Bring more focus to your next RFP.

May 16, 2016 Lynn Larson

In the life of every Commercial Card program, there will be a time—likely multiple times—when a request for proposal (RFP) process is required or desired. If you have already participated in such a project, then you probably have a list of lessons learned that will benefit future RFPs. Conducting a good RFP process helps establish a good end-user/provider relationship and, ultimately, a successful card program. Before you embark on another RFP project, consider the below tips from industry experts.

The following content originates from sessions at the 17th Annual NAPCP Commercial Card and Payment Conference.

Preparing the RFP

Tips from the joint session by PayTech Commercial AS and Mastercard

Do not reuse the same RFP as what you used before, especially if you are not happy with the current program/provider.
Identify what matters most and pare down your RFP accordingly. Out of all the possible data points you can include, which ones are most important to your business case and future goals? I could not agree more. I think there is a tendency to ask too many things that do not impact the decision. The opposite problem is not asking key questions, such as ones pertaining to customer service.
Evaluate your RFP for clarity. Unclear questions can result in bidding providers including more information than what is necessary, causing more review work for you and the project team.
Save contract terms for the negotiation stage. When your RFP includes contract terms to which the provider must agree in order to submit a proposal, it will require them to obtain legal review first. This increases the time they need before responding and it could mean they cannot respond at all if your timeline is too tight.
Provide details about your current card program(s), including as many metrics as possible. See examples...

Evaluating the Responses

Preparing a good RFP is just the beginning. Take equal care when designing the evaluation process.

Use a weighted matrix, developed in advance, to evaluate proposals. Place more weight on the items most important to your organization.
Each team member should evaluate/score the proposals independently before the team comes together to discuss.
Do not be swayed by “bright shiny things” that a provider might include within the proposal. These things can be distracting when they pertain to something that falls outside your requirements. Ensure the provider can meet core competencies first.
Proposals offering big checks/payouts can also be distracting. This leads to another important point, as described in the next column.

During your next RFP project, focus on what matters most to your Commercial Card business case.

Dollars vs. Basis Points

Within his conference presentation, Frank Martien, Partner, First Annapolis Consulting, encouraged end-users to look beyond the basis points (bps) noted within a provider’s proposal. He makes the case that end-users can earn more rebate dollars with lower basis points if the provider helps you capture more card spend by acting as a key partner in your program. For example, how will a potential provider specifically help you:

convert more suppliers to card payments?
further automate internal business processes, as well as key suppliers’ business processes?
obtain program buy-in from your management?
increase your card usage?

More Information

For more RFP resources, visit the related webpage.

Your Experience

If you have RFP experience that you would like to share for possible publication by Recharged Education, please submit a contact form. I would love to hear your advice and lessons learned. Alternatively, provide a comment below.

Contacts

Greg Hamilton
Vice President
Public Sector Business Leader
Mastercard
Phone 303-617-9171
Mobile 303-621-4487
gregory.hamilton@mastercard.com

Vincent P. Eavis
MD, Partner & Global Practice Lead
PayTech Commercial AS
Mobile +44 7721 985700
vince@paytech.no

Frank Martien
Partner
First Annapolis Consulting
Direct 410-855-8513
Mobile 443-994-1241
Frank.Martien@FirstAnnapolis.com

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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Does program buy-in seem out of reach?

May 4, 2016 Lynn Larson

When I ask end-users about their biggest card program challenges, an unfortunate common response is lack of buy-in. A program that begins with strong management support may take a hit when a program champion retires or leaves the organization. This can cause a program manager to scramble in defense, which is especially frustrating considering Commercial Cards have proven to be an excellent payment option. Following are steps you can take to combat or even prevent internal resistance.

Strive for Consistency

Regularly share card program successes, so management continues to receive the message about the program’s value. This should not be a random task. Broaden your promotion to reach management throughout the organization. Internal job changes can mean you get a manager from another area someday. If he or she is already familiar with Commercial Card benefits and how the program has helped your organization, this can drive your program forward versus backward, keeping it up to par.

