2014 Citi Annual Training Conference

Treasury and Trade Solutions | Citi Commercial Cards
A History of Achievement. A Future of Innovation. | October 2014
2014 Citi Annual Training Conference
Welcome and Program Update
Before we get started, please be sure to…
Before:
– Kindly turn your cell phone to silent so as to not disrupt the session
After:
– We value your feedback. We’ll distribute a survey after this session, please
provide us with your comments by completing the survey. Your feedback will influence
next year’s training session
– Ask us questions! For any questions or comments, please feel free to reach out to us directly
Trish Stoker
1.512.462.0487
Patricia.a.stoker@citi.com
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David Cox
1.512.382.0265
david.w.cox@citi.com
Presentation Agenda
• Conference Schedule
• State of Texas/Citi Contract Updates
• Single Sign-On Overview
• Chip and Pin Card Migration
• Paper Free Initiatives and CitiManager Alerts
• One Time Passcode
• Virtual Card Accounts (VCA) Overview
• Program Optimization
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Agenda – Conference Day 1
8:00 – 8:30 a.m.
Onsite Registration
8:30 – 9:30 a.m.
Welcome and Program Update
Speakers: Trish Stoker and David Cox (Citi)
9:45 – 10:45 a.m.
Fraud, Misuse and Abuse: Current Trends in Third-Party Fraud and How
MasterCard and Citi are Addressing It
Speakers: Trish Stoker and Maureen Bilbrey (Citi)
11:00 – 12:00
Best Practices for Program Management – State Guidelines and Recommended
Practices
Speaker: Melissa Hernandez (State Comptroller’s Office)
12:00 – 1:00 p.m.
Lunch (Provided on Conference Day)
1:00 – 2:15 p.m.
Roundtable Discussion: Best Practices for Program Management
Break out sessions (Travel and Purchase)
2:30 – 3:45 p.m.
Roundtable Discussion: Best Practices for Training Program Administrators,
Level Managers and Cardholders
3:45 – 4:00 p.m.
Wrap-up and Overview of Training Day
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Agenda – Training Day 2
8:00 – 10:00 a.m.
Introductory - CitiManager® for Program Administrators
Advanced - Citi Custom Reporting System
10:10 – 11:40 a.m.
Introductory - Global Card Management System
Advanced session continued - Citi Custom Reporting System
12:00 – 1:00 p.m.
Lunch Provided
1:10 – 2:30 p.m.
Introductory - Citi Standard Reporting
Advanced - Global Card Management System
2:40 – 3:50 p.m.
Introductory - What Cardholders Can Do: CitiManager® /GCMS
Advanced session continued - Global Card Management System
4:00 – 4:30 p.m.
State of Texas HUB Reporting
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State of Texas Contract Information
• State Comptroller’s Office executed contract renewal to September 2015
– The renewal is the second of three, one year renewal options available to the State
Participating Programs
– 156 State agency programs
– 80 University programs
– 434 Cooperative entities
• Rebates
– The next rebate will be paid in November/December 2014
• State: General Revenue
• CO-OP’s: Direct Payment
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Single Sign-On
Review
Single Sign-On Overview
• Single Sign-On (SSO) provides access to all program management tools via CitiManager
• Functionality set at company level so ALL users must login through CitiManager& use SSO when enabled
• Reduces system logins and password maintenance
– Using your SSO, you can access CitiManager, CitiDirect Global Card Management System (GCMS), Citi
Custom Reporting System (CCRS) and Commercial Cards Learning and System Support (CLASS) with one,
single password
• Provides more efficient software navigation
• Provides ease of cardholder password resets
• Contact your Account Manager or a Help Desk representative to assist in activating SSO
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Chip and PIN Card Migration
Introduction and Highlights
Chip and PIN Migration is Underway
Chip and PIN cards are the next generation of payment card technology
• Migration will occur over time and the target date for completion is March, 2015
– You will be contacted if you have a custom hot stamp
• Citi launched the Chip and PIN card in 2011 for U.S. cardholders traveling abroad
• Enhanced Security
– Chip and PIN cards contain an encrypted microprocessor that is embedded within the card
– When cardholders receive their new card, they will need to establish a 4-digit PIN during the card
activation process, using Citi’s automated voice response system
– This PIN will be used when making purchases at Chip-enabled merchants across the world
• Existing cardholders will retain their same account number with their new Chip and PIN card, once received
• Merchants in the U.S. are beginning to rapidly adopt Chip and PIN technology and are expected to continue to
do so during the remainder of 2014 and into 2015 due to association regulations
– Citi cards will continue to support magnetic card technology so cards can be used at merchants who are not
Chip-enabled
• Program Administrators can access additional information on the Citi and State websites to include in
cardholder communications, as needed
• In-depth discussion on Chip and PIN will continue during presentations and roundtable discussions today
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Paper-Free Initiative and CitiManager Alerts
Enrollment Review
Paper-Free Enrollment
Enrolling in Paper-Free statements is quick and easy.
