PROPOSAL RESPONSE FORM Use Additional Sheets as Required

Erie 1 BOCES Financial Card Services (RFP # R-081513PC) PROPOSAL RESPONSE FORM Use Additional Sheets as Required 1. Please check the card services that your proposal includes: P-Card only A/P Card only Both P-Card and A/P card 2. REBATES: Provide your proposed rebate information below for both P-Card and A/P card services place the % rebate at each level Estimated Expenditures P-Card A/P card Less than $ 100,000.24%.24% $ 100,000 $ 500,000.24%.24% $ 500,000 $ 1,000,000.29%.29% $ 1 million $ 5 million 1.02%-1.18% 1.02%-1.18% Greater than $ 5 million 1.18% and up 1.18% and up Our financial proposal is based on an average spend per card structure. This grid represents the rebate potential at specific levels based on an average spend per card. If over the course of a contract year, the average spend per card is at any level described in the grid, the applicable rebate percentage is applied. As an example, $1 million dollars spent over the course of a year and 10 cards issued would provide for an average spend per card of $100,000 and a rebate percentage of 1.02%. Please see Exhibit 3 for specific breakouts and additional financial information. 3. REBATE PROGRAM: Provide any description of your rebate program that may be helpful. For example, is the rebate based on aggregate spent for all clients or based on each organizations individual spending. In addition to the information requested above, please answer the following questions (reference this question on your separate sheet): Please refer to Exhibit 3 for comprehensive details of the financial proposal we have prepared for your commercial card program. a. Is there a cap on the size of the rebate that Erie 1 BOCES can earn? There is no cap on earnings. b. Will the rebate differ for large purchases vs. smaller purchases (High ROC vs. Low ROC)? There is no difference between large versus smaller purchases from a rebate perspective. c. Are there any minimum requirements for each card to qualify for any rebates? The rebate structure is based on an average spend per card model, as outlined in our financial proposal in Exhibit 3.

d. Is there any interest charged on our line of credit? There is no interest charged within the billing cycle or payment period. e. What spend is eligible/ineligible for rebates? All card spend other than cash advances. f. Describe your reconciliation process how can this be customized to meet our needs? Smartdata can automatically and accurately allocate Erie 1 BOCES transactions to specific cost centers, general ledger accounts, or projects based on default allocation rules at the card or merchant category level. This minimizes the time-consuming process of manually allocating transactions and ensures that every transaction is assigned to a valid account. Within the system, transaction display can be filtered by merchant, merchant postal code, MCC, transaction amount range, and/or transaction type. Receipts can also be appended to individual transactions and downloaded en masse. In addition, transactions can be split up to 250 times, and account values are editable according to your specific rules. 4. FEES: Provide any fees for card use for the District and describe if necessary: P-Card A/P card * * *We understand that minimal fees, significant cost savings, and a measurable return on investment are key factors for organizations as they evaluate and select a commercial card program provider. In order to present the best possible value for Erie 1 BOCES, J.P. Morgan has compiled a customized financial proposal that waives typical program costs such as annual card fees and transaction fees while offering your organization rebates and other financial incentives as part of our overall solution. Please refer to Exhibit 3 for comprehensive details of the financial proposal we have prepared for your commercial card program. 5. ADDITIONAL FEES: Provide the total fees for vendors; both your fees and any third party fees that may be added to the vendors for accepting use of cards/services and describe if necessary: P-Card A/P card * * *Merchant fees are evaluated and calculated based on a number of factors, including merchant business type, total credit card volume to be processed through the acquiring bank, average transaction size, timing and method of settlement, and the type or level of data being passed. Without all of this information, it is difficult to determine the actual cost for each merchant. For suppliers currently accepting credit cards as a form of payment, fees would already be set by the contract established with the supplier s merchant acquiring bank. 6. REPORTS: List the types of reports that are provided and provide copies of all sample reports that are available to district users and card administrators. To facilitate comprehensive program management and reporting, J.P. Morgan provides our clients with MasterCard s smartdata.gen2 (smartdata) system. This robust system will support Erie 1 BOCES cardholders and program administrator wherever you work or travel. Smartdata is entirely browser based and is designed to support centralized and decentralized commercial card programs with functionality for viewing and reconciling transactions, reallocating expenses to fulfill organizational needs, and standard as well as ad hoc reporting to easily track procurement activity. Sample smartdata reports have been provided in Exhibit 2.

