CitiBank Travel Card Program

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• CitiBank Travel Card Program

March 2011
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CitiBank Travel Card Program

• State of Texas Comptroller has awarded a contract
  for Procurement and Corporate Travel Charge Card
  services to Citibank.
• The initial term of contract is through August
  31, 2013, with three one-year renewal options.

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CitiBank Travel Card Program

• This program provides a convenient means of
  charging travel-related expenses incurred while
  conducting official University business.
• Recommended changes have been approved by CMO

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CitiBank Travel Card Program

• Travel Credit Card Types
• Individual Billed Account (IBA)
• Central Bill Account (CBA)
• Corporate Liability Individual Billed Account
  (CLIBA)
• Note Currently, the UTSA Procurement card
  (ProCard) program is separate from the Travel
  card program.

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Individual Billed Account (IBA)

• Cardholder responsible for protection proper
  use of the card timely payment.
• The employee bears responsibility for account
  repayment in full.
• Card is issued with the expectation it is used
  for official business travel only
• Issuance is based on individuals personal credit
  history
• Not a revolving credit card any amounts not paid
  within 60 days are suspended and subject to
  finance charges

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Individual Billed Account (IBA)

• 319 UTSA employees have IBA cards issued from JP
  Morgan Chase Bank
• Recommendation that UTSA no longer administer
  this program
• There is limited value-added to UTSA
• Many universities that issue these cards do so
  because they do not provide travel advances.

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Individual Billed Account (IBA)

• We will notify affected employees of the date
  when the current Chase IBA card will no longer be
  valid.
• After August 31, 2011, all cards will be
  deactivated

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Central Bill Account (CBA)

• Payment is guaranteed by UTSA and issued in the
  name of a department
• Card issuance was done without establishing
  explicit responsibilities, e.g. on time payment
  in full
• A central bill account administered by DTS was
  also established for departments who did not have
  a CBA.

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Central Bill Account (CBA)

• This program has many problems
• Originally implemented for airfare only some
  cards were later opened up for other charges
• Since 2003 when the program began, we have
  significantly increased the number of cards
• unpaid charges have also increased significantly
• Bank considers all CBAs issued to UTSA
  departments to be one account
• Reporting is limited
• All data is consolidated
• Standard reports for monitoring activity such as
  aging or spending history are unavailable

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Central Bill Account (CBA)

• This program has many problems
• Difficult to reconcile
• Charges are consolidated on one single statement
  for the entire university and not tied to
  authorized travelers
• Memo statements are provided to department with
  only current charges.
• Doesnt show total amount outstanding
• Manual process
• Full payment is frequently late because of
  departmental delays for many reasons

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Central Bill Account (CBA)

• Recommendation
• Discontinue all CBA cards and issue
• CLIBA cards upon receipt of authorized
  application packets

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Corporate Liability Individual Billed Account
(CLIBA)

• Payment is guaranteed by UTSA but issued in the
  name of an individual, not department
• Credit limit will be based on estimated monthly
  requirements as approved by Financial Affairs

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Corporate Liability Individual Billed Account
(CLIBA)

• Department can have one or many CLIBA cards but
  an individual (typically the department head)
  will be responsible and required to sign a
  cardholder agreement
• Individual will agree that each months charges
  will be paid in full unless formally disputed
  through vendor established process
• Account on file for the card will be charged for
  amount due to assure timely payment

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Corporate Liability Individual Billed Accounts
(CLIBA)

• Benefits
• Individual will receive separate monthly
  statement
• Allows future opportunity to automate payment
  process
• Similar to CBA, university guarantees payment and
  assumes liability
• Eliminates reconciliation issues experienced with
  CBA
• Individual can contact Citibank directly while
  traveling
• Declined card
• Disputed amounts

Currently issues must be resolved through DTS!
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Proposed Features of UTSA CLIBA Program

• General CLIBA Card used for Hotel, Airfare,
  Transportation, and Conference Registration

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CLIBA Implementation Activities

• Timeline is in flux
• CitiBank is inundated with other agencies
• Have just been learning details not all are
  well understood
• State wanted the transition to be completed by
  2/28/2011
• Due to delays by CitiBank, we have more time to
  implement. Extended to 8/31/11 but we will
  convert before that time.

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CLIBA Implementation Activities

• We will
• Complete Cardholder agreement form, internal
  application, guideline, FAQ documents
• Schedule a launch meeting begin transitioning
  from JP Morgan/Chase to Citibank
• Develop a training class on payment requirements
  online access to Citibank

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Travel Advances

• Processing checks is costly and inefficient
• Discussion that the state will mandate ACH and
  direct deposit for all employee transactions
• It is recommended (CMO approved) that in the
  future all travel advances be issued only as
• Direct Deposit to the employees bank account, or
• CitiBank Travel Advance Debit Card

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CitiBank Travel Advance Card

• Features
• Card is activated with credit limit established
  from an approved travel advance form
• Issued in travelers name with a fixed activity
  length and appropriate MCC codes
• Statement is received, reconciled and paid
• Card can be refreshed for additional future
  authorized travel for an individual

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CitiBank Travel Advance Card

• Benefits
• Traveler will not have to bear out of pocket
  expense
• Alternative to CLIBA Card for employee who does
  not frequently travel and or does not want to use
  his/her own credit card
• Increased efficiency and control

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Travel Advances

• Recommendation
• After reasonable notification and direct deposit
  set-up campaign, we will
• Transition to Travel Advance Cards as the
  preferred method of providing travel advances
  (when practical)
• Requires guideline, training class and form
  changes
• No longer issue checks for travel advances
• will allow direct deposit to employees bank
  account when travel advance card is impractical
• Exceptions for hardship or unique circumstances