GSA Federal Supply Service. Citibank and MasterCard Presentation

Transcription

1 GSA Federal Supply Service Citibank and MasterCard Presentation

2 2004 Citibank Commercial Cards, Government Services The Sixth Annual GSA SmartPay Conference SHERATON CONFERENCE CENTER, NEW ORLEANS, LOUISIANA, AUGUST 24-26, 2004 Citibank and MasterCard Presentation Richard Heilman, Paul Adler, Craig Spencer August 26, 2004 Citigroup Global Transaction Services Copyright 2004 Citibank, N.A. CITIBANK, CITIGROUP and the Umbrella Device are registered service marks of Citicorp or its affiliates. MasterCard International Incorporated is a registered service mark of MasterCard.

3 Goal & Objectives To provide an overview of the support and solutions offered by MasterCard for your card program as it relates to the challenges and opportunities you face 3

4 Agenda Introductions Card Acceptance MasterCard Goals, strategies MasterCard Merchant Acceptance Program Questions 4

5 2004 Citibank Commercial Cards, Government Services Citibank and MasterCard Presentation Paul Adler Craig Spencer MasterCard International Citigroup Global Transaction Services

6 MasterCard International Corporate Payment Solutions Acceptance Development Initiatives GSA SmartPay Conference July 2004 Paul Adler Vice President, Global Acceptance Development MasterCard Corporate Payment Solutions

7 Table of Contents Acceptance Development Acceptance Overview 2003 Accomplishments 2004 Goals and Objectives 2004 Year-to-Date Accomplishments Global Acceptance Growth Strategy North America Current Global Acceptance Situation 7

8 Acceptance Overview Growth in Enhanced Data (Millions) Vendors/suppliers that pass Level II data grew by 68% vs. previous year. 8

9 Acceptance Overview Growth in Level III Merchants (Thousands) Vendors/suppliers that pass Level III data grew by 70% vs. previous year. 9

10 Year-to-Date Purchase Card Volumes YTD (thru June) 04 Purchase Card Volume = $22.15B 16% 25% 59% Level 1 Level 2 Level 3 10

11 Year-to-Date T&E T&E Volume 1 st Half 2003 vs. 1 st Half 2004 (Billions)

12 2004 Goals and Objectives US Region 1. Improve breadth, quantity and quality of data provided 2. Increase acceptance penetration in alternative spend categories 3. Increase MasterCard Purchase card volume to drive greater revenue share $ s 12

13 Global Acceptance Growth Strategy North America 1. Improve Breadth, Quantity and Quality of Data Provided Merchant Compliance Monitor (MCM) Acceptance Reporting Tool (ART) Merchant Acceptance Reporting System (MARS) Enhanced Merchant Reporting (EMR) Interchange Strategy L3 requirement for Large Ticket Qualification (October 1, 2004) Provide information and resources to each key Acquirer to review and populate/correct all Purchase card merchant tax ID (TIN) data Expand Hotel E-Folio Program Target high-volume level I and II vendors/suppliers for upgrade to level III 13

14 Strategy (cont.) 2. Increase Acceptance Penetration in Alternative Spend Categories Work closely with Citibank and their customers to identify and encourage increased spending in alternate merchant categories and expansion of card programs Insurance Utilities Recurring Payments 3. Increase MasterCard Purchase Card Volume Work with the merchant processors to implement effective Purchase Card merchant referral/enrollment programs Promote new spend in developing merchant categories Increases revenue share $ s 14

15 Alternate Spending Categories Specific alternate spending categories targeted include: Utilities Telecommunications Temporary Staffing Services Recurring Payments Office Leasing/Property Management Offsite Storage Courier Services 15

16 Current Activities Support Citibank and key acquirers with Acceptance related resources: Vendor/Supplier Case Studies Supplier and Acquirer Financial Models Knowledge transfer 16

17 Acquirer Supplier Enrollment Program Objective Increase overall success of the SmartPay purchase card portfolio by: Involve key Acquirers to increase acceptance and enhance data among target high-volume vendors/suppliers. Utilize MasterCard resources where necessary to ensure that key vendors/suppliers accept cards for payment and are at least Level II capable. 17

18 Enhanced Merchant Reporting System (EMR) Overview Launched in November 2000 in response to a government initiative Web-based reporting tool for purchasing card programs Used by Corporate agencies to: Facilitate IRS 1099 reporting Track and report spending for socio-economic categories Identify volume contractors to negotiate better pricing MasterCard process: Validate existing merchant information (i.e., name, address, city, state, zip, etc.) Provide supplemental socio-economic and business data 18

