Canada Program Administrator Guide

American Express Corporate Purchasing Card

®

4

Introduction

6

Key Contact Information

8

Billing/Payment Information

Program Administration

12

Roles & Responsibilities

18

Account Types

24

Establishing Your Program Hierarchy

26

Selecting a Billing Cycle

28

Establishing Program Controls

30

Card/Account Issuance

34

Card/Account Communication

Tools and Reporting

36

Program Management– American Express @ Work

38

Financial Reconciliation

44

Reporting

Program Growth

Corporate Purchasing Card Best Practices

54

Sample Good Fit Commodities

62

Merchant Data and Acceptance

64

B2B Electronic Payment Solution

65

Communication Materials

Sample Communication Plan Overview – Employees

66

Sample Communication Plan Overview – Suppliers

68

Addenda

Addenda

INTRODUCTION

Controlling indirect costs has long been a strategic objective of successful companies. For more than a decade, the American Express Corporate Purchasing Card ® has helped many of those companies set the

standard for cost control in purchasing. It has the benefits of replacing paper cheques with online

processing, cutting administrative expenses, improving reconciliation, deepening data quality and driving hard dollar savings.

“A Purchasing Card (P-Card) is a type of commercial credit

card (as opposed to a consumer credit card), used by

organizations for the payment of goods and services.“

– National Association of Purchasing Card Professionals

Now, as the purchasing environment becomes more complex, more companies are looking to this simple, proven program to ensure greater spending control and corporate compliance. And as purchasing

continues to change, American Express is leading its transformation.

Built specifically for the needs of corporate

purchasing, the American Express Corporate

Purchasing Card gives you the confidence that you are making the most of your purchasing program, by providing tailored controls, tools to help with

compliance, actionable reporting and seamless implementation and integration.

Your corporation can utilize this guide to:

• Understand the features and benefits of the American Express Corporate Purchasing Card

• Identify important requirements for your corporation that will assist during the assessment, design, go-live and expansion of your Corporate Purchasing Card program

• Assist with day-to-day management of your Corporate Purchasing Card program

Program Administrator Resources

KEY CONTACT INFORMATION

American Express @ Work® Website Link

Program Requests should be submitted via American Express @ Work Online Program Management. Exceptions: creating/deleting Preferred Supplier Restrictions; Hierarchy Control Accounts must be managed directly with Program Administrator Servicing Team

www.americanexpress.ca/atworklogin

www.americanexpress.ca/atworkouvrirunesession

American Express @ Work Support

Inquire about access/navigation questions/Online Program Management/Information @ Work Reporting

Phone: 1-866-568-0308

(8:00AM-8:00PM EST/EDT, Mon-Fri)

American Express @ Work Customized Reporting

Inquire about access/navigation questions/modify reports

Phone: 1-800-267-2585

(8:30AM-4:30PM EST/EDT, Mon-Fri) Email: [email protected]

Program Administrator Servicing

Assist with questions related to day-to-day program inquires, such as applications/Card

cancellations/changes (limits, address, Card defaults)/ Basic Control Account transfer/Preferred Supplier Restrictions (new PSL or maintenance)/central pay remittance/billing

Phone: 1-866-568-0308 Fax : 1-905-474-8982

(8:00AM-8:00PM EST/EDT, Mon-Fri) Email: [email protected]

New Applications

Online Applications -submit via American Express @ Work

Paper Applications - fax application Note: processing time 7-10 business days

Phone: 1-866-568-0308 Fax : 1-800-685-0534

Corporate Account Reconciliation (CAR) Web site Link

Note: site language preference can be selected by choosing the language of choice from the drop down box in the “Please log into access American Express @ Work Corporate Account Reconciliation” section on the home page.

https://amex.iers.ihost.com

Corporate Account Reconciliation (CAR) Support

Inquire about access /navigation questions/general questions about CAR

Phone: 1-800-267-2585

(8:30AM-4:30PM EST/EDT, Mon-Fri) Email: [email protected]

Program Administrator Workshops

Monthly general webinars that cover various topics, such as American Express @ Work Program Management & Customized Reporting

www.americanexpress.com/paworkshops

Cardmember Resources

24 Hour Customer Service

General inquiries/lost & stolen Cards/emergency Card replacement

Phone: 1-800-716-6661 or

Int’l Phone: 1-905-474-9329 (Collect)

My Account

Online access to Corporate Purchasing Card account www.americanexpress.ca/myaccountlogin

BILLING/PAYMENT INFORMATION

Billing for Corporate Purchasing Card is done through a central billing/payment process. At the close of each monthly billing cycle, Card/account holders can retrieve an online monthly

statement for review only. American Express mails a monthly consolidated billing

invoice/statement to the designated corporation recipient. Upon receipt, the client reconciles and is responsible for payment in full to American Express, typically within 14 calendar days.

Payment Methods

There are four methods of payment available for

American Express Corporate Purchasing Card accounts: • Electronic Funds Transfer

(EFT)

• Wire Transfer

• Electronic Data Interchange (EDI)

• Cheque (American Express approval required)

Electronic Payments

• At initial setup, American Express will provide your corporation with the Amex Bank of Canada banking information (e.g., routing and account numbers*).

• Based on when payment is due, your corporation initiates the funds transfer and sends Amex Bank of Canada a pre-notification email or fax, indicating the dollar amount, value date of the transfer and the

corporate remit and load number.

