2013 CORPORATE TRAVEL CARD BENCHMARK SURVEY

2013 CORPORATE TRAVEL CARD BENCHMARK SURVEY by Mahendra Gupta, Ph.D., Washington University in St. Louis Richard J. Palmer, Ph.D., Southeast Missouri State University November, 2012 1

2013 CORPORATE TRAVEL CARD BENCHMARK SURVEY TABLE OF CONTENTS Section 1. Consent to Use.. 4 Section 2. Respondent Data.... 6 Section 3. Organizational Description and Key Corporate Travel Card Statistics 9 Section 4. Past and Future Travel Card Spending...... 16 Section 5. Travel Card Platforms and Budgeted Travel Spending 20 Section 6. Travel Cost Management Strategies 25 Section 7. Expense Report Processing at Your Organization... 27 Section 8. Leveraging Travel Card Information... 30 Section 9. Key Drivers and Value of Travel Card Use.... 32 Section 10. Program Configuration and Features.... 33 Section 11. Liability... 37 Section 12. Global Card Use....... 38 Section 13. Controls and Compliance........ 40 Section 14. Card Issuer Switching..... 41 Section 15. Other Travel Technology...... 42 Section 16. Corporate Travel Card Misuse.. 43 Section 17. Data and Economic Aspects of Travel Cards..... 47 Section 18. Customer Service and Support.. 49 Section 19. Technology and Reporting. 50 Confidentiality Agreement 53 2

2013 CORPORATE TRAVEL CARD BENCHMARK SURVEY Welcome to the 2013 Corporate Travel Card Benchmark Survey. The survey is designed to enhance your understanding of the critical factors that contribute to corporate travel card program success. Over sixteen major North American financial institutions and members of the National Institute of Governmental Purchasing and National Association of Purchasing Card Professionals are supporting and participating in the survey project. There is no charge for participation. A strict confidentiality agreement is included on the last page of this booklet. BENEFITS OF PARTICIPATION All organizations completing this survey will receive a copy of the 2013 Corporate Travel Card Benchmark Survey Report (a $949 value) free of charge. The Report will include comprehensive information and expert analyses that will enable your organization to: Benchmark its corporate travel card program statistics, controls, card uses, and future trends against those of top card programs by company size, industry, or type of governmental agency; Obtain best practice information to improve corporate travel card program performance and enhance satisfaction with the card product; Get information on emerging trends in corporate travel card use; and Provide card issuers insights into how to better serve your needs. To further encourage participation, the first 100 respondents who complete the survey will get a $50 Amazon.com gift certificate and the next 400 respondents who complete the survey will get a $25 Amazon.com gift certificate. And, every participant who completes the survey will get an electronic copy of the 2011 Corporate Travel Card Benchmark Survey Report, an $899 value. This report is a must have for any organization with a travel card program. Collectively, including a copy of the 2013 report, an electronic copy of the 2011 report and early response gift cards, all respondents will receive more than $1,800 in incentives to respond. Important Survey Instructions The questions in this survey were developed with extensive input from travel card users and issuers. Participants will derive the greatest benefit if all questions are answered. Most questions can be answered by the travel card program administrator with simple checkmarks or by providing well-known program statistics. If any question does not apply to your organization or if the answer to a question is unavailable for any reason, simply leave the item blank. Completion of the survey should take approximately 45-90 minutes, depending on information availability. If you have any questions about the survey, contact Professor Richard Palmer by e-mail (richard.palmer@rpmgresearch.net) or phone (618.559.5137). Please send the completed survey to: Richard Palmer RPMG Research Corporation 1616 West Main Street, Suite 506 Marion, IL 62959. 3

SECTION 1. Consent to Use RPMG Research Corporation maintains a policy of strict confidentiality with respect to your responses to this survey. RPMG Research Corporation, its employees and agents, shall keep all individual responses to the 2013 Corporate Travel Card Benchmark Survey confidential and shall not disclose the responses to any person or other entity. In addition, all information, analysis, responses, and other data that is specific to or identifies a specific card issuer shall be kept confidential and shall be released only to that specific card issuer. This confidentiality agreement will apply to any person assisting RPMG Research Corporation in the analysis of survey data or compilation of survey results. Notwithstanding the fact that individual responses are and shall remain confidential, the aggregated responses of survey participants shall be made public in benchmark results, professional presentations, and published and unpublished documents authored by RPMG Research Corporation personnel bound by this confidentiality agreement. By providing responses to this survey, you agree to allow RPMG Research Corporation to combine your response with others to create survey reports, presentations, and other analyses that describe best use and value delivered by travel cards in the market. (Required) Agree Do Not Agree Note: Without consent, you may not participate in the survey. If you would like to obtain more information about the survey or the benchmark report, please contact Richard Palmer by phone (618.559.5137) or by e-mail (Richard.Palmer@RPMGresearch.net). 4

IMPORTANT DEFINITIONS OF TERMS USED THROUGHOUT THE SURVEY Term Corporate travel cards or travel cards Ghost/Lodged accounts Prepaid travel cards Meeting/event cards Electronic Accounts Payable or virtual card accounts Company Meaning The term used to include all plastic, non-plastic, ghost and lodged charge accounts maintained by your organization that are primarily designated for payment of travel and entertainment expenses. Typically these cards are referred to as corporate travel cards but other cards may also be used extensively for travel expenses (the latter use sometimes referred to as one card programs). Please do not include in your response any data related to purchasing or other cards that are primarily used to pay for nontravel goods and services. Terms commonly used to describe corporate travel card numbers held in trust by a third party (such as an airline, travel management company, or travel agent) and to which your employees can charge travel bookings. Term used to describe cards where money is on deposit with the issuer (similar to a debit card) to support employee travel. Prepaid travel cards are usually issued in the name of an individual account holder (and are not anonymous). A term used to describe a variety of card products designed to support payment for corporate meetings and events. Electronic Accounts Payable (EAP) is defined as a dynamically adjustable nonplastic card account used to pay for goods and services after an invoice has been received for those goods or services (whether set up as a rotating pool of card accounts, ghost card accounts funded only to pay invoices from specific suppliers, or another arrangement similar in purpose). The term used to describe the organization that employs the respondent, whether that organization is a not-for-profit entity (e.g., government agency) or a corporation. 5

SECTION 2. Respondent Data 1. Your company or organization name: 2. Information about the person responsible for completion of the survey: a. Name: b. Title: _ c. Phone number: ( ) - d. Your e-mail address at your company : e. Street Address*: f. City*: g. State or Province*: h. Country*: i. Postal Code*: * Please note that in order to receive the free bound hardcopy of the 2013 Corporate Travel Card Benchmark Survey Results, you must include your land mail address at your organization. j. In the event that we need to clarify your responses to the survey, may we contact you? (please check) Yes No k. May we contact you regarding future commercial card surveys or reports? (please check) Yes No l. What is the name of the primary bank or financial institution that provides your organization with most or all of its corporate travel cards and travel card accounts? American Express Bank of America Bank of the West BB&T BMO/Harris Bank BNY Mellon Bank Capital One Citibank Comdata 6

Comerica Commerce Bank Diner s Club Fifth Third Bank FNBO HSBC JPMorgan Chase Key Bank M&T Bank PNC Bank Popular Community Bank Regions Bank Royal Bank of Scotland Scotiabank SunTrust Bank TD UMB US Bank US Bank Canada Wells Fargo Bank Wright Express Other (please name: ) m. Identify the brand of the card issuer used by your company: MasterCard Visa American Express Diner s Club Discover Other (please describe: ) n. You are responding to this survey on basis of invitation from: (check all that apply). Your card issuer National Association of Purchasing Card Professionals (NAPCP) The Accounts Payable Network (TAPN) National Institute of Government Purchasing (NIGP) RPMG Research Corporation Other (Please describe: 7

o. How would you categorize your travel card program? Traditional program in which travel cards and travel card accounts are used exclusively or primarily for travel and travel-related expenses. Travel cards and card accounts are used for both travel and non-travel expenses but at least one-half of card spending is for travel and travel-related expenses. Travel card program where at least one-half of spending is for purchases of goods and services that are not related to travel. Other (please describe): 8

