GSA SmartPay Innovative Products and Services

1. GSA SmartPay Innovative Products and Services Roberto Devarie and Hillary Garber Office of Charge Card ManagementGeneral Services Administration May 15, 2012 to May 17, 2012

2. Polling the Audience • Cardholder • Level 1 A/OPCs • Level 2 A/OPCs • Level 3 A/OPCs • Other • Unsure

3. Value to the Customer Value: Provide A/OPCs and cardholders information about the innovative products and service solutions that are either available through the GSA SmartPay Program today, or currently under development Value: Discuss the status and benefits of each program or initiative

4. Overview of the GSA SmartPay Program

5. GSA SmartPay Program Overview More than 350 Federal government agencies/ organizations obtain charge card products and services and payment solutions through GSA’s SmartPay 2 master contract : • Federal government agencies/organizations are able to issue task orders against the GSA SmartPay2 Master contract for charge card products and services from a contract bank: • Citibank • JP Morgan • U.S. Bank • Agencies/organizations pay no direct fees to use the GSA SmartPay Program

6. The GSA Program Today Transaction Engine • Streamlined Business Process • Payment Processing • Customer Feedback • Refund Potential • Internal Controls • Oversight • Reporting SmartPay • Initial levels of innovative use (e.g., Strategic Sourcing)

7. The Evolution of GSA SmartPay 1998 Future Increase Card Use • Encourage use of cards for government business • Workload management • Reduce acquisition overhead • Low costs • Earn refunds Accountability & Compliance • Improved card utilization (reduction in number of purchase cards) • Increased internal controls • Enhanced security • Improved training Strategic Business Solutions • Innovative products and services • Greater “business intelligence” • Tax recovery • “Beyond Plastics” • Improved data • Green purchasing • Volume discounts As the SmartPay Program evolves, it continues to emphasize security, innovation, and transparency, as well as seeking mission-focused solutions:

8. FY 2011 GSA SmartPay Statistics FY 2010 FY 2009 FY 2011 FY 2010 FY 2009 FY 2011 FY 2009 FY 2010 FY 2011 FY 2011 Total Program Spend: $30.8 Billion FY 2011 Total Transactions: 100.4 Million FY 2011 Total Cards Issued: 3.6 Million FY 2011 Net Agency Refunds: $297.9 Million Spend (Billions) Transactions (Millions) Cards (Millions)

9. Innovation Through the GSA SmartPayProgram

10. Encouraging Innovation To encourage innovation in the GSA SmartPay Program, through initiatives and programs: Providing a comprehensive and flexible Master Contract Engage, communicate with, and support all GSA SmartPay customer agencies Compile and distribute agency and industry leading practices Conduct market research and interact with industry Provide balanced customer advocacy and program leadership Host training workshops, provide literature, and host GSA SmartPay Annual Training Conference Host the Beyond Plastics Conference

11. Beyond Plastics Conference OCCM hosts a virtual conference every two years showcase cardless products and services : Address payment processing challenges, increase agency/organization efficiency, increase cost avoidance, and enhance refunds Venue for introducing and sharing innovative products, service solutions, and best practices Next conference scheduled for Spring 2013

12. Center for Charge Card Innovation The mission for the Center is to identify, develop, test and offer, new products and services to meet evolving Federal agency/organizational needs: The vision is a virtual community 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 SmartPay Program provides agencies/organizations with innovative products and services to advance their respective charge card programs beyond traditional card services

13. Solutions Through Innovation

14. Federal Strategic Sourcing GSA SmartPay Purchase cards play a pivotal role in the Federal Strategic Sourcing Initiative (FSSI): 2nd Generation Office Supplies (OS2) • Through September 2011, agencies have spent nearly $216 million (approximately 73% of spend has been with small business) and total savings have reached $16 million • All OS2 vendors (with the exception of the Office Depot commercial website) have fully implemented point-of-sale (POS) recognition Print Management • GSA awarded Blanket Purchase Agreements (BPA) to vendors for two types of print management activities, which include: • Fleet Assessment • Device Plus & Customizable Options • Agencies can opt to pay with the Purchase Card regardless of transaction amount (under $10 million subject to delegation of authority)

