Ghost Credit Cards in eProcurement Jeremy Williams NC State University Technology Support Analyst Purchasing Department

Agenda  About NC State University  Program Metrics  What is a Ghost Card?  How it Works  Reconciliation Process  Transaction Data  Benefits

NC State University  Founded in 1887  34,015 Students  8,474 Faculty and Staff  $446M Research Expenditures ( )  $1.48 Billion total budget  PCard program implemented in 1996

Card Program Metrics FY15 Card TypeNumber of CardsAnnual Transactions Annual Spend Traditional P-Cards2,330151,392$43,636,524 ePayables1905,793$9,308,127 Ghost Cards for eProcurement 5693,595$34,498,750 Total for Fiscal Year ,576250,780$87,443,401

Ghost Card Metrics  Ghost Card technology since 2000  Implemented NC State MarketPlace in 2008 with 12 suppliers  Today = 62 active suppliers (35 participate in active contracts)  Ghost Card spend has grown 64% in the last 5 years, from $21M to $34.5M  Accounts for 40% of Card Program spend  Executive Leadership Support

What is a Ghost Card?  A Ghost Card is a PCard used specifically for the eProcurement orders with a specific vendor  Managed by the central office PCard Team  Limits are set per transaction, per day, and per month for each card  Limits are different for contract vendors vs non- contract vendors  The card information is passed securely through the cXML data to the vendor

How does it work? Place Order Charge the card Attach TRX to order

NC State MarketPlace Where end users place eProcurement orders

Vendor Selection  B2B Capabilities  Accept credit card as payment method  Accept credit card information through cXML data  Provide Level 3 data on transactions  PCI Compliance  PO ID Format, CC processor

The Transaction Reconciliation Process Vendor receives order with card information Vendor charges the card Bank receives and processes trxn Bank file is uploaded to the Financial System Financial System attaches the trxn to the PO  This is almost a completely automated process

Transaction Data  The Purchase Order ID MUST be in the transaction data  Either in the Purchase ID field or the CRI Reference field  Unique PO format for all eProcurement orders  ***Recommend alphanumeric format***

Level 3 Data  Vendor benefits –No invoicing (saving costs on printing, mailing and processing of the invoice) –Greater sales presence on campus due to zero Accounts Receivables  Organizational benefits –Use of the eProcurement data to create the payment record within the financial system & reconcile it back to the original PO –Utilize the data for strategic sourcing and better negotiations with the supplier –Enhances efficiencies on the reconciliation process and shows end users a payment record in their Financial Statement

Level 3 Data

Considerations  Exceptions: –Overpayment on a PO –Transaction without a PO ID –Missing level 3 data  Exceptions are handled manually  In some cases, the vendor must be contacted to inquire the PO number and then the transaction is attached manually in the system  Queries run regularly to collect overpaid POs. Then level 3 data is used to determine why there was an overage.

Benefit $  Efficiency savings = $43 per transaction by eliminating check payments  In FY 2015 = 93,595 transactions = $4 million savings  Rebate money from issuing bank, per state contract  Increased spend with contract vendors  Drive lower prices with vendors  Automation and paperless  Daily reconciliation of transactions and posted to financial reporting for budgetary convenience  Security of the card –MCC restriction –Tied to one vendor –Each transaction is specific to one Purchase Order –Process has been approved by Internal Audit Division

Thank you! Questions? Jeremy Williams