# Presentation: 937634

## Internet Payment Platform and Debit Card Financial Services

Brett Smith
Program Manager
Financial Management Service

**Brett Smith**
**Program Manager**
**Financial Management Service**

**Austin Financial Center’s Group Meeting with Veterans Affairs**

- 5 November 2008

## Agenda

- Introduce the Agency Enterprise Solutions Division
- Discussion on Internet Payment Platform
- Discussion on US Debit Card and the Direct Express Card
- Questions
- Close

## AES Division Background

**The focus of FMS’ Agency Enterprise Solutions** (AES) Division is the use of emerging technologies to address agency needs in the collection and payment of funds
**Projects undertaken by AES include the following:**
- Internet Payment Platform
- Stored Value Cards (Smart Cards): 2 million cards issued with over $1 billion in funds
- Customs and Immigration Service (CIS) Lockbox: Advanced decisioning and routing of government forms
- Debit Cards: Social Security to Census Surveys

## Background of the U.S. Debit Card

- Started in 1998 as a U.S. Treasury  pilot and  launched as a full program in 2005
- JPMorgan Chase provides the following services: cards, training, operations, and customer service
- Delivers recurring or nonrecurring payments to individuals
- Web-based platform that enables agencies to:
- Assign various roles
- Activate and deactivate cards
- Fund cards
- Distribution is immediate in person or by mail
- Cards can be embossed with a name or without
- Cards can be activated on-the-spot or by batch file

## How has the card been used?

## Spotlight:  Wounded Warrior Program at Walter Reed 

## Direct Express®

**Pilot Defined**
- One Year Pilot starting in 12.2006
- Audience:  unbanked
- Business Case:
- cost of a check and 78 million baby boomers begin to retire next year
- $767M in benefits in 2006 -> 20% conversion to EFT saves $124M
- Pilot Location:  Chicago and some parts of rural, Illinois
- Results
- Over 3,000 cards issued
- 88% of pilot participants reported they would _**recommend**_ the Direct Express Card to a friend or family
- 85% were very satisfied using the cards
- Why use the card:
- no worries about losing/stolen check;
- easier than cashing check;
- safer than carrying cash; and,
- faster than mail.

## Direct Express®

**Program Defined**
- Additional features
- Low-balance alerts, deposit notifications
- Extended Surcharge Free network and low fees
- Focus Groups in early summer
- Roll-Out Nationwide
- Launched in late Spring, 2008
- Focus Groups in June, 2008
- Provider is Comerica Bank
- SSA now enrolling card holders.
- Over 1,000 enrolled a day
- Next Benefit Agencies
- OPM for Federal Retirees
- Labor for Black Lung
- Railroad Retirement Board

## Internet Payment Platform 

**Piloted and won Harvard Business Case award**
- Pilot agencies experienced 30% cost reductions
- A free payment information service available to all Federal agencies and their suppliers
- A centralized payment information portal with features and functions extending the value of traditional payments
- Features include workflow, email notification, electronic Orders/Invoices, Treasury back-end Reporting (offsets, returns), agency configuration and rules creation
- A modular platform, not “One Size Fits All”
- Push cash management down to Program Offices
- Discounts are a greater return than rebates
- Quick Start.
- If Vendors already on platform – you do not need to enroll.
- PAID suppliers on IPP

## IPP is Visibility into all Data in the Order-to-Pay Cycle

**EFT Payment**

**Treasury Disbursement**

**Invoice Approval**

**Goods Receipt**

**Supplier Invoice**

**Purchase Order**

## IPP Information Flow Overview

- _[Workflow](slide16.xml)_

**Agency ERP**
**Purchasing**

- Purchase Orders (w/updates)

- Vendor
- (Ordering
- System)

- Vendor
- (Invoicing System)

- Vendor
- (A/R System)