• The corporate remit is the Intermediate Control Account number within the Corporate Purchasing Card hierarchy. The load number is the unique client identifier assigned to the internal remittance file. The internal remittance file is used for processing the payments to the outstanding Card

account balances contained within the monthly invoice.

• Funds transfer and pre-notification must be received before 10:00AM EST on the value date for payments to be posted within 24-48 hours.

• Upon receipt of funds transfer, Amex Bank of Canada matches the funds to the pre-notification and the internal remittance file. If balanced, the payments are posted to the outstanding account balance.

• It is recommended that an initial penny test be

performed to ensure the transmission of funds is successful.

For a soft copy

of the electronic

payment

pre-notification sample,

please contact your

American Express

Representative

SAMPLE – PRE-NOTIFICATION EFT / WIRE DEPOSIT

Amex Bank of Canada- Bank Services Fax: (905) 940-7687

Email: [email protected]

[email protected]

Electronic payments, both Funds Transfer and Pre-notification must be received by Amex Bank of Canada – Bank Services before 10:00a.m.EST. Payments will be processed within 24-48 hrs. Pre-notification fax/e-mail must include the following:

• Print on Corporate Letterhead or reference Corporate Name • Reference a contact name from the Corporation in the event follow

up is required

• The total dollar amount of the funds transfer must equal the total payment amount due on the Corporate Purchasing Card Billing Statement in order for the corporate payment to be applied

Amount of Funds Transfer: __________________________________ Value Date: ______________________________________________ Amex Corporate Remit Number: _____________________________ Amex Load Number: _______________________________________

Fax /Email Recipient

Remittance Information

Cheque Payments

As a best practice, American Express recommends an electronic payment as your designated payment method. If a cheque payment is

required based on your

corporation’s business needs, American Express approval is required.

The mailing address is: Amex Bank of Canada CPC Pmts – Bank Services Dept Mailcode: 62-02-111 1211 Dennison St Unit 18 Markham, ON L3R 4B3

On the cheque, please

indicate the load number (the load number is the unique client identifier assigned to the internal remittance file). Cheques must be received 48-72 hours before payment is required.

Your Online Payments are Secure

• As your trusted payment provider, we know that security matters to you • When you enroll, your company selects one employee to maintain bank account information and authorize others to pay online

• This separation of duties also makes Corporate Online Payments Sarbanes-Oxley compliant

Corporate Online Payments (COP)

Corporate Online Payments is a new functionality that will allow a company to pay one or multiple commercial card accounts (T&E and Purchasing) via the internet using American Express @ Work® Online Program Management. With Corporate Online

Payments, you can gain further control over your company’s spend and avoid delinquency charges by paying on time. Payments are processed within 24-48 hours.

Online Payment is Quick and Easy

• Search for accounts, schedule payments or submit immediate payments

• View online payment history – 24/7 through

Pay Online – and it’s Easy to Pay on Time

• Once your account is set up, you can schedule payments, knowing they’ll be on time

• Since paying online is faster, you can pay closer to the due date with less concern over potential delinquency charges • Replenish available credit

within 72 hours of payment for Corporate Purchasing Card accounts

ROLES & RESPONSIBILITIES

Program Administrator

• Primary contact for Cardmember questions, etc.

• Cardmember training and communication

• Delegate authority authorizing American Express to process

applications, perform profile changes, request additional American Express @ Work users, etc.

• Submit Cardmember applications to American Express

• Maintain Cardmember files • Validate grant of authority

approval for approvers of new applications and limit changes.

• Primary contact for American Express regarding applications, profile changes, transaction limits, etc.

• Manage supplier sign-up, endorsement and

submission to American Express; maintain Preferred Supplier Lists

• Cancel terminated employee cards

• Maintain electronic bulletin boards, intranet sites, etc. • Perform regular program

analysis (suppliers used, preferred suppliers, etc.) • Secondary interface for

specific supplier questions/issues

• Secondary interface for senior management/ American Express

• Update/distribute program metrics

• CAR administration (online monthly reconciliation, add new users, etc.)

These descriptions are

designed to guide you

in understanding how

key individuals within

your organization may

need to be involved in

your Corporate

Purchasing Card

program. Depending

upon your internal

structure, program size

and goals, some roles

(e.g., HR, Audit, etc.)

may only participate in

your program on an as

needed basis.

• Ensure timely expense reconciliation is complete according to polices & procedures

• Perform random transaction audits to ensure policy compliance

Program Manager

• Program strategy, goals, policies & procedures • Identify and approve

additional uses for the Card

• Stakeholder management • Develop, track, and report

program progress against goals (develops metrics) • Develop program

communication strategy (methodology, venue, frequency, etc.)

