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TRANSCRIPT
To ensure the best possible learning experience for participants, please adhere to the following house rules:
•
Turn cell phones and pagers to vibrate•
Hold questions to end of session
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Ensure your participant badge is scanned to receive CLP credits− For each course−Must leave room and re-enter
•
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
House Rules
®
Fundamentals of Program Management
Federal Agencies
This course is designed to assist you in achieving the following objectives:
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Gain a basic understanding of the card transaction process
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Role as a coordinator•
Interacting with Citi to manage your program more efficiently
Goals & Objectives
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Fundamentals of Program Management
Federal Agencies
1.
Credit Card Processing Basics
2.
AOPC rolea.
Agency mission-policies and proceduresb.
OMB requirements c.
Cardholder Management
3.
Interacting with Citi support teama.
Customer serviceb.
Help Desk c.
Client Account Specialist (CAS)d.
Account Manager
Agenda
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Fundamentals of Program Management
Federal Agencies
Fundamentals of Program Management
Who is involved in the transaction flow?
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Cardholder
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Issuing Bank
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Merchant
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Acquiring Bank
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Card Association
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Processor
Credit Card Basics
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Federal Agencies
Fundamentals of Program Management
This is the 1st
step when a cardholder attempts to initiate a purchase goods or
services.
Cardholder presents card at merchant
The merchant through the terminal or online/phone telephone order passes the auth request to the acquirer bank. The acquirer or
their process sends the request to the association (visa/MC).
Visa/MC act as the gateway to route that transaction request based on the first 6 digits of the card and other specific parameters specific to that card to the issuer. The information is then
passed to the issuer or issuer processor for either the approval
or decline request.
Credit Card Basics - Authorization Request Federal Agencies
CardholderCardholderPresents Card forPresents Card for
PurchasePurchase
MERCHANTMERCHANT
AuthorizationAuthorization
RequestRequest
ACQUIRERACQUIRERAuthorizationAuthorization
RequestRequest
Association BrandAssociation Brand
AuthorizationAuthorization
RequestRequest ISSUERISSUER
Fundamentals of Program Management
This slide overviews the auth request and it’s corresponding response back to the cardholder. Once the issuer
receives the request for authorization they return a response based on the account parameters or controls that an AOPC sets up at the account and card levels. As we go through the presentations with the basic and advanced classes we will in great detail discuss what controls and parameters you can set to control the transaction at this level.
So the flow of the response follows back through the chain to the merchant and the cardholder either gets their merchandise or service requested or they get a
decline or a referral.
Credit Card Basics - Authorization Response Federal Agencies
Presents Card forPresents Card for
PurchasePurchase
AuthorizationAuthorization
RequestRequest
CardholderCardholder
MERCHANTMERCHANT
ACQUIRERACQUIRERAuthorizationAuthorization
RequestRequest
Brand NetworkBrand Network
AuthorizationAuthorization
RequestRequest ISSUERISSUER
AuthorizationAuthorizationResponseResponse
AuthorizationAuthorizationResponseResponse
AuthorizationAuthorizationResponseResponse
ReceivesReceivesMerchandiseMerchandise
Fundamentals of Program Management
Merchant to their acquirer/processor.
Acquirer passes the message to visa/mc and they gateway the transaction to the correct issuer based on bin and bank information to the issuer or CITI/processor for response.
Credit Card Basics - Transaction Data Flow Federal Agencies
MERCHANTMERCHANT
ACQUIRERACQUIRERISSUERISSUER
TransactionTransactionDataData
TransactionTransactionDataData
TransactionTransactionDataData
Brand NetworkBrand Network
Fundamentals of Program Management
A cardholder selects his or her goods, agrees to pay the retail price to the merchant and presents his or her card
for payment.
•
The merchant submits the purchase details, including the Visa/MC card information, to its financial institution/acquire for approval through their terminal at swipe.
•
The merchant’s financial institution/acquirer sends the purchase details to the issuer through the association network.
•
Assuming it has correctly followed the procedures required by its financial institution, the merchant receives a “payment guarantee,”
and the cardholder receives the goods.
•
The cardholder’s financial institution/issuer remits to the merchant’s financial institution/acquirer the retail price less the interchange rate. This interchange rate may be a unique rate that has been negotiated directly between the issuer and acquirer, or it may be the default rate that is set by Visa.
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The merchant’s financial institution/acquirer remits to the merchant the retail price less the Merchant Discount or Merchant Service fee, which may include interchange; the cost of transaction processing, terminal rental and customer service;
and the merchant financial institution’s or processor’s margin, among other costs. This charge is negotiated directly between the
acquirer and the merchant.