SECTION 3. Organizational Description and Key Corporate Travel Card Statistics 3. Organization description (please check one) (Required): Public corporation Privately-owned corporation Public university Private university School district State or state government agency City/county or city/county government agency Federal government agency Not-for-profit entity Other (please describe): If you chose public corporation, privately-owned corporation, or other, please answer Questions 3(a) and 3(b). Otherwise, you should skip to Question 4. 3a. Please check the best description of your company s geographic footprint. A North American company with all operations and sales in North America. A North American company with all operations in North America but significant sales to customers outside of North America. A multinational company with significant operations and sales in multiple continents around the globe. Other (please describe): 3b. Please check the industry classification/activities of your organization (please check all that apply): Administrative and support services Advertising and marketing Agriculture, forestry, and fishing Arts and entertainment Automotive retailing and service Construction Consulting Educational services Energy Finance, insurance, and banking Food service and restaurants Healthcare Hospitals Hotels Life sciences Management of facilities and companies Manufacturing Mining, oil and gas extraction, pipeline, and refining services Pharmaceuticals Publishing and media (including broadcasting and recording) Professional, scientific, and technical services Public administration Real estate Rentals and leasing Retail trade Social services Software and information technology Telecommunications and data processing services Transportation Tourism and leisure Utilities (gas, electrical, and water) Warehousing and distribution services Wholesale trade Other services (including religious/civic) Other (please describe): 9

If you checked Manufacturing in Question 3(b), please answer Question 3(b)1 below. Otherwise, skip to Question 4. 3(b)1. Please check the type of good or types of goods manufactured by your organization (please check all that apply): Aerospace systems and components Apparel Building materials Chemicals Communications equipment Computers and computer peripherals Electronics and electrical equipment Energy generation equipments and related products Farm equipment Food production Forest and paper products Furniture and home equipment Medical equipment Metals Motor vehicles and parts Office equipment Packaging Pharmaceutical Toys and sporting goods Other 4. Please provide a brief description of your organization s business activity or primary product/service: 5. Please identify (by check) the scope of the corporate travel card program to which your answers on this survey will relate: a unit or subsidiary of a larger organization. an organization or company-wide travel card program. other (please describe): 6. How long has your corporate travel card program been in place? (Please check) Less than one year 1-5 years 6-10 years 11-15 years 16-20 years 21+ years 7. Please select the currency used in your responses to this survey: Canadian $ U.S. $ 10

8. Your organization s approximate annual sales revenue (or annual budget if organization is a government or not-for-profit entity) for the last complete year: less than $1 million per year. equal to or greater than $1 million but less than $10 million per year. equal to or greater than $10 million but less than $25 million per year. equal to or greater than $25 million but less than $100 million per year. equal to or greater than $100 million but less than $250 million per year. equal to or greater than $250 million but less than $500 million per year. equal to or greater than $500 million but less than $1 billion per year. equal to or greater than $1 billon but less than $2 billion per year. equal to or greater than $2 billion but less than $5 billion per year. equal to or greater than $5 billion but less than $10 billion per year. equal to or greater than $10 billion but less than $20 billion per year. equal to or greater than $20 billion per year. don t know or information is unavailable. 9. The approximate number of employees at your organization: (Required),, 10. Approximate percentage of your organization s employees who travel on business more than 2 times a year: (Required) % 11. What is the total number of plastic travel cards across your organization? (Required):,, 12. In an average month, what percent of your organization s travel cards are inactive, having no charges placed on them? (Required) % 11

13. Your organization s approximate annual travel budget for the last complete year: (Required) don t know or information is unavailable. less than $25,000 per year. equal to or greater than $25,000 but less than $50,000 per year equal to or greater than $50,000 but less than $100,000 per year equal to or greater than $100,000 but less than $250,000 per year equal to or greater than $250,000 but less than $500,000 per year. equal to or greater than $500,000 but less than $1 million per year. equal to or greater than $1 million but less than $2 million per year. equal to or greater than $2 million but less than $5 million per year. equal to or greater than $5 million but less than $10 million per year. equal to or greater than $10 million but less than $25 million per year. equal to or greater than $25 million but less than $50 million per year. equal to or greater than $50 million but less than $100 million per year. equal to or greater than $100 million but less than $150 million per year. equal to or greater than $150 million but less than $200 million per year. equal to or greater than $200 million but less than $250 million per year. equal to or greater than $250 million but less than $500 million per year. equal to or greater than $500 million per year. Questions 14 and 15 below ask for estimates of basic travel card activity including monthly travel card spending and transactions. In answering these questions, we request that you: INCLUDE spending on all plastic and non-plastic travel card accounts (including ghost and lodged accounts and electronic accounts payable accounts) as well all differing types of travel cards (e.g., regular and executive travel cards). DO NOT INCLUDE spending on prepaid travel cards or separately identifiable meeting/event cards in your answer. Report representative data. Ordinarily, respondents use travel card data from the last full month of activity at their organization. However, if the most recent month is not representative of your organizational norms, please report a representative average monthly travel card spending or number of transactions. 14. Total monthly spending on all corporate travel card accounts at your organization. (Required) $,,,.00 15. Total number of monthly transactions on all corporate travel card accounts at your organization. (Required),, 12

Breakdown of Travel Card Spending by Type of Goods and Services Bought 16. Of your organization s total travel card spending in a typical billing cycle, please estimate the percentage of spending on the types of goods and services listed below. (Please note: the column total should sum to 100%). (Required) Air travel (airline tickets) Airline ancillary charges (e.g., bag charges) Auto Rental Lodging and accommodations Spend Category Restaurants Caterers Fuel and other non-fuel vehicle charges (e.g., tolls, parking, maintenance, repairs) Conference registration fees Off-site meetings and events held by your organization Other travel-related charges (e.g., taxis, bus lines, railroads.) Entertainment (e.g., recreational, amusement, and cultural services and events) Non-travel spending (all other spending not associated with either travel or entertainment) Estimated Percentage of Organization s Total Travel Card Spending in a Typical Billing Cycle % % % % % % % % % % % % TOTAL 100 % 13

17. Please identify (by check) your organization s top three most important current and future goals for its travel card program. Top Three Current Organizational Top Three Future Organizational Goal Goals for Travel Goals for Travel Card Program Card Program a. Eliminate travel advances/petty cash accounts b. Increase convenience for employee-travelers c. Obtain better data about travel spending to enhance negotiating leverage with vendors d. Improve efficiency by eliminating the paper-based expense reporting process e. Obtain rebates or other incentives from card issuer f. Obtain better data about travel spending to promote compliance with travel policy g. Minimize card delinquencies h. Minimize card misuse i. Maintain data security j. Fully integrate card spending data into organization s accounting/erp information systems. k. Globally integrate all travel card spending in one reporting system. l. Other (please describe): 14

18. Of your organization s total annual spending for travel and travel-related services (and not just those amounts paid with travel cards), please estimate the percentage paid by each payment method listed below (note that the column total should sum to 100%). (Required) Travel Spending Paid by Card-based payment types Plastic corporate travel cards held by employees Ghost or lodged travel card account(s) held in trust by a travel management company or travel agency Electronic accounts payable card accounts Prepaid travel cards Meeting/event cards Other charge cards not typically used for travel (e.g., purchasing cards) Non-card payment types Employee pays travel service provider/travel agent with personal cash, check, or credit card (and is reimbursed later by your organization) Company cash travel advances to employees Company check sent directly to travel service provider/travel management company/travel agency Company ACH sent directly to travel service provider/travel management company/travel agency Other payments Other (please describe): Percent of the Total Travel Spending Paid by Payment Method % % % % % % % % % % % TOTAL 100 % 15

