2018 - 2019 Edition of Citi Perspectives for the Public Sector

46 government employee tries to use their card at an unapproved merchant, the transaction is declined and their organization is informed. In addition, at the end of each month the employee’s manager or supervisor can audit the credit card bills to scrutinize spending activity. Other controls include a dollar limit on the amount that can be spent each month, and even a limit on the number of transactions each cycle. Looking for new opportunities In recent years, corporates have rapidly adopted commercial cards to address their own efficiency and visibility goals. Many government agencies now seek to learn from corporate best practices, especially in areas such as integration of purchasing cards into accounts payable process to facilitate automation; card transactions can simply be initiated via an enterprise resource planning system, increasing data flow and making reconciliation easier. Similarly, governments can integrate their travel card program with travel management companies’ booking tools such as SAP/Concur to improve visibility and control. Government agencies are also eager to understand the potential application of virtual card technology. It cannot only be used for purchasing but also for disaster relief support and travel for infrequent travelers or non-employees who do not have a regular commercial card. Commercial Cards: Innovation is Key to Efficient Government Spending Efficiency and security Commercial cards don’t just lower costs by eliminating purchase orders and invoices. By automating many aspects of the purchasing process they can increase efficiency and add value across the order to pay cycle, not least because fewer people are required to touch paper and reconcile bills. Commercial cards make it easier for government to manage its bills. Instead of invoices being paid as they come in — and employees having to authorize and execute payments frequently — the use of commercial cards enables governments to pay just one monthly bill, taking advantage of the credit card cycle. Alternatively, they can opt to pay their bill as transactions take place in order to create efficiencies and improve the economics of the program. As well as offering organizations many advantages over traditional purchase order and invoice payment processes, commercial cards are significantly more convenient for users. They can simply purchase what they need using a familiar credit card payment process rather than having to complete lots of paperwork. As custodians of taxpayers’ money, governments are rightly focused on controls. Commercial cards offer a range of robust mechanisms to restrict spending, including merchant category codes, which enable certain categories of merchants to be blocked. If a Commercial cards offer a range of robust mechanisms to restrict spending, including merchant category codes, which enable certain categories of merchants to be blocked.