• Serve as or designate champion for “special case” applications • Share Corporate

Cardmember Manager

• Identify/approve Cardmembers and authorize limit changes according to grant of authority approval rights • Approve Cardmember

monthly

statement/transactions • Address compliance

issues with Cardmembers as per company policies & procedures

• Ensure Card is cancelled and returned when

employee is transferred or leaves the company

• Forward approved monthly expense reconciliation details to accounts payable/finance for appropriate records retention

• If holder of a Department Card, ensure all

designees using the Card receive Corporate

Purchasing Card program training

Cardmember

• Complete Cardmember application/agreement and participate in training • Adhere to policies &

procedures that govern the program

• Responsible for using the Corporate Purchasing Card for authorized purchases only

• Ensure orders for goods and services are complete and contact supplier as soon as possible if there is an error • Work with supplier to resolve

billing disputes in a timely manner (if possible, within 30 days)

• Maintain accurate supporting documentation (e.g.,

receipts, packing slips, approvals, etc.) for monthly billing cycle or audit review • Reconcile monthly billing

cycle as stipulated in the policies & procedures guide • Relinquish Corporate

Purchasing Card upon transfer to another

department or employment

CAR System Administrator

• Assign access to users above Cardmember level • Train users on functionality • Maintain Card defaults,

accounting data, mapping information and validation files if used

• Run exception report of transactions

• Lock cycle transactions • Create output file

Purchasing

• Ensure supplier

management endorsement of program

• Collaborate with Program Manager on program design

• Define target suppliers • Develop buyer/supplier

communication materials • Participate in development

of end user training/ communication methods • Review information collection/reporting process • Market program to buyers/suppliers; train buyers

• Review supplier spend reports

• Own Supplier Cards

Accounts

Payable/Finance

• Perform accounting/ finance analysis

• Complete monthly CAR upload to GL and

American Express invoice reconciliation • Perform CAR maintenance (validation tables, etc.) • Ensure tax compliance/accrual • Primary contact for

accounting/tax issues; secondary contact for senior

management/controllers/ American Express

• Receive and file approved Cardmember expenses and supporting

documentation

• Coordinate with Program Manager on accounting /finance issues (i.e. raising capitalization limit,

Material

Planning/Logistics

• Represent plant user community and participate in overall design of program • Identify shipping/receiving issues • Facilitate development of end users Human Resources

• Ensure procedures comply with HR regulations • Represent employee concerns • Facilitate development of employee sign-up materials • Provide terminated employee report to Program Administrator Internal Communication/ Training • Develop marketing/

Budget Manager (Controller)

• Review Cardmember reallocations

• Assist Program Manager on program performance issues

• Review and sign

activity/exception report for site

• Approve

transaction/Cardmember limit changes

• Monitor and address compliance issues with Cardmember managers • Perform minimum auditing

requirements

• Enforce action for identified violation(s)

Audit Staff/Internal Control

• Review controls/limits • Define specific audit

requirements for program • Perform periodic Cardmember audits to ensure program compliance Information Technology • Determine source/method of obtaining data required by team members; gather detailed purchasing data • Develop CAR interface

process

• Other system integration issues

Invoice Receipt (IR) Purchase Order Fulfillment Goods Receipt (GR) Requisition Pay on

Ship _InvoicePay on

Pay on Order

ACCOUNT TYPES

When designing a Corporate Purchasing Card program, a corporation should determine which account type or types are required to manage their purchasing processes.

Traditional Accounts: An account number that is issued to a specific employee to be used with multiple suppliers for their purchasing needs. Typically there would be a plastic card issued in the employee’s name.

Ghost (Non-Plastic) Accounts: An account number that is issued to assist with centralizing purchasing needs. (e.g., Accounts Payable Card, Supplier Card, Meeting Card, Department Card, etc.)

Traditional Accounts Ghost (Non-Plastic) Accounts

Issued to a specific employee Issued to a specific supplier, department,

meeting, etc. Employee uses account with multiple

suppliers

Multiple employees initiate purchases that are processed to a single account

Employee responsible for reconciliation A designated account owner is responsible

for management and reconciliation Employee is responsible for security of card/

account

Employees utilizing the account are not made aware of the account number.

Typically this information is shared only with the designated account owner

Program controls are established to meet employees’ purchasing needs based on the

Program controls are established to restrict or identify the type of purchasing spend that

ACCOUNT TYPE – CLASSIFICATION

Client Strategy • Employee uses

Card/account to procure goods and services on behalf of the corporation • Cardmembers should be

selected based on their job needs

• Client considers who initiates purchases in their current procurement process

• It is essential for employees/supplier to understand the benefits of the American Express Corporate Purchasing Card program and their role in making the program a success

Implementation Approach • Client works with American

Express to process map their ordering, reconciliation and payment processes to determine how the program will be designed

• Number of Cards issued is based on how the

organization structures the program

• American Express and client work together to monitor and evaluate the rollout

• Communication is one of the key components to implementing a successful program

Individual

Definition: A Card/account issued to an employee for his/her use only. Can be coded to the user’s specific default account information (e.g., cost center, business unit, company code,

department, etc.). Usage Options:

Cardmember uses Card to pay for all designated purchases within the program guidelines and Card spending limits. Cannot be used by any other person.

Functionality: The Cardmember initiates purchases, which are posted to their default account information that is coded to the Card or other reconciliation process.

ACCOUNT TYPE – CLASSIFICATION

Supplier

Definition: A Card that is restricted to and used with one supplier (i.e., charges attempted at any other establishment are declined). Usage Options: The

account number resides with the supplier and multiple requesters can initiate purchases. It is typically a non-plastic account (also referred to as a ghost account).

Functionality: The requester initiates

purchases on the supplier account. If needed, the cost center and/or GL code may be provided at the point of sale or during reconciliation. (Suppliers must be set up with Level 3 capabilities in order to pass client specific data at the point of sale – see section on Merchant Data and Acceptance.) The designated account owner is responsible for reconciling all charges.