Smartdata enables Erie 1 BOCES to generate multiple standard reports online at any time. Reports are available for printing and downloading in Adobe PDF, Microsoft Excel, or text formats and cover all major aspects of commercial card programs, including transaction details and supplier information. Users can run reports on demand or schedule them to run automatically by billing cycle or on a daily, weekly, or monthly basis. Email reminders will alert users when scheduled reports are accessible through their smartdata inboxes. Reports can easily be downloaded to your internal systems as needed for further manipulation and analysis of information. The flexibility of smartdata s on-demand and scheduled reporting allow Erie 1 BOCES to closely monitor your card program. Full hierarchy support provides reporting rights at cardholder, department, and organization-wide levels. Categories available for analysis include purchasing, expense reports, specific merchant spending, exception reporting, and program analysis. The reports most frequently run by our clients include: Transaction reporting Line Item Detail, Daily Transaction Summary, Cash Transaction Detail, Spend Analysis by Transaction Category Cardholder/hierarchy reporting Account Spending Analysis Detail, Account Statement, Account Status Supplier reporting Merchant Summary Detail, Merchant Related Spending Alerts, Spend Analysis by Merchant, Spend Analysis by Merchant Category General/global reporting Approver Summary, Accounting Code Analysis, Card Program Analysis, Cost Allocation Summary 7. TRAINING: Provide a detailed summary of training that will be provided and how it is provided. If possible, Erie 1 BOCES could facilitate multiple district training. However, districts will have option to receive the standard training on their own at no additional costs. See Section G. As part of your Commercial Card Classic program, J.P. Morgan will provide comprehensive training to help Erie 1 BOCES take full advantage of the advanced features and functionality of smartdata. At no cost, we offer phone-based training sessions, access to our interactive online training tool, and supplementary training materials in user-friendly electronic formats. Training should typically include program administrators and system support staff, who can then train other employees. Your implementation associate will work with you to find the approach that best fits your needs. Program administrator training will be tailored to your specific program to ensure that we meet your objectives. This training includes: Managing the program in partnership with your implementation specialist Receiving and distributing data transmissions and/or hardcopy reports and statements Assisting with the customization of your smartdata site Coordinating cardholder training through our Train-the-Trainer approach Interactive Online Training Erie 1 BOCES can access J.P. Morgan s proprietary, web-based training tool for both new and ongoing training. Administrator and cardholder training modules feature interactive exercises, exploration screens, best practice recommendations, and tips for maximizing the user s reporting experience. The administrator module includes implementation and program management instruction, and also allows the user to track their own training progress. Tailored Training Sessions J.P. Morgan offers regularly scheduled smartdata training sessions, including: System demonstrations We offer weekly demonstrations of our web-based smartdata reporting tool, including features and functionality that will assist you in effectively managing your commercial card program. Webinar training sessions Every other week, our expert product trainers conduct webinar training sessions that cover key program management topics, smartdata setup, and ways to leverage smartdata s dynamic capabilities. One-on-one phone training Our product experts can schedule a one-on-one training session with key members of your organization. Topics can include introductory overviews and critical insights into better managing your program using the tools and resources found in smartdata. (Note that this level of training is only available for entities with over $1 million in spend.)

Supplementary Training Materials Additional support materials available include smartdata user guides, quick reference guides, and an export fields reference guide. We typically make these resources available in electronic format for quick and easy access. 8. PROGRAM SET UP: Provide a standard plan for set up and implementation. As much as feasible, it will be the responsibility of the Contractor to contact District vendors to participate in program. Districts will provide Contractor with a list of vendors that are used by the District in order for the Contractor to contact them. Participation by the District vendors will be voluntary and not required. The key to a successful implementation is applying a timely, customized process that meets your program goals. J.P. Morgan s proven implementation methodology will provide a smooth program rollout for Erie 1 BOCES, beginning with a full program assessment. This process is led by an implementation associate who has extensive experience in implementing card programs. Your assigned implementation associate will provide direction on key internal issues and will educate your team members on our implementation approach and tasks. The typical program takes from four to eight weeks to complete implementation and setup, depending on the number of cards issued. Your implementation associate will work with the appropriate managers within your organization to evaluate your program objectives and structure your program in the most effective manner to achieve those results. We will share our wealth of knowledge to help you avoid re-inventing the wheel with efforts like establishing internal policies, and we will also monitor expansion opportunities on an ongoing basis. In addition, your implementation associate will collaborate with you to configure your hierarchy structure and the reports, formats, and reporting methods best suited to your organization. Implementation Timeline The following is a high-level example of our implementation timeline: ACTION TIMEFRAME COMMENTS Verbal Agreement Received Assignment of implementation associate Within two business days of notification Implementation associate performs introductory call with client to begin the implementation process Credit approval Prior to contract issuance Banker determines credit extension Receipt and execution of contract Implementation Process Discovery call and implementation presentation Completion of forms (authorized signer, company record, cardholder account) Receipt of cards Optional Graphix card for 20+ card issuance Approves proof Within 10 business days after credit approval Scheduled at client s convenience Within five business days of presentation 12 16 business days from receipt of paper enrollment forms; 7-10 days from receipt of spreadsheet listing cardholders Within five business days of receipt of proof Contract emailed from J.P. Morgan; should be returned within five days to implement as quickly as possible One or two calls (depending on client complexity) that follow a structured format and checklist All forms completed and authorized by client and sent to implementation associate, who is available to answer questions throughout the process Cards are processed after all forms are completed and authorized Adds approximately four weeks to implementation Proof is sent within two weeks of graphic receipt

