GSA SmartPay® 2010 Conference
Alternative Cards
Stacy Eslich
Adam Jackson
Melissa Landis
Account Management/Citi
®
12th Annual GSA SmartPay Conference
Atlanta, GA
August 10-12, 2010
®
Alternative Cards
House Rules
DoD Travel APCs
To ensure the best possible learning experience for participants, please adhere to
the following house rules:
• Turn cell phones to vibrate
• Hold questions to end of session
• Ensure your participant badge is scanned to
− For each course
− Must leave room and re-enter
receive CLP credits
• Take advantage of opportunities to provide feedback
− Please select the “Ask Citi” icon on any Citi PC at the conference
− Answers to be emailed after the conference within 45 days
®
3
Alternative Cards
Goals & Objectives
DoD Travel APCs
This course is designed to assist you in
achieving the following objectives:
• Learn about products available outside of
the traditional travel card
4
®
Alternative Cards
Agenda
DoD Travel APCs
1. Traditional Card History
2. Virtual Cards
3. Declining Balance Cards
4. Citi Controlled Spend Account
5. WorldLink
®
5
Alternative Cards
1. Traditional Card History
®
6
Alternative Cards
Traditional Card History
DoD Travel APCs
 1950 – 1st Diners Club “card”
 1958 - the first widely accepted plastic card was issued
 1977 - the first general-use credit card that allowed balances to be paid over time
was issued
 By 2000 - there were 159 million credit cardholders in the US, 173 million in 2006
and 181 million projected for 2010
 In 2006 the US Census Bureau also determined there were nearly 1.5 billion
credit cards in use in the US
– A stack of those credit cards would reach 70 miles into space and would
almost be as tall as 13 Mount Everests (source: NY Times Feb 23, 2009)
 Do you still write checks?? Use cash??
 What is the future of payments??
7
®
Alternative Cards
2. Citi Virtual Cards
8
®
Alternative Cards
Citi Virtual Cards - Traditional Card History
DoD Travel APCs
An extension to existing card programs, Citi’s Virtual Card generates
unique account numbers that are used instead of a physical card account
number for “cardholder not present” transactions such as online,
telephone, mail order and post-invoice payments.
Citi’s Virtual Card Solutions provides:
 Security - the merchant will never receive an actual card account number
 Control - clients can set controls on each account for usage guidelines
 Clarity - each transaction corresponds to a unique account number,
streamlining reconciliation
®
Alternative Cards
Citi Virtual Card Accounts – Overview
DoD Travel APCs
A next generation payments tool, Citi Virtual Card Accounts
increase transaction security and control
 Replace a real card account with a unique
Virtual Card Account (VCA) for purchases and
payment settlement
 Transparent to the merchant at the point-ofsale
– 16-digit account number, expiration date, 3digit security code
 The real card account number is never shared
with suppliers and an unlimited number of
virtual card numbers (VCNs) can be created
 Clients request VCNs in real-time, set
authorization controls and receive live virtual
card account numbers
®
Alternative Cards
Citi Virtual Cards – Virtual Card Account Level Controls
DoD Travel APCs
VCA offers a range of flexible control parameters that can be configured at the
user level and modified until the card expires
Spend limit - amount that can be charged on card, plus tolerance
Single or Multi use - Configure card to be shut down after single or multiple authorization/purchase
Tolerances - Set a tolerance or “collar” at card setup
as either a percentage
amount
deviation
the spend
limit
Configure
card to or
befixed
shut
down
afterfrom
single
or multiple
Single or Multi Use
Validity Period - Only transactions that fall within a authorization/purchase
set date range will be authorized
MCC Groupings - Virtual cards can be limited to specific merchant category codes to ensure that unauthorized transactions are restricted
Supplier - Set up preferred suppliers and restrict card
usage
to a specific
supplier
Total
amount
that
can
Spend Limit
be charged on card, plus tolerance
Real-time card deactivation and re-issuance - Same custom data elements can be associated with replacement card, including optionally a code indicating replacement
status