Client Strategy • Used with strategic

suppliers; facilitates 100% Corporate Purchasing Card usage with the supplier

• A MOPP (method of procurement and

payment) shutdown should be implemented to ensure 100% of spend is captured and duplicate payments to suppliers are eliminated • Transparent process for

the employee

• Eliminates the need to issue individual Cards for a particular commodity

Implementation Approach • Client works with American

Express to process map their ordering,

reconciliation and payment processes with selected suppliers

• American Express and client work directly with suppliers to implement Supplier Cards as payment vehicle and define ordering and data capture requirements • NOTE: If either line item

data or enhanced data captured is required, the supplier must be enabled to pass Level 3 data. American Express works with client to research supplier capabilities and request point of sales upgrade if required

Accounts Payable

Definition: A Card/account issued to accounts payable for payment of approved invoices submitted by employees and charged to the approved cost center. Usage Options: The Accounts Payable

Card/account can be set up either as a plastic or non-plastic account and is designated to an employee in the accounts payable department.

Functionality: The

designated account owner in accounts payable pays approved invoices and is responsible for

reconciliation of the

transactions. This solution reduces the number of cheques issued and new vendor set ups in the vendor master file.

Client Strategy

• Identify opportunities to maximize float and leverage additional financial incentives by paying suppliers with American Express instead of cheque

• Excellent opportunity for supplier discussions and to address payment terms • Used with strategic

suppliers; facilitates 100% Corporate Purchasing Card usage with the supplier • A MOPP (method of procurement and payment) shutdown should be implemented to ensure 100% of spend is captured and duplicate payments to suppliers are eliminated

• Transparent process for the employee

Implementation Approach • Client works with American

Express to process map their ordering, reconciliation and payment processes with selected suppliers • American Express and

client work directly with suppliers to implement Accounts Payable solution as the payment vehicle • Client amends their vendor

payable process to turn off cheque payment with the specific suppliers and turn on American Express Card payment

Department/Project

Definition: A centralized Card/account issued to make purchases for a specific department or project. The Card/account can be coded with the department or project specific default account information (e.g., cost center, company code, department, project code, etc.).

Usage Options: Either the designated account owner or multiple members of the department/project team have access to the account and can use it to purchase for the department/project.

Implementation Approach • Client works with American

Express to process map their ordering, reconciliation and payment processes with selected suppliers • Number of accounts issued

is based on how centralized purchasing is set up within the organization

• American Express and client work directly with suppliers to implement Department/Project solution as payment vehicle and define ordering and data capture requirements if required

• NOTE: If either line item data or enhanced data captured is required, the supplier must be enabled to pass Level 3 data.

American Express works with client to research supplier capabilities and request point of sale upgrade if required

ACCOUNT TYPE – CLASSIFICATION

Functionality: The requisitioner makes purchases on the Department/Project

Card/account. If needed, the cost center and/or GL code may be provided at the point of sale or during

reconciliation. (Suppliers must be set up with Level 3 capabilities in order to pass client specific data at the point of sale – see section on Merchant Data and Acceptance.) The

designated account owner is responsible for reconciliation of the transactions.

Client Strategy

• This solution best fits corporations with centralized purchasing needs

• Transparent process for the employee

• Eliminates the need to issue individual Cards for a particular commodity

Meeting

Definition: A Meeting Card/account is established to consolidate meeting spend. The Card/account can be coded with the meeting default account information (e.g., cost center, company code, department, project code, etc.).

Usage Options: The designated meeting

planner(s) has access to the Card/account to purchase for the specific meeting in accordance with their

budgetary limits. If required, a preset spending limit can be assigned for the

Card/account.

Functionality: The meeting planner(s) initiates

transactions on the Meeting Card/account and is

responsible for reconciliation of the transactions.

Client Strategy

• Meetings and events are a key area of opportunity for companies to maximize control and drive savings • Leverage automation to

streamline processes and increase productivity

• Increase spend visibility to drive compliance and reduce risk

• Reduce meeting costs and leverage full spend for greater purchasing power

Implementation Approach • Client works with American

Express to automate, analyze and provide insight to streamline reconciliation process, increase spend visibility and measure performance • Create consistent policies

and gain visibility into meetings spend to drive compliance and track performance

• Automate data feed and pre-assigned accounting codes to streamline payment and reconciliation, and increase accuracy • Communication is one of the key components to implementing a successful meeting solution

American Express

uses a vertical account

structure to support

both billing and

reporting processes.

Although your

hierarchy is initially

set up during

implementation, it is a

dynamic process and

can be modified as

you grow your

program or acquire

new companies. Your

American Express

Representative will

assist in any

hierarchy changes.

ESTABLISHING YOUR PROGRAM HIERARCHY

Master Control Account (MCA)

This is the highest level of your program. The MCA number is specific to your account and to the Card platform (i.e., Corporate Purchasing Cards). It allows reports to be generated for ALL Corporate Purchasing Cards issued under your program.

Basic Control Accounts (BCA)

This is the lowest level of the hierarchy which groups your Cardmembers and drives Card issuance. Each BCA is set up with specific

controls/characteristics that propagate to the

Card/account. A Program Administrator(s) is assigned for the management of the Card/account within a BCA.

