Enrollment (2013): Undergraduate: 18,431 Graduate: 1,750 Faculty/Staff (2013): Full-Time Instructional: 960 Part-Time Instructional: 430 Full-Time

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2 Location: Harrisonburg, VA Enrollment (2013): Undergraduate: 18,431 Graduate: 1,750 Faculty/Staff (2013): Full-Time Instructional: 960 Part-Time Instructional: 430 Full-Time Classified Staff: 1,262 Operating Budget ( ): $499.9 Million Campus: 721 Acres, 148 Buildings Current ERP System: PeopleSoft Accounts Payable Staff: 13 Full Time, 1 Part Time Areas of Responsibility: Payment Processing, Travel, Small Purchase and Travel Card Program Administration

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4 Identify different payment methods Benefits of different payment methods Trends in Payment Methods Challenges in implementing payment card programs

5 Traditional Check Payment ACH Payments (Wire Payments) Purchasing Card Payment Virtual Card (Epayables) Fleet Cards Travel Cards One Card (Pcard and Travel)

6 This is the way we ve been doing business for years. You receive an invoice and cut a check payable to the vendor, put it in the mail and send it to the vendor for payment. With the cost of cutting checks, postage and time involved from when the invoice is received until payment is received by the vendor makes this is the slowest and least economical choice when paying vendors.

7 An ACH Payment is what most of us know as a direct deposit into a checking or savings account. This is most likely the method used to pay employees and some vendors. Although the processing time through Accounts Payable is the same once payment is made from your institution the vendor receives payment in their bank account within a few days.

8 With a Pcard Payment vendors are paid at the point of sale, typically small dollar amounts. This saves time and money in receiving invoices and processing them through your Accounts Payable system. With Pcard purchases one payment is typically paid monthly to your purchasing card vendor, taking the number of transactions down to one that is running through your Accounts Payable system. Many times the institution also receives a rebate back from the Pcard vendor based on the volume of spend.

9 With virtual cards invoices are processed through Accounts Payable as usual. The difference is at the time of payment the vendor is notified and they take their payment right away using a virtual charge card. Just as with a purchasing card payment many times the institution receives a rebate back based on their spend.

10 Fleet cards are mainly used for institutions that have their own fleet services. The fleet card is a credit card used to pay for fuel for these vehicles. The vendor is paid at the time of purchase and the institution makes one payment to the fleet card vendor monthly. Rebates can be received based on spend as well.

11 Travel Cards are used to pay for expenses related to travel. Usually hotels, air travel, rental cars and meals. These cards can either be corporate liability (the institution is responsible and pays the bill monthly) or individual/employee liability (the employee is reimbursed from the institution and is responsible to pay the bill to the charge card vendor). There is typically a rebate associated with spend on this card back to the institution but is much smaller then other charge card payment types.

12 One Card is like a purchasing card but also allows for travel related purchases as well. These are corporate liability and the vendor is paid at the time of purchase. As with the purchase card payment is made monthly to the card vendor making only one transaction to run through the Accounts Payable system. Rebates are usually paid to the institution based on spend on the One Card as well.

13 Cost savings to the institution-according to the NAPCP website* the average cost for a check payment is $84 to the institution, for a pcard transaction that cost is $21. The institution is storing no banking information on card payment vendors in their ERP systems Fast payment to retail vendors, helping take advantage of rebates and discounts No 1099 reporting requirements Rebates *

14 According to a Federal Reserve Payment Study on Noncash Payment Trends in the United States the percent of payments made by check has substantially decreased from Checks 46% 15% ACH 11% 18% Card Payments 43% 67%

15 Buy in from your institution and end users Understanding new payment processes for vendors, especially on epayables since there is no physical card for vendors to swipe Setting up new payment methods in your ERP system and IT support/resources

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