SECTION 4. Past and Future Travel Card Spending Past Travel Card Spending 19. In comparison to 2010, there was in total annual travel card spending at your organization in 2012. No change An increase A decrease If you answered An increase to Question 19, please answer Question 19(a) below, then proceed to Question 20. If you answered A decrease to Question 19, please answer Questions 19(b) below, then proceed to Question 20. If you answered No Change please proceed to Question 20. 19(a). Please estimate the percentage increase in travel card spending over the past two years (comparing 2010 to 2012). For example: If average monthly travel-card program spending two years ago was $100,000 and average monthly travel card spending today is $120,000, then the percentage increase would be 20%--calculated by dividing the $20,000 increase by the spending two years ago ($100,000). less than 1% increase 1% to 2.9% increase 3% to 4.9% increase 5% to 6.9% increase 7% to 8.9% increase 9% to 10.9% increase 11% to 14.9% increase 15% to 19.9% increase 20% to 30% increase Greater than 30% increase 16

19(b). Please estimate the percentage decrease in travel card spending over the past two years (comparing 2010 to 2012). For example: If average monthly travel card program spending two years ago was $100,000 and average monthly spending today is $80,000, then the percentage decrease would be 20%--calculated by dividing the $20,000 decrease in spending by the average amount spent two years ago ($100,000). less than 1% decrease 1% to 2.9% decrease 3% to 4.9% decrease 5% to 6.9% decrease 7% to 8.9% decrease 9% to 10.9% decrease 11% to 14.9% decrease 15% to 19.9% decrease 20% to 29.9% decrease 30% to 40% decrease Greater than 40% decrease Future Travel Card Spending 20. Please identify the expected change in total travel card spending at your organization over the next three years (2013-2015). No change Increase Decrease If you answered Increase to Question 20 please answer Questions 20(a) and 20(b) below, then proceed to Question 21. If you answered Decrease to Question 20, please answer Questions 20(c) and 20(d), then proceed to Question 21. If you answered No Change to Question 20, proceed to Question 21. 20(a). Please identify the three most important reasons for the expected increase in travel card spending over the next three years. MY ORGANIZATION EXPECTS: an increase it its overall travel budget. an increase in business activity/volume. an increase in the global use of travel card. an increase in the amount of travelling (e.g., number of trips) by employees. an increase in the cost of travel. to increase the number travel cards in the organization. an increase in the spending limits on travel cards. enactment of a policy mandating travel card use. improved enforcement of policy requiring travel card use. an expansion of the types of travel-related charges to the travel card (e.g., events) an expansion of the use of travel cards to include non-travel purchases. increased card acceptance by suppliers, enabling greater spending on travel card. other (please describe): 17

20(b). Please indicate (by one checkmark in each column) the expected YEAR OVER YEAR growth of travel card spending (on all accounts combined) in each of the next five years. I N C R E A S E Increase in 2013 Travel Card Spending Over 2012 Level Increase in 2014 Travel Card Spending Over 2013 Level Increase in 2015 Travel Card Spending Over 2014 Level Increase in 2016 Travel Card Spending Over 2015 Level Increase in 2017 Travel Card Spending Over 2016 Level increase of 2% or less increase of 2% or less increase of 2% or less increase of 2% or less increase of 2% or less 3% to 4% increase 3% to 4% increase 3% to 4% increase 3% to 4% increase 3% to 4% increase 5% to 6% increase 5% to 6% increase 5% to 6% increase 5% to 6% increase 5% to 6% increase 7% to 8% increase 7% to 8% increase 7% to 8% increase 7% to 8% increase 7% to 8% increase 9% to 10% increase 9% to 10% increase 9% to 10% increase 9% to 10% increase 9% to 10% increase 11% to 12% increase 11% to 12% increase 11% to 12% increase 11% to 12% increase 11% to 12% increase 13% to 15% increase 13% to 15% increase 13% to 15% increase 13% to 15% increase 13% to 15% increase 15% to 20% increase 15% to 20% increase 15% to 20% increase 15% to 20% increase 15% to 20% increase greater than 20% increase greater than 20% increase greater than 20% increase greater than 20% increase greater than 20% increase 18

20(c). Please identify the three most important reasons for the expected decrease in travel card spending over the next three years. MY ORGANIZATION IS PLANNING FOR OR EXPECTS: a decrease in the overall travel budget. a decrease in business activity or volume. a decrease in the amount of travelling (e.g., number of trips) by employees. to change travel policies to reduce cost of travel to the organization (e.g., travel in lower class of service). a decrease in the number travel cards in the organization. a decrease in the cost of travel (e.g., lower prices for hotel stays driven by market forces. a decrease in the spending limits on travel cards. a limit on the types of charges that can go on the travel card. other (please describe): 20(d). Please indicate (by one checkmark in each column) the expected YEAR OVER YEAR decline of travel card spending (on all accounts combined) in each of the next five years. D E C R E A S E Decrease in 2013 Travel Card Spending Over 2012 Level Decrease in 2014 Travel Card Spending Over 2013 Level Decrease in 2015 Travel Card Spending Over 2014 Level Decrease in 2016 Travel Card Spending Over 2015 Level Decrease in 2017 Travel Card Spending Over 2016 Level decrease of 2% or less decrease of 2% or less decrease of 2% or less decrease of 2% or less decrease of 2% or less 3% to 4% decrease 3% to 4% decrease 3% to 4% decrease 3% to 4% decrease 3% to 4% decrease 5% to 6% decrease 5% to 6% decrease 5% to 6% decrease 5% to 6% decrease 5% to 6% decrease 7% to 8% decrease 7% to 8% decrease 7% to 8% decrease 7% to 8% decrease 7% to 8% decrease 9% to 10% decrease 9% to 10% decrease 9% to 10% decrease 9% to 10% decrease 9% to 10% decrease 11% to 12% decrease 11% to 12% decrease 11% to 12% decrease 11% to 12% decrease 11% to 12% decrease 13% to 15% decrease 13% to 15% decrease 13% to 15% decrease 13% to 15% decrease 13% to 15% decrease 15% to 20% decrease 15% to 20% decrease 15% to 20% decrease 15% to 20% decrease 15% to 20% decrease Greater than 20% decrease Greater than 20% decrease Greater than 20% decrease Greater than 20% decrease Greater than 20% decrease 19

SECTION 5. Travel Card Platforms and Budgeted Travel Spending GHOST/LODGED TRAVEL CARD PLATFORMS 21. Does your organization use a travel management company or travel agency for travel bookings? Yes No If you answered No to Question 21, please skip to Question 22; otherwise continue below. 21(a). Does your organization require that certain travel services are to be booked with a particular travel management company or travel agency? Yes No If you answered No to Question 21(a), please skip to Question 21(b); otherwise answer Question 21(a)(1) below and continue. 21(a)(1). Please identify (by check to all that apply) the type(s) of travel service that your organizational policy requires to be booked with your travel management company or travel agency: Airline bookings Hotel bookings Auto rental bookings Train bookings Non-employee travel New employee travel (employees without travel card) Meeting management expenses (including room/hall rental, A/V, speaker fees, catering, group transportation, program production, etc.) Other (please describe: ) 21(b). Does your organization provide its travel management company or travel agency with a ghost or lodged travel card account to facilitate employee bookings? Reminder: Ghost or lodged arrangements are defined as any arrangement in which corporate travel card numbers are held in trust by a third party (such as a travel agent) and to which your employees can charge travel bookings. Yes No If you answered No to Question 21(b), please skip to Question 22; otherwise answer Question 21(b)(1) and 21(b)(2) below. 21(b)(1). Why does your organization choose to pay travel expenses with ghost or lodged travel card accounts as opposed to payment by plastic cards or other means? 20