19 Enhanced Merchant Reporting System (EMR) Credible Source: Austin-Tetra Supply chain management consultants MWOB/Small Business specialists Data feeds from over 400 validation sources Increased availability of European and other non-us data Over 20 million validated US merchants Over 4 million validated Canadian merchants 19

20 Enhanced Merchant Reporting System (EMR) Reports and Data Adobe Acrobat PDF format reports available Tab-delimited ASCII format data files available 1099 and MWOB/Small Business reports Reports available by month, quarter, year and ranges Report scheduling function available to simplify reporting process Adhoc filtering tool for Merchant Type and Socio-economic data New Merchant data provided on a monthly basis Data available for a rolling 27 months Complete data refresh on quarterly basis from Austin-Tetra 20

21 Enhanced Merchant Reporting System (EMR) Current statistics 11,900+ companies with data captured and provided 2,600+ users 3+ Million available cards to report on Over 10,000 reports generated Over 20 Gigs of data delivered Over 4 ½ Million US merchants available in the database 21

22 Enhanced Merchant Reporting System (EMR) EMR Enhancements Continue to increase the quality and quantity of data captured in the system (On-going) Data query tool to assist customers with exporting specific data above the standard exports Automate the delivery of client hierarchies and card data Provide additional enhanced data for each Merchant 22

23 Merchant and Fleet Locators The locators are tools designed to help you locate business partners who accept MasterCard 23

24 Merchant Locator 24

25 Merchant Locator 25

26 Fuel Locator 26

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28 Summary To provide an overview of the support and solutions offered by MasterCard for your card program as it relates to the challenges and opportunities you face 28

29 Citibank and MasterCard Presentation Questions? 29

30 Reminders Thank you for attending this session! Visit the Citibank Welcome Center The Maurepas Suite, on the third floor at the Sheraton Pick up and complete a Citibank survey during your visit National Industries for the Blind will have a display of products Visit the Citibank Technical Demonstration Center Napoleon Ballroom D1, on the third floor at the Sheraton Citibank hands-on training Grand Ballroom C, on the fifth floor at the Sheraton Please take a moment to complete your GSA survey for this session

31 Citigroup's Global Corporate and Investment Bank ("GCIB") maintains a policy of strict compliance to the anti-tying provisions of the Bank Holding Company Act of 1956, as amended, and the regulations issued by the Federal Reserve Board implementing the anti-tying rules (collectively, the "Antitying Rules"). Moreover, our credit policies provide that credit must be underwritten in a safe and sound manner and be consistent with Section 23B of the Federal Reserve Act and the requirements of federal law. Consistent with these requirements, and the GCIB's Anti-tying Policy: You will not be required to accept any particular product or service offered by Citibank or any Citigroup affiliate as a condition to the extension of commercial loans or other products or services to you by Citibank or any of its subsidiaries, unless such a condition is permitted under an exception to the Anti-tying Rules. GCIB will not vary the price or other terms of any Citibank product or service based on the condition that you purchase any particular product or service from Citibank or any Citigroup affiliate, unless we are authorized to do so under an exception to the Anti-tying Rules. GCIB will not require you to provide property or services to Citibank or any affiliate of Citibank as a condition to the extension of a commercial loan to you by Citibank or any Citibank subsidiary, unless such a requirement is reasonably required to protect the safety and soundness of the loan. GCIB will not require you to refrain from doing business with a competitor of Citigroup or any of its affiliates as a condition to receiving a commercial loan from Citibank or any of its subsidiaries, unless the requirement is reasonably designed to ensure the soundness of the loan. This presentation is for informational purposes only. Citibank USA, N.A. and its affiliates does not warrant the accuracy or completeness of any information or materials set forth herein. This material does not constitute a recommendation to take any action, and Citibank USA, N.A and its affiliates are not providing investment, tax or legal advice. Citibank USA, N.A. and its affiliates accept no liability whatsoever for any use of this presentation or any action taken based on or arising from the material contained herein.

32 Copyright 2004 Citibank, N.A. CITIBANK, CITIGROUP and the Umbrella Device are registered service marks of Citicorp or its affiliates. MasterCard International Incorporated is a registered service mark of MasterCard.