Tolerances
Set a tolerance or “collar” at card setup as either a percentage or fixed
amount deviation from the spend limit
Validity Period
Only transactions that fall within a set date range will be authorized
MCC Groupings
Virtual cards can be limited to specific merchant category codes to
ensure that unauthorized transactions are restricted
Supplier
Set up preferred suppliers and restrict card usage to a specific supplier
Real-time card deactivation
and re-issuance
Same custom data elements can be associated with replacement card,
including optionally a code indicating replacement status
®
Alternative Cards
3. Declining Balance Cards
®
12
Alternative Cards
Declining Balance Cards
DoD Travel APCs
Features
 Centrally Billed Accounts
 Specific purposes and or time periods
– Accounts have a set credit limit and do not refresh
 Once the balance is used the card becomes inactive
 Merchant Category Code restrictions can be placed on the card
13
®
Alternative Cards
Declining Balance Cards – Uses of Virtual Card Accounts
And Declining Balance Cards
DoD Travel APCs
 MEPS meal tickets
 Uniform Allowance Cards
 Invitational Orders
 Foreign Nationals
 Infrequent Travelers
 Exempt GTC Employees
 Employees who no longer qualify for the GTC
– Problems with delinquency
– Credit Score
 Wounded Warrior Programs
 Participating Agencies
®
Alternative Cards
4. Citi Controlled Spend
15
®
Alternative Cards
Citi Controlled Spend Account
DoD Travel APCs
The Background
 Air Force identified 40% of their travel spend was not being placed on the GTCC
 Commanders want out of the delinquency business
 Being a GTCC APC is a collateral duty and time consuming
 GTCC Limits are not based on travel orders and standard cards are always open
for spend whether on travel or not
 Younger generation adopting debit card products
– The Gift Card Generation
®
16
Alternative Cards
Citi Controlled Spend Account
DoD Travel APCs
The Basic Ask
 Declining Balance Individually Billed Account
 Account limit amounts based on approved travel authorizations
– Accounts set up with no limit
 Less work on the APCs … so they can focus on missions
 No creditworthiness requirements – everyone can use the card
 Open Merchant Category Codes for Permanent Change of Station Move expenses
(dislocation allowance spend)
17
®
Alternative Cards
Citi Controlled Spend Account
DoD Travel APCs
The Result
 The account spending limits do not revolve
 Payments from DFAS will not refresh the amount available to spend
 Daily file feeds from the Air Force will load limits, and amendments will adjust the
limits
 When final payment for a trip is received, Citi does a reconciliation of the amount
loaded to the amount filed for reimbursement
 100 percent of trip payment is made to Citi
– Any residual amount can be charged to the card or returned to the cardholder
18
®
Alternative Cards
Citi Controlled Spend Account
DoD Travel APCs
Key Components
Feature
Liability
Credit Limit
Controls
Payment
Delinquency
Traditional Declining
Balance Card
Traditional
Government Travel
Card
Controlled Spend
Account
Central Bill Only
Central and Individual
Individual
Strict Controls
Persistent Credit
Limits
Strict Controls
Centralized
Split Disbursement
100% to Citi
Possible
Significant
Virtually eliminated
19
®
Alternative Cards
Citi Controlled Spend Account
DoD Travel APCs
How it Works
 Air Force member identifies the need for a trip
 Reservations are made and obligations are reported in CRIS and DTS
 A Maintenance File is provided daily to Citi to increase the available credit on the
card
 Citi raises the available credit to the amount designated by CRIS/DTS
 Traveler incurs expenses related to travel
®
20
Alternative Cards
Citi Controlled Spend Account
DoD Travel APCs
How it Works
 Upon return, traveler submits expenses for the trip to DoD
 Approved expenses are paid in full to Citi, without the option to split the
payment to an individual’s bank account
 Citi reconciles the payments to the trip authorization to pay any balance and
provides any residual (out of pocket expenses) to the individual - This
reimbursement can be a withdrawal via ATM, an ACH refund to a personal
account or personal transactions placed on the card
 For longer duration travel (multiple months) interim payments are sent directly
