Corporate Travel Card Program

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					   Corporate Travel Card
         Program
Expense Management Solution for your Company

                    Avinash Luthria
               Associate Vice President
             Global Commercial Payments
                MasterCard Worldwide
              Are your Corporate Travel
                           Expenses paper based




Are you facing issues on
         Corporate Governance and Controls?
               Is manual reconciliation of Payments
                       and Transactions time-consuming
                               and affecting your productivity?




Is tracking payments to multiple suppliers
         delaying your settlement period
    Why Choose a Corporate Card
•   The Corporate Card is a solution for the efficient management of travel and
    related expenses. e.g. airline, accommodation, ground transfers, meals, etc
•   A true Corporate Card provides benefits both to employee, as well as the
    Company. Personal cards provide only individual Cardholder benefits
•   Global Acceptance
•   Liability (Corporate and / or Individual)
•   It is generally managed by Travel Manager, department secretaries or
    company administrators
•   It has consolidated billing & payment
    Why Choose a Corporate Card
•   Offer More Robust / Enhanced Features
     – Sophisticated reporting
         • Electronic Data Delivery and Expense Management
         • Integration with ERP/ accounting systems
     – Point of Sales Controls Merchant Blocking, Transaction Limits etc
•   Provides the opportunity to significantly reduce the paperwork and staff
    reimbursement process associated with official business travel related
    expenses
•   Enablement of corporate governance, control, transparency, empowerment,
    accountability and risk management
          Corporate Card Solution
•   Over 3,000 Companies in India and more thousands of companies
    overseas (including over 70% of all Fortune 500 companies), use Corporate
    Cards to manage their business expenses.

•   Most companies recognize that traditional expense management processes
    are cumbersome and time consuming, and therefore moving to a Corporate
    Card solution

•   MasterCard has partnered with the leading Bank’s in India to provide best in
    class corporate card products.
   Hundreds of Payments to 1 ….

                                             Bank -               Payment due
    Travel Card Transactions
                                             Monthly              on 26th day
                                             Account




                     Month 1                                Month 2

Vendor Receives ‘Cash Settlement’ – 48 hrs    Buyer up to 56 days interest free before
on authorisation of transaction!              payment due. Increased efficiencies and
                                              transparency and knowing exacting when
                                              payment is due!
    Multinational Corporate Needs
•   Procurement and Travel Managers
     – Seeking payment system efficiency, consistency, and control
     – Need consolidated data for spend analysis, vendor
       negotiations, and spending control
•   CFO’s
     – Seeking to consolidate and control global cash management
     – Desire real time online view of consolidated, country, and
       currency level company cash needs to allocate and manage
       overall cash positions, fund local accounts
     Multinational Requirements
Requirements

• One Bank - One Contract, One Price

• Global Product Consistency

• Cardholder Service Locally

• Global Data Delivery and Roll-up

• Global Acceptance
Expense Management
        • SDOL is a secure & proven web-based
          MIS solution for all MasterCard card
          programs
        • Designed, developed, and hosted by
          MasterCard
        • Launched in Nov 1999
        • SDOL is used by all market segments:
           – Administrative MIS reporting and audit
           – Expense management with
              transaction approval
           – ERP integration
        • Highly customizable by both issuer and
          customer
        • Available in 14 languages
        • 24/7 Smart Data Issuer Help Desk
         SDOL Feature Highlights
•   25 months data retention
•   Transaction review / approval process
•   Cost Allocation
     – Custom fields 12 drop-down lists, 16 input boxes, 16 flags
     – Ability to “split” transactions for cost allocation
     – Ability to add non-card transactions, e.g. cab fare
•   Email, Reports and Data Download
     – Schedule emails to remind users to complete transaction validation
     – Create custom exports for easier import into ERP and accounting systems
     – Standard export formats for MS Excel, Money & Quicken
     – Schedule Reports and export file
     – All reports viewed on screen or printed in PDF format
     – Currently, 45 reports available
•   Enhanced Data
     – GDS
     – Travel Agency
    MasterCard Data Sourcing Flow
    Card Programs:                   Customers:
     •Business   •Fleet               •Small Business     •Public Sector
     •Corporate  •Executive           •Mid Market         •Consumer
     •Purchasing •Business Debit      •Large Corporate
     •Multi      •Non-MasterCard      •Multinational

Daily Issuer Data Sourcing

                                                            CPS
                                                            CPS
                                                           Global
                                                           Global
                                                            Data
                                                            Data
                                                         Repository
                                                         Repository
Enhanced Data Sourcing