Intermediate Control Accounts (ICA)

This is a grouping used for purposes of reporting. ICAs can contain one or many ICAs and/or BCAs.

Intermediate Remit Control Account (ICA Remit)

This is typically the second level in the control account structure and is usually a remittance level. If there are multiple remittance levels, each will usually be

associated directly to the MCA level. However,

multiple ICA Remits can be grouped together for

reporting purposes. The recipient name at the ICA Remit level is the person who will receive the monthly consolidated billing

About Basic Control Accounts (BCA)

The following controls/characteristics determine the features of the Cards/accounts set up within the BCA:

1. Account Type: Identifies whether a plastic Card or only an account number (non-plastic/ghost) is issued (Individual, Supplier, Department, etc.)

NOTE: American Express

does not offer fraud coverage on non-plastic or plastic accounts that do not have an individual’s name on the account.

2. Embossing: Company name can either appear on the Cards or be suppressed.

3. Card Distribution: Central Card

Distribution indicates that new, replacement and/or renewal Cards will be sent to a

Program Administrator (recipient name at the

4. Card Accounting Defaults: Cards can be associated with default accounting information (company, cost center, etc.).

5. Restrictions: There are 3 optional types of restrictions that can be applied to the BCA: Industry Restrictions, Preferred Supplier List (PSL), Merchant Category Code (MCC) Blocking.

6. Limits: Monthly and transaction limits can be defined at the BCA level for default set up and/or can be modified at the Cardmember level once the

Card/account is issued. 7. Statement Delivery:

This drives the

Cardmember monthly statement to be

paperless, and requires the Cardmembers to register for their online statements via

American Express My Account™.

8. Anniversary Month: This drives the renewal month of the card. 9. Billing Cycle: This

determines the time frame for monthly billing

Your American Express

Representative will

assist you in selecting

the appropriate billing

cycle when establishing

your Corporate

Purchasing Card

program. American

Express will work with

your corporation to set

proper expectations

around timing for

receipt of files/reports

and reconciliation,

which is key to

selecting the perfect

billing cycle.

SELECTING A BILLING CYCLE

The billing cycle is the time elapsed between one statement date and the next. The Corporate Purchasing Card billing cycle is approximately 30 days in length. There are 10 billing cycles each month, each approximately 3 days apart.

Most corporations choose a billing cycle to coincide with their month end/accounting close dates. The cycle close date that you select has a great bearing on the ease with which you receive, process and post data to your GL/accounts payable system.

Selecting an incorrect billing cycle can result in the need for a cycle change, which is costly and time consuming for everyone involved. This would require all Cards/accounts and control accounts to be cancelled and new plastic Cards or account numbers to be issued.

Cycle 0 Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6 Cycle 7 Cycle 8 Cycle 9 Jan 2nd ₅th ₈th ₁₁th ₁₄th ₁₇th ₂₀th ₂₃rd ₂₆th ₂₉th Feb 1st ₄th ₇th ₁₀th ₁₃th ₁₆th ₁₉th ₂₂nd ₂₅th ₂₈th Mar 3rd ₆th ₉th ₁₂th ₁₅th ₁₈th ₂₁st ₂₄th ₂₇th ₃₀th Apr 2nd ₅th ₈th ₁₁th ₁₄th ₁₇th ₂₀th ₂₃rd ₂₆th ₂₉th May 2nd ₅th ₈th ₁₁th ₁₄th ₁₇th ₂₀th ₂₃rd ₂₇th ₃₀th Jun 2nd ₅th ₈th ₁₁th ₁₄th ₁₇th ₂₀th ₂₃rd ₂₆th ₂₉th

Sample Billing Cycles

The chart below is a sample of the various billing cycles and the associated billing close dates. The dates are approximate and differ slightly each month/year.

ESTABLISHING PROGRAM CONTROLS

Financial Controls

• All Corporate Purchasing Card types can have financial controls applied at the transaction and/or monthly limit

• The transaction limit specifies the amount that can be spent for each transaction

• The monthly limit

specifies the amount that can spent for the entire billing cycle

• Both limits can be changed either temporarily or permanently by the Program Administrator using American Express @ Work Online Program Management

Internal Controls

• Manager approval of permanent limit increases • Manager review of

monthly

transactions/statement • Periodic audit reviews • Monitoring of compliance

to policy, procedures, and record retention

• Reconciliation of monthly statement

Supplier Controls

• American Express provides you with the option of adding additional controls at the industry, supplier (Preferred Supplier List) or commodity level (MCC/Group List)

Industry Restrictions

• Industry restrictions allow for the blocking of travel, accommodations,

restaurants, oil/gas and car rental

• Industry restrictions can be set at the BCA or Card/account level • Industry restrictions are

fully managed through American Express @ Work Online Program Management

Preferred Supplier List (PSL) and

Merchant Category Code (MCC)

Blocking

• The supplier and commodity level options allow you to include (allow) or exclude (prohibit) purchases with only specified suppliers (PSL) or commodities

(MCC/Group List).

• PSL/MCC blocking is set at the Corporation (CID) level and can be defaulted to the BCA or applied at the Card/account level

• To set up, modify or cancel a Preferred Supplier List or MCC Code/Group List*, contact the American Express Program Administrator Service Team (1-866-568-0308).

