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U.S. General Services Administration
Perry HamptonDirector, Utilization and Analysis DivisionOffice of Charge Card ManagementGeneral Services Administration
Perry HamptonDirector, Utilization and Analysis DivisionOffice of Charge Card ManagementGeneral Services Administration
GSA Training Conference and ExpoMay 15 -17, 2012GSA Training Conference and ExpoMay 15 -17, 2012
GSA SmartPay - The Basics of Travel, Purchase, Fleet and Integrated Charge Cards
GSA SmartPay - The Basics of Travel, Purchase, Fleet and Integrated Charge Cards
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Polling the Audience
Level 1 A/OPCs
Level 2 A/OPCs
Level 3 A/OPCs
Level 4 through 8 A/OPCs
Other
Unsure
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Objectives
Provide A/OPCs and cardholders general information about the three types of GSA SmartPay Charge Cards available to Federal government agencies and organizations
Discuss the roles and responsibilities in managing a charge card program, share some leading practices, and provide some general resources available to agencies/organizations
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Overview of the GSA SmartPay Program
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GSA SmartPay Program Overview
More than 350 Federal government agencies/organizations obtain charge card products and services and payment solutions throughGSA’s SmartPay 2 master contract : Federal government agencies/organizations are able to issue
task orders against the GSA SmartPay2 Master contract forcharge 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
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GSA SmartPay Program - StakeholdersThere are several GSA SmartPay stakeholders and the graphic below illustrates each programmatic relationship:
Office of Manageme
nt and Budget (OMB)Perform
oversight of the
government-wide charge
card program
Agencies/OrganizationsUse charge card products and
services to support their missions and operations
MasterCard/ VISAPartner with the banks to issue GSA
SmartPay® 2 charge cards
Banks Provide
charge card products and
services through GSA SmartPay® 2
Master Contracts;
partner with MasterCard/V
ISA to issue cardsOffice of Charge Card
Management (OCCM)Provides overall program management and
advocacy
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FY 2011 GSA SmartPay StatisticsFY 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
$26.0
$28.0
$30.0
$32.0
0
30
60
90
120
150
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2
3
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Cards(Millions)
Transactions(Millions)
Spend(Billions)
FY
200
9
FY
201
1F
Y 2
010
FY
200
9
FY
201
1F
Y 2
010
FY
200
9
FY
201
1F
Y 2
010
Travel FY 09 FY 10 FY 11Spend $8.9 B $9.5B $9.6B
Transactions 45.3 M 50.0M 49.8M
Cardholders 2.2 M 2.2M 2.5M
Fleet FY09 FY 10 FY11
Spend $1.5 B $1.8 B $2.2 B
Transactions 25.9 M 27.7M 29.3M
Cards 650 K 633K 856K
Purchase FY 09 FY 10 FY 11
Spend $19.3B $19.2B $19.0B
Transactions 21.9 M 22.2M 21.3M
Cardholders 270 K 257K 278K
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GSA SmartPay Purchase Card
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GSA SmartPay Purchase Card
In accordance with the Federal Acquisition Regulation, the GSA SmartPay Purchase Charge Card is the preferred method to purchase and pay for micro-purchases (FAR Part 13.201): For purchases above the micro-
purchase threshold, the PurchaseCard may be used as an ordering and payment mechanism
In FY 2010, more than $4.5 billionwas spent on purchases above$10,000, government-wide(approximately 24 percent of Purchase Card spend)
Purchase FY 09 FY 10 FY 11
Spend $19.3B $19.2B $19.0B
Transactions 21.9 M 22.2M 21.3M
Cardholders 270 K 257K 278K
Spend: $19.0 Billion
Transactions: 21.3 Million
Cardholders: 278 K
FY 2011 Statistics
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Overview of the Purchase Card
All purchase card accounts are Centrally Billed Accounts (CBA), and the Federal government is liable for the transactions made by authorized cardholders: The government is not liable for transactions on the Purchase Card when the use of
the card is by a person who does not have actual, implied, or apparent authority for such use
If the card is used by an authorized cardholder to make an unauthorized purchase, the agency/organization is responsible for taking appropriate action against the cardholder such as:
Cancellation of Purchase Card Notation in employee performance evaluation Suspension and or termination of employment
Long-term rental land/building lease, travel, and cash advances are not allowable expenses on the Purchase Card
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Understanding Micro-purchase
In accordance with the Federal Acquisition Regulation (FAR), a micro-purchase is an acquisition of supplies, goods or services in which the amount does not exceed $3,000.