                                                  Information Solution:
                                                  • Smart Data OnLine
                                                  • Direct Data Delivery to
                                                    customer’s ERP system
 Hotel   TMC         Rail      Airline
          Benefits to the Corporate
•   Online method of expense claiming, minimizes manual & paper based processing,
    reduces current processing costs:
     – No data entry of invoices
     – One monthly payment to the bank replaces thousands
     – Simplified Bank reconciliation
•   Expenses can be reviewed by cardholder & supervisor anytime & anywhere.
•   Allows splitting of expenses and cost allocation to facilitate ERP integration
•   Provides rich variety of pre-defined Management Reports:
          • Track Supplier spend
          • Department-wise & Cardholder-wise information
          • Monitor overall card program
•   Exception Reporting at various levels
•   MNC Capability
•   Up to 56 days interest-free payment period
        Benefits to the Cardholder
•   Exclusive Oberoi’s Lounge Access at Major Domestic & International
    Airports in India– Delhi, Mumbai, Kolkatta, Chennai, Cochin
•   Cash Back offers by MasterCard / Member Banks
•   Reward Points by member Bank can be redeemed for Air Miles and other
    exciting gifts
•   MasterCard Fine Dining, Travel Luxury, Retail Offers – great discounts at
    popular restaurants, hotel chains, shopping outlets etc
•   MasterCard Customer Service:
     – Emergency services, including Lost and Stolen Card Reporting,
        Emergency Card Replacement, and Emergency Cash Advance
     – Calls for information on merchants and special promotions; service
        provider calls; foreign exchange information
     – General services, including account information, ATM Locator etc
       Benefits to the Cardholder
•     Travel Insurance Benefits provided by Member Banks
    –    Air Accident Insurance
    –    Rail / Road accident Insurance
    –    Lost Baggage, Delay in Baggage
    –    Loss Passport
    –    Lost Air ticket
    –    Hijacking

•     Corporate Service provided by Member Banks
    –    Dedicated Relationship Manager
    –    24 Hours Call Center to assist you .
    –    Dedicated emails for faster query resolution
.
            Benefits to the TMC
•   Guaranteed payments
•   Faster payment terms – average 2 - 3 days
•   Reduce administrative/collection costs
•   Outsourced Account Receivables
•   Concentrate on what we do best as a TMC
       Best Practices Guide
MasterCard Best Practices Guide
•   Travel Policy and Management
     – Travel Planning and Booking
     – Payment and Billing
     – Expense Reporting
     – Data Warehousing and Analysis
     – Compliance Monitoring and Vendor Management
             Customer Support


User Documentation:         Online Help:   MasterCard Support:
 • Issuer Guide                            • MCI India
 • Company Guide                           • MCI-Europe
 • Manager Guide                           • MCI-US issuer support:
 • Account User Guide                          • 24 x 7
 • Sample Reports                              • Email & phone
 • Export Fields Guide                     • Issuer provides Level 1
 • Custom Export Guide                       support to customers
 • User Authorities Guide                  • Assign online customer
                                             support address on SDOL
Research Study:
CFO’s View of
Account Payables
           About Aberdeen Group
•   AberdeenGroup is the leading provider of fact-based business research,
    Founded 1986
•   Maintain a research community of approximately 130,000 executives,
    directors and program managers
•   Emphasis on Account Payables and Procure-To-Pay

     Aberdeen interviewed over 850 companies for benchmarking
Ease & Efficiency Are Top of Mind Issues
                        Business Pressures Prompting Change

         Cumbersome manual processes/data entry
                              Employee productivity
                                Maverick purchases
                                         Labor costs
                          Compliance with SOX 404
                                  Missing discounts
                      Shrinking margins/profitability
                             Managerial productivity
                                   Potential for fraud
                 Rising costs of goods and services
                            Limited access to credit
                              Controlling petty cash
                      Strained supplier relationships
   Top pressures prompting change in procure-to-pay


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                                                                                                                Top Challenges Making Change Happen




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                                                                                                                                                      Soft Issues Are Limiting Complete Adoption
    Understanding the Swamp of AP
•   With manual, paper methods still the norm resources are caught at the
    transaction level

•   A wealth of information is either not captured, or even worse, collected but
    not used strategically

•   Most supplier interaction is reactive, often tenuous and costly to perform

•   AP struggles to contribute in strategic way

•   Given the economic pressures and compliance concerns the timing is right
    for action!
Yet, the Climate Supports A Growing Focus
               on Payments
        Continued competitive pressures
                     for cost reductions                                                       404

  Maximize liquidity to improve near-term
                    financial performance                                             304

                  Regulatory pressures /                                              285
                     prevention of fraud

          Strengthen supply relationships                                     220

             Access to new technologies                           127

                 Across the board goals
                for headcount reductions                     93


  Opportunity or potential for outsourcing                   78


New EU reporting/VAT tracking guidelines         11

                                             0            100           200         300     400        500

                                                      Number of Respondents (Multiple Answers Permitted)
In all Programs, Finance and AP are Satisfied with
            Card Program Performance
                            Traditional    Expense
        Process
                            processes     Management
Average cycle time for a
front-line employee to      35 minutes    18 minutes
complete a report:

Average cycle time for an
accounts payable            22 minutes     5 minutes
employee to process a
report:
Average time in days for
processing a report from      14 days       3 days*
submission through
reimbursement:
Average cost for                $48          $18
processing an expense
report:
Thank You