21(b)(2). Is the issuer of your ghost or lodged travel card account(s) the same as the issuer of your plastic travel cards? Yes No If No to Question 21(b)(2), please answer Question 21(b)(2)(a). Otherwise skip to Question 22. 21(b)(2)(a). Why does your organization use a particular card issuer for plastic travel cards and a different card issuer for ghost or lodged accounts? MEETINGS AND EVENTS 22. What is the approximate annual meeting and event spending incurred by your organization? $,,,.00 23. What percent of your annual meeting spending is for transient travel (i.e., travel expenses associated with employees traveling to meetings): % 24(a). What percent of your annual meeting spending is related to meeting management (including room/hall rental, A/V, speaker fees, catering, group transportation, program production, etc.): % 24(b). Does your organization use a meeting management software tool? Yes No 25. Does your organization use a meeting/event card? Reminder: A meeting/event card is a special purpose charge card with unique functionalities and higher spending limits to support meeting and event spending). Yes No If you answered Yes to Question 25, please answer Question 25(a) through (c) below. If you answered No to Question 25, skip to Question 26. 25(a). What percent of your annual meeting spending is paid with your meeting/event card: % 25(b). What percent of your annual meeting spending is paid with check or ACH payment? % 25(c). What percent of your annual meeting spending is paid with regular plastic travel cards given by your organization to employees? % 25(d). Has any hotel or meeting facility pushed back or declined to accept card payment for higher dollar meeting activities/services? Yes No 21

PREPAID TRAVEL CARDS 26. Does your organization use prepaid travel cards? Yes No If you answered Yes to Question 26, please answer Questions 26(a) and (b) below. If you answered No to Question 26, please proceed to Question 27. 26(a) What is the approximate total annual spending by your organization on prepaid travel cards? $,,,.00 26(b). Please check the reason(s) your organization uses prepaid travel cards (check all that apply) We do not provide travel cards to all employees who may need to travel on company business. We have a large percentage of employees who travel infrequently. Our prepaid travel cards support non-employee travel needs (e.g., contractors, prospective employees). We use prepaid travel cards to simplify per diem reimbursement of employees for meals while traveling. We use prepaid travel cards to eliminate the need for cash advances for travel expenses. Other (please describe: ) 22

ELECTRONIC ACCOUNTS PAYABLE 27. Does your organization use electronic accounts payable accounts to pay for travel expenses? (Where EAP is defined as dynamically adjustable non-plastic card accounts used to pay for goods and services after an invoice has been received for those goods or services). Yes No If you answered Yes to Question 27, please answer Question 27(a) and 27(b) on the next page; otherwise, proceed to Question 28. 27(a). Please check the boxes that best describe the type(s) of Electronic Accounts Payable (EAP) card accounts used by your organization: Type of EAP Account Virtual or dynamic ghost account. Your Organization Has Account Type? (Yes/No to Each Line Required) Defined: Account with spending limit that is dynamically adjustable. Account number is assigned to a specific supplier. Supplier charges the account to receive payment for approved invoices. Limits or account controls only allow approved amounts to be processed. Yes No Single use or rotating pool of accounts Defined: Account with spending limit that is dynamically adjustable. A randomly generated account number is delivered to the supplier at the time of payment. Supplier charges account number provided by buyer. Yes No Straight-through processing, push payments, buyerinitiated transactions Defined: A card account that your company charges on behalf of your Supplier. Yes No Other Type of EAP (please describe: ) Yes No 27(b). Please describe the type of travel spending paid with EAP accounts, and why EAP is used for these goods and services: 23

28. Does your organization have direct billing arrangements with travel service providers (e.g, airlines, hotels, auto rental agencies) in North America? Yes No If you answered Yes to Question 28, please answer Questions 28(a) and 28(b) below. If you answered No to Question 28, skip to Question 29. 28(a). 28(b). Please identify (by check to all that apply) the type(s) of travel service providers paid through direct billing arrangements in North America: Airlines Hotels Auto rental agencies Other (please describe: ) How satisfied is your organization with its ability to reconcile direct billing information with its internal records for employee travel? (please check one) Very Satisfied Satisfied Neutral. Dissatisfied Very dissatisfied 24

SECTION 6. Travel Cost Management Strategies 29. Please check the appropriate boxes describing your organization s strategies to manage travel spending. Strong No My organization plans to manage travel spending by : Emphasis Emphasis Emphasis making fewer trips fewer employees travelling on trips flying on lower class airline tickets (e.g., economy seats) staying in less expensive hotels and less expensive rooms booking lower class auto rentals (e.g., economy cars) (greater) use of alternative technologies such as virtual meetings, webinars, teleconferences, etc. (greater) use of travel card data to justify demand for lower prices from vendors (greater) use of data other than travel card data to justify demand for lower prices from vendors consolidating air travel on to fewer select airlines consolidating hotel stays to fewer select companies consolidating auto rentals to fewer select companies increasing ability to obtain discounts by sharing data across travel and entertainment management systems controlling cost of travel management administration. tighter enforcement of travel policies No clear plan to manage travel spending Policies, Limits, and Goals 30. Is employee use of the organization s corporate travel card for travel and travelrelated expenditures mandated by company policy? Yes No 31. Does organizational policy forbid personal use of the company travel card? Yes No 32. Does your organization have per transaction spending limits on travel cards? Yes No If you answered Yes to Question 32 please answer Question 32(a) below. Otherwise, go to Question 33. 32(a). Please identify the most common per transaction spending limit placed on travel cards at your organization: $1-$500 $501-$1,000 $1,001-$2,500 $2,501-$5,000 $5,001-$10,000 More than $10,000 25

33. Please identify the most common monthly spending limit placed on travel cards at your organization: $1 to $1,000 $1,001 to $3,000 $3,001 to $5,000 $5,001 to $10,000 $10,001 to $20,000 Greater than $20,000 26

SECTION 7. Expense Report Processing at Your Organization 34a. What is the approximate number of full-time equivalent (FTE) personnel processing travel expense reports at your organization: Sample FTE calculation: Three employees that devote half of their time to expense processing would equal 1.5 full-time equivalent employees.. FTE 34b. The number of expense reports processed in a typical month at your organization is: 0 to 50 51 to 100 101 to 200 201 to 500 501 to 1,000 1,001 to 3,000 3,001 to 10,000 10,001 to 20,000 Greater than 20,000 35. What is the primary method of processing expense reports at your organization? (please check one) Expense reports are completed manually and submitted in paper format. Expense reports are electronic but not pre-populated with travel card spending data. Expense reports are electronic and pre-populated with travel card spending data. Traveler uses travel card spending statements as the expense report. Other: (please describe): If respondent indicated expense reports are electronic but not pre-populated with travel card spending data or electronic and pre-populated with travel card spending data they should go to Questions 35(a). Otherwise skip to Question 36. 35(a). Please identify (by check) your organization s expense management software (if any): 3 rd party software (such as BasWare, Concur, ExpenseAnywhere, Gelco, Cybershift, etc.) Expense management software from ERP vendor (e.g., Oracle, SAP) Software developed in- house. We use a card issuer-provided automated expenses management tool. Other (please identify): If you answered We use a card-issuer provided automated expense management tool, please answer Question 35(b). Otherwise, skip to Question 36. 35(b). Please identify the name of the electronic travel spend reporting software used by your organization (e.g., MasterCard Smart Data, Visa Intellilink, or bank-branded software solution). 27

