Citi Presents:Alternative Card Products

Tim Sheridan

Citi® Commercial Cards, Government Services

GSA SmartPay Conference

Denver, Colorado

July 22nd - July 24th, 2008

The Tenth Annual GSA SmartPay® ConferenceTowards New Horizons!

Goals and Objectives

Provide awareness of alternative card products

Identify key features of each product

Provide applications and uses of these products

Encourage dialog to drive program efficiency, reduce costs, and increase rebates

Agenda

1. Prepaid cards

2. Declining Balance Cards

3. Single Use (Virtual Cards)

4. Foreign Currency Cards

5. Ghost Cards

6. Paylink for Cards

Discussion of Alternative Card Products

Why Use Alternative Card Products?

Improve efficiency – employee satisfaction

Reduce payment processing costs

Increase rebate payments

Greater security

Electronic reporting

1. Prepaid Cards

Prepaid Cards – Embossed with Cardholder Name

Custom-designed prepaid Visa® Card and MasterCard® Card– Re-loadable with USD via multiple channels – Good everywhere Visa® Card and MasterCard® debit cards are accepted– Signature/PIN based

ATM Access

Cardholder Website– Real-time account balance– Transaction history – Alerts (text message/e-mail)

Zero liability protection

FDIC Insured

Prepaid Cards – Embossed with Cardholder Name

Issuance Card loaded via web or fileEmbossed with cardholder name and mailedReloadable once funds are expended via web or file5-7 days to issue card

ActivationImmediate use upon activation Sent with sticker with activation instructions (phone)

DeactivationCard typically not deactivated by program manager

ReissueCard can be reissued by Citi if lost or stolen

Prepaid Cards – Instant Issue

Custom-designed prepaid Visa® Card and MasterCard® Card– 1x use – cannot be reloaded – Good everywhere Visa® Card and MasterCard® cards are accepted– Signature/PIN based

ATM Access

Cardholder website– Real-time account balance– Transaction history – Alerts (text message/e-mail)

Same as cash – no zero liability

FDIC insured

Prepaid Cards – Instant Issue

Issuance Card stock held by agencyCard loaded via web or fileCannot be reloadedInstant use upon activation

ActivationActivation via phoneCardholder given PIN which can be changed

DeactivationCard typically not be deactivated by program manager

ReissueCard can be reissued by Citi if lost or stolenBalance may be recouped if user reports before use

Prepaid Cards – Program Administration

Prepaid Cards – User Support

Prepaid Cards – Reporting

Citi offers both a wide range of standard reports as well as custom reporting services:– Detailed Issuance Report– Aggregate Issuance Report– Aggregate Spending Report

Reply file– Account creation information– Deposit confirmation

Reports are available to download through the Internet via our Client Zone tool– Formats include: PDF, Excel, XML, CSV

In addition, reports can be scheduled for automated delivery via FTP

Prepaid Cards – Applications and Uses

Per diem payments

Invitational travel and other advances

Creditworthiness issues

Reimbursements of employee out-of-pocket expenses

Reduction or elimination of cash advances and travelers checks

Primarily used when ownership of the funds is passing to the cardholder

2. Declining Balance Card

Declining Balance Card - Features

Specific purposes and/or time periods. Accounts are established with a set credit limit, set to refresh on a specific interval or never refresh

Once the balance is used the card becomes inactive and cannot be used

Agencies can authorize the cardholder to spend only an approved amount over the pre-determined life of the card

Agencies can also specify of Merchant Category Code (MCC) inclusions for the card, as a means of ensuring that cardholders can only use the card at approved merchants

Declining Balance Card - Features

Issuance Card Issued via web or fileEmbossed with cardholder name and mailed5-7 days to issue card

ActivationSent with sticker with activation instructions (phone)

DeactivationCard easily deactivated by program manager

ReissueCard can be reissued by Citi® if lost or stolenZero Liability protection

Declining Balance Card – Applications and Uses

Restricted spending card

One time use or low frequency refresh

Uniform allowances

Relocation payments

Primarily used when ownership of the funds remains with the agency

3. Single Use Accounts (Virtual Cards)

Single Use Accounts (Virtual Cards) - Features

Limited time or a single purchase account

Pre-established accounts available for instantaneous issue

Accounts can be activated in real time, using a secure web site

Payment controls can be predefined or established at the time ofactivation, providing for increased control of spend

Enhanced data capture provides detail for reconciliation

Single Use Accounts (Virtual Cards) - Features

Issuance Accounts created via web or file (as needed or in advance)Limits refresh on cycleNo card issued

ActivationImmediate use upon activation

DeactivationAccounts can be deactivated by program manager

ReissueYes

Single Use Accounts (Virtual Cards) – Applications & Uses

The Single Use Account can be created for designated purchase amount, time period, merchant or geography

Potential Uses– Project related spend– Temporary spend categories– Individual remuneration

4. Foreign Currency Cards

Foreign Currency Cards - Features

Cards are issued and billed in local currency

Product features are in alignment with local customs and practices

All collateral, supporting materials and customer service are available in local language

Authorization and settlement of transactions is in local currency

Availability in 38 countries

Foreign Currency Cards - Features

Issuance Card Issued via web or fileEmbossed with cardholder name and mailedLimits refreshed on cycle dateApproximately 5-7 days to issue card

ActivationImmediate use upon activation Sent with sticker with activation instructions (phone)

DeactivationCard easily deactivated by program manager

ReissueCard can be reissued by Citi if lost or stolen

Foreign Currency Cards – Applications and Uses

For organizations with extensive operations outside the U.S., foreigncurrency cards provide an additional payment option that assists the localstaff in meeting their procurement objectives

Primary driver for use is reduction in FX fees

For use with employees and operations stationed overseas for long periods of time

For use with overseas employees who will need support in local language

Can be used to decentralize management of the program

5. Ghost Cards

Ghost Card - Features

Non-card account for preferred supplier relationship

Account number held by vendor

Allows many employees to purchase without issuing multiple cards

Integrates with ERP systems or Electronic Purchasing Systems

Ghost Card - Features

Issuance Account set up via web or fileEmbossed with cardholder name and mailedLimit refreshes on cycle5-7 days to issue card

ActivationImmediate use upon activation

DeactivationEasily deactivated by program manager

ReissueNew numbers can be created if compromised

Ghost Cards – Applications and Uses

Central travel airline accounts

Purchases made via internet or intranet

Elimination of low value invoices (i.e. UPS, FedEx etc.)

Primarily used for preferred suppliers or commodities with few suppliers

6. Paylink for Cards

Paylink for Cards - Features

Uses an automated file process, which enables our clients to initiate payments to vendors via purchase cards in the same way they now settle invoices via ACH or check

Agencies send a single file with multiple payment types - checks, wires, ACH, and purchase cards for both domestic and international payments

Virtually no changes to business processes for most clients, particularly if clients currently make payments via ACH

No need to transmit credit card numbers to merchant

Agency fully controls the amount, timing, and invoice(s) covered by the payment instruction

Paylink for Cards – Process Flow

Paylink for Cards – Applications and Uses

Centralized accounts payable and disbursement operations that produce file-based payments

Purchases where current purchase order and invoice process needs to stay intact

Used to maximize card spend/rebates - More effective in driving card spend than communication to change purchasing behavior

Strategic initiatives to reduce check payments

Summary

Awareness of various alternative card products

Overview of uses and applications

Promote thinking about where you may be able to apply solutions in your organization to gain efficiencies, reduce costs, and increase rebate

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Reminders

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