Charge Card Services Contract 04298

1. Charge Card Services Contract #04298 Letty Forth, Relationship Manager

2. 2 AgendaWhat You Will Learn From This Session Overview of Charge Card Services (Commercial Card) Programs Best Practices for Successful Program(s) Understanding Rebate Opportunity Technology Solutions and Tools to Automate your Program New PaymentNet Technology Update JPMorgan Service Team Questions

3. 3 Programs Available to the State of Washington Purchasing Card (Charge Card) Program Central Travel Account (CTA) Individual Travel Account Multi-Card (Combination Purchase & Travel)

4. 4 Purchasing (Charge) Card Card is designed to procure goods and services for business purposes that can be paid with a Visa Card instead of an invoice and/or purchase order State Agency/Division is fully liable for Program Central Bill / Central Pay Monthly Billing Statement with up to 30 days to remit payment Cards are issued to individuals, departments, and/or card custodians State Agency/Division controls spending limits and charging privileges No card fees unless average spend per Card is $750 or less $500 or less = $75.00 billed to State Agency $501 - $750 = $50.00 billed to State Agency

5. 5 Central Travel Account (CTA) Designed for Airline Ticketing with the use of a Travel Agent allowing State Agency to centralize the purchasing of airline tickets State Agency/Division is fully liable for Program Central Bill / Central Pay Monthly Billing Statement with up to 30 days to remit payment Card less account with no cards issued Account number(s) issued to State Agency/Division Can also be used with Enterprise Car Rental Program No card fee unless the average CTA account spend is $750 or less $500 or less = $75.00 card fee billed to State Agency $501 - $750 = $50.00 card fee billed to State Agency

6. 6 Individual Travel Account Card is designed to provide employees with a State sponsored charge card eliminating the need to use personal credit cards Individual Cardholder is liable/responsible for card Individual Bill / Individual Pay (cardholder) Monthly Billing Statement with up to 30 days to remit payment Cards are issued to individuals only State Agency/Division requests card limits ($5,000) Credit scoring conducted on all applicants Default credit limit is $1,500

7. 7 Individual Travel Account(Continued) Charging privileges are generally set-up by JPMC and include all Travel related expenditures State Agency/Division can further restrict charging privileges No card fee unless average spend per card is less than $750 $500 or less = $75.00 fee billed to State Agency $501 - $750 = $50.00 fee billed to State Agency Credit losses (uncollected monies) will be deducted from State Agency via Rebate (if applicable)

8. 8 Multi-Card Multi-Card is designed to be used for both Purchasing and travel related expenditures State Agency/Division is liable for Program Central Bill / Central Pay Monthly Billing Statement with up to 30 days to remit payment Cards are issued primarily to individuals, but can possibly be issued to departments and card custodians. State Agency/Division controls spending limits and charging privileges No card fees unless average spend per Card is $750 or less $500 or less = $75.00 billed to State Agency $501 - $750 = $50.00 billed to State Agency

9. 9 Best Practices for a Successful Program Senior Management Support of Program Well defined Program Policy Planned Growth / Expansion Plan Education and Communication Cardholders, Managers, and Senior Management Assign a Dedicated Program Administrator that is responsible for the management of the Program (s) For larger State Agencies/Divisions this may be a full time job

10. 10 Best Practices for a Successful Program(Continued) Ensure the right number of cards are in the right hands Broaden the Scope of the Program Migrate spend to all suppliers that accept Visa Identify top suppliers with high dollar spend Include High Dollar Transactions (Computers, Utilities, etc) Increase card and transaction limits (if applicable) Expand Merchant Category Codes (if applicable Maximize rebate opportunity

11. 11 Common Card Uses that are Often Overlooked Courier Services Electrical Supplies Equipment Leasing Fax Machines Fax Supplies Freight Furniture Guard Services Hardware Relocation Services Industrial Supplies Inventory Janitorial Supplies Legal Services Locksmith Maintenance Contracts Mailing Equipment Medical Exams Microfiche Nursing Services Office Supplies Overnight Mail Pagers Parking PC Leasing Periodicals Pest Control Photocopying Photographic Printing Production Services Promotional Items Virtual Offices Storerooms Subscriptions Temporary Services(Clerical/Technical) Trade Shows Training Truck Parts Uniforms Work Orders Fleet Costs

12. 12 Understanding Your Rebate Opportunity Rebate Factors Annual Net Program Spend Average Spend Per Card Average Fileturn

13. 13 Understanding Rebate Factors Annual Net Spend is the total program net amount spent during the calendar year by State Agency Average Spend Per Card is defined as the total annual program net spend, divided by the average number of cards This can be determined by dividing your annual net spend by the average number of cards opened For example, if annual net spend is $1,000,000 with 100 cards open, the average spend per card is $10,000