* Note: Both the PSL & MCC Blocking can be operating within the same program, however they cannot be combined under the same BCA or Card/account. For a listing of the MCC codes, see

Applying for a Card/Account

There 2 options available to apply for the Corporate Purchasing Card/account:

• Program Administrator initiated via American Express @ Work

• Employee initiated online application

Card Distribution/Card Activation

Non-Plastic/Ghost Account: Once the Program

Administrator has requested the account online, an account number and expiry date is generated and can be activated for immediate use.

Plastic: When a plastic Card is requested, the Card will be sent based on the BCA Card distribution setup (central Card distribution vs. Cards sent directly to Cardmembers). Once processed by American Express, the new Card(s) will be received within 7 to 10 business days. The Cardmember is required to activate the Card either online or by contacting American Express.

* See Instant Account Activation overview

1

New Card Request

2

Program Administrator/ Approving Manager • Completes the application • Reviews the application • Submits to American

3

American Express • Processes application • Issues Card/Account number • PA logs into American

Express @ Work

• Via Card Accounts selects

Program Administrator Initiated Applications

Log into American Express @ Work. Under Card Accounts, select “Process Applications”, enter the Basic Control Account Number in the “Submit Application” field then select “Continue." Complete, review, and submit application. Upon submission, a Card number is generated with the option to activate immediately. If plastic is being issued the new Card will be sent within 7 to 10 business days.

The streamlined process is illustrated below –for detailed instructions, refer to the American Express @ Work demo site www.americanexpress.ca/onlineprogrammanagementdemocanada

Instant Account Activation when Applicant is Program Administrator

Corporate Purchasing Card Instant Account Activation gives Program

Administrators the ability to immediately obtain a

Corporate Purchasing Card account number and

expiration date so that the account holder may begin using his/her new Corporate Purchasing Card number even faster.

To receive an instantly activated account number, all you need to do is:

Step 1: Submit a Corporate Purchasing Card application via American Express @ Work Online Program Management using the Process Applications

functionality “Submit a Card Application."

Step 2: Click "Activate Now" on the confirmation screen after submitting the Card application. Average

processing time is usually less than 40 seconds. The system will return the Corporate Purchasing Card account number and the expiration date and will be ready for use for phone, mail and online charges only. (If plastic is being issued, the recommendation is to activate once the Corporate Purchasing Card is received by the Cardmember.)

1

2

3

Cardmember Initiated Applications.

Setting up the online application process for your company is a simple process. Using the tools provided through American Express @ Work, you will need to establish an Access Key (a system generated alphanumeric password) for each of your company's Basic Control

Accounts. By providing the Access Key to the employee, he/she can go on the Internet, enter the Access Key and initiate the application process. This ultimately helps you save valuable time while simultaneously reducing data entry errors. If plastic is being issued the new Card will be sent within 7 to 10 business days.

*For rush Card request contact American Express Program Administrator Servicing at1-866-568-0308 with your American Express @ Work status tracking number same day

*Online Card application will not be sent to American Express for processing unless it is approved by the Program

Administrator via American Express @ Work.

The streamlined process is illustrated below –for detailed instructions, refer to the American Express @ Work demo site www.americanexpress.ca/onlineprogrammanagementdemocanada

New Applicant • Receives Access Key

Program Administrator • Logs into American

Express @ Work to view

American Express • Processes application

Program Administrator Initiated Applications

Plastic: When a Card plastic is requested, the Program Administrator communicates to the Cardmembers the

timeframe for receipt of the new Card.

Non-Plastic/Ghost Account: Once the

Program Administrator has requested the account online, the account number and expiry date will need to be communicated to the designated user.

CARD/ACCOUNT COMMUNICATION

Cardmember Initiated Applications

1. The Program

Administrator provides the Access Key directly to the employee/

applicant via email/letter; 2. The Program

Administrator creates a listing of Access Keys with associated departments on the company intranet, or 3. The Program

Administrator provides the Access Key to an approving manager (e.g., department manager, human resource

representative), who then provides the Access Key to the employee/applicant via email/letter.

Since Access Keys

essentially grant permission to apply for a Corporate Purchasing Card, you need to decide the procedure and under what circumstances the Access Keys will be given to potential

applicants.

Once the Access Key is created, the Access Key and the simple step-by-step instructions on how the employee/applicant can apply online can be

communicated using one of the following 3 methods:

PROGRAM MANAGEMENT – AMERICAN EXPRESS @ WORK

@ Work Program Management Functionality

Manage Card Accounts

• Cancel Cards (effective immediately; submit up to 20 transactions simultaneously; cancel from a list of inactive Cards)

• Suspend or reinstate suspended Cards • Request Card replacement

• View Card hierarchy and perform transfers • Adjust spending limits temporarily or permanently • Update Cardmember profile

• Change accounting information (submit up to 20 transactions simultaneously)

Monitor Spending and Payments

• View Cardmember activity (transaction/payment details) for all accounts

Process Applications

• Program Administrator initiated - PA applies online on behalf of employee/applicant (Corporate Purchasing Card only)

• Cardmember initiated – employee/applicant applies online, PA reviews and actions Card request

• Access Key maintenance

Status Tracking _{• Check the status of transactions submitted}

American Express @ Work is an online suite of business tools that leverages the power of the Internet to help you manage your program, access reporting, and obtain billing and other information online. The Program Administrator (PA) is the primary user, but other individuals can be authorized to access the system, and can be restricted to different levels of access, particularly for reporting purposes.