15. Innovative and Cardless Programs GSA SmartPay contract banks offer Tier II programs to improve vendor cash flow, increase merchant acceptance, and increase the range of payments eligible to earn refunds: Declining Balance: CBA card that provides a set limit that can be set to refresh at the agency’s discretion, which offers greater spend control Stored Value Card: Prepaid card that has a specific dollar value that can be loaded on a single or repeat basis Transit Subsidy: Dedicated charge card for reimbursement of transit costs, which eliminates manual processes (HHS has realized 15% cost savings) Ghost Cards: CBA card designated specifically for a frequently used vendor, allowing multiple users to purchase from that vendor while reducing the number of open accounts and risk of lost or stolen cards Single Use Accounts: Provides agencies/organizations the function and refund ability of a purchase card, while enabling features such as transaction-specific authorization controls and reports on “expected usage”

16. Green Purchase Data In accordance with the FAR and a series of Executive Orders (EO 12514 and EO 13423), agencies are required to use sustainable practices when purchasing goods and services : • The Federal green purchasing program requires cardholders to purchase recycled content products, energy efficient products and environmentally preferable products • 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 more than 3.1 million cardholders there is an opportunity to improve green reporting information • GSA SmartPay program is exploring opportunities with industry to create a green purchasing indicator

17. Grants Payment Initiative Want to know more? • Please contact Ms. Erin VanDagna for more information at erin.vandagna@gsa.gov! OCCM is seeking agencies interested in developing and pilot testing a grants funding solution. A card or cardless grants solution may help agencies address key grantor and grantee challenges. Potential benefits may include:

18. GSA SmartPay 2 Innovation Award The GSA SmartPay 2 Innovation Award is conferred each year to the agency/organization that has implemented a creative product or solution significantly impacting agency mission delivery, reducing costs, improving efficiency and transparency, increasing refunds, or improving sustainability: The 2011 GSA SmartPay 2 Innovation Award was presented to the Department of State, for the Payment Card solution, at the 2011 GSA SmartPay Conference on August 16, 2011 in Las Vegas, Nevada The Office of Charge Card Management is currently in the process of preparing for the 2012 GSA SmartPay 2 Innovation Award, which will be presented to an agency/organization at the 2012 SmartPay Conference in Nashville, Tennessee

19. Department of State Payment Cards Recipient of the 2011 SmartPay 2 Innovation Award, this specialized card is for high volume, high dollar services with identified domestic and international vendors. The card blocks all other Merchant Category Codes: • Usage examples: • Courier Services • Domestic and International Utilities • Telecommunications • Benefits to Payment Cards • Significant reduction of invoice payments • Reduction of interest penalties • Consolidation of individual charges • Improved oversight through online vendor review tools • Vendors are paid in 48 hours

20. Health and Human Services GO!card Recipient of the 2010 SmartPay 2 Innovation Award, the Department of Health and Human Services administers the GO!card Program, which distributes a charge card with a monthly limit equal to the monthly benefit: Card use limited by merchant category code for transit providers only Use or lose monthly benefit Automated distribution and receipt of benefits Participants never stand in line again Provides increased internal controls and accountability Avoids costs as participants only spend what they need each month

21. The Future of the GSA SmartPayProgram

22. Bridging the Gap Between Today and Tomorrow Transaction Engine Greater Integration of carded and cardless systems into agency business processes • Streamlined Business Process • Payment Processing • Customer Feedback • Refund Potential • Internal Controls • Oversight • Reporting Expansion of card based automatic POS discounts Grants funding solution Increased usage of stored value and declining balance cards Level 3 data (e.g., small businesses and green attributes) SmartPay • Initial levels of innovative use (e.g., Strategic Sourcing) Improved point of sales treatment for State taxes Mobile payments/reconciliation

23. General Resources

24. GSA SmartPay Website • What's New • Program Statistics • New Legislation • State Tax Information • Resources • Managing Your Program • Accepting GSA SmartPay® Cards • Online Training for Cardholders and Program Coordinators The new GSA SmartPay website launched November 2010 at http://smartpay.gsa.gov. Please join the blog:

25. Bank Contact Information • Citibank (http://www.cards.citidirect.com/welcome.asp) Customer Service: (800) 790-7206 • JP Morgan Chase (https://www.paymentnet.com/Login.asp) Customer Service: (888) 297-0781 • U.S. Bank (https://access.usbank.com/cpsApp1/index.jsp) Customer Service: (888) 994-6722

26. Questions

27. Thank you for your time and attention! Contact Information: • GSA SmartPay Program Support: (703) 605-2808gsa_smartpay@gsa.gov • Please feel free to provide your feedback and thoughts on our website, available at http://smartpay.gsa.gov/feedback. Also, don’t forget to visit the GSA SmartBlog at: https://smartpay.gsa.gov/blogs.