Product Descriptions–Prepaid Cards

U.S. General Services Administration
Stored Value Products
Chris Pieroth
GSA SP2 Program Manager, Citi
July 2012
2012 GSA SmartPay Conference
“Fine Tune Your Payments Program with GSA SmartPay”
This material is intended for use by the GSA only
Stored Value Products
House Rules
(agency
name)
All Audiences
To ensure the best possible learning experience for participants, please adhere
to the following house rules:
•
•
•
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Turn electronic devices to vibrate
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Hold questions to end of session
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Take advantage of opportunities to provide feedback
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Stored Value Products
Schedules Available at the Welcome Center
All Agencies
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Stored Value Products
Reminders
All Agencies
 Visit the Citibank Welcome Center–
Governor’s Lobby
 Visit the Citibank One-on-One Lab–
Governor’s Chambers D&E
 Citi Q&A Link–Tell us your thoughts
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Stored Value Products
Interactive Training Events – DoD
Al l Agencies
Citi offers on-site training at no cost for agencies meeting the required minimum
participant level of 20 or more as set forth in the GSA SmartPay2 Master Contract.
 Regional Citi Training Locations
– Norfolk, VA
– Washington, DC
– Visit www.defenseTravel.dod.mil/passport to view and register for these sessions
 Upcoming Training
– Visit www.defenseTravel.dod.mil/passport to view and register for these sessions
 On-site at your base or installation
– 20-participant minimum
– Visit www.citimanager.com/dodhome under Resources to download the On-site
Training Request Form
 Distance Learning–Video Conferences
Please e-mail us at [email protected] and a Citi training coordinator
will work with you directly for on-site or Distance Learning sessions.
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Stored Value Products
Interactive Training Events – GSA
All Agencies
Citi offers Computer-Based Training (CBT) via the Citi Commercial Card Learning
and System Support (CLASS) in CitiManager.
 Visit home.cards.citidirect.com and from the Web Tools tab select the CLASS
link
Please contact your Account or Client Manager if you are interested in setting up a
training session. Training can be conducted at a Citi Training Location, on-site at
your office or via the web.
 Regional Citi Training Locations
– Norfolk, VA
– Washington, DC
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Stored Value Products
Goals & Objectives
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Department of
All Agencies
Defense
Provide an overview of the various products
that are available to agencies and
organizations from Citibank
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Charge Cards
Declining Balance Cards
Debit Cards
Prepaid Cards
Develop a basic understanding of how to
match the capabilities of these products to
different needs and requirements within an
agency or organization
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Stored Value Products
Agenda
All Agencies
1. Product Descriptions
2. Usage
3. Which Products Work the Best?
4. Examples
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Stored Value Products
1. Product Descriptions
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Stored Value Products
Product Descriptions–Charge Cards
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All Agencies
Charge cards have an assigned credit line,
which renews as payments are made
The cards can be individually or centrally
billed with individual or central payment
Bills are generated on a cycle basis with
payment due by a certain date
There are strong controls on how and
where the card can be used
There is a separate electronic access
system to support charge cards
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Stored Value Products
Product Descriptions–Declining Balance
•
Declining balance cards work similar to
charge cards except that:
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All Agencies
The credit line does not renew when
payments are made
They must be centrally billed and centrally
paid
Declining balance cards use the same
electronic access system as charge cards
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Stored Value Products
Product Descriptions–Debit Cards
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All Agencies
Debit cards are tied to a bank account
As transactions are incurred, the amount of the transaction is withdrawn from the
account
If multiple cards are issued, all cards withdraw from the same account
Only limited authorization controls are available on this product
There is no separate electronic access system to support debit cards; debit
cardholders rely on the online banking infrastructure that supports the underlying
bank account to access account and transaction information
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Stored Value Products
Product Descriptions–Prepaid Cards
All Agencies
Prepaid Cards are a standalone product.
• The accounts are paid in advance and the value of the payment is loaded onto
the card
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Cards can be single-use or reloadable
Generally, there is a one-to-one relationship between each card and the
corresponding account that holds the funds, but other configurations are available
Moderate controls, at a program level, are available for this product
Prepaid cards have a separate electronic access system to support the product
(e.g. to load value, to view transaction activity, etc.)
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Stored Value Products
2. Usage
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Stored Value Products
Usage–Charge Cards
All Agencies
Charge cards are designed for use by individuals who have an undefined and
continual need to make various business-related purchases, whether travel,
purchase or fleet related.
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Stored Value Products
Usage–Declining Balance
All Agencies
Declining balance Cards are a variation of the charge card, where the total
spending limit is predefined based on what the card will be used for and does
not renew when payments are made. These cards are often used for relocation
or project-related expenses, where a budget or spending limit is established up
front and the cards are used until the money is spent.