The limit is $2,000 in the case of construction, $15,000 in the case of contingency operations inside of the United States, and $25,000 in the case of contingency operations outside of the United States
Cardholders cannot split purchases in order to stay below authorized spend limits
For purchases above the micro-purchase threshold, the Purchase Card may be used as an ordering and payment mechanism, however not as a contracting mechanism
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GSA SmartPay Travel Card
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GSA SmartPay Travel Charge CardThe Travel Card can be used for official government travel and travel-related costs, and allows access to GSA City Pair Program reduced airfares: Agency/organizations are able to
reduce travel processing costs and earn refunds
Annual spend has nearly tripledsince the program’s inception in1998
Travel Card Revenue funds the GSA City Pair reduced cost airlineticket program
Spend: $9.6 Billion
Transactions: 49.8 Million
Cardholders: 2.5 Million
FY 2011 Statistics
Travel FY 09 FY 10 FY 11Spend $8.9 B $9.5B $9.6B
Transactions 45.3 M 50.0M 49.8M
Cardholders 2.2 M 2.2M 2.5M
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Regulatory History of the Travel Card
There are several historical laws and regulations that govern the use of the GSA SmartPay Travel Card. Travel and Transportation Reform Act of 1998 (P.L. 105-264) mandates Travel
Card use for government travel expense payment
• Exemptions (e.g., employees who travel less than five times a year) are allowed in accordance with the Federal Travel Regulation (FTR)
Consolidated Appropriations Act of 2008 (P.L. 110-161) requires each agency/organization to evaluate the credit worthiness of an individual before issuing a Travel Card (existing cardholders exempt)
Office of Management and Budget Circular A-123, Appendix B establishes requirements for improving charge card programs, which include maintaining a charge card management plan, training, risk management controls, and managing refunds. These can be supplemented by individual agency policies and procedures
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Travel Card Use for Local Travel
There have been recent changes to the FTR about local travel, using the GSA SmartPay Travel Card use.
New optional use of the card for local travel will be for agencies, at their discretion
DoD Joint Travel Regulations already permits use of the Travel Card for local travel expenses
Examples of local travel include -- but are not limited to -- taxi fares, public transportation, and ferry tickets
OCCM recommends that agencies/organizations develop and issue internal policies addressing oversight and internal controls for managing use of the Travel Card for local travel
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Types of GSA SmartPay Travel Cards
Centrally Bill Accounts (CBA) and Individually Billed Accounts (IBA) Travel Cards: Standard Travel Cards:
o Total credit/cash limits will vary based on agency/organization policyo Spilt disbursement is mandatoryo Billing statement mailed to cardholder’s address
Restricted Travel Cards:o Total credit/cash limits will vary based on agency/organization policyo A/OPC “Activation/Deactivation” may be requiredo Spilt disbursement is mandatoryo Billing statement mailed to cardholder’s address
Centrally Billed Accounts (Transportation Accounts and Unit Cards):o Limited useo Credit limit consistent with agency/organization missiono Government liabilityo Account Manager is responsible for management and reconciliation
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GSA SmartPay Fleet Card
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GSA SmartPay Fleet Card
Use of Fleet Cards enable agencies/organizations to conveniently obtain fuel and maintenance for vehicles and equipment.
Help manage tax recovery efforts
Collect detailed fleetmanagement data
Spend: $2.2 Billion
Transactions: 29.3 Million
Cardholders: 856 K
FY 2011 Statistics
Fleet FY09 FY 10 FY11Spend $1.5 B $1.8 B $2.2 B
Transactions 25.9 M 27.7M 29.3M
Cards 650 K 633K 856K
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Overview of the Fleet Card
The benefits of using the GSA SmartPay Fleet card include.