Step 1
To select paper-free statements, click on the
Statement tab
Step 2
Next, click the Go Paperless sub-tab
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Paper-Free Enrollment (continued)
Step 1
Confirm the email address where your paper free
statements will be sent
Step 2
If the email is correct, click the Yes button
If the email is incorrect, click the No button to be
redirected to update your email address
Step 3
You can also elect to set up online payments
Click the Continue to Make Payment button to do
so or click the Cancel button
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Cardholder Instructions on How to Register for Alerts
To begin receiving Citi Alerts, cardholders must first enroll via the Alerts page on CitiManager®.
PAs enrolling in Alerts for themselves follow the same process
–
2–
1
Go to My Profile Screen: My Profile Alerts
Go to Alerts Screen: Click on “Alerts” button at bottom of “My Profile” page
1
2
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Cardholder Instructions on How to Register for Alerts
Cardholders can easily select / deselect both the SMS and email alerts they want to receive (or
stop receiving) by clicking the alert box(es) next to the respective alert(s)
1 Select desired
Email and SMS
Alerts using
checkboxes
(These can be
updated at any
time)
2 Add your mobile
phone number
3 Update your
email
address(es)
4 Select timezone for alert
receipt (must
expand to view)
5 View Alert
Subscription Log
(must expand to
view)
6 Agree to terms
and conditions
for SMS Alerts
7 Save changes
Note: Screenshot shown for US companies. Alerts depicted may not yet be available for all other regions. In US, Sprint users will receive monthly SMS reminder of enrolment in Citi® Commercial
Cards SMS Alerts per Sprint mandate. In Canada, all cardholders will receive monthly SMS reminder of enrolment in Citi® Commercial Cards SMS Alerts per Canadian telecommunications
regulations. These users cannot turn off the alert unless they discontinue receipt of all Citi SMS alerts. This alert is not available to other regions or users
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NA Cardholder: Mobile Alert One-Time Confirmation Process
There is an opt-in subscription process1 when a cardholder enters a new mobile phone number
for Citi’s mobile alerts on the CitiManager® alerts subscription page
2. Receive activation
code on mobile device
1. Register mobile phone
number, choose alerts, and
agree to terms and
conditions on CitiManager®
4. Receive
confirmation message
3. Enter activation code on
CitiManager®
1In the US, Sprint users will receive a monthly SMS reminder that they are enrolled in Citi® Commercial Cards SMS Alerts per Sprint mandate. In Canada, all cardholders will receive a monthly
SMS reminder that they are enrolled in Citi® Commercial Cards SMS Alerts per Canadian telecommunications regulations. The reminder alert cannot be turned off by the cardholder for these
users – to stop receiving these reminders, the cardholder will need to discontinue receipt of all Citi SMS alerts
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Non Cardholder Alerts and One Time Passcode
Increased Security with One Time Passcode
NA Non-Cardholder: Selects / Updates Alerts
Program Administrators (PAs) are also able to select / deselect receipt of alerts for themselves by
clicking on the appropriate alert radio box for that account
1– Go to My Profile Screen: My Profile Alerts
–
2
Go to Alerts Screen: Click on “Alerts” button at bottom of “My Profile” page
1
2
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Note: Screenshot shown for US companies. Alerts depicted may not yet be available for all other regions
One Time Passcode
Additional Layer of Security Used during Login Process
• Launched in September 2014
• Affects ONLY Non-Cardholders who have access to card accounts other than their own
• Each login attempt is assessed for security
– Only sessions deemed unusual or risky require a One Time Passcode (OTP)
• An OTP entry screen will display receipt options (i.e. text message, email or phone) that you may choose
– Only options set up in your CitiManager site profile will be available as possible options
• Once you receive the OTP, enter the 8-digit passcode into the field on the screen to continue with your login
–
The OTP passcode expires five minutes after it is sent to you
–
System allows six attempts to get into CitiManager, using OTP
•
If you six failed attempts, click Cancel to return to the Receipt Option screen or go back to the CitiManger
homepage to initiate the process from the beginning
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Citi® Virtual Card Accounts