Who pays interchange?
The acquirer generally pays interchange. Merchants make a payment to their financial institution for Visa/MC transactions, frequently referred to as a Merchant Discount or Merchant Service fee. This is a market-based fee set by
each merchant’s financial institution operating in a competitive marketplace —
merchants can choose their financial
institution in the same way cardholders can choose the financial
institution that issues their Visa/MC card.
Credit Card Basics -
Settlement to Merchant Federal Agencies
MERCHANTMERCHANT
ACQUIRERACQUIRERISSUERISSUER
TransactionTransactionDataData
TransactionTransactionDataData
TransactionTransactionDataData
CreditCredit
SettlementSettlement SettlementSettlement
PaysPaysInterchangeInterchange
FeesFees
ReceivesReceivesInterchangeInterchange
FeesFeesBrand NetworkBrand Network
Fundamentals of Program Management
Credit Card Basics -
Final Settlement
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Federal Agencies
MERCHANTMERCHANT
ACQUIRERACQUIRERISSUERISSUER
TransactionTransactionDataData
TransactionTransactionDataData
TransactionTransactionDataData
CreditCredit
SettlementSettlement SettlementSettlement
PaymentPayment
StatementStatement
PaysPaysInterchangeInterchange
FeesFees
RecievesRecievesInterchangeInterchange
FeesFees
CardholderCardholder
Brand NetworkBrand Network
Fundamentals of Program Management
Level 1–
Merchant name–
Purchase date–
Total purchase amount–
Merchant category code (MCC)
Level 2–
Sales tax amount–
Point of sale code
Level 3–
Item quantities, unit of measure, item pricing–
Product codes, description–
Ship to zip–
Freight amount, duty amount
Credit Card Basics -
Levels of Transaction Detail
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Federal Agencies
Fundamentals of Program Management
This chart shows you the flow as it relates to your specific card programs. Once we receive the request or application from you
a card is requested and sent. We can either send it to an individual or the agency for distribution. When a purchase or request for goods and services on behalf of the agency is needed the cardholder/employee provides the information to a merchant. The merchant through their terminal swipes the card or enters data online. The information flows to visa/mc. They pass to Citi’s issuer processor. The Issuer Processor checks the card # against their database which houses the card limit and various authorizations parameters. The merchant then receives an approval or decline.
the red arrows trace the response back to the merchant.
Approving Official provides authorization to cardholder to use account Federal Agencies
®
Customer Database & Limits
Customer Database & Limits
8
Citibank issues Visa/Master Card Citibank issues
Visa/Master Card1Organization distributes
Cards Organization distributes
Cards2Employees provide Card/
account number to merchant for payment
Employees provide Card/ account number to
merchant for payment3
Merchant inputs or swipes card to obtain
approval code
Merchant inputs or swipes card to obtain
approval code4
Merchant / Acquiring Bank
Merchant / Acquiring Bank5
Visa / MasterCard network carries data to
processor (TSYS)
Visa / MasterCard network carries data to
processor (TSYS)6
TSYS checks customer database & returns
authorization or decline
TSYS checks customer database & returns
authorization or decline7
Fundamentals of Program Management
Agency/Organization Program Administrator responsibilities includes:•
Agency mission
•
Agency policies and procedures at agency, department, or cardholder levels
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Establishment of key roles and responsibilities•
Communication and Training
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Internal audit requirements•
Preventing misuse and controlling delinquency
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Payments and reconciliation (Centrally billed vs. Individually billed)
•
Reporting tools
AOPC Role – Focal point
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Federal Agencies
Fundamentals of Program Management
A set of guidelines to assist agencies in establishing internal procedures and annual reporting requirements•
Maintain and communicate internal guidelines
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Establish Controls•
Monitor
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Report -
delinquency, misuse, performance metrics•
Training
AOPC Role – Agency Mission
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Federal Agencies
Fundamentals of Program Management
Circular emphasizes integration and coordination of internal control assessments with control-related activities•
Effective Fiscal Year 2006
•
Appendix A, B, C •
Applies to Executive Agencies
−Exception of requirements in Appendix−Appendix A requirements apply to 24 CFO Act
Agencies•
Management’s responsibility to develop and maintain internal controls
•
Starts with Senior Management –
ends up on your desk•
Should have been implemented at your agency already
AOPC Role – OMB Requirements
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Federal Agencies
Fundamentals of Program Management
General Requirements
Internal Control Objectives–
Effectiveness and efficiency of operations–
Reliability of financial reporting–
Compliance with applicable laws and regulations
Standards to meet the objectives–
