# Presentation: 293528

## Managing Your Travel Card Program 

**Kristann Montague**
- Contracting Officer,
- GSA SmartPay® Program Office

## What We’ll Cover Today...

- Travel Charge Card Overview
- Major Program Issues
- Delinquency Statistics
- OMB Quarterly Reports
- Training:  Goals, Topics &  Resources
- Managing Your Card Program
- Audits
- Benefits of Delinquency Control
- Best Practices in Delinquency Management
- Q & A

## Travel Charge Card Overview

- In FY2002 –
- Over $7.1 Billion in sales
- 45 Million transactions
- 2.1 Million cardholders
- Annual sales volume has more than doubled since FY98 ($3.4 Billion to $7.1 Billion)

## IBA Delinquency (60+ days)

## Delinquency Rates

- IBA delinquency rates averaged 7% in 2002
- DoD 9% average
- Civilian agencies 5% average
- Corporate delinquency 3% average
- 2001 average delinquency was 9%
- How does your agency compare?

## OMB Quarterly Reports

- OMB requires agencies to submit reports on a quarterly basis
- First report: January 15, 2003
- Most recent report: May 1, 2003
- GSA & OMB review & analyze reports
- Establishing performance metrics
- Delinquency rates
- Number of cards in circulation
- Refund performance

## Training Goals

- Cardholders and A/OPCs fully understand their roles and responsibilities
- Documentation of training is maintained
- Refresher training is provided periodically
- Training is easily accessible

## Training Topics

- Addresses standards of conduct/ethics
- Understanding of travel policy (per diem, City Pairs, reimbursement process, documentation requirements)
- Clearly states consequences for misuse
- Discusses:
- Federal Travel Regulations
- Master contract terms
- Agency policies and procedures
- Bank procedures (e.g., billing)

## Training Resources

- GSA SmartPay® online training
- Travel Cardholders available right now
- Travel A/OPCs before end of FY03
- Agency-provided training
- Bank-provided training (EAS)
- “But I Didn’t Know ....” brochure for cardholders
- A/OPC Survival Guide for Travel Card A/OPCs

## Managing Your Travel Card Program

- Set reasonable spend limits
- Monthly limits credit and cash should correspond to historical travel spend  patterns and the requirements of the job
- Limits may be raised easily to accommodate special circumstances (e.g., for frequent travelers or extended travel)
- Higher spend limits = More risk

## Restricted Use through MCC Blocks

- The master contract says the travel charge card shall be used for official travel related expenses
- Agencies may further restrict use through policy, also using MCC blocks
- MCC blocks are not 100% foolproof -- Work with merchants/contractors to correct inaccurate MCCs

## Deactivation

- One of the most effective deterrents to fraud or misuse
- A/OPCs may quickly deactivate/reactivate cards electronically or through customer service
- Authorizations will be declined at point of saleWhen using deactivation, notify cardholder of procedures to re-activate (e.g., who to call, when to call)

## Cardholder Activity Review 

- Segregate questionable transactions
- Look for patterns of suspicious behavior
- ATM withdrawals w/no other travel-related charges in days surrounding withdrawals
- Charges with merchants or at locations not associated with travel (e.g., transactions at local zip codes)
- Declined transactions could indicate misuse

## A/OPC Actions

- Follow-up with cardholder or supervisor on questionable transactions
- Verify whether cardholder was on travel when transactions were made
- Escalate or referral to IG, depending on agency policy

## Remedial Actions

- Suspension or cancellation of account
- Disciplinary action
- Counseling
- Notation in performance evaluation
- Reprimand
- Suspension or termination of employment
- Criminal prosecution

## Reports Are Key!

- Transaction detail
- Type of merchant
- ATM withdrawals
- Merchant location
- Date of transaction
- Declined transactions
-   Pre-suspension/suspension
-   Pre-cancellation/cancellation

## More Reports!

- Declined transactions
- Disputes
- Unusual spending activity
- Lost/stolen card
- Master File
- Renewals
- Ad hoc reports

## Audits

- Determine compliance with policy/procedures and test adequacy of controls
- Detect questionable transactions, misuse, and/or fraud
- Address weaknesses or deficiencies in policies or controls
- Contain recommendations for improvements

## Benefits of Delinquency Control

- Agency & individual responsibility
- Ensure long term program viability
- Reduce administrative burden
- Increase refunds

## Best Practices in Delinquency Management

- Salary offset
- Split disbursement
- Agency suspension of privileges
- Credit checks
- Lower credit limits
- Earlier late fees

## Please Visit Our Website

*A/OPC Survival Guide*
- Online travel cardholder training
*Do’s & Don’ts* for Cardholders
- Master contract & your agency task order
- Information on our Annual Conference (San Antonio, TX  8/19 – 8/21)
- Cardholders, transactions, sales volume statistics
-  fss.gsa.gov/services/gsa-smartpay