Card Usage Begins Optional smartdata reporting One business day Client training for program setup is completed Vendor Participation in Your Program J.P. Morgan offers a free vendor matching service to identify your suppliers who currently accept MasterCard simply provide us with a data file of your supplier base that includes the name, complete address, and tax ID (if available) of the supplier. This is a great tool to easily determine which check payments can be converted to a card payment. Your Global Commercial Card representative, Terry Majka, will help you with this process as well as other aspects of vendor engagement for your program. In addition, Chase Paymentech, the merchant acquiring business of JPMorgan Chase & Co., can assist Erie 1 BOCES in getting your non-card-accepting suppliers to become card capable. Moreover, your implementation associate can provide you with access to a Supplier Cost Benefit Model that your noncard-accepting suppliers can use to determine the benefits of accepting a card for payment, along with sample letters you can use to advise your suppliers of your desire for them to accept a card for payment. Once a list of your suppliers that are interested in enrolling is gathered, a Chase Paymentech employee can reach out to them to explain acceptance, illustrate the proper tools for entry in order to minimize interchange costs, and set up suppliers for acceptance with Chase Paymentech. 9. PROCUREMENT CARD: Please answer the following questions (reference this question on your separate sheet): a. How do you ensure that the District is protected from unauthorized charges? J.P. Morgan s fraud screening process is designed to protect our clients from fraud losses. Our communication process ensures that the right person is contacted when we suspect fraud. Fraud statistics for our commercial card programs are well below the industry average and a far lower rate than the fraud associated with consumer cards. This low fraud rate speaks to the strength of our fraud prevention practices as well as our partnerships with clients in establishing effective card controls. Fraud Screening J.P. Morgan s team of experienced fraud prevention analysts utilizes specialized screening tools to constantly monitor transactions for suspicious activity to aid in detecting fraud and minimizing losses. J.P. Morgan fraud detection systems are flexible and have the ability to target both general fraud trends and specific trends. Criteria or rules are defined based on analysis of fraud data, providing us with current fraud trends: Fraud patterns Specific or high-risk merchant category codes (MCCs) Dollar amounts and cash advances Geographic location Specific merchants and unusual purchases such as jewelry or electronics The categories we monitor include cash advances, unusual purchases such as jewelry or electronics, high-risk MCCs, and questionable geographic areas. Cash advances are also monitored for high-risk locations and large dollar amounts. Suspicious transactions are further identified based on details that include the type of authorization, type of merchant, location of recent fraud trends, history of the account (statement review), expiration date entered, and decline reason. If authorizations meet these pre-defined criteria, the account is sent to a fraud handling queue or blocked for referral. Communication Process When a potentially fraudulent transaction is identified, a fraud analyst will evaluate the account s history and activity. The analyst will then contact the cardholder to verify the validity of the purchase and to confirm card possession. Depending on the circumstances, we may continue to monitor the account for suspicious charges, or suspend it temporarily to minimize potential fraud losses. If we suspect employee misuse of funds, we will contact the appropriate entity s program administrator directly.