Commercial Card Solutions
Types of Commercial Cards
How a card is used assist in determining the card type
• Declining Balance Cards
– Infrequent travelers, single use
– Special events, projects
• Travel Cards
– Cards issued to individuals used primarily for travel expenses
– Central bill
– Individual bill (State agencies only)
• Purchase Cards
– Cards used at point of sale for small dollar purchases
– Issued to individuals that need to make ad hoc purchases
– Centrally billed and centrally paid with Corporate liability
• Accounts Payable Cards
– Cards used as a payment mechanism to pay invoices per the regular procurement process
– Ghost cards tied to AP or a supplier
• Virtual Card Accounts
– Fully automated and secure virtual card alternative to checks
– E-payment/single use account
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Citi Virtual Card Accounts Overview
Clients can gain financial benefits, process improvements, and greater security
& control by leveraging Citi Virtual Card Accounts for supplier payments
• Virtual Card Numbers (VCNs)
– Unique, non-plastic account numbers used for secure purchasing
– Local-currency issuance in 40+ countries and 25+ currencies
• Increased Transaction-Level Control
Define authorization controls for each VCN:
– Number of transactions (single- or multi-use)
– Transaction amount limit (exact, maximum, or range)
– Validity Period
– Suppliers and Merchant Category Codes (MCCs)
• Enhanced Client-Supplied Data
Capture up to 29 client-specified data elements with each VCN for enriched data analysis, reconciliation, and allocation
• Three Interface Options
– Request website with customizable approval workflows
– Batch File Interface
– Real-time XML API
• Secure VCN delivery via encrypted email to suppliers
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Citi Virtual Card Accounts – Interfaces
Virtual Card Numbers can be created by three interfaces: web, batch file and API
Description
Web
Batch File
API
• Simple web-based user interface for
generating VCNs
• Supports approval workflow and user
entitlements
• File-transfer method to generate a group of
VCNs, typically from a centralized ERP or
Accounts Payable system
• A real-time web service to integrate VCN’s in
real time from clients’ eProcurement system,
catalog, or other payment system
• Flexible, supports custom client solutions
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limit
Manual/Automated
Speed
Manual
Real-time
Automated
Automated
Periodic
(Intraday)
Real-time
Virtual Card Accounts Reporting
VCA can enhance standard Commercial Cards transaction data, enriching and simplifying your
analysis, allocation, and reconciliation processes
Reporting
Data Analysis
Allocation
Monthly Spend by Purchase Type
Record accounting codes up front
Reconciliation
Match transactions to payment
instructions by invoice or ref #
GL 1
For Each Transaction:
• Rich Commercial Card
Transaction Data
• Virtual Card Number
• Client Custom Data Fields
 Combine standard
Commercial Card
transaction data with
virtual card number
and custom data fields
Meeting Actuals vs. Budget
GL 2
GL 3
Capture add’l
info to enrich
data analysis
Use this data to automatically
allocate to the proper GL
Easily track matched,
expired, and active
virtual cards
 View trends, monitor
spending patterns,
and track goals of your
card program
 Allocate transactions
to the correct
accounting codes
and cost centers
 Leverage invoice,
payment reference,
or order numbers to
identify transactions
 Capture up to 29
custom data fields at
time of card creation
for later reporting
 Track requestor,
reason for purchase,
meeting ID, project ID,
etc. to enrich data
analysis
 With VCA, record
accounting codes or
requestor information
at time of payment
 Match transactions
automatically with
purchase/invoice
documents to track
payment status
 Create custom reports
tailored to your
program
 Example Use: Track
actual meeting
spend vs. budget
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 Automate or simplify
expense allocation
 Sample custom data:
GL code, cost center
 Sample custom data:
invoice number, PO
number
Virtual Card Accounts: Sample Reporting Data
Use custom data fields, such as Invoice Number, Requestor Name or Meeting ID, to monitor and
track spend on your program
Transaction
MCC Description
Amount
Lodging - Hotels, Motels, 6756
Resorts - Not Elsewhere
Classified
Merchant
Transaction
Transaction
Country Code Currency Code Date
FR
EUR
8/10/2011
Transaction
Reference
Number
10603472
5943
Office, School Supply,
and Stationery Stores
8.69
US
USD
3/22/2011
1-800FLOWERS.COM,INC.