Aim for the Green

In golf, the green is the target. The same is true in business except the green is money (USD currency). Management typically wants to see the impact of the card program on the bottom line. Within your promotions, feature the savings achieved and rebates earned. It is beneficial to include a mix of: 1) meaningful industry statistics, such as average process savings, and 2) specific metrics about your card program.

Learn from your peers who can tell you what works and what does not when seeking management support. Chad Robison, CPCP, Purchasing Card Program Manager, Intermountain Healthcare, relayed that he regularly informs management about the status of their card program. A key part of this is sharing industry best practices on various topics and noting whether his organization follows them. This is a great addition, as it provides education and encourages dialogue about how to improve the program. Management becomes more invested in its success.

Reaching any daunting target requires focus to tune out the distractions and proper execution of a plan.

Address Program Risk

Conducting a risk analysis to document program controls and what is needed to close any gaps can help ease management concerns. If a risk analysis has been on your to-do list for too long, check out the related content from Recharged Education, including a template available for purchase.

Related Resource

For more information on garnering buy-in for the card program, visit the r elated webpage.

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A biometrics solution for Commercial Cards.

April 25, 2016 Lynn Larson

Fingerprints and selfies are coming to the Commercial Card world! I view this as big news. Last year, the headlines were all about EMV/chip cards. Now the tide is turning toward improving the security of online purchases, which often comprise a large portion of Purchasing Card transactions in particular. BMO Financial Group (BMO) and Mastercard have an answer. Following is content from their related press release.

These two organizations have begun a phased launch of the first biometric corporate credit card program in Canada and the U.S. that will enable cardholders to verify transactions using facial recognition and fingerprint biometrics when making online purchases. The introduction of this technology will increase security when making payments that do not include a face-to-face interaction, and will be integrated seamlessly for easy use in reducing the likelihood of a card being used by anyone who is not the cardholder.

Beginning with corporate cards issued to BMO employees in Canada and the U.S., the Mastercard Identity Check mobile app will prompt participants to:

scan fingerprints or snap selfies to validate their identities via biometrics; and
when verified, return to the merchant site to complete the online purchase

“The use of biometric technology has become more common for consumers looking for convenient and secure ways to make purchases using their smartphones, so this was the natural next step for us as innovators in the payment security space,” said Steve Pedersen, Vice President, Head, North American Corporate Card Products, BMO Financial Group. “Mitigating the risk of fraud is always our top priority, and the inclusion of this technology is going to make payment authentication easier, and strengthen the security of the entire payments ecosystem.”

Mr. Pedersen added that the first phase will test the potential of delivering greater security and convenience using BMO employee corporate cardholders in the U.S. and Canada, including establishing and improving best practices in corporate environments, developing better protection against potential fraud and continually minimizing the need for customer service inquiries. Once complete, the next phase will be to make the technology available to customers more broadly beginning in the summer of 2016.

“With BMO, Mastercard is hosting our first Canadian and U.S. corporate card biometric user engagement. It’s always exciting to introduce biometrics to new cardholders. They quickly realize that they don’t have to sacrifice convenience for security. By snapping a selfie or scanning a fingerprint, the person becomes the password,” said Catherine Murchie, Senior Vice President of North America Processing, Enterprise Security & Network Solutions for Mastercard.

Biometrics offer another layer of security for online payments.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified financial services organization and a leading provider of commercial card and treasury solutions based in North America. With total assets of approximately $642 billion as of October 31, 2015, and close to 47,000 employees, the bank also offers a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers.

About Mastercard

Mastercard, www.Mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.

What I Like About This

Besides this being good news overall, when I learned more about their solution, I was excited by a specific element. Any device, including a laptop or even desktop computer, can be used for the online purchasing process. (I was thinking about administrative assistants and others who work at their desks all day.) The authentication, however, will occur via the purchaser’s mobile device.

This is just one more evolving piece of card and payment security—a growing and important part of the industry.

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