Fundamentals of Program Management

Transcription

1 GSA SmartPay 2010 Conference Fundamentals of Program Management Heelay Yaftali Vice President

2 12 th Annual GSA SmartPay Conference Atlanta, GA August 10-12, 2010

3 House Rules To ensure the best possible learning experience for participants, please adhere to the following house rules: Turn cell phones and pagers to vibrate Hold questions to end of session Ensure your participant badge is scanned to receive CLP credits For each course Must leave room and re-enter Take advantage of opportunities to provide feedback Please select the Ask Citi icon on any Citi PC at the conference Answers to be ed after the conference within 45 days

4 Goals & Objectives This course is designed to assist you in achieving the following objectives: Gain a basic understanding of the card transaction process Role as a coordinator Interacting with Citi to manage your program more efficiently

5 Agenda 1. Credit Card Processing Basics 2. AOPC role a. Agency mission-policies and procedures b. OMB requirements c. Cardholder Management 3. Interacting with Citi support team a. Customer service b. Help Desk c. Client Account Specialist (CAS) d. Account Manager

6 1. Credit Card Processing Basics

7 Credit Card Basics Who is involved in the transaction flow? Cardholder Issuing Bank Merchant Acquiring Bank Card Association Processor

8 Credit Card Basics - Authorization Request Association Brand This is the 1 st step when a cardholder attempts to initiate a purchase goods or services. Cardholder presents card at merchant ACQUIRER Authorization Request Authorization Request ISSUER The merchant through the terminal or online/phone telephone order passes the auth request to the acquirer bank. The acquirer or their process sends the request to the association (visa/mc). Visa/MC act as the gateway to route that transaction request based on the first 6 digits of the card and other specific parameters specific to that card to the issuer. The information is then passed to the issuer or issuer processor for either the approval or decline request. MERCHANT Authorization Request Presents Card for Purchase Cardholder

9 Credit Card Basics - Authorization Response Brand Network ACQUIRER This slide overviews the auth request and it s corresponding response back to the cardholder. Once the issuer receives the request for authorization they return a response based on the account parameters or controls that an AOPC sets up at the account and card levels. As we go through the presentations with the basic and advanced classes we will in great detail discuss what controls and parameters you can set to control the transaction at this level. So the flow of the response follows back through the chain to the merchant and the cardholder either gets their merchandise or service requested or they get a decline or a referral. Authorization Request Authorization Response Authorization Request Authorization Response ISSUER Authorization Response MERCHANT Receives Merchandise Authorization Request Presents Card for Purchase Cardholder

10 Credit Card Basics - Transaction Data Flow Merchant to their acquirer/processor. Brand Network Acquirer passes the message to visa/mc and they gateway the transaction to the correct issuer based on bin and bank information to the issuer or CITI/processor for response. ACQUIRER Transaction Data Transaction Data ISSUER MERCHANT Transaction Data

11 Credit Card Basics - Settlement to Merchant Pays Interchange Fees Brand Network Receives Interchange Fees ACQUIRER Credit Transaction Data A cardholder selects his or her goods, agrees to pay the retail price to the merchant and presents his or her card for payment. The merchant submits the purchase details, including the Visa/MC card information, to its financial institution/acquire for approval through their terminal at swipe. The merchant s financial institution/acquirer sends the purchase details to the issuer through the association network. Assuming it has correctly followed the procedures required by its financial institution, the merchant receives a payment guarantee, and the cardholder receives the goods. The cardholder s financial institution/issuer remits to the merchant s financial institution/acquirer the retail price less the interchange rate. This interchange rate may be a unique rate that has been negotiated directly between the issuer and acquirer, or it may be the default rate that is set by Visa. The merchant s financial institution/acquirer remits to the merchant the retail price less the Merchant Discount or Merchant Service fee, which may include interchange; the cost of transaction processing, terminal rental and customer service; and the merchant financial institution s or processor s margin, among other costs. This charge is negotiated directly between the Settlement Settlement acquirer and the merchant. Who pays interchange? The acquirer generally pays interchange. Merchants make a payment to their financial institution for Visa/MC transactions, frequently referred to as a Merchant Discount or Merchant Service fee. This is a market-based fee set by each merchant s financial institution operating in a competitive marketplace merchants can choose their financial institution in the same way cardholders can choose the financial institution that issues their Visa/MC card. MERCHANT Transaction Data ISSUER Transaction Data

12 Credit Card Basics - Final Settlement Pays Interchange Fees ACQUIRER Transaction Data Brand Network Transaction Data Recieves Interchange Fees ISSUER Settlement Settlement Payment Credit MERCHANT Statement Transaction Data Cardholder

13 Credit Card Basics - Levels of Transaction Detail Level 1 Merchant name Purchase date Total purchase amount Merchant category code (MCC) Level 2 Sales tax amount Point of sale code Level 3 Item quantities, unit of measure, item pricing Product codes, description Ship to zip Freight amount, duty amount

14 Approving Official provides authorization to cardholder to use account This chart shows you the flow as it relates to your specific card programs. Once we receive the request or application from you a card is requested and sent. We can either send it to an individual or the agency for distribution. When a purchase or request for goods and services on behalf of the agency is needed the cardholder/employee provides the information to a merchant. The merchant through their terminal swipes the card or enters data online. The information flows to visa/mc. They pass to Citi s issuer processor. The Issuer Processor checks the card # against their database which houses the card limit and various authorizations parameters. The merchant then receives an approval or decline. 1 Citibank issues Visa/Master Card the red arrows trace the response back to the merchant. 2 Organization distributes Cards 3 Employees provide Card/ account number to merchant for payment 8 Customer Database & Limits 4 Merchant inputs or swipes card to obtain approval code 7 TSYS checks customer database & returns authorization or decline 6 Visa / MasterCard network carries data to processor (TSYS) 5 Merchant / Acquiring Bank