- Invoices, Acks & ASNs

**Agency ERP**
**A/P**

- Invoices

- Invoice Status

**Treasury Regional Operations**

- Payment Request

- Payment Information

**Vendor’s Bank**

- Payment Information

- POs

- Account Reconciliation

- ACH

- 1

- 2

- 3

- 4

- 5

- 6

- 7

- 8

- 9

**Workflow**

**IPP**

**Web Display**

**  ****ACK is purchase order acknowledgement by Supplier**
**  ****ASN is an advanced shipping notice **

*****

*****

*IPP Information Flow Overview*

**Notes:**
The original PO comes from your ERP system to display in the IPP so that you suppliers can see it electronically.
Your suppliers can download the PO to their systems as we can see in number two. 
Once your suppliers views your PO they can send you an Acknowledgement that they received your PO. They can also send you an advance shipping notice. 
Once the PO is processed you supplier can “flip” a PO to an invoice by just clicking a button and the only data entry they need to do is enter the invoice number, which come from their system.
Yours suppliers can easily flip the PO into an invoice. If workflow is done in IPP, then the invoice remains in IPP till all approvals are done. If not, then the invoice will be downloaded to Agency's ERP system.
The agency can send Invoice status to the IPP enabling suppliers to obtain more information about the invoice status. (Pending approval, Reject, Approved to Pay, Scheduled to Pay, Paid)
Once the Invoice is approved, either through IPP or your own system, the request for payment is now in processed. 
After the request for payment is made through the Treasury, and payment is processed by them, they will send a copy of the payment information to the IPP. This of course is an opportunity for your suppliers to know what exactly they will receive in their bank account. Your Suppliers will out if they payment has been cancelled, reduces or offset. Offset detail information will be available only to the suppliers not to the agency. 
The payment information will be available for Display and download in IPP ( to the Suppliers A/R system). 
The payment is made to the suppliers bank account.  At the end of the process, number 10, the suppliers A/R office can reconcile what they received tvs what they billed. 

## Email Notification - Event Driven

***Email Notification - Event Driven***

**Customizable Email**
**Notifications to Vendors**

**TO: **invoice_manager@vendor.com
**FROM: **contracting_officer@agency.gov
**DATE: **February 5, 2006 10:34 AM ET
**Subject: **IPP New Purchase Order Notification

**New Documents**
**Awaiting Action**

## Supplier Portal (Welcome Page)

***Supplier Portal (Welcome Page)***

**IPP Provides Suppliers**
**With a Central Portal**
**For Viewing All Activity**

## Supplier: Purchase Order Presentment

## Supplier: Electronic Invoice

## Agency Portal (Welcome Page)

**Space dedicated to User Support & Training**

**Space dedicated to IPP Product News Releases**

## Invoice Distribution (example in workflow)

## Agency: Central Data Portal

*Agency: Central Data Portal*

**View All Documents**
**Related to a PO**

## Supplier: Payment Notification – conceptual page

*Supplier: Payment Notification **– conceptual page*

**TO: **ar_manager@vendor.com
**FROM: **ipp@ipp.gov
**DATE: **February 5, 2008 10:34 AM ET
**Subject: **IPP New Payment Notification

**Auto-Deposit**
**Notification of Payment**

## Supplier: Electronic Payments

*Supplier: Electronic Payments*

**IPP Provides Complete a**
**Complete Audit Trail**
**For Remittance Data**

- © 2006 Federal Reserve Bank of Boston.  This document contains confidential information (including trade secrets) of the Federal Reserve Bank of Boston ("FRBB") and its licensors.  A federal government agency may not disclose this document outside of that agency without the written permission of the FRBB.

## Supplier: Electronic Remittance

*Supplier: Electronic Remittance*

**Supplier View All**
**Payments and Statuses **

**Supplier View of All**
**Payment Activity and**
**Electronic Remittance**
**Data**

- © 2006 Federal Reserve Bank of Boston.  This document contains confidential information (including trade secrets) of the Federal Reserve Bank of Boston ("FRBB") and its licensors.  A federal government agency may not disclose this document outside of that agency without the written permission of the FRBB.

## Internet Payment Platform Status

- In Production since 10/2007:  GPO and Treasury/Bureau of Engraving and Printing
- Deploying for Interior, Bureau of Public Debit (SSP), Agriculture, Holocaust Museum
- Agency and Supplier User Groups
- Security:  interfaces are with IPP and not your core financial system
- Piloting Intragov pilot between BPD and BEP this month
- Continued discussions with CCR and OMB and FSIO for areas of collaboration and integration

## Open Discussion

**What are the Current Cash Management Problems Veterans Administration is Facing?**
**Employees**
**Hospitals**
**Clients**
**What is VA Exploring for Future?**
**OB10 Status?**
**Who did you choose for your SP2 bank?****  **

## In Conclusion

**May be able to enroll any beneficiary onto Direct Express without agency knowing because it will look like an enrollment for direct deposit**
**Internet Payment Platform **
**Testing Intragov transactions**
**Exploring ties to Acquisition Systems and Data Sharing**
**Spend Analysis**
**Payment Forecasting**
**Free**
**Part of a Larger Federal Push and avoiding one-off portals by Agency**
**Wireless Tests for Unbanked  **

## Thank You !

**Brett Smith**
**Agency Enterprise Solutions Program Manager**
**Financial Management Service bureau**
**202.874.6666**
- _[brett.smith@fms.treas.gov](mailto:brett.smith@fms.treas.gov)_