some key successes of using the payment card?
What are some lessons learned in implementing the use of the payment card?

19. Department of State Payment Card
Background:
Initiated a program in 2008 that allows for certain individuals at Department of State to apply for a Payment Card for recurring service
Intended for cardholders who anticipate an annual amount of recurring service with the same vendor exceeding $2,500 per year for domestic cardholders and $3,000 per year for cardholders overseas
Ideally suited for high volume charges such as courier services
Features
Card-less account number issued on “white plastic”
Account used for specific purposes and blocked for all Merchant Category Codes (MCC) or charges except identified vendor (i.e. FedEx)
Ability to pay recurring services with bank-issued “account number” 19

20. Department of State Payment Card
Examples of Current Usages:
Courier Services
Domestic Paper Requirements
Domestic Utilities
Overseas Utilities (under pilot)
Jet Fuel
Telecommunications 20

21. Department of State Payment Card
Benefits:
Significant reduction in number of Invoice Payments by Finance
Reduction in interest penalties
Consolidation of individual charges
Improved oversight through online vendor review tools
Card-less accounts minimize risk
Maximizes usage of vendor online tools
Enhanced data helps spot anomalies
Vendors are paid in 48 hours
Questions
Contact Margaret Colaianni for more info, or (703) 21

22. Controlled Spend Account – US Air Force
Presented by:
Mike Bilbrey
What are the features of a controlled spend card?
How does your agency/organization use the controlled spend card?
What are the benefits of controlled spend cards?
What are some key successes of using the controlled spend card?
What are some lessons learned in implementing the use of the controlled spend card?

23. Air Force Controlled Spend Account Pilot
Background:
Piloted use of the Controlled Spend Account (CSA) in June 2010 across five Air Force locations for 3,000 cardholders
All travelers are eligible and have a Controlled Spend Account (CSA) since no credit check is necessary
Mission-driven with spending limits based on approved travel authorizations and amount is just enough to perform the mission
CSA is used for all temporary duty (TDY) and permanent change of station (PCS) expenses; any amount owed to traveler at settlement will remain on the card for their personal use
Cardholders are able to contact the contractor bank (Citibank) directly to request temporary spending limit increases versus relying on the A/OPC 23

24. Air Force Controlled Spend Account Pilot
Benefits:
Eliminates risk of Delinquency and Misuse
CSA only has value if traveler has approved travel orders
Removes Delinquency related Disciplinary Action duties from First Sergeants and Commanders
Substantially Reduces Workload of A/OPCs
Group, Squadron, & Flight Level A/OPCs duties eliminated
Reduce number of Finance and Transportation Tasks
Lowers processing cost by reducing the need to use Centrally Billed Accounts (CBAs)
Travel Advances, EFT Rejects, & CBA Reconciliation
Ensures more efficient use of funds and resources 24

25. Air Force Controlled Spend Account Pilot
Travel Card Comparison
Controlled Spend Account
GSA SmartPay Travel Card
Target Audience
Supports 100% of the travelers
Supports only 75% of the travelers
Credit Checks Required? NO
YES
Credit Limit Availability
Spending limit adjusts up or down based on approved travel orders
Set Credit Limits ($7500 – Standard or $4000 – Restricted Account )
Delinquency Management Required?
Voucher Payments
100% to Control Spend Account
Traveler determines amount paid directly to travel card
Use of Card for credit balance refunds
Residual balance:
Available to spend (like a gift card)
Payment by check from Citi
ATM or On-line ACH Transfer
Sent to cardholder in form of check 25

26. Air Force Controlled Spend Account Pilot
Concept and System Development:
TDY Interface - Multiple Order Writing and Travel Payment Systems
PCS Interface Development - System Integration (Personnel, Finance, & Citi)
Lessons Learned:
Systemic PII Accreditation
Communication is Key – Education and Execution of Concept
Cutover – Timing is Everything
Looking forward
Roll-out use of the CSA program-wide in fall 2010 if pilot is successful
Questions
Contact Mike Bilbrey for more info, 26

27. Prepaid Card – Department of Commerce
Presented by:
David Carter
What are the features of a prepaid card?
How does your agency/organization use the prepaid card?
What are the benefits of prepaid cards?
What are some key successes of using the prepaid card?
What are some lessons learned in implementing the use of the prepaid card?

28. Department of Commerce Prepaid card
Background
The President’s Memorandum on Government Contracting, issued on March 4, 2009:
Requires agencies to review existing contracts and acquisition practices and develop a savings plan
Requires 7 percent savings by the end of FY 2011
The Department has potential to realize cost savings, increase refunds, reduce administrative cost and improve accounts payable processes through strengthening the Purchase Card Program.
The President’s Memorandum on Government Contracting, issued on March4, 2009, calls on Federal agencies to improve the effectiveness of their acquisition practices and the results achieved from their contracts.