Internal Efficiencies of Cards and Related Technology 36. Please estimate the time and cost associated with the expense reporting activities at your organization. Travel expense reporting activity Estimated average time (in minutes) to complete activity at your organization Estimated cost (in dollars) associated with the time to complete activity at your organization Employee completion of an expense report (including identification and input of travel expense data and attachment of appropriate receipts): minutes $ Supervisory review(s) of expense report submitted (if more than one supervisor is usually involved, please combine times of all supervisors): minutes $ Clerical processes to prepare an expense report for payment (including data input, verifying calculations, review/input of accounting codes, and evaluation/reconciliation of invoices to expense report): minutes $ Clerical/accounting processes to reimburse employee and reconcile payment to bank data: minutes $ Quality and Cycle Time Impact on Traveler 37. Please estimate the average number of days elapsed between the date an expense report is submitted and the date reimbursement is issued at your organization: days 38. Please estimate the percentage of expense reports at your organization that are processed without delay or correction the first time through: % 28

Mobile Cellular Communications Technology 39. Does your organization use mobile technology to: (a) collect information on travel options? Yes No (b) make payments for travel services? Yes No (c) review and approve expense reports for payment? Yes No (d) establish and manage travel card account controls? Yes No If you answered No to Questions 39(a), (b), (c) and (d), please answer Question 39(e) below before proceeding to Question 40; if you answered Yes to 39(a), (b), (c), or (d), please skip to Question 39(f) and 39(g). 39(e). Does your organization plan to use mobile technology to assist in travel card program administration in the next three years? Yes No 39(f). Please identify your organization s most commonly used mobile platform: MAC Android Windows OS Other: (please describe): 39(g). Please identify your organization s most commonly used mobile device(s):: Laptop Tablet Phone Other (please describe): 29

SECTION 8. Leveraging Travel Card Information Card Benefits Airfare 40. Approximately what percentage of your organization s total spending on airfare is paid with your organization s travel cards? % 41. Does your organization get a discount from market price on airfare? Yes No If you answered No to Question 41, please skip to Question 42(a). If you answered Yes to Question 41, please continue with Question 41(a) below. 41(a). Please rate the importance of travel card spending information to the discount obtained on airfare. Not important or not used Somewhat important Important Very important Card Benefits Hotels and Lodging 42(a). Approximately what percentage of your organization s total spending on hotels and lodging is paid with your organization s travel cards? % 42(b) Has your organization experienced problems booking hotel rooms when a ghost (or EAP) account is being used? Yes No NA 43. Does your organization get any discounts from market price on hotels/lodging? Yes No If you answered No to Question 43, please skip to Question 44. If you answered Yes to Question 43, please continue with Question 43(a) below. 43(a). Please rate the importance of travel card spending information to the discount obtained on hotels. Not important or not used Somewhat important Important Very important 30

Card Benefits Auto Rental 44. Approximately what percentage of your organization s total spending on auto rentals is paid with your organization s travel cards? % 45. Does your organization get any discounts from market price on auto rentals? Yes No If you answered No to Question 45, please skip to Question 46. If you answered Yes to Question 45, please continue with Question 45(a) below. 45(a). Please rate the importance of travel card spending information to the discount obtained on auto rentals. Not important or not used Somewhat important Important Very Important 31

SECTION 9. Key Drivers and Value of Travel Card Use 46. Please describe the key factors that drive travel card use at your organization, including any card use practices that have been particularly valuable or innovative. 47. What aspects of your relationship with your card issuer (product, features, service) have been particularly appreciated by or valuable to your organization? If none, please write NA. 48. What improvement(s) would you recommend to your travel card issuer to enhance your organization s satisfaction with and use of travel cards? If none, please write NA. 32

SECTION 10. Program Configuration and Features 49. Please check the one response that best describes the basic configuration of your corporate travel card program. One type of travel card with a basic set of features is given to any employee who gets a card (regardless of their position or travel needs). One type of travel card with enhanced features is given to a limited group of employees (such as executives or heavy travelers). One type of travel card with a basic set of features is given to the majority of employees who get a card and a different type of card with enhanced features is given to a limited group of employees (such as executives and heavy travelers). Other (please describe: ) If your response to Question 49 was One type of travel card with a basic set of features is given to the majority of employees who get a card and a different type of card with enhanced features is given to a limited group of employees (such as executives and heavy travelers) please answer Questions 49(a) through 49(d) below. Otherwise, skip to Question 49(e). 49(a). What percent of your travel cards are given to executives and heavy travelers? % 49(b)(1). 49(b)(2). What percent of total travel card monthly spending is associated with travel cards used by executives/heavy travelers? % Does your organization pay a fee or reduce other incentives to have an executive card or special card for heavy travelers? Yes No 33

49(c) Please identify the features that are operational in your travel card program and the value derived by your organization with those features. Travel Card Feature MEDICAL, LEGAL, EMERGENCY SERVICES Check if Feature is Included in the Travel Card Program Used by the Majority of Employees Check if Feature is Included in Your Travel Card Program for Executives and Heavy Travelers Overall Value of Feature for Your Organization Where 1=Little or no value and 7=Very significant value Emergency services (such as lost baggage service, roadside assistance, or card or ticket replacement). 1 2 3 4 5 6 7 Medical and legal services (such as prescription assistance or medical or legal referral). 1 2 3 4 5 6 7 INSURANCE Travel-related insurance services (such as auto rental, lost baggage, or common carrier insurance). 1 2 3 4 5 6 7 Fraud protection 1 2 3 4 5 6 7 REWARD PROGRAMS Loyalty points/awards given to employees. 1 2 3 4 5 6 7 Loyalty points/awards given to company. 1 2 3 4 5 6 7 Cash back (rebate) given to employee. 1 2 3 4 5 6 7 Cash back (rebate) given to company. 1 2 3 4 5 6 7 GLOBAL APPLICATION Global services (such as VAT reclaim services, local language technical support). 1 2 3 4 5 6 7 TRAVEL AMENITIES 1 2 3 4 5 6 7 Airline club membership 1 2 3 4 5 6 7 Travel upgrades 1 2 3 4 5 6 7 International companion travel (e.g. 2 for 1 tickets) 1 2 3 4 5 6 7 Concierge services 1 2 3 4 5 6 7 Higher spending limits 1 2 3 4 5 6 7 Extended deadlines before late fee is assessed 1 2 3 4 5 6 7 If you Checked Loyalty points/award given to employees or Loyalty points/awards given to company please answer Questions 49(c)(1) & 49(c)(2); otherwise skip to Question 50. 49(c)(1). Please describe the type(s) of loyalty awards that can be obtained through travel card use: 49(c)(2). Does your organization pay a fee or reduce other incentives to support the loyalty points/awards program? Yes No 49(d). Is the bank or financial institution that issues your executive or heavy use corporate card different from the bank or financial institution that provides corporate cards to the majority of your employees? Yes No 34