Under most circumstances, a call is placed to the cardholder at both the business and home telephone numbers, with messages left if no contact is made. After the first attempt, we will call the cardholder at both phone numbers and leave messages, as well as email the cardholder if an email address is available. If we are unsuccessful in reaching the cardholder after three attempts, or if the phone numbers are invalid, we will reach out to the program administrator. b. What controls/spending limits are available with your procurement card? J.P. Morgan s purchasing card program offers numerous card controls and key features such as online viewing of transactions and denial at the point of sale for transactions that do not meet Erie 1 BOCES requirements. Your program administrator can establish dollar, MCC, transaction, and cash advance limits at any level of your hierarchy, from individuals to departments to your entire organization. The following blocking categories are available: Dollar limits You can limit the maximum amount that can be spent on a single purchase, as well as the overall dollar limit per billing cycle. MCC restrictions Card usage at specified MCC groups can be restricted using our standard groupings, or you can establish customized MCC groups to meet your unique usage restriction requirements. Transaction limits Program administrators can place limits on the number of transactions allowed per day and per billing cycle. Cash advance controls Because cash can be difficult to track and reconcile, we offer you the ability to completely prohibit cash advances throughout your organization (a best practice for purchasing card programs). If desired, you can control daily and cycle cash advance amounts as well as the size of single or daily cash advances. Through smartdata, transactions can be reviewed within 24 hours of posting, enabling your program administrator or managers to act immediately on any policy infringements. In addition, authorized personnel can use a wide range of reports to monitor spend limits and track spend history, making it simple to determine whether cardholders limits are sufficient for their needs. c. Do you have the ability to restrict spending to preferred suppliers? Describe. Yes; the proven method of merchant allowances and restrictions occurs at the MCC level. Several profiles of MCC blocking can be configured so that different parts of the Erie 1 BOCES structure have their own set of MCC blocks. Program administrators can place boundaries by MCC group to determine how much a cardholder can spend at a group of merchants. This limit can be restricted by daily number of transactions, transaction amount, and monthly spend. d. If a Cardholder has a dispute or issue with a charge, what is the resolution process and timeline? In most cases, transactions that have been erroneously charged to Erie 1 BOCES can quickly be corrected by making a simple phone call to the merchant, avoiding the dispute process entirely. If a dispute needs to be initiated, your cardholders or program administrator can initiate a dispute by phone, fax, email, or mail. Disputes can also be initiated via a form in smartdata and then faxed or mailed for completion. Our dispute resolution team will begin researching the charge within five days of notification. Disputes must be initiated within 60 days from the statement billing date. If a dispute is initiated after the billing cycle close date (i.e., the disputed item appears on a statement) the item will be included in the amount due for that statement. Erie 1 BOCES is responsible for submitting supporting documentation to J.P. Morgan; this information must be received before we can begin the dispute process with a merchant. Cardholders will be kept informed about dispute progress by phone and/or through written notifications, including mail or email. Upon dispute resolution, if a credit is due, the credited amount will be posted on the next billing statement.

e. Describe the process for reporting a lost or stolen card. If a card is lost or stolen, Erie 1 BOCES should contact J.P. Morgan immediately by phone to have the account cancelled and initiate steps to prevent further program liability. Our customer service representatives are available 24 hours a day, 365 days a year to assist with lost/stolen card reporting and new card issuance. f. Describe the procedure for de-activating cards. Your program administrators can easily deactivate/cancel cards online through our Smart Data Real-Time Account Manager (SDRAM) tool. Program administrators and cardholders can also cancel cards by contacting our program coordinator team or customer service. g. Define the levels of data captured by your procurement card. Smartdata will display all levels of transaction data transmitted by merchants at the point of sale, including the following: Commercial card standard: Level I Summary transaction detail Commercial card enhanced: Level II All detail from level I plus sales tax and a 16-digit free-format (customer code) field Commercial card enhanced line-item detail: Level III All level I and level II detail plus line-item transaction detail such as unit costs, commodity description, freight costs, hotel folio, and airline itinerary information The detail provided through smartdata will help you to easily analyze cardholder activity while tracking how and where your money is being spent. Smartdata can also provide reports with this information (e.g., detail, summary, and exception reports). 10. A/P CORPORATE CARD: Please answer the following questions (reference this question on your separate sheet): a. Describe the controls and security against improper, unauthorized or fraudulent usage. What additional controls have been put in place to add security around card numbers? The A/P card offers the same types of controls that are in place for your checking accounts. This card is only intended for use with transactions that have been pre-approved, so only those charges will occur with the card. Any other charges would be considered fraudulent and be handled as such. b. Describe any control restrictions for single transactions, including the number and amounts authorized per day and per cycle, restrictions on the types of vendors and merchant category codes with which the card may be used, spending and transaction limits for each Cardholder (both per transaction and on a monthly basis). In the A/P card payment process, each vendor is paid only an agreed-upon amount, and payment receipt is typically returned to you via email or fax. A/P cards can be limited by transaction size, transactions per cycle, MCCs, and overall limit. c. With the District have access to an online portal to view payment status, cancel, or void a payment? Erie 1 BOCES will have online access to view transactions. There would be no need to view payment status or cancel/void payments, as payments are only made after they have been authorized through your existing approval process. d. Can the District consolidate payment methods on this platform? Describe the advantages and disadvantages of each method. No; only one payment method is offered. e. Describe your provisions for handling questioned items and charge backs. Any unauthorized charges can be reported and handled through a dispute process.

f. How much customization or integration is required to implement your electronic B2B payment solutions? The A/P card process involves a slight workflow change that requires a single payment account to be added to your current accounting system. After the account has been added, vendor payments that have been authorized through your approval process can be made immediately. Your local Global Commercial Card representative, Terry Majka, will provide all support for this solution on an ongoing basis. g. What is the supplier enrollment process? What is required of the supplier to accept a payment using your solution? Suppliers must be equipped to accept card payments and be willing to do so without any adverse effects on terms or pricing for the district involved, also known as being indifferent to card payments. Once suppliers have been identified as being indifferent, their preferred payment methods are provided.