Control Environment–
Risk Assessment–
Control Activities–
Information and Communications–
Monitoring
AOPC Role – OMB Requirements
®
Federal Agencies
Fundamentals of Program Management
General Requirements
•
Federal Agencies fall under numerous legislative and regulatory requirementsFederal Managers’ Financial Integrity Act (FMFIA) –accounting and administrative controlsThis circular is a best practices document for managing your financial activities including SmartPay2 CardsYour agency may not be subject to Circular as a requirement – still drives for efficiencies and controlGreater detail in later session
AOPC Role – OMB Requirements
®
Federal Agencies
Fundamentals of Program Management
Citi controls that can assist AOPC to control, maintain, monitor
and report •
Cardholder Demographics
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Credit Limits•
Cash Limits
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MCC restrictions•
Activate/Deactivate
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Closure of inactive cards•
Email Alerts
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Disputes•
Reporting
AOPC Role – Cardholder Management
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Federal Agencies
Fundamentals of Program Management
Training Tools to help you manage and communicate
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Cardholder Training–User guides http://www.citimanager.com
•
AOPC Training–Onsite Training–Webcast
Training–Online Help Functions–CLASS–User Guides http://www.citimanager.com
AOPC Role – Cardholder Management
®
Federal Agencies
Fundamentals of Program Management
Citi Support Team •
Customer Service
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Help Desk•
Client Account Specialist (CAS)
•
Account Manager
Interacting with Citi
®
Federal Agencies
Fundamentals of Program Management
Customer Service handles inquiries from merchants, cardholders, Program Managers, Approving Officials, third parties, and is staffed to
handle all emergency situations.• 24/7 Support•
The below options are available after entering an account number
–Option 1 –
Automated account information–Option 2 –
Payment address and to submit an online payment
–Option 3 –
Last 5 transactions–Option 4 –
Change Personal Identification Number (PIN)–Option 5 –
Customer ServiceAOPCChange credit lines, cash lines for individualsChange single-purchase limitsClose and reopen accounts of individualsForce authorizations in emergency situations
Interacting with Citi – Customer Service(800) 790-7206 Collect (904) 954-7850
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Federal Agencies
Fundamentals of Program Management
Citi Help Desk is available for technical assistance •
7 am –
11pm EST•
This option is available prior
to entering an account number
•
Option 1 -
System support and file delivery Help Desk–Password resets (Available 24/7)–File Delivery–Electronic Access Tools
CitiManagerCCMSCCRSCSPLibrary (CERS)
Interacting with Citi – Help Desk(800) 790-7206 Collect (904) 954-7850
®
Federal Agencies
Fundamentals of Program Management
Know Your CAS Managers 5 Digit Extension!
Interact
with AOPCs
and Account Manager to ensure the program is working well•
Complete Set-Up Documentation
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Build Hierarchy•
Establish Accounts
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Card Delivery•
Account Maintenance
•
Billing Inquiries •
Special Report Requests
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Reconciliation•
Projects
Interacting with Citi – Client Account Specialists (CAS)888-836-5011 collect at 904-954-7850
®
Federal Agencies
Fundamentals of Program Management
CAS is the group of specialists who are there to help you with your program needs.
•
Option 1 –
Help Desk –
all your electronic access and reporting needs•
Option 2 –
The first available CAS Representative•
Option 3 –
Allows you to enter CAS Manager Extension
Be sure to ask your CAS managers extension!
Interacting with Citi – Client Account Specialists (CAS)888-836-5011 or thru CS by dialing 904-954-7850 collect
®
Federal Agencies
Fundamentals of Program Management
Know Your Account Manager •
Strategic Relationship Manager
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Account Reviews•
Business development
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Ensures Citi Resources•
Introduces products
•
Special Projects
Interacting with Citi – Account Manager
®
Federal Agencies)
Fundamentals of Program Management
What objectives and goals were met in this session ? •
Learned the basic flow of a transaction
•
Macro level overview of the AOPC role•
Citi designated team to service and meet your ongoing needs
Wrap up
®
Federal Agencies
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
®
Reminders Federal Agencies
Fundamentals of Program Management
®
Interactive Training Events Federal Agencies
Fundamentals of Program Management
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.
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 or On-site at your office.
Regional Citi Training Locations–
Norfolk, VA–
Washington, DC
On-Site at your office–
20 participant minimum
Distance Learning – Computer Based Training is available via the CLASS icon in CitiManager.
Terms & Disclosures
Tuesday, July 28, 2009
®
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