If your response to Question 49(d) was Yes, please answer Questions 49(d)(1) below. Otherwise skip to Question 50. 49(d)(1). Why does your organization use two separate travel card issuers for its basic and executive-type cards? If your response to Question 49 was One type of travel card with a basic set of features is given to any employee who gets a card (regardless of their position or travel needs) or One type of travel card with enhanced features is given to a limited group of employees (such as executives or heavy travelers) or Other please answer Question 49(e) below. Otherwise, skip to Question 50. 49(e) Please identify the features that are operational in your travel card program and the value derived by your organization with those features. Travel Card Feature MEDICAL, LEGAL, EMERGENCY SERVICES Check if Feature is Included in Your Travel Card Program Overall Value of Feature for Your Organization Where 1=Little or no value and 7= Very significant value Emergency services (such as lost baggage service, roadside assistance, or card or ticket replacement). 1 2 3 4 5 6 7 Medical and legal services (such as prescription assistance or medical or legal referral). 1 2 3 4 5 6 7 INSURANCE Travel-related insurance services (such as auto rental, lost baggage, or common carrier insurance). 1 2 3 4 5 6 7 Fraud protection 1 2 3 4 5 6 7 REWARD PROGRAMS Loyalty points/awards given to employees. 1 2 3 4 5 6 7 Loyalty points/awards given to company. 1 2 3 4 5 6 7 Cash back (rebate) given to employee. 1 2 3 4 5 6 7 Cash back (rebate) given to company. 1 2 3 4 5 6 7 GLOBAL APPLICATION Global services (such as VAT reclaim services, local language technical support). 1 2 3 4 5 6 7 TRAVEL AMENITIES 1 2 3 4 5 6 7 Airline club membership 1 2 3 4 5 6 7 Travel upgrades 1 2 3 4 5 6 7 International companion travel (e.g. 2 for 1 tickets) 1 2 3 4 5 6 7 Concierge services 1 2 3 4 5 6 7 Higher spending limits 1 2 3 4 5 6 7 Extended deadlines before late fee is assessed 1 2 3 4 5 6 7 35

If you checked Loyalty points/award given to employees or Loyalty points/awards given to company please answer Questions 49(e)(1) & 49(e)(2); otherwise skip to Question 50. 49(e)(1). Please describe the type(s) of loyalty awards that can be obtained through travel card use: 49(e)(2). Does your organization pay a fee or reduce other incentives to support the loyalty points/awards program? Yes No 36

SECTION 11. Liability 50. Please indicate the liability arrangement in place for the organization s plastic corporate travel cards: (please check one) Individual liability -where the cardholder is primarily liable for payment Corporate liability -where the organization is primarily liable for payment. Joint and several liability where both cardholder and organization are liable for payment. Split liability individual liability for travel and corporate liability for non-travel Other (please describe): If you answered Individual Liability to Question 50, please answer Question 50(a) below; otherwise go to Question 51. 50(a). Describe your organization s experience with employee payment delinquencies: (please check one) Limited or no delinquencies that represent no problem for the organization. Occasional delinquencies that represent a minor problem for the organization. Frequent delinquencies that represent a problem for the organization. Very frequent delinquencies that represent a major problem for the organization. Other (please describe): If you answered Limited or no delinquencies to Question 50(a), please answer Question 50(a)(1) below; otherwise go to Question 51. 50(a)(1). What policies does your organization have in place to prevent or combat delinquent payments from cardholders? 51. Please indicate the liability arrangement in place for your ghost or lodged travel card account(s): (please check one) Individual liability where the cardholder is primarily liable for payment. Corporate liability where the organization is primarily liable for payment. Joint and several liability where both cardholder and organization are liable for payment. Split liability individual liability for travel and corporate liability for non-travel. Not applicable-- my organization does not use ghost or lodged travel card accounts. Other (please describe): 52. How satisfied is your organization with its overall travel card liability arrangement? (please check one) Very satisfied Satisfied Neutral. Dissatisfied Very dissatisfied 37

SECTION 12. Global Card Use 53. Do employees of your organization that are based in the U.S. or Canada travel outside of North America? Yes No If you answered Yes to Question 53 please answer Questions 53(a) through 53(c) below. If you answered No to Question 53, please proceed to Question 54. 53(a). In a typical month, approximately what percent of your organization s travel card spending (by U.S. or Canadian employees) is conducted outside of the U.S. or Canada? % 53(b). Please check the one response that best completes this statement: Over the next three years, our employees from the U.S. and Canada are: Expected to significantly increase travel outside of North America Expected to moderately increase travel outside of North America Expected to continue to travel outside of North America at a rate similar to present activity. Expected to moderately reduce travel outside of North America. Expected to significantly reduce travel outside of North America. 53(c). Please indicate the degree of challenge to travel card use outside of North America that has been experienced by your employees: Degree of Challenge to Your Organization Where 1=Little or no challenge and Item 7=Very significant challenge General acceptance of cards by merchants 1 2 3 4 5 6 7 Exchange rates/currency translation fees 1 2 3 4 5 6 7 Problems with reliability of Merchant Category Code system 1 2 3 4 5 6 7 Failure of card acceptance due to lack of Chip/PIN technology 1 2 3 4 5 6 7 Card theft/fraudulent appropriation and use of card numbers 1 2 3 4 5 6 7 Overly aggressive card spending declines by card issuer 1 2 3 4 5 6 7 Requirements to notify/update card issuer of foreign travel 1 2 3 4 5 6 7 itinerary Ability to withdraw local currency at ATM 1 2 3 4 5 6 7 Other (please describe: ) 1 2 3 4 5 6 7 54. Do other business units of your company, located outside of the United States or Canada, have travel cards programs that are separate from and not included in your response to this survey? Yes No 38

If your response to Question 54 was Yes, please answer Questions 54(a) and (b) below. Otherwise, skip to Question 55. 54(a). Please identify the regions outside of the U.S./Canada where your organization has a separate travel card program(s). Region Mexico Africa Asia and Asia Pacific Region Australia Europe Middle East South and Central America, Caribbean Check Box Below If Your Organization Has a Separate Travel Card Program in the Region 54(b). Why does your organization have a separate travel card program (or programs) instead of using one travel card platform across all global business units? 39

SECTION 13. Controls and Compliance 55. Does your organization Yes No provide employees with cash advances for travel? allow ATM cash withdrawals on travel cards? allow convenience check writing on travel cards? allow automatic debits for recurring payments (such as mobile Internet service) on corporate travel cards? If you answered Yes to provide employees with cash advances for travel, please answer Questions 55(a) and (b); otherwise skip to Question 56. 55(a). Identify the average number of cash advances per year: 55(b). Estimate of administrative cost to issue, track, and account for a cash advance at your organization: $.00 56. Does your organization : Yes No provide employees with a complete electronic or paper copy of travel card use policies? have an ongoing method (e.g., training sessions, website, newsletters) of communicating updates or changes in card policy information to employees? have mandatory initial training requirements for new cardholders? have mandatory ongoing training requirements for cardholders? have mandatory training requirements for individuals who approve card spending? have a website that answers card questions? require a credit check of employees prior to giving them a travel card? cancel travel cards of infrequent travelers? have a clear description of disciplinary actions to be taken in the event of travel card misuse? review/investigate declined transactions? conduct data mining of travel card transactions to identify potential policy violations or travel card misuse? evaluate spending patterns of cardholders with a high number of disputed transactions? have Internal Audit or other authority evaluate and report on the adequacy of the key controls of travel card spending program? 57. Does your organization try to track/manage ancillary airline charges (baggage fees, change penalties, extra leg room, etc)? If so, how does it track these charges (e.g., do you try to capture information from expense reports, card data, or other sources)? 40

SECTION 14. Card Issuer Switching 58. Has your organization switched its corporate travel card issuer in the past three years (2010 through 2012)? Yes No If you answered Yes to Question 58, please answer Questions 58(a) & 58(b); otherwise go to Question 59. 58(a). Please rate the importance of the reasons for your organization s Not Very decision to switch from the previous card issuer. Important Important Drawing near or at the end of current contract term with our card issuer. 1 2 3 4 5 6 7 Fees or service charges. 1 2 3 4 5 6 7 Revenue sharing in rebates. 1 2 3 4 5 6 7 Card issuer expense reporting tool. 1 2 3 4 5 6 7 Customer service and support. 1 2 3 4 5 6 7 Ability to integrate card data into accounting/erp system. 1 2 3 4 5 6 7 Ability to integrate card data into expense automation software. 1 2 3 4 5 6 7 Benefits from consolidation of business with one financial institution. 1 2 3 4 5 6 7 Up-front financial incentive provided by another card issuer. 1 2 3 4 5 6 7 Card features and functionality (e.g., insurance, rewards, services, etc.). 1 2 3 4 5 6 7 Travel management services. 1 2 3 4 5 6 7 Expense management services 1 2 3 4 5 6 7 Acceptance of card brand by North American vendors. 1 2 3 4 5 6 7 Global acceptance of card brand. 1 2 3 4 5 6 7 Global card issuer support and services associated with card. 1 2 3 4 5 6 7 Other (please describe): 1 2 3 4 5 6 7 58(b). Please estimate the total cost your organization incurred to switch from one travel card issuer to another (including costs associated with unwinding the relationship with the predecessor card issuer, issuing new travel cards and setting up new account structures, software training, card distribution, establishing a reporting structure, etc.): $,, 59. Is your organization currently considering switching its corporate travel card issuer? Yes No 41