5992
Florists
99.97
US
USD
636561
WM SUPERCENTER
5411
Grocery Stores and
Supermarkets
11.42
US
004513
RIUSA II S A
5964
Direct Marketing Catalog Merchants
758.16
001532
COMFORT INN
5812
636561
CROWNE PZA
VILLAHERMOS
636561
636561
Account
Number
(Short)
004513
Merchant Name
121 PARIS HOTEL
MCC
7011
636561
STAPLES
636561
Virtual Card Virtual Card Number
Label 1
51248967539 Purchase Type
25841
Virtual Card - Data Virtual Card 1
Label 2
Hotels
Requestor
Name
Virtual Card Virtual Card - Data 2
Label 3
John Dover Meeting ID
Virtual Card Data 3
6670
10603472
51248967539 Purchase Type
25841
Meeting & Event
Planning
Requestor
Name
Roger
Ferguson
Meeting ID
4852
3/26/2011
54256315
51248967539 Purchase Type
25841
Meeting & Event
Planning
Requestor
Name
Patricia
Kimber
Meeting ID
4852
USD
7/14/2011
10603472
51248967539 Purchase Type
25841
Meeting & Event
Planning
Requestor
Name
George
Smith
Meeting ID
6670
ES
EUR
8/16/2011
85418361
58569423196 Purchase Type
78231
Meeting & Event
Planning
Requestor
Name
Jane Jones
Meeting ID
7104
Lodging - Hotels, Motels, 550
Resorts - Not Elsewhere
Classified
GB
GBP
8/10/2011
25536062
59632147855 Purchase Type
36946
Hotels
Requestor
Name
Roger
Ferguson
Meeting ID
6670
7011
Lodging - Hotels, Motels, 172.69
Resorts - Not Elsewhere
Classified
MX
USD
8/6/2011
10603472
51329876543 Purchase Type
57694
Hotels
Requestor
Name
Alexander
Lee
Meeting ID
4852
WHOLESALE SUPPLIES
PLU
5970
Artists Supply and Craft
Shops
33
US
USD
8/3/2011
55425631
51329876543 Purchase Type
57694
Meeting & Event
Planning
Requestor
Name
Jane Jones
Meeting ID
7104
TARGET
5310
Discount Stores
370
US
USD
3/18/2011
55425631
51329876543 Purchase Type
57694
Meeting & Event
Planning
Requestor
Name
Patricia
Kimber
Meeting ID
7104
00108381
00006452
Standard Commercial Card Transaction
Reporting Data Elements
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Additional VCA Reporting Elements:
Virtual Card Number & Custom Data (e.g.
Purchase Type, Requestor Name, Meeting ID)
Using Virtual Card Accounts: Request VCNs and Transact
Transact
Client
1. Requests virtual card
number (VCN) linked to
a real card account
number (RCN)
– Set controls
– Set custom data fields
Merchant
3. Processes 16-digit VCN
for payment via existing
Point of Sale mechanism
2. Receives VCN and uses
in a transaction
MasterCard
4. Identifies processed card
number as a VCN
OR
5. Checks VCN controls *
Has VCN sent to supplier
automatically via secure
email system
(e.g., amount, validity period,
supplier, MCCs)
6. Returns authorization –
approval or decline – back
to merchant
7. Sends authorization,
clearing message and
VCA custom data fields
to Citi
Citi
8. Posts transaction to RCN
account
9. Loads VCN transactions
and associated custom
data to CitiManager and
other online tools
Client Reporting
Custom Data Fields
Transaction Details
* In addition to the check on the VCA controls, Citi conducts additional checks – including credit limit and
fraud analysis - on the real card number (RCN). This step is omitted merely to streamline the depiction of
the above VCA process
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Authorization Details
Posting Details
Web Interface for Requesting a Virtual Card Number
Optionally, if the request is over
the value for the group, it is sent
for approval
1. Input payment details and set
controls
2. Add required/optional custom
data fields that are linked to
the purchase type
3. Receive Virtual Card Number immediately
(or after optional approval)
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Secure Email Delivery
Virtual Card Numbers and remittance data are automatically sent to suppliers by secure email
• Secure, encrypted email sent to supplier email address
at the time of card creation
• Email address can be specified as part of a virtual card
number request or maintained with Citi
• Clients can customize their email template:
– Choose which fields to display
– Custom subject line
– Custom email footer
– Contact address for non-delivery notifications
• Preparedness Best Practices:
– Validate suppliers’ emails – ideally, dedicated
addresses for Accounts Receivable Depts.