There are more than 135,000 fuel providers that accept the GSA SmartPay Fleet Card and there are more than 45,000 maintenance locations that accept the GSA Fleet Card for transactions below $100
Real time authorization data available through robust platforms as Voyager and Wright Express provide Level-3 data (when available)
Fraud monitoring using Level-3 data, as program data allows Fleet Managers to monitor and detect any instances of fraud, waste, or abuse
If Fleet cards are lost, stolen, or damaged, replacement Fleet Cards are sent directly to cardholder or proxy
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Types of GSA SmartPay Fleet Cards
There are four types of Fleet Cards, which are:
Full Service Cards: Used to provide both fuel and maintenance to the majority of GSA Fleet
Mastercard/VISA Fleet Cards: MasterCard/VISA branded cards offers greatest range of acceptance both internationally and within the U.S. (most commonly used internationally in Puerto Rico, Virgin Islands, and America Samoa)
Fuel Only Cards: Used for short rental program to fuel vehicles, but does not cover maintenance
Maintenance Only Cards: Used in rare instances, and is for vehicle maintenance only
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Charge Card Management Roles and Responsibilities
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A/OPC Roles and Responsibilities
Agency/Organization Program Coordinators (A/OPC) are liaisons between the agency/organization management, GSA SmartPay contract banks, cardholders, and the OCCM. Roles may differ with each organization, but could include: Manage all agency/organization GSA SmartPay Card programs Promote appropriate use of GSA SmartPay Charge Cards Monitor and take appropriate action for fraud, waste, or abuse Resolve technical and operational problems between GSA SmartPay2
contracting bank and the cardholders, as required Develop agency/organization-specific policies and procedures, as
necessary Maintain open lines of communication
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AO Roles and Responsibilities
Approving Officials (AO) are often the first line of defense against fraud, waste, and abuse. Roles may differ with each agency/organization, but could include:
Review and approve all GSA SmartPay Charge Card transactions and verify transactions are appropriate and necessary for accomplishing the agency/organization’s mission
Monitor for and resolve all questionable charges
Monitor employee compliance with charge card regulations/guidance
Certify monthly invoices
Verify receipt of purchases and/or transactions
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Cardholder Roles and Responsibilities (1 of 2)
Cardholders must use the charge card in accordance with agency/organization policy and government regulations. Other responsibilities could include: Keep up to date with required program and agency-specific training Keep up to date on communications from A/OPCs, and take appropriate action, as
required Contact A/OPCs for card use questions Immediately report a lost or stolen card Gain access to the bank’s Electronic Access System (EAS) Accurately monitor and track expenses, as well as keep all receipts, in accordance
with agency policy Ensure accounts are reconciled in a timely manner and submit full payment for
each undisputed bill
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Cardholder Roles and Responsibilities (2 of 2)
Cardholders must NEVER:
Use the GSA SmartPay Charge Card for personal use
Obtain ATM advances which exceed the expected out-of pocket-expenditures
Allow monthly bill to become overdue; this could result in suspension or cancellation of a GSA SmartPay Charge Card
Wait for receipt of the monthly bill to file claims
Pay for another employee’s charge card expense(s)
Write Personal Identification Numbers (PIN) on the GSA SmartPay Charge Card or carry the PIN on their person (e.g., wallet or purse)
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Bank Roles and Responsibilities
The GSA SmartPay Program contractor banks – Citibank, JP Morgan Chase, and U.S. Bank – have important responsibilities, which include:
Provide AO or A/OPC the ability to view current statements, payment history, and account information to make payments electronically
Issue required reports to A/OPCs
Provide assistance with audits and investigations
Provide training on the use of the EAS and other program related matters
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Charge Card Management Leading Practices
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Charge Card Leading Practices
There are some leading practices that may help AOs and A/OPCs in more effectively managing their GSA SmartPay Charge Card Program:
Monitor the appropriate reports and remind cardholders to pay their bills in a timely manner
Publish “Frequently Asked Questions” on the agency/organization’s internal website
Create a monthly newsletter for agency/organization travel policies and procedures
Develop automated reports, to eliminate manually performing data analysis
Maximize the use of program refunds and refund earnings potential
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Mitigating Fraud, Waste, Abuse Risk (1 of 2)
Misuse by employees impacts agency/organization charge card performance and refund earning potential. Some leading practices to mitigate this risk includes: Establish agency/organization policies and procedures to detect and mitigate the
risk of fraud, waste, and abuse
Emphasize standards of conduct/ethics and clearly state consequences for misuse
Periodically monitor authorization controls and set reasonable transaction limits
Restrict spend use through Merchant Category Code (MCC) blocks
Deactivate cards as appropriate – cards with little or no activity should be considered for closure
Manage delinquency and implement proper training
Review card activity through reports generated from the bank’s EAS
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Mitigating Fraud, Waste, Abuse Risk (2 of 2)
Agency/organizations can mitigate risks through: Strict internal controls
Periodic reviews of spending and transaction limits
Conduct internal program reviews on regular basis
Monitor management reports, as generated by the EAS
Perform periodic reviews of charge card accounts
Solutions to detect and mitigate the risk of fraud, waste and abuse:• Data mining• Blocking card use for high risk merchant category codes• Restrictive spending limits• Review cardholder accounts and make adjustments, as necessary• Establish internal controls to ensure accounts are closed, when necessary
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Leading Practices – Reporting
GSA SmartPay contractor banks are required to issue reports to A/OPCs that address transactions, payments, disputes, and delinquencies. A/OPCs should: Monitor bank reports regularly, which will allow A/OPCs to oversee the
agency/organization’s overall charge card financial condition and monitor for fraud waste, and abuse
Use bank reports proactively, not reactively for activities such as invoice and payment data and meeting OMB requirements
Understand and familiarize yourself with all available reports
Develop automated reports, specific to your agency/organization
Save reports in a shared folder so all A/OPCs can access them
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Leading Practices – Reports
There are several reports generated from the EAS that will assist A/OPCs in managing their GSA SmartPay Charge Card Program. These reports include, but are not limited to: Account Activity Report
Declined Authorizations Report
Dispute Report
Unusual Spending Activity Report
Master File
Ad Hoc Report
** A full listing of agency/organization reports can be found in section C.3.3.1 of the GSA SmartPay2 Master Contract
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Leading Practices – Deactivation
To help streamline agency/organization charge card programs, and to help mitigate the risk of fraud, waste, and abuse, deactivating cards that are no longer in use can be a powerful and proactive measure: A/OPCs can quickly deactivate/reactivate cards electronically or by contacting the
bank’s designated representative If a card is deactivated, authorizations are declined at point of sale Notify cardholder of deactivation, and communicate procedures to re-activate
(e.g., who to call and when to call) Be wary of automatic billing (e.g. magazine subscriptions) and forced transactions
(e.g. vendor manually processing the charge card) Close charge card accounts for cardholders who leave the agency (varies by
agency policy and business line)
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Leading Practices – Training
Training cardholders is also a powerful tool in managing an agency/organization’s GSA SmartPay Program. A/OPCs are encouraged to: Ensure cardholders and A/OPCs fulfill required training requirements Provide a comprehensive face-to-face training as orientation for new
cardholders Engage in bank-sponsored training Attend the Annual GSA SmartPay Training Conference and other
SmartPay courses, as offered at the GSA Training Expo 2011 Ensure that training is easily accessible Address standards of conduct/ethics and clearly state consequences for
misuse
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General Resources
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GSA SmartPay Website
The new GSA SmartPay website launched November 2010 at http://smartpay.gsa.gov. Please join the blog:
• 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
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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
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Questions
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Thank you for your time and attention!
Contact Information:
GSA SmartPay Program Support: (703) [email protected]
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.