SECTION 15. Other Travel Technology 60. Which answer below best describes the means by which most travel arrangements are booked at your organization? (please check one) Travel is booked through a specific travel agent or with a travel agency online booking tool (e.g., Carlson Wagonlit, GetThere, Travelocity Business) Travel is booked through a specific consumer online booking tool (e.g., Expedia, Orbitz). Travel is booked directly with a particular service provider (e.g., an airline or hotel). Employees book their own travel arrangements as they see fit. Other: (please describe): If you checked Employees book their own travel arrangements as they see fit, please go to Question 61. Otherwise, continue to Question 60(a). 60(a). Please indicate the degree of integration between your travel booking software and your expense reporting system? No integration Low integration. Moderate integration High integration 61. Identify the expense documentation or storage capability features used by your organization (please check all that apply) Paper receipts mailed to AP department. Automatically attach scanned or faxed receipts to automated expense report. Fax receipts with bar-coded cover sheet to central imaging server. Electronic expense reports are digitally archived. Electronic expense reports are hyperlinked to scanned images of receipts. Other (please describe):. 62. At your organization, travel expenses are most frequently reimbursed by: paper check to employee direct deposit to employee bank account. addition to regular employee paycheck. reimbursement directed to employee travel card issuer. reimbursement directed by employee to his/her bank account or credit card issuer. Other (please describe):. 42

SECTION 16. Corporate Travel Card Misuse For the purpose of understanding travel card misuse, this section divides misuse into travel card policy violations, fraud, and misrepresentation. Each of these is defined below. A travel card policy violation is defined as any travel card transaction: o for a larger quantity of goods or services than specified by organization travel policy (e.g., taking an extra employee along to a meeting, taking too many people out to a business lunch), o for goods or services of a higher quality or class of service than specified by policy (e.g., first class airfare when coach is policy or renting an SUV instead of an economy car as required by policy), o with an unauthorized or non-preferred vendor o that is not properly authorized by supervisory personnel (when required) prior to the purchase. Travel Card Policy Violations 63. Has your organization experienced any travel card policy violation incidents in the past twelve months? Important note: an incident is defined as an event that resulted in an internal organizational record of what occurref Yes No If you answered Yes, to Question 63, please answer Questions 63(a) and 63(b). If you answered No to Question 63, please skip to Question 64. 63(a). Please provide the number of incidents of travel policy violation that resulted in an internal organizational record of the event. Type of Travel Policy Violation. Cardholder purchases larger quantity of good or service than specified by organization travel policy (e.g., taking too many people out to a business lunch). goods or services of a higher quality or class of service than specified by organization travel policy (e.g., buying first class instead of coach airfare as required by policy). from unauthorized or non-preferred vendors. goods or services without receiving appropriate authorizations prior to purchase (if required). Other policy violation (please describe: ) Number of Incidents in Past Year That Resulted in an Internal Organizational Record of the Event 43

63(b). Please provide the total dollar loss to your organization due to travel policy violation(s) that resulted in an internal organizational record of the event. Type of Travel Policy Violation Cardholder purchases larger quantity of goods or services than specified by organization travel policy (e.g., taking too many people out to a business lunch). Cardholder purchases goods or services of a higher quality or class of service than specified by organization travel policy (e.g., buying first class instead of coach airfare as required by policy). Cardholder purchases from unauthorized or non-preferred vendor(s). Cardholder purchases goods or services without receiving appropriate authorizations prior to purchase (if required). Other Total $ Loss to Your Organization Due to Travel Policy Violation(s) that Resulted in an Internal Organizational Record of the Event. $ $ $ $ $ 64. Please complete the following statement: In comparison to other payment methods, travel card use at my organization is associated with a likelihood of travel policy violation. significantly higher significantly lower similar 44

Fraudulent Use of Travel Card For purposes of this survey, fraud occurs when any unauthorized user charges goods or services to the travel card. Fraud can be broken down into two types: o Use by a third party who is not a member of your organization (such as an Internet hacker or an unscrupulous merchant), or o Personal use by an employee who is not authorized to use the travel card. 65. Has your organization experienced any incident of fraudulent use of a travel card in the past twelve months? Important note: for this question, an incident is defined as an event that resulted in an internal organizational record of what occurred. Yes No If you answered Yes, to Question 65, please answer Questions 65(a) and 65(b). If you answered No to Question 65, please skip to Question 66. 65(a). Please provide the number of incidents of fraudulent travel card use in the past year that resulted in an internal organizational record of the event. Type of Fraudulent Travel Card Spending Use by a third party who is not a member of your organization (such as an Internet hacker or an unscrupulous merchant). Personal use by an employee who is not authorized to use the travel card. Other: Please describe: Number of Incidents in Past Year That Resulted in an Internal Organizational Record of the Event 65(b). Please provide the total dollar loss to your organization due to fraudulent travel card use that resulted in an internal organizational record of the event. Type of Fraudulent Travel Card Spending Use by a third party who is not a member of your organization (such as an Internet hacker or an unscrupulous merchant). Personal use by an employee who is not authorized to use the travel card. Other: Please describe: Total $ Loss to Your Organization Due to Fraudulent Use of Travel Card that Resulted in an Internal Organizational Record of the Event. $ $ $ 45

66. Please complete the following statement: In comparison to other payment methods, travel card use at my organization is associated with a likelihood of fraudulent spending. significantly higher significantly lower similar Misrepresented Use of Travel Card For purposes of this survey, misrepresentation is defined as any event in which an employee makes a personal transaction on the travel card and misrepresents that transaction as a bona fide business charge. 67. Has your organization experienced any incident of a misrepresentation of a travel card purchase in the past twelve months? Important note: an incident is defined as an event that resulted in an internal organizational record of what occurred. Yes No If you answered Yes, to Question 67, please answer Questions 67(a) and 67(b). If you answered No to Question 67, please skip to Question 68. 67(a). Please provide the number of incidents of misrepresented travel card use in the past year that resulted in an internal organizational record of the event. Type of Misrepresented Travel Card Spending Cardholder makes a personal use of travel card and misrepresents the purchase as a bona fide business charge. Number of Incidents in Past Year That Resulted in an Internal Organizational Record of the Event 67(b). Please provide the total dollar loss to your organization due to misrepresented travel card use by an employee that resulted in an internal organizational record of the event. Type of Misrepresented Travel Card Spending Cardholder makes a personal use of travel card and misrepresents the purchase as a bona fide business charge. Total $ Loss to Your Organization Due to Misrepresented Use of Travel Card by an Employee that Resulted in an Internal Organizational Record of the Event $ 68. Please complete the following statement: In comparison to other payment methods, travel card use at my organization is associated with a likelihood of misrepresented spending. significantly higher significantly lower similar 46