– Let suppliers know when to expect their first payment
through the new method & confirm initial receipt
Secure Email Delivery (Sample)
From: accountspayable@anycorp.com
Subject: Virtual Card Payment from Any Corp
Dear Widget Group, Inc.,
This is a notification of payment details from Any Corp, Inc:
Account Number:
Exp date:
CVC2:
Valid To:
Amount:
5400-4444-5555-2345
08/11
333
07/15/11
$3065.25
Custom Data Fields
Payment #:
Customer #:
Invoice 1:
Invoice 2:
Note:
0615-WIDG-AA
ANYCORP2
INV001
INV002
Applied early pay discount
This virtual card number has been provided by Any Corp, Inc
for a single payment the invoices listed above. Please call
800-555-1234 for additional information about the Any Corp
virtual card program or to update your contact information.
Do not reply to this email.
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Citi Virtual Card Accounts: Conclusion
VCA can help unlock opportunities to optimize your existing Commercial Card program and
to deploy card payments in new areas throughout your organization
Security
Control
 Unparalleled security, control and paymentprocess automation
 Opportunities to grow card programs through both
simple web-based as well as efficient, automated
system-to-system solutions
 Flexibility to start with the simple web use and
evolve to future integration and automation
Automation
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Program Optimization
Review
Optimization Requirements and Feedback
• Optimization assists in determining where potential spend can be identified and incorporated into your
commercial card program. The optimization is performed by analyzing the vendors paid by check and
determining if they would be a good fit for commercial card usage.
• In order to run the optimization, a one year history of check payments is recommended
– Include vendor name, address, and tax ID, the more data the better the results
– File format is in Excel
• Feedback
– Top 30 merchant card acceptors by spend
– Top 30 merchant non-card acceptors by spend
– Highest spend by Merchant Category Code
• Turnaround time for analysis is approximately a week to 10 days after receipt of check file
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Top 30 MasterCard Acceptors by Spend
Vendor
Payment Method
JET SET SPORTS
6,149,252
CHECK
VERTIS COMMUNICATIONS
5,636,802
CHECK
US POSTAL SERVICE
4,688,224
Wire
UNITED AIRLINES
2,834,960
Check
ALTA RESOURCES INC.
2,508,599
EFT
AMMATAC CORP
2,426,617
EFT
NIKE USA INC
1,937,758
Check
MOORE WALLACE NORTH AMERCIA, INC.
1,574,330
Check
AT&T
1,320,654
Check
TRANS WORLD INTERNATIONAL, INC.
1,205,771
CHECK
COLORADO SPRINGS UTILITIES
1,179,071
Check
TEAM EPIC LLC
1,131,011
CHECK
MERKLE, INC.
966,415
EFT
MARSH USA INC
916,791
Check
LAUTERBACH GROUP INC
877,421
Check
ASPEN VALLEY SKI/SNOWBOARD CLUB
875,796
CHECK
PARADYSZ MATERA CO INC
768,127
EFT
VML, INC.
761,516
CHECK
ADECCO USA, INC.
694,654
Check
CARNATION BUILDING SERVICE INC
687,765
Check
BLUE STATE DIGITAL
629,600
CHECK
SYSCO FOOD SERVICES OF DENVER
623,140
CHECK
AT&T MOBILITY
588,908
Check
STAPLES PROMOTIONAL PRODUCTS
ECHO ENTERTAINMENT INC.
585,060
582,475
CHECK
ROYAL COLLEGE OF ART
U.S.FOODSERVICE
545,501
537,132
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Spend
CHECK
WIRE
CHECK
Impact and Benefits of Optimizing your Program
Typical Transactional Cost Savings in Private Sector
• Average cost per transaction with traditional PO $95 (1)
• Average cost per transaction with P-Card
$21 (1)
• Equals potential savings of $74(1) per transaction
• $74 savings x 1,000 transactions currently being paid via check = $74,000 (2)
A History of Achievement. A Future of Innovation.
(1) Source: 2012 Purchasing Card Benchmark Survey Results/Richard Palmer and Mahendra Gupta, RPMG Research Corporation
(2) Assumes only invoices currently being paid via check, that identified as card-accepting merchants.
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Impact and Benefits of Optimizing your Program
Cycle Time Reductions in the Private Sector
• Average cycle time per transaction with traditional PO: 12.8 days (1)
• Average cycle time per transaction with P-Card 4.9 days (1)
• Reduction of cycle time = 8.5 days or 70%(1)
• Cycle time defined as time from determination of purchase need to the receipt of ordered goods
A History of Achievement. A Future of Innovation.
(1) Source: 2012 Purchasing Card Benchmark Survey Results/Richard Palmer and Mahendra Gupta, RPMG Research Corporation
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A History
of Achievement. A Future of Innovation.
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