to Citi
 Failure to use the card appropriately results in the individual not having funds
to reach their required duty station with subsequent disciplinary actions
21
®
Alternative Cards
5. WorldLink Payment Services
22
®
Alternative Cards
DoD Travel APCs
WorldLink Payment Services - Overview
WorldLink® Payment Services enables clients to issue cross-border payments in more than 130 currencies via a single
window without having to maintain local currency accounts. Solution incorporates foreign exchange, reconcilement, and
global support network with local service hubs
Payment Options
Funds Transfers
135 Currencies
Connectivity
 Over 4,000 clients in over
150 countries
 CitiDirect Online Banking
 More than $21 million
payments each year
Remote Cheques
30 Currencies
Onsite Cheques
16 Currencies
Globality
 About $760 billion in
annual disbursements
 SWIFT
 File Transmission
 XML
Benefits
 Streamlined payment processing and service via a single window
Cross-Border ACH
11 Currencies
Cash (via Western Union)
190 Countries and 220,000 Locations

Reduced costs and risks with a non-account based solution

Full reconciliation of all transactions daily

Currency purchases are aggregated across payments for better rates
23
®
Alternative Cards
DoD Travel APCs
WorldLink Payment Services - Overview
Benefits at a Glance
 No lifting fees
 Security features
 Same-day delivery of funds2
 Tracking capability
 Increased flexibility
 One file, many payment options
 No bank account needed
 A one-stop shop
 Convenience
24
®
Alternative Cards
WorldLink Payment Services - Overview
DoD Travel APCs
Potential Applications for
WorldLink Cash
 Payroll payments
 Petty cash payments
 Expatriate payments
 Payments to non-banked
beneficiaries
 T & E payments
 Insurance payments
25
®
Alternative Cards
WorldLink Global Presence
DoD Travel APCs
North America
 Canada
 US
Latin America
 Argentina
 Bahamas
 Brazil
 Chile
 Colombia
 Costa Rica
 Dominican Republic
 Ecuador
 El Salvador
 Guatemala
 Haiti
 Honduras
 Jamaica
 Mexico
 Panama
 Paraguay
 Peru
 Puerto Rico
 Trinidad & Tobago
 Uruguay
 Venezuela
Europe
 Austria
 Belgium
 Bulgaria
 Channel Islands
 Czech Republic
 Denmark
 Finland
 France
 Germany
 Greece
 Hungary
 Ireland
 Italy
26













Luxembourg
Netherlands
Norway
Poland
Portugal
Romania
Russia
Slovakia
Spain
Sweden
Turkey
UK
Ukraine
Middle East and
 Algeria
 Bahrain
 Cameroon
 Congo
 Egypt
 Gabon
 Israel
 Ivory Coast
 Jordan
 Kenya
 Kuwait
Africa
 Lebanon
 Morocco
 Nigeria
 Senegal
 South Africa
 Tanzania
 Tunisia
 Uganda
 UAE
 Zambia
Asia Pacific
 Australia
 Bangladesh
 Brunei
 China
 Hong Kong
 India
 Indonesia
 Japan
 Kazakhstan
 Korea
 Malaysia
 New Zealand
 Pakistan
 Philippines
 Singapore
 Sri Lanka
 Taiwan
 Thailand
 Vietnam
®
Alternative Cards
Summary
DoD Travel APCs
This session was designed to
assist you in achieving:
• A basic understanding of
alternative card products being
used today outside of the
traditional travel card
27
®
Alternative Cards
DoD Travel APC’s
Reminders
 Thank you for attending!
 Visit the Citibank Welcome Center
– Across from Room#B212
– National Industries for the Blind will
have a display of products
– Conference Slide Show – come see
yourself shine!
 Visit the Citibank One-on-One Lab - B210
 Visit the Citibank Mini Sessions – B209
 Ask Citi Link – Tell us your thoughts
28
®
Alternative Cards
Stacy Eslich, Adam Jackson, Melissa Landis
DoD Travel APCs
®
Alternative Cards
Interactive Training Events
DoD Travel APCs
Citi offers onsite 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 register for these sessions
 Upcoming Training
– San Diego, CA – September 21st – October 1st
– Grafenwoehr, Germany – October 18th – October 22nd
– Kaiserslautern, Germany – October 25th – October 29th
Visit www.defensetravel.dod.mil/passport to register for these sessions
 On-Site at your office
– 20 participant minimum
 Distance Learning - Video Conferences
Please email us at [email protected] and a Citi training coordinator will work
with you directly for On-site or Distance Learning sessions.
®
Terms & Disclosures
IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be
used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby
("Transaction"). Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.
