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PCard US Bank, Part I Courtney Hoppe – AVP Relationship Manager

Managed Spend (Declining Balance Cards) Payment Plus (Virtual Card Payments)

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Managed Spend (Declining Balance Card)

Balance declines without refreshing each cycle

Same online visibility, access, and reportingPurchase card rebate still appliesUsed for controlled purchasesVisa acceptance worldwide

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Managed Spend (Declining Balance Card)

When used for AthleticsBest practice, issue to a coach or team

managerConsider annual spend per cardUtilize temp auth start and end dates

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Managed Spend (Declining Balance Card)

Eliminating Blanket Purchase Orders Consolidates costly invoicesVendors get paid at point of saleDepartment gains live visibility and reportingBetter control of budgetAdded spend to optimize card rebate

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Managed Spend (Declining Balance)

Examples of Accepting VendorsGraingerRoyal Paper CorpWaxie Sanitary SupplyKeaton CateringWalters Wholesale ElecPlumbing & IndustrialCleansource

Graybar Electric Company

P & R Paper SupplyADI SecurityOffice MaxVita PrintHome DepotTarget Specialty

Products

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Managed Spend (Declining Balance Card)

How would the process work?Confirm that the vendor will accept card

payment Cancel the requisition for a blanketVerify vendor will meet terms and conditions Set up a managed spend account in Access®

Online Internal vendor and department numbers Buyer provides the account number to the vendor

The requesting department’s process will not change

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Managed Spend (Declining Balance Card)

How does the reconciliation process work?Department receives a consolidated statementThe employee submits the corresponding

receipts The packet is then audited by procurementPacket is submitted for single payment to US

BankTransaction data can be uploaded into

PeopleSoft

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Managed Spend (Declining Balance Card)

Can multiple departments use the same vendor?Each department assigned a declining balance

accountSame as multi-department blanket to prevent

cross-over expendituresOnly difference is the payment method

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Only thepayment method

changes PAYMENT

INVOICERECEIPT

FINANCIALSYSTEM

CODING

APPROVAL

Payment Plus

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Payment Plus

Availability to CampusesInterface TestingPilot Timeline

Implementation TopicsU.S. Bank SupportProgram Set UpTest Transactions

Vendor EnrollmentDedicated Enablement ManagersAcceptors, Good Opportunity, Online

Access OnlinePAYMENT PLUS

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Program Optimization

Consultative ApproachAnnual Review and RecommendationsBenchmarking and Opportunity ToolsFinancial Benefits StatementsOngoing Success TrackingSupports Vendor Enablement Effort

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PCard US Bank, Part II Courtney Hoppe – AVP Relationship Manager

Travel Card Program Options Fraud Overview and Mitigation

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Travel Card Options

Liability OptionsCorporate or Individual

Billing Structure OptionsCorporate - CentralCorporate - IndividualIndividual - Individual

Best PracticesCentral Accounts for Hotel, Air, and CarDelinquency Management

Best PracticesCentral Accounts

for Hotel, Air, and Car

Controlled Processes

Delinquency Management

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Supports chip-enabled card for U.S. based cardholders who frequently travel overseasImproves payment capability and

convenience in regions where chip cards are commonplace

Ensures wherever employees travel, they can quickly and easily pay for T&E expenses

Provides enhanced security abroad when existing PIN option is used

Travel Card Options - EMV

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Fraud Overview - Definition

What is card fraud?Unauthorized transactions by a third partyObtaining funds by misrepresentation of

identity, authority or informationWhat is not card fraud?

