Finding cardholders when needed.

November 11, 2015 Lynn Larson

Cardholder contact information is a simple, but often forgotten, topic. Sure, you capture the information each time an employee obtains a card, but have you reviewed it since then? Does your issuer have everything they need? It plays a role in your fraud defense, as explained below. If the information is incomplete, inconsistent, and/or outdated, you may run into issues.

Make It Complete

Increasingly, issuers are seeking cardholders’ mobile numbers, so they can more quickly validate suspicious transactions. Text messages are a good option and far more effective than trying to reach someone on their desk phone. As a program manager, it can be tempting to direct the issuer to contact you first in these cases, but this only slows the process down. If mobile numbers are desirable, ask your cardholders to provide and follow up to confirm completion.

In addition, ensure your cardholders know how the issuer will contact them and what the communication looks or sounds like, so they can discern legitimate communications from fraudulent ones. (This tip is part of my risk analysis template, available for purchase.)

Make It Consistent

The longer your organization has had a card program, the more likely it is that cardholder contact information is not uniform; for example, variations in cardholder addresses. Consistency supports memory retention, which can matter in cases of transaction verification, as well as during some payment processes.

Cardholders who do not respond to issuer communications about suspicious transactions are not upholding their full responsibilities related to fraud detection.

Confirm It is Current

Do you require cardholders to review their contact information that is on file with the issuer? Add this to my list of 12 housekeeping tasks—now 13—to complete annually. While you are at it, confirm that the issuer’s records are accurate. You might find discrepancies ranging from minor (e.g., the wrong desk/office phone number for someone) to significant (e.g., issuer shows an open card account that you thought was closed).

While cardholder contact information is a small part of Commercial Card program management, keeping it complete, consistent and current can pay off in significant ways. Your issuer will thank you!

About the Author

Blog post author Lynn Larson, CPCP, is the founder of Recharged Education. With more than 15 years of Commercial Card experience, her mission is to make industry education readily accessible to all. Learn more…

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The value of asking why.

November 4, 2015 Lynn Larson

Asking why (or why not) has benefits in the workplace. For example, it can open doors to great possibilities, lead to information that can help our organizations, and prevent us from pursuing things that do not make sense. Following are three scenarios to demonstrate the power of this simple question plus examples of “why” questions you should use on the job:

Why is it a good idea for Visa Inc. to acquire Visa Europe?
Why is wire payments fraud increasing?
Why should card program managers push back occasionally?

Visa

Here is an example, albeit an extreme one, of doors opening to great possibilities. This week’s Visa Europe press release is full of reasons why the acquisition, subject to regulatory approvals, makes sense. It begins by declaring, “European clients will have greater access to Visa Inc.’s scale and resources and global clients will have a more seamless experience. Additionally, European clients will benefit from direct access to Visa Inc.’s investments in innovative technology and differentiated products and services.” To read the entire press release and gain more insights, visit http://www.visaeurope.com/newsroom/news/vi-to-acquire-ve. Obviously, a deal like this requires careful analysis and abundant exploration of “why” before it reaches this point.

Wire Payments Fraud

As reported in the 2015 AFP Payments Fraud and Control Survey Report, wires fraud incidents nearly doubled between 2013 and 2014. Taking it further, they explored why, leading to information that can help organizations. Their conclusions point to business email compromises (BEC) for which the FBI has issued public service announcements. As the FBI notes, fraudsters compromise legitimate business email accounts through social engineering or computer intrusion techniques to conduct unauthorized transfers of funds. The scam has been reported in all 50 United States and in 79 countries. In short, organizations need to be aware of this growing problem, train their employees and update their procedures to protect themselves. See what the FBI recommends...

What can asking why do for you or your organization?

Card Program Managers

As a Commercial Card program manager (PM) you need to pick your battles, but there are times when pushing back yields benefits for your organization. I recently met a PM who shared how a colleague asked him to create a special report each month, consuming precious time. When the PM asked this person why they needed the report, the only answer was, “Because I want it.” The PM responded that, without a legitimate business reason, he needed to decline the request.

Now, if the requester is among senior management, pushback should probably be softer; for example, “Help me understand what you need...” The point is, by asking why in some fashion, you can determine how to best contribute and support an organization goal (or whether your best response is declining something altogether).

Examples of “Why” Questions to Use on the Job

Why is ________ needed? As described above, learning more before agreeing to do something can save time.
Why do we _______? It is possible that your organization is doing something today that is no longer relevant.
Why don’t we use cards for ________? You might be able to combat this and expand the program.
Why is this trend occurring? Reviewing program metrics, audit results, etc. and then taking the necessary action can result in improved compliance or other positive outcome.
Last but not least, Why am I doing ________? Perhaps this should be the first question before starting anything.

About the Author

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Who is the best card issuer?

September 23, 2015 Lynn Larson

Over the years, I have fielded many questions from end-users who wanted an opinion on the “best” issuer. My standard answer is that every issuer has both happy and not-so-happy customers. Best is subjective, varying by end-user. Making the best decision involves identifying your organization’s specific needs and goals first, then determining the best match. I used to say issuers differ the most in three broad categories, but now I add two more to the list.

Monetary Incentives

I start with this one to get it out of the way, not because I think it is most important. (I addressed the dark side of rebates last year, including how it can cloud judgment when selecting an issuer.) Sometimes it is challenging to compare issuers’ financial proposals because each might use different criteria. Things to consider are:

Number of factors that figure into the rebate calculation and how your program might fare based on historical data
Minimum spend threshold to qualify for incentives and what happens if you do not meet specified requirements
How large-ticket transactions are treated
Potential for a one-time signing bonus
Contract duration

Do not just review an issuer’s proposed table of basis points; read the accompanying details and stipulations.

Customer Service

Money only goes so far. The people factor can make or break an issuer/end-user relationship, as well as a card program. A strong relationship, including getting answers and help when needed, increases the likelihood of program success. What is important to your organization in this area? Considerations when evaluating issuers include:

How will they support your program goals and help you identify improvement opportunities?
Will you have a dedicated relationship manager (RM) or a broad team of customer service reps?
Will you have a say in the RM assigned to you?
What should you expect in terms of support and service? What is their role versus your role?
Will they proactively offer Commercial Card education and share industry news/changes that may affect you?

Technology

Program management technology should make things easy for your organization and not move you backward. Take test drives of the options and allow your heaviest users to do so. Identify the types of reports most critical to you and ensure the technology offers them in the format you prefer. Again, it is all about your needs and requirements, including those of AP, Tax, Audit, etc.

Winner or loser? Increase your odds of selecting the right issuer by not making a random decision.

The final two categories may not apply to every organization, but both are becoming increasingly common.

Electronic Accounts Payable (EAP)

If you are interested in an EAP solution, be familiar with the different types. Do you prefer a push model (buyer-initiated payments) or pull model (supplier-initiated payments)? Or do you want to have both available to you? Also explore whether a proposed solution will integrate with your existing finance/AP system(s). Further, what level of EAP support does each potential issuer offer? Training and supplier outreach are two elements.

Global Capabilities

This might be the biggest differential. If your card program covers more than one country, take care in developing detailed RFP questions. It is not just a matter of whether an issuer says it can support a certain country (yes/no); it is a matter of how.

RFP Help

This blog post only scratches the surface of card issuer selection. If your organization is seeking assistance with a request for proposal (RFP) project, contact Recharged Education to discuss further and obtain a quote. See also additional RFP-related content.