14. 14 Understanding Rebate Factors (continued) Average Fileturn -means the average number of days between the transaction posting date and the payment posting date of the full amount due For example, on average there are 30 days in a month, therefore, the average transaction is 15 days old at the end of each month/billing cycle The day after the billing cycle cut-off, the average fileturn is about 15/16 Add the number of days it takes your payment to post to the average file turn (15), and that is your average fileturn for that month Assuming JPMC received your payment and posted it 10 days after your billing cycle cut-off, the average fileturn is 25

15. 15 Understanding Your Rebate Opportunity Rebates are calculated annually by JPMC and paid to each State Agency/Division January � December Rebate paid on/or before March 31st for the prior year rebate Calculations are conducted for each State Agency by the JPMC issued Corporate ID # (US00000) Credit losses are tracked by State Agency / JPMC Corporate ID # and deducted from State Agency rebate If credit losses exceed rebate earned, JPMC will deduct the credit losses from another program rebate for the same Agency. For example, if the Agency has an Individual Travel Program that does not earn rebate and has credit losses outstanding of $1,000. The $1,000 is deducted from their corresponding Purchasing Card or Central Travel Account (if applicable) rebate earning.

16. 16 Technology Solutions and Tools to Automate Your Program PaymentNet Technology Card management and reporting platform currently provided by JPMorgan Chase for use with your Commercial Card Program PaymentNet has been an established product leader for over 7 years in the Commercial Card Industry PaymentNet is currently being used by many of the State of Washington State Agencies Web-based tool, intuitive and user friendly

17. 17 PaymentNet Technology Features PaymentNet Features Access to data on-line Expanded Reporting Capabilities Electronic Statements On-Line Dispute Process Real Time Card Management Accounting Code Allocation Features Default Accounting Code by Cardholder, MCC Group Reviewed and Approved Process Mapper / Export Capabilities Generic Mapper Flex Mapper Custom Mapper No cost/fees to access PaymentNet Technology Custom mapper and custom report fees apply ($100 per hour, 4 hour minimum)

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22. 22 PaymentNet Best Practices Ensure Program Administrator receives adequate training Conduct PaymentNet training on an on-going basis for your PaymentNet Users Cardholders, Card Custodians, Managers Use default accounting code features to eliminate manual data entry by Users Default by Cardholder or Merchant Category Code Up to eight (8) accounting code fields Upload accounting codes and use pull down menu Expand user group to cardholder, custodian,or manager level Use Reviewed and Approved Features Use Mapper/Export Feature Export accounting code information from PaymentNet and upload directly to your Accounting System

23. 23 PaymentNet Technology Training PaymentNet Training � �Train the Trainer Approach� JPMC JPMC provides training options designed for the State Agency Program Administrator State-wide Training scheduled by Office of State Procurement Quarterly Various locations throughout the State Beginner (web-based), Intermediate & Advanced Classes No fee to attend State Agency On-Site Training JPMorgan Chase Trainer visits the State Agency on-site for a personalized training session (can include Cardholders) 1-2 Day Training Session $950 Per Day (paid by State Agency)

24. 24 PaymentNet Technology Training JPMorgan Chase Training Facility Located Salt Lake City 1-2 Day Training Session No fee (travel arrangements & accommodations not included) Learning Web-site @ http://learning.paymentnet.com Product Information Cardholder Training & Training Quiz

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26. 26 New PaymentNet Update New PaymentNet is a complete redesign of PaymentNet from the ground up Simplified Program Management Improved use ability and features One platform for all program management New PaymentNet is in final development stage Currently in Beta Test Mode Washington State Department of Transportation is a beta test participant Migration Timeline is scheduled for mid- 2006 and 2007 Migration includes all JPMorgan Chase clients and expected to take up to 18+ months State of Washington Migration Timeline has not been determined Decentralized Program (over 650+ accounts)

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28. 28 JPMorgan Service Team Program Coordinator Team (800) 748-9584 Ext. 7145 Email: Program.coordinators@jpmchase.com Primary contact for State Agency Program Administrators for overall program administration Applications, limit changes, MCC Changes PaymentNet Technology Assistance Brandy Tangreen, Program Coordinator (800) 748-9584 Ext. 7143 Email: brandy.l.tangreen@jpmchase.com Commercial Card Solutions Program Coordinator Lead Letty Forth, Relationship Manager (714) 847-2301 Email: Letty.forth@jpmchase.com Responsible for overall contract management, new implementations and mapper revisions Expansion / Growth Initiatives