Authorized use by a family memberEmployee abuseMerchant error/disputed transactionsInability to pay

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Fraud Overview - Prevalence

Restrict card use to specific types of merchants

Establish spending limits for specific timeframes

Set purchase and transaction limits

Run reports that track and monitor expenses

85%

23% 20%12%

5% 5%

0%

20%

40%

60%

80%

100%

Checks ACH Debit CommercialCards

ConsumerCards

ACH Credits Wire

Vehicles for Payment Fraud

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Fraud Overview – Credit Master Run

Programs capable of generating account numbers

Phone and internet transactionsIndependent of any card activity or usage

patternsU.S. Bank is always monitoring active runs

Numbers AreNOT Actual Numbers Are NOT

Actual Account Numbers

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Fraud Overview – Credit Master Run

Cases are reviewed daily for new fraud trends

Adjust strategies to detect and stop these trends

Two types of fraud rulesNear-time rulesReal-time rules

Real-time declines are designed to decline/refer fraud on the first detected attempt

Near-time alerts provide an opportunity to block subsequent fraud attempts

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Fraud Overview – Counterfeit Mitigation

Strategies to decline suspicious transactionsMonitor for counterfeit test authorizationsWatch for increased counterfeit activity by

locationCompare cases against compromised

merchantsAssess risk of continued use of compromised

cardAnalyze transaction history of cases daily to

find new compromise locations

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Fraud Overview – MCC Blocking MitigationMCC5085839859995051739950655969573250475045

Direct MarketingElectronic Stores

Hospital Equipment & SuppliesComputers, Peripheral Equipment, Software

Miscellaneous & Specialty Retail StoresMetal Service Centers and Offices

Business ServicesElectrical Parts & Equipment

Top 10 Fraud by MCC P-CardDescription

Industrial SuppliesCharitable and Social Service Organizations

MCC5732541152005542596953116011472253108999

Top 10 Fraud by MCC IndustryDescription

Electronic StoresGrocery Stores, Supermarkets

Home Supply Warehouse StoresAutomated Fuel Dispenser

Direct MarketingDepartment StoresAutomated Cash

Travel Agencies & Tour OperatorsDiscount Stores

Professional Services

MCC7011350357325200581230305411594758143009

Grocery Stores, SupermarketsCard Shops, Gift, and Souvenir Shops

Fast Food RestaurantsAir Canada

Electronic StoresHome Supply Warehouse Stores

Eating Places, RestaurantsAerolineas Argentinas

Top 10 Fraud by MCC C-CardDescription

Lodging - Hotels, Motels, ResortsSheraton Hotels Evaluate what merchant

groups are necessary for your cardholders

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Fraud Overview – Best Practices

When calling customer service or fraud support, always ask that the rep add a note to the account indicating your efforts to communicate on this issue.

Take note of everyone you speak with at US Bank (date, time, name, topic description).

Always retain fax confirmation when statement of fraud is returned. Retain for at least 3 cycles after the incident occurs.

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Fraud Overview – Best Practices

Review spending reports & question transactions

Be mindful of how card data is stored and destroyed

Keep cardholder account records currentEnsure that termination includes destroying

the card Notify Account Coordinator of anticipated

changesFrequently communicate policies on

appropriate useEducate on how to report suspicious activity

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Fraud Overview – Best Practices

Schedule fraud reports to monitor activity and ensure the statement of fraud affidavit is returne.Statement of Fraud Report includes all Fraud Cases

that were opened in the past 90 days and show when the document was sent and if/when it was received back by U.S. Bank.

Fraud Summary Report includes all authorizations and transactions identified as fraud for each of the fraud cases during the time frame requested. The report also summarizes the top fraud MCCs by count and dollar amount.

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Fraud Overview – Best Practices

Sign your cards as soon as they arriveDon’t lend your card to anyone, even coworkers or

managersDon’t leave cards or receipts lying aroundKeep an eye on your card during the transactionDestroy receipts and statements you no longer needReconcile accounts frequentlyReport any questionable charges promptly to U.S.

BankNotify U.S. Bank in advance of a change in address or

phoneDon’t give out personal information over the phone Keep a records in a secure place

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Questions? Courtney Hoppe – AVP Relationship Manager

courtney.hoppe@usbank.com or (310) 363-5850