Any terms set forth herein are intended for discussion purposes only and are subject to the final terms as set forth in separate definitive written agreements. This presentation is not a commitment to lend, syndicate a
financing, underwrite or purchase securities, or commit capital nor does it obligate us to enter into such a commitment. Nor are we acting in any other capacity as a fiduciary to you. By accepting this presentation,
subject to applicable law or regulation, you agree to keep confidential the existence of and proposed terms for any Transaction.
Tuesday, July 28, 2009
Prior to entering into any Transaction, you should determine, without reliance upon us or our affiliates, the economic risks and merits (and independently determine that you are able to assume these risks) as well as
the legal, tax and accounting characterizations and consequences of any such Transaction. In this regard, by accepting this presentation, you acknowledge that (a) we are not in the business of providing (and you
are not relying on us for) legal, tax or accounting advice, (b) there may be legal, tax or accounting risks associated with any Transaction, (c) you should receive (and rely on) separate and qualified legal, tax and
accounting advice and (d) you should apprise senior management in your organization as to such legal, tax and accounting advice (and any risks associated with any Transaction) and our disclaimer as to these
matters. By acceptance of these materials, you and we hereby agree that from the commencement of discussions with respect to any Transaction, and notwithstanding any other provision in this presentation, we
hereby confirm that no participant in any Transaction shall be limited from disclosing the U.S. tax treatment or U.S. tax structure of such Transaction.
We are required to obtain, verify and record certain information that identifies each entity that enters into a formal business relationship with us. We will ask for your complete name, street address, and taxpayer ID
number. We may also request corporate formation documents, or other forms of identification, to verify information provided.
Any prices or levels contained herein are preliminary and indicative only and do not represent bids or offers. These indications are provided solely for your information and consideration, are subject to change at any
time without notice and are not intended as a solicitation with respect to the purchase or sale of any instrument. The information contained in this presentation may include results of analyses from a quantitative
model which represent potential future events that may or may not be realized, and is not a complete analysis of every material fact representing any product. Any estimates included herein constitute our judgment
as of the date hereof represent potential future events that may or may not be realized, and is not a complete analysis of every material fact representing any product. Any estimates included herein constitute our
judgment as of the date hereof and are subject to change without any notice. We and/or our affiliates may make a market in these instruments for our customers and for our own account. Accordingly, we may have
a position in any such instrument at any time.
Although this material may contain publicly available information about Citi corporate bond research, fixed income strategy or economic and market analysis, Citi policy (i) prohibits employees from offering, directly or
indirectly, a favorable or negative research opinion or offering to change an opinion as consideration or inducement for the receipt of business or for compensation and (ii) prohibits analysts from being compensated
for specific recommendations or views contained in research reports. So as to reduce the potential for conflicts of interest, as well as to reduce any appearance of conflicts of interest, Citi has enacted policies and
procedures designed to limit communications between its investment banking and research personnel to specifically prescribed circumstances.
© 2010 Citibank, N.A. All rights reserved. Citi, Citi Arc Design, CitiDirect, Citimanager, Citibank Custom Reporting System, Citibank Electronic Reporting System, are trademarks and service marks of Citigroup Inc.
or its affiliates and are used and registered throughout the world.
In January 2007, Citi released a Climate Change Position Statement, the first US financial institution to do so. As a sustainability leader in the financial sector, Citi has taken concrete steps to address this important
issue of climate change by: (a) targeting $50 billion over 10 years to address global climate change: includes significant increases in investment and financing of alternative energy, clean technology, and other
carbon-emission reduction activities; (b) committing to reduce GHG emissions of all Citi owned and leased properties around the world by 10% by 2011; (c) purchasing more than 52,000 MWh of green (carbon
neutral) power for our operations in 2006; (d) creating Sustainable Development Investments (SDI) that makes private equity investments in renewable energy and clean technologies; (e) providing lending and
investing services to clients for renewable energy development and projects; (f) producing equity research related to climate issues that helps to inform investors on risks and opportunities associated with the issue;
and (g) engaging with a broad range of stakeholders on the issue of climate change to help advance understanding and solutions.
Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks.
®
®
©2010 Citibank, N.A. All rights reserved. Citi, Citi and Arc Design and CitiDirect are trademarks and service marks of Citigroup Inc., used and registered
throughout the world.
®