Program Administrators can manage accounting

information, users and role permissions 24/7

FINANCIAL RECONCILIATION

American Express @ Work Corporate Account Reconciliation (CAR)

Using the American Express @ Work Corporate Account Reconciliation (CAR) tool, clients can efficiently manage the accounting allocation and reconciliation process,

automatically integrate all their spend data into their

company’s back-end financial systems, and gain visibility for different types of spend, including Corporate Purchasing Card, Corporate Meeting Card, Corporate Card, or Business Travel Account.

Benefit Employees

• Increase individual user accountability. Transactions are posted daily, so Cardmembers, managers or

administrators/ auditors can view, validate, add comments, review/approve*, and reallocate charges daily or whenever is convenient, 24/7. Administrators can set up triggered e-mail notifications to all registered users based on

permissions.

• Reallocate charges faster. Users can access the mass reallocation function to change cost center coding and other accounting information on multiple transactions.

Corporate Purchasing

Cards streamline

accounts payable by

eliminating invoices

and cheques, and

simplify purchasing

and payment

processes. To ensure

that data capture and

reconciliation are just

as seamless, American

Express offers several

reconciliation options

including Corporate

Account Reconciliation

(CAR) or daily/monthly

data files.

Tools & Reporting

Maximize Control

• Multiple levels of access. CAR enables several levels of access to support an organization’s compliance and oversight needs. For example, access can be set up for Cardmembers to view transactional charge information (including enhanced data supplied by Level 3 merchants), add project IDs for budget tracking and specialized

reporting, edit accounting allocations, split transaction allocations by percentage or specific dollar amounts, and add comments to enrich transaction detail.

• Cardmember managers, program/system administrators, or cost center/commodity managers, based on GL codes can manage and monitor the approval process, download data by cost center or project, and run reports.

• Transaction review/approvals. CAR enables four levels of transaction and billing cycle review/approvals to ensure Cardmembers have reviewed charges, and managers/cost center managers have authorized spending.

• Robust reporting. Obtain detailed and summary CAR Reports via American Express @ Work Customized Reporting(www.americanexpress.ca/atworklogin).

Drive Savings

• Easy implementation. CAR is a global, web-based reconciliation tool, which enables remote implementation at every site, regardless of ERP/financial or other back office systems. This solution can help save money and eliminate the need to travel to each physical location for

installations and upgrades. There are no software installations and no need to manage upgrades.

• Custom integration. Our Global Technical

Enablement Consultants (gTEC) will work with clients to analyze their business needs and set up their accounting codes and business rules. They can also create ERP interface files using our patented Interface File Builder, reducing clients’ IT programming time and cost.

• Leverage the enhanced data added by users during the review/approval

process and automatic tax estimations for record keeping.

• Robust data. Because American Express

operates a single network with direct relationships with suppliers, our data helps improve accuracy and reliability. Advanced mapping options and end user access improve accuracy and reduce the time it takes to reconcile charges.

• Finance will instantly benefit from efficient data management, as CAR eliminates the need for manual data entry of transactional information and approvals into the accounts payable system. At the same time, it adds the ability to view and modify information by any accounting field, including cost center, in addition to standard Card information. This helps avoid time consuming and tedious journal entries after close.

Data Files

Depending upon your Finance/IT requirements, you may elect to receive a monthly or daily data file with default accounting

information (KR 1022, KR1025 or KR1075 files). Clients use these files to upload transaction

information to their financial system to create journal entries in connection with payment of the consolidated invoice or to an existing reconciliation module of their financial system.

The method of transmitting data files is established between the client’s IT department and the

American Express Electronic Transmissions Team. The types of files transmitted are standard data files that are received by the client’s IT department and uploaded into the financial system and/or other internal reporting tool (i.e., data warehouse) using client-defined protocols.

The KR1022 is the monthly file of billed transactions. The KR1025 and the KR1075 are daily files of unbilled

transactions. The KR1075 file provides any line item detail provided by a supplier (see section on Merchant Data and Acceptance for differences in supplier data capture).

Increase the Efficiency and Effectiveness of

Your Corporate Purchasing Card Program

Manage Cards

• Determine who has a Card and ensure that the right people have Cards

Monitor Compliance

• Identify past due Card balances and encourage prompt payment to reduce delinquency fees

• Detect potentially inappropriate spend and remind Cardmembers of company procurement policies and procedures

Identify Savings Opportunities

• Identify suppliers with which you may be able to negotiate better pricing and uncover opportunities to consolidate spend

Analyze Spend Trends

• Analyze company spend across industries, suppliers and your organization to potentially streamline procurement policies

REPORTING

Information @ Work™

is a suite of intuitively

designed, must-have

reports that provide you

with a single source of

program information.

Once you are enrolled

in Information @ Work,

you will automatically

receive a standard set

of reports. For more

robust information

needs, you can also opt

in to receive custom

reports.