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Stored Value Products
Usage–Debit Cards
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All Agencies
Debit cards are rarely used within the
government
Because debit cards must be tied to a
deposit account, the only way a debit card
can be used is if the government deposits
funds in an outside account. Since there are
very strict Treasury regulations on how and
when this can be done, these cards are
impractical for most government needs
Only agencies with the authority to deposit
funds outside of the government can use
debit cards. One possible use might be grant
administration
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Stored Value Products
Usage–An Additional Word on Debit Cards
All Agencies
If an agency is unable to use debit cards, there are other product configurations that can deliver
functions that are similar to a debit card:
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Centrally billed charge cards can be set up to bill and be paid on a daily basis. This replicates
the effect of the agency having the funds withdrawn on a daily basis. The agency or
organization has the added benefit of being able to review and approve the daily bill before
the funds are disbursed.
A declining balance can provide the same level of control as a prepaid card, but without the
need for the agency or organization to actually prefund the account. The agency or
organization only makes payment when charges are actually incurred. Different liability, billing
and payment options are available
Prepaid cards can be funded in advance and used as required by the cardholder. The agency
or organization is able to add funds to these cards as needed for specific purchases
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Stored Value Products
Usage–Prepaid Cards
All Agencies
Prepaid cards are used as cash or check replacement. One of the key elements of
the applicability of a prepaid card is whether or not the funds placed on the card
can be used in their entirety and are truly the “property” of the cardholder. These
cards are often used for benefit payments or other cash payments.
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Stored Value Products
Usage–An Additional Word on Prepaid Cards
All Agencies
Citibank has two prepaid card offerings, of which only one is
currently available on the GSA SmartPay 2 Master Contract.
• Standard Prepaid Card (on Master Contract)
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Runs on the same platform as charge cards
 Essentially a charge card with a zero credit limit
 When prepaid is made, this creates a credit balance on the
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account–the cardholder can spend up to the amount of the
credit balance
Fully compliant with all SmartPay 2 requirements for charge
cards
Limited flexibility
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Stored Value Products
Usage–An additional word on Prepaid Cards
(continued)
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All Agencies
Enhanced Prepaid Card (not on Master Contract)
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Runs on a separate platform
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Extremely flexible
Not fully compliant with all GSA SmartPay requirements for charge
cards
 Custom website for cardholder access
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 Custom code to meet specific client needs
GSA SmartPay is willing to work with Citibank to add the enhanced
prepaid card solution to the GSA SmartPay 2 Master Contract if an
agency or organization has a need for this product
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Stored Value Products
3. Which Product Works Best?
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Stored Value Products
Which Product Works Best?–Control
Control
Strong merchant category and
transaction limit controls on an
account-by-account basis.
Strong merchant category and
transaction limit controls are the
same for all accounts in the
program.
No merchant category or transaction
limit controls are required.
All Agencies
Charge
Card
Declining
Balance
X
X
X
X
X
X
Debit
Card
Prepaid
Card
X
X
X
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Stored Value Products
Which Product Works Best?–Funding
Funding
Funds must stay within the Treasury
and can only be disbursed after
transactions have occurred.
Funds must stay within the Treasury but
can be disbursed when the obligation is
created but before transactions have
occurred.
Funds can be deposited outside the
Treasury.
All Agencies
Charge
Card
Declining
Balance
X
X
X
X
X
X
Debit
Card
Prepaid
Card
X
X
X
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Stored Value Products
Which Product Works Best?–Liability and Billing
Liability and Billing
Charge
Card
Individual liability is required.
X
Central liability is required.
X
Individual billing is required.
X
Central billing is required.
X
No billing is required–funds are
disbursed upon entitlement eligibility.
Declining
Balance
All Agencies
Debit
Card
Prepaid
Card
X
X
X
Initial entitlement is only estimated and
must be reconciled with final
entitlement after transactions have
occurred.
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Stored Value Products
Which Product Works Best?–Other
Considerations for High-Control Products
All Agencies
 Certain merchants (hotels and car rental companies) will authorize for more
than the anticipated transaction amount, which can tie up available funds/limits
on prepaid and declining balance cards
 The timing between charges and credits (such as airline refunds) can also tie up
available funds/limits on prepaid and declining balance cards
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Stored Value Products
4. Examples
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Stored Value Products
Examples
All Agencies
 Invitational Travel
– Guest speakers traveling on a predetermined
travel allowance
Increase
 Project Accounts
Efficiency
& Control
– Projects with a predetermined budget that
cannot be exceeded
 Infrequent Travelers
– Employees who need to travel on an
infrequent basis and do not qualify for a
standard government travel card
Reduce
Costs
 Emergency/Disaster Accounts
– Individuals due relief payments as a result of
an emergency or disaster
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Stored Value Products
Chris Pieroth
Department o
All Agencies
Defense
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Stored Value Products
Department o
All Agencies
Defense
Survey
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www.gsasmartpayconference.org/survey
or by using the link sent to you via email from Feedback Systems.
Surveys can be taken through any mobile device.
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