SECTION 17. Data and Economic Aspects of Travel Cards 69. Please rate the importance of and satisfaction with the information related to travel that is received from your travel card issuer. Importance of Data to Your Organization Not Important Very Important Satisfaction with Data Received from Your Travel Card Issuer Very Dissatisfied Very Satisfied Information Item a. Airline data city pairs details. 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 b. Airline data travel leg details. 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 c. Airline data- itinerary details. 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 d. Airline data seats purchased by service class. 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 e. Fare basis code information. 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 f. Airline data seat upgrade data. 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 g. Hotel folio data 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 h. Enhanced auto rental data. 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 i. Taxpayer identification number 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 j. Sales tax information 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 k. VAT tax information 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 l. Hotel street address 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 m. Carbon emission data related to travel purchases 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 n. Information to support discount negotiations with airline 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 o. Information to support discount negotiations with hotels 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 p. Information to support discount negotiations with auto rental agencies 1 2 3 4 5 6 7 NA 1 2 3 4 5 6 7 q. Overall capture of transactionrelated information. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 47

70. Please rate the importance of and satisfaction with the factors listed below that influence corporate travel card economics. Importance of Economic Factor to Your Organization Not Important Very Important Satisfaction with Your Card Issuer on Economic Factor Very Dissatisfied Very Satisfied Economic Item a. Bank fees to obtain corporate travel cards. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 b. Rebates/incentives tied to card spending. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 c. Cost of lost/stolen card replacement. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 d. Liability protection for lost/stolen cards. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 e. Liability protection from card misuse. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 f. Cash advance fees. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 g. Foreign exchange fees. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 h. Late payment fees. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 i. Loyalty awards/rewards 1 2 3 4 5 6 7 1 2 3 4 5 6 7 j. Overall economic relationship with card issuer in relation to corporate travel cards. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 48

SECTION 18. Customer Service and Support 71. Please rate the importance of and satisfaction with the corporate travel card issuer customer service and support items listed below. Importance of Service and Support Item to Your Organization Not Important Very Important Satisfaction with Your Card Issuer on Service and Support Item Very Dissatisfied Very Satisfied Customer Service and Support Item a. Training materials and support. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 b. Knowledge of your organization s information systems technology and expense reporting process. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 c. Friendliness and respect shown by card issuer personnel. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 d. Service and support in travel card program implementation. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 e. Level of assistance in identifying best applications for travel card. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 f. Assistance in getting suppliers to accept corporate travel card. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 g. Work with suppliers to ensure quality or suitability of data passed through system. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 h. Quality of help from help desk. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 i. Hours of help desk availability. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 j. Average time elapsed for help desk to resolve a problem. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 k. Speed of lost/stolen card replacement. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 l. Handling of disputed transactions. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 m. Handling of delinquent accounts. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 n. Travel management (trip planning, booking, etc.) services. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 o. Expense management services 1 2 3 4 5 6 7 1 2 3 4 5 6 7 p. Sponsorship of commercial card User Conferences or other training programs. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 q. Overall customer service and support. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 49

SECTION 19. Technology and Reporting 72. Please rate the importance of and satisfaction with the aspects of data integration listed below. Importance of Data Integration Item to Your Organization Not Important Very Important Satisfaction with Your Travel Card Issuer Data Integration Item Very Dissatisfied Very Satisfied Data Integration Item a. Ability to integrate travel card data into resource planning, general ledger, or Accounts Payable applications. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 b. Ability to transfer travel data to expense reports. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 c. Ability to transfer travel spending data to expense reports. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 d. Ease with which travel card spending is allocated to appropriate accounting cost center. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 e. Ease with which travel card spending can be reconciled with other organizational data about card purchases. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 f. Overall integration of travel card data with your organizational information systems. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 50

73. Please rate the importance of and satisfaction with software technology features related to travel card program management listed below. Ability of card administrator to Importance of Technology Feature to Your Organization Not Important Very Important Satisfaction with Technology Features of Your Reporting Software Very Dissatisfied Very Satisfied a. perform cardholder data maintenance (e.g., address changes) in real time. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 b. terminate/order travel cards in real-time. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 c. obtain real-time access to information on card spending approvals/declines. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 d. modify spending limits in real-time. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 e. allocate travel card spending to separate accounts on an ad hoc basis. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 f. automate workflow processing for expenditure approval. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 h. monitor card program metrics. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 i. access administrative tools via mobile or tablet device, 1 2 3 4 5 6 7 1 2 3 4 5 6 7 j. use technology to validate account codes. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 k. to self-manage the travel card program. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 l. Overall ability of bank technology to support travel card program management. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 51

74. Please rate the importance of and satisfaction with the travel card management and spend reporting software features/capabilities listed below. Importance of Reporting Package Feature/Characteristic to Your Organization Not Very Important Important Satisfaction with Your Reporting Package Feature/Characteristic Very Very Dissatisfied Satisfied Spend Reporting Item a. Length of transaction history. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 b. Access to past/present cardholder statements. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 c. Readability of reports. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 d. Support provided in development and/or interpretation of reports. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 e. Ability of cardholders to obtain statements by e-mail or from Internet/Intranet. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 f. Ease of submitting expense reports to proper person for approval. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 g. Ability to track disputed transactions. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 h. Ability to analyze spending patterns. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 i. Ability to locate a traveler in an emergency. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 j. Ability to track payment delinquencies. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 k. Ability to access reporting on mobile or tablet device 1 2 3 4 5 6 7 1 2 3 4 5 6 7 l. Card misuse analytics. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 m. Ability to customize reports. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 n. Integrity of data contained in reports. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 o. Overall reporting package. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 The End! Thank you for your participation. A complete analysis and report of the responses to this survey will be included in the 2013 Corporate Travel Card Benchmark Survey Report, which will be mailed to you around June 2013 to the address you provided. Please notify us of any changes to that address in the interim by email to Richard.Palmer@RPMGresearch.net 52

Confidentiality Agreement RPMG Research Corporation shall keep all individual responses to the 2013 Corporate Travel Card Benchmark Survey confidential and shall not disclose the responses to any person or other entity. In addition, all information, analysis, responses, and other data that is specific to or identifies a specific card issuer shall be kept confidential and shall be released only to that specific card issuer. Furthermore, any person assisting RPMG Research Corporation in the analysis of survey data or compilation of survey results is bound by a confidentiality agreement prior to beginning any work with the survey data or respondent responses. Notwithstanding the fact that individual responses are and shall remain confidential, the aggregated responses of all survey participants shall be made public in benchmark results, professional presentations, and published and unpublished documents authored by RPMG Research Corporation personnel and research assistants (if any) bound by this confidentiality agreement. Meet The Investigative Team Richard Palmer is a Professor of Accounting at Southeast Missouri State University. Previously, he held appointments at Washington University in St. Louis, Eastern Illinois University, and the University of Tennessee. Prior to academic work, he worked for Laventhol and Horwath, and as a senior accountant in the banking industry. Professor Palmer is a frequent speaker at commercial card conferences and is the author of over 50 professional and academic publications, including award-winning articles about industry use of e- procurement tools and commercial cards. Richard's e-commerce and commercial card insights have been quoted in U.S. Senate hearings, the Wall Street Journal, CNN Money, CBS News MarketWatch, American Banker, Business Finance, Purchasing, CFO, Treasury and Risk Management, Financial Executive, Credit Card News, Cards International, Credit Card Management, Federal Times, Government Procurement, and Business Integration. Mahendra Gupta is the Virgil Professor of Accounting and Management at the Olin School of Business at Washington University in St. Louis. He received his Ph.D. from Stanford University in 1990 and M.S. from Carnegie Mellon University in 1981. Professor Gupta currently studies issues in strategic cost management, benchmarking, and performance measurement. Professor Gupta has been published in a number of major scholarly journals in his field and has served on the editorial boards of several journals in the accounting and management profession. He has also authored several professional publications on topics of cost management, customer profitability, e-commerce, and performance measurement, including articles about industry use and benchmarks of purchasing and travel cards. In addition, he has served as a consultant for a range of financial service and manufacturing firms and government agencies. 53