League of Arizona Cities and Towns Payment Card Consortium August 24, 2017
BMO’S SUPPORT FOR YOUR ORGANIZATION TREASURY & PAYMENT SOLUTIONS – Card Payments Bryan Barger Managing Director (312) 461-1528 Bryan.Barger@bmo.com Kevin Noren VP, Senior Relationship Mgr (541) 215-2006 Kevin.noren@bmo.com Tonya Bragg Sr. Sales Associate (312) 461-6848 Tonya.bragg@bmo.com Institutional Markets Government Banking John Mattern Managing Director (312) 461-3295 John.mattern@bmo.com Mark Mitrovich Director (312) 461-6538 Mark.mitrovich@bmo.com Chris Daly Officer (312) 461-3023 Christopher.daly@bmo.com REQUIRED Review these points briefly as part of the introductions – focus on your role in BMO – Treasury and Payment Solutions
Purchasing Card Overview BMO Purchasing Card allows you to manage your ongoing purchasing requirements while enhancing control and spend visibility. Leverage your organization’s ability to manage procurement spend policies, drive significant cost savings, eliminate paperwork, improve spending control and accelerate delivery. Manage maverick spend through user-defined, custom control mechanisms Improve efficiency by changing payment from manual invoice and check requisition to purchasing card settlement Streamline transaction management by enabling the review, reconciliation, modification & approval of transactions 24/7 Ensure policy compliance by providing auditors easy, online access to detailed transaction history Identify spending patterns via user-friendly, intuitive, standard and ad-hoc reports along with robust data extraction capabilities Significantly reduce costs associated with authorizing, tracking, processing and reconciling your business purchases Purchasing transactions can be integrated into your organization’s existing ERP System BEST PRACTICES Use Purchasing Card controls including monthly / cycle credit limits, per transaction limits, Merchant Category Code (MCC) blocking and individual supplier blocking Ensure all policies and audit rules are centralized, substantially decreasing your organization’s exposure to errors or misuse Eliminate maverick spending and cost overruns to ensure compliance with your organization’s spending policy, budgets and limits Track vendor spend compliance with contractual terms
Purchasing Card Spend in North America
Reduce Costs $69.82 (77%) $90.20 (100%) $20.38 (23%) Average cost reduction = 77% $69.82 (77%) Average cost per transaction = $90.20 $90.20 (100%) Average cost per transaction = $20.38 $20.38 (23%) Traditional Purchase Order Method Purchasing Card
Virtual Account Virtual Card Numbers (VCNs) are randomly generated, unique account numbers associated with a specific payment or use. There are no plastic cards linked to these accounts. 1:1 Valid for a single use or specified number of uses Sent to supplier / recipients RCN VCN Mapped to a primary billing number (Real Account Number – RCN) Only generated when needed
Comprehensive Financial and Treasury Solutions Letter and Lines of Credit Term Debt Equipment Leasing and Finance Programs Working Capital Needs Risk Management Support Remote Deposit Capture Tools Asset and Investment Management Full Suite of Treasury Products
Benefits of LACT Payment Card Consortium No need to go through a lengthy and costly RFP process No fees for cards, implementation, program support, or use of online management tool No minimum spend requirements ALL programs may earn an annual performance incentive paid directly by the LACT (no minimum spend requirements) Receive a dedicated BMO support team Pick your statement payment terms (Grace Days of 7, 14, 21, or 27) Free access to Spend Dynamics, the online administration and reporting tool, allows the reconciliation of transactions with ease. Seamlessly integrate, reconcile and accurately code transactions into your ERP financial system. (order cards, set limits, run reports, etc) Access to multiple payment tools including Pcards, Virtual Cards, Approve 2 Pay, Ghost Cards, Declining Balance Cards, Central Billing Travel Accounts