29. Department of Commerce Prepaid card
Optimizing the Purchase Card Program
Use as a Payment Tool
Virtual Payment Cards
Single Use Accounts
Declining Balance Cards
Prepaid Cards
Maximizing use of additional Tools and Services
Electronic Invoicing
Accounts Payable Analysis
Increase Supplier Purchase Card Acceptance
Interagency Agency Agreements
Same Day Pay
Standardize and Consolidate Administrative Functions
Perform reconciliation and account reclassification in servicing bank’s electronic access system
Simplified Acquisitions (Contacts $3,001 - $100,000)
Significant administrative costs savings and return on investment opportunities exists Department-wide in the area of expanding the use the Purchase Card Program acquisition tools, services and payment solutions as a method of contract payment. If we had policy requiring all Simplified Acquisitions, be paid using the Purchase Card Program’s Ghost Cards “Virtual Payment Cards” and the servicing bank’s electronic access system for contract administration functions. Ghost Cards are purchase card account numbers held in trust by a vendor or authorized user and is used to pay invoices.
Contracts Payments above $100,000
Additional administrative costs savings and return on investment opportunities exists Department-wide in the area of using the Purchase Card Program’s Single Use Accounts to pay invoices above $100,000. Single Use Accounts (non plastic electronic accounts payable account number) are uniquely assigned to contract number and used to pay contract invoices. Woks similar to a Ghost Card by improving accounts payables processes and qualifies for monthly rebate on spend
Other Purchase Card Program Tools
Other incremental cost savings and additional refund can be obtained through the use of Declining Balance Cards and Pre-Paid Cards. If we had policy requiring the use of Declining Balance Cards and Prepaid Cards, the Census Bureau could save administrative costs, earn refunds and increase efficiency by converting its manual paper Transit Voucher Program to Declining Balance Cards and its Pre Paid Debit Cards under the US Treasury Pre Paid Debit Card Program to the GSA SmartPay program. The table below shows the estimated refund and cost savings for each program.

30. Department of Commerce Prepaid card
Potential Cost Savings using Available Tools
Acquisition
Invoice Payments to Merchants that Accept the Purchase Card
Potential Annual Refunds and Administrative Cost Savings
SmartPay2 Contract Performance Period Savings Projection (8 years)
Category
Historical Invoice Payments
Number of Invoices
Potential Refunds
Same Day Potential Refunds
Total Potential Refunds
Potential Administrative Cost Savings
Projected Potential
Refunds
Projected Cost Avoidance
Micro Purchase
$44,009,040
72,612
$558,915
$206,842
$765,757
$5,010,228
$6,126,058
$40,081,824
Simplified Acquisitions $3K - $100K
$437,395,178
19,254
$5,554,919
$2,055,757
$7,610,676
$1,328,526
$60,885,408
$10,628,208
Contracts > $100k
$289,804,122
876
$3,680,512
$1,362,079
$5,042,592
$60,444
$40,340,733
$483,552
Total
$771,208,341
92,742
$9,794,346
$3,624,679
$13,419,025
$6,399,198
$107,352,201
$51,193,584
Notes: The invoice payment to merchants that accept the purchase card are based on accounts payable optimization studies. Potential Refunds are based on basis points. Same day pay refunds are based on the maximum productivity basis points. Potential administrative cost savings are based on $69 per transaction, as per the 2007 Purchase Card Benchmark Survey Results Executive Summary by Richard J. Palmer, Eastern Illinois University and Mahendra Gupta, Washington University, Purchase Card Program Optimization Studies. The projected potential refunds and the projected cost avoidance are based on the SmartPay® 2 Master Contract performance period of 8 years.
Simplified Acquisitions (Contacts $3,001 - $100,000)
Significant administrative costs savings and return on investment opportunities exists Department-wide in the area of expanding the use the Purchase Card Program acquisition tools, services and payment solutions as a method of contract payment. If we had policy requiring all Simplified Acquisitions, be paid using the Purchase Card Program’s Ghost Cards “Virtual Payment Cards” and the servicing bank’s electronic access system for contract administration functions. Ghost Cards are purchase card account numbers held in trust by a vendor or authorized user and is used to pay invoices.
Contracts Payments above $100,000
Additional administrative costs savings and return on investment opportunities exists Department-wide in the area of using the Purchase Card Program’s Single Use Accounts to pay invoices above $100,000. Single Use Accounts (non plastic electronic accounts payable account number) are uniquely assigned to contract number and used to pay contract invoices. Woks similar to a Ghost Card by improving accounts payables processes and qualifies for monthly rebate on spend
Other Purchase Card Program Tools
Other incremental cost savings and additional refund can be obtained through the use of Declining Balance Cards and Pre-Paid Cards. If we had policy requiring the use of Declining Balance Cards and Prepaid Cards, the Census Bureau could save administrative costs, earn refunds and increase efficiency by converting its manual paper Transit Voucher Program to Declining Balance Cards and its Pre Paid Debit Cards under the US Treasury Pre Paid Debit Card Program to the GSA SmartPay program. The table below shows the estimated refund and cost savings for each program.
Questions, contact David Carter at or (202)

31. Resources
Resources are as follows.

32. General Resources GSA SmartPay Website: www.gsa.gov/gsasmartpay
Bank Contact Info
Citibank:
(customer service)
JP Morgan Chase:
(customer service)
U.S. Bank:
(customer service)
Review general resources

33. Other GSA SmartPay Courses being offered
GSA SmartPay2 Purchase Card Basics
GSA SmartPay2 Fleet Card Basics
GSA SmartPay2 Travel Card Basics
GSA SmartPay2 Master Contract Basics
GSA SmartPay Program Update
Effective Oversight of Your GSA SmartPay Program
Basic Charge Card Payment Reconciliation
Navigating the GSA SmartPay Website
Listed are additional GSA SmartPay courses being offered during this Conference.
Purchase Card Basics
Fleet Card Basics
Travel Card Basics
Master Contract Basics
GSA SmartPay Program Update
Effective Oversight of Your GSA SmartPay Program
Basic Charge Card Payment Reconciliation

34. Questions?
Contact Us
Erin VanDagna, (703)
Camesha Everett, (703)
GSA SmartPay Program Support  Phone: (703)  
Allow approximately minutes for questions.
Thank you.
Review your contact info 34