Information @ Work

The essential report package is a simple, turnkey group of reports to help you easily manage Cards, monitor compliance and analyze spending to identify savings opportunities. The essential report package includes the Cardmember Listing, Cardmember Activity, Declined Transactions and Industry Spending reports. Reports are delivered monthly via American Express @ Work in two convenient formats:

• PDF that is pre-formatted in a simple layout

• XLS that enables you to easily filter, sort and manipulate your data for analysis

Customized Reporting

Customized Reporting is a fully interactive web-based reporting solution accessed through American Express @ Work, that gives you the power to review and

manipulate your Card data. The user friendly interface consists of these key components:

• One Report List

Access your reports from one place

• Simple Report Builder Search for report templates, view sample reports, and customize with ease • Powerful Report Viewer

Advanced but easy-to-use functionality to manipulate your data

• Convenient Report Scheduler

Schedule reports to run daily, weekly or monthly

Customized Reporting allows you to save reports that you have customized and even share them with other users in your company. There are a number of report templates that focus solely on

Corporate Purchasing Card spend and controls,

including:

• Approaching Limits: Monitor compliance by anticipating charges that could be declined due to Cardmembers approaching

• Declined Transactions: Monitor compliance by reviewing declined

transaction information for all types of declines.

• Listing of Cardmembers on MCC or Preferred Supplier Lists: Manage Cards by reviewing both Merchant Category Code (MCC) Block lists and Preferred Supplier lists. The report provides the Cardmembers associated with these lists.

• Listing of Codes or Suppliers on MCC or Preferred Supplier Lists: Manage Cards by reviewing Merchant Category Code (MCC) Block lists and Preferred Supplier lists. • Transactions by Supplier

with Line Item Detail (LID): Monitor compliance by reviewing the line item detail provided by enhanced suppliers.

MY ACCOUNT AND ONLINE STATEMENTS

American Express

Online Services for

Cardmembers is called

My Account™. This

service is free and

secure, and provides

online access to Card

account and billing

statement information.

It takes just a few

seconds to enroll. Your

company can realize

potential cost savings

and maximize control

by using My Account.

With 24/7 online access to account information and billing statements, your Cardmembers can save time and help streamline the expense reconciliation process for your company.

Speed

• Easy enrollment and accessibility

• Access your monthly statement just 24-48 hours after it is prepared

Convenience

• Access statement and account information from anywhere in the world, anytime via the Internet

• View present and past account summary details, with the ability to retrieve prior archived statements

• View out-of-country charges in Canadian dollars

• Register for account alerts and choose to receive balance updates, payment received and payment reminder updates by e-mail or text message to your wireless device

Environmentally Friendly

• Download statement details in CSV or PDF format

• Online statements are a great way to help the environment by reducing or eliminating paper

My Account Resources & Registration

Call the Help Desk at 1-800-716-6661 for questions on My Account.

Activate new Cards and enroll in My Account by visiting: www.americanexpress.ca/activateor for French www.americanexpress.ca/activation

Enroll in My Account only by visiting:

www.americanexpress.ca/myaccountloginor for French www.americanexpress.ca/ouvrirmoncompte

TRANSPORT LAYER SECURITY

Transport Layer

Security (TLS) is a

protocol that ensures

privacy between two

e-mail gateways,

enabling secure

exchanges across the

internet. When

implemented, TLS

prevents third parties

from eavesdropping or

tampering with the

communications.

Every e-mail sent and received is encrypted: When TLS is enforced, no individual review or decision is required to determine whether or not to encrypt an e-mail based on its contents. E-mail encryption is

transparent: Both parties (sender and receiver) send and read e-mails the same way as they do today. Industry standard: TLS usage is a growing trend among financial institutions.

How is TLS used at American Express?

American Express has TLS connections globally with hundreds of companies across thousands of domains (internet addresses).

What are the benefits?

Protection: E-mail servers can be configured to enforce TLS encryption. Confidential information can be sent with reduced risk of interception or eavesdropping.

How TLS Works

Due to wide acceptance, TLS is becoming easier to use, consistently and successfully.

The encrypted message travels through the internet to

customer.com. 2 [email protected] [email protected] Customer.com receives the message, which its mail server decrypts. American Express

e-mail server sees message is intended for customer.com and encrypts it.

1

3

4

ENCRYPTED E-MAIL TOOL

What is American Express Encrypted E-mail Tool?

The American Express Encrypted E-mail Tool employs proven encryption technologies to provide strong security to sensitive e-mail communications. American Express uses the Encrypted E-mail Tool when sending sensitive data to external customers.

The Encrypted E-mail Tool helps to achieve and maintain regulatory compliance and enforce best practice e-mail protection. It effectively mitigates the risk of e-mail security breaches by providing end-to-end security for e-mail and mobile messaging.

How is it used at American Express?

Currently, the Encrypted E-mail Tool is used by a number of users within different Business Units for sending secure

communication to external recipients. The Encrypted E-mail Tool is the preferred method for sending e-mails to external recipients who do not manage their own gateway or transfer a low volume of e-mails.

What are the benefits?

• No Additional Software: No special end user software is required for encryption or decryption. • Maximum E-mail

Security: Employs proven encryption technologies to keep e-mail

communications protected. • Compliance: Supports

compliance with

eDiscovery and other e-mail security requirements (e.g., virus scan, DLP). • Easy to Administer:

Eliminates the need to store encryption keys.

American Express users will tag e-mails for encryption when composing messages in their internal e-mail tool by selecting the delivery option “Encrypt to internet." Once tagged, the message will be encrypted and sent to