1. Tools to Expand Card Programs!
Cheryl Shanaberger, MPA, CPPO
Director
Procurement Management Department
City of Port St Lucie
February 3, 2017

2. Our Purpose Today:
Concept for Expanding P-Card use Strategies to Promote Vendor Acceptance Advantages of payment by P-Card Implementation Internal Vendor Pitfalls

4. Payment Methods Procurement Cards Travel Cards Fuel Cards E-Payables
P- cards are Electronic payments and different cards related to a specific purchase
The functionality of each solution may vary. However, regardless of the system used or the title they all are Electronic payments
Some agencies use different P-card issuer for each solution, however using one issuer for both the agency may have a better opportunity for increased efficiencies and benefits.

5. Benefits Occur faster than check payments
Provides more budget control if incorporated with an encumbrance or expense process
Streamlines the payment process
Provides project management

6. Benefits to end-user E-Payables & P-Card
Increase days payable outstanding
Advantage of Early payment
Eliminates need to retain suppliers’ banking information
Reduction in check payments and cost
Reduced exposure to fraud
No federal 1099 reporting
Timely reporting & tools for reconciliation
Increased spend/payment visibility
E-Payables or P-card , 1099 reporting for all P-card transactions ended 2011

7. Agency Challenges
Incorporate electronic payable into a payments strategy
Supplier enrollment
Internal resources
It Support
System integration issues
Proper data transmission for all parties
Some system integration issues- just getting in integrated into your finance AP system, reporting of integrated, exception reports for data

9. Supplier Barriers Cost, Cost, Cost Fear of change
Concern of retaining card #
Concerns sharing bank account details

10. Overcoming Supplier Barriers
Offer multiple options for invoicing & payment
Simplify & promote enrollment
Know your suppliers
What offers and incentives can your agency offer
Include in all RFP’s & Bids
Include in award consideration
E Payables, P-card, different suppliers have different needs so the solution is to provide supplier multiple ways to invoice electronically, invoice templates, create invoice from electronic PO
Have marketing campaigns that include online enrollment sites. , support, meetings with your provider
To market you need to understand their spend, current process & time frame of payments, how will the system benefit the supplier

11. Think E – Payment Profit Margin Retainage Mobilization Payment Terms
Rebate sharing
Bonds
Fees are deductible by vendor
Points for Award in RFP
Rebate considered in award
Understand in the contract, what is their cost of doing the job, value of money, profit- can your process be beneficial to them
Retainage is not required
Paying up front to offset fees
Sharing your rebate
Bonds FS (7) –alternatives- cash, money order, certified check, cashier check irrevocable letter of credit, a security, you determinate the value

13. What can go wrong!
Bank card program software could not handle transaction size
Corporate limit not increased
Transactions entered incorrectly
Contractor charged incorrect rates

14. Let’s Give it a go!
Examples of contracts and will divide into teams to work out the issues.

15. Questions?
Ref: Bank of America Merrill Lynch, Driving automation in the payable process June 2012
Ref: NAPCP.org, Electronic Payables
Ref: De Moya/BCC Engineering, Miami, FL
Ref: Odebrecht/Lakes Engineering, Coral Gables, FL
Ref: Archer Western/RS&H, Tampa, FL