15 2. A/OPC Role

16 AOPC Role Focal point Agency/Organization Program Administrator responsibilities includes: Agency mission Agency policies and procedures at agency, department, or cardholder levels Establishment of key roles and responsibilities Communication and Training Internal audit requirements Preventing misuse and controlling delinquency Payments and reconciliation (Centrally billed vs. Individually billed) Reporting tools

17 AOPC Role Agency Mission A set of guidelines to assist agencies in establishing internal procedures and annual reporting requirements Maintain and communicate internal guidelines Establish Controls Monitor Report - delinquency, misuse, performance metrics Training

18 AOPC Role OMB Requirements Circular emphasizes integration and coordination of internal control assessments with control-related activities Effective Fiscal Year 2006 Appendix A, B, C Applies to Executive Agencies Exception of requirements in Appendix Appendix A requirements apply to 24 CFO Act Agencies Management s responsibility to develop and maintain internal controls Starts with Senior Management ends up on your desk Should have been implemented at your agency already

19 AOPC Role OMB Requirements General Requirements Internal Control Objectives Effectiveness and efficiency of operations Reliability of financial reporting Compliance with applicable laws and regulations Standards to meet the objectives Control Environment Risk Assessment Control Activities Information and Communications Monitoring

20 AOPC Role OMB Requirements General Requirements fall under numerous legislative and regulatory requirements Federal Managers Financial Integrity Act (FMFIA) accounting and administrative controls This circular is a best practices document for managing your financial activities including SmartPay2 Cards Your agency may not be subject to Circular as a requirement still drives for efficiencies and control Greater detail in later session

21 AOPC Role Cardholder Management Citi controls that can assist AOPC to control, maintain, monitor and report Cardholder Demographics Credit Limits Cash Limits MCC restrictions Activate/Deactivate Closure of inactive cards Alerts Disputes Reporting

22 AOPC Role Cardholder Management Training Tools to help you manage and communicate Cardholder Training User guides AOPC Training Onsite Training Webcast Training Online Help Functions CLASS User Guides

23 3. Interacting with Citi

24 Interacting with Citi Citi Support Team Customer Service Help Desk Client Account Specialist (CAS) Account Manager

25 Interacting with Citi Customer Service (800) Collect (904) Customer Service handles inquiries from merchants, cardholders, Program Managers, Approving Officials, third parties, and is staffed to handle all emergency situations. 24/7 Support The below options are available after entering an account number Option 1 Automated account information Option 2 Payment address and to submit an online payment Option 3 Last 5 transactions Option 4 Change Personal Identification Number (PIN) Option 5 Customer Service AOPC Change credit lines, cash lines for individuals Change single-purchase limits Close and reopen accounts of individuals Force authorizations in emergency situations

26 Interacting with Citi Help Desk (800) Collect (904) Citi Help Desk is available for technical assistance 7 am 11pm EST This option is available prior to entering an account number Option 1 - System support and file delivery Help Desk Password resets (Available 24/7) File Delivery Electronic Access Tools CitiManager CCMS CCRS CSP Library (CERS)

27 Ken Fudge

28 Kellee Glover

29 Shadara Reed

30 Shameki Daniels

31 Dan Deal

32 Michael Wilson

33 Rosiland Jones

34 Tammatha Campbell

35 Don Altman

36 Dina Haynes

37 Kaylen Woodard

38 (Rear) George Farrar, Dustin Reed, Jim Radford (Front) Elaine Vansant, Kim Bouttavong

39 Interacting with Citi Client Account Specialists (CAS) collect at Know Your CAS Managers 5 Digit Extension! Interact with AOPCs and Account Manager to ensure the program is working well Complete Set-Up Documentation Build Hierarchy Establish Accounts Card Delivery Account Maintenance Billing Inquiries Special Report Requests Reconciliation Projects

40 Interacting with Citi Client Account Specialists (CAS) or thru CS by dialing collect CAS is the group of specialists who are there to help you with your program needs. Option 1 Help Desk all your electronic access and reporting needs Option 2 The first available CAS Representative Option 3 Allows you to enter CAS Manager Extension Be sure to ask your CAS managers extension!

41 Interacting with Citi Account Manager ) Know Your Account Manager Strategic Relationship Manager Account Reviews Business development Ensures Citi Resources Introduces products Special Projects

42 Wrap up What objectives and goals were met in this session? Learned the basic flow of a transaction Macro level overview of the AOPC role Citi designated team to service and meet your ongoing needs

43 Heelay Yaftali / Donald Altman

44 Reminders Thank you for attending! Visit the Citibank Welcome Center Across from Room#B212 National Industries for the Blind will have a display of products Conference Slide Show come see yourself shine! Visit the Citibank One-on-One Lab - B210 Visit the Citibank Mini Sessions B209 Ask Citi Link Tell us your thoughts

45 Interactive Training Events Citi offers onsite training at no cost for agencies meeting the required minimum participant level of 20 or more as set forth in the GSA SmartPay2 Master Contract. Please contact your Account or Client Manager if you are interested in setting up a training session. Training can be conducted at a Citi Training Location or On-site at your office. Regional Citi Training Locations Norfolk, VA Washington, DC On-Site at your office 20 participant minimum Distance Learning Computer Based Training is available via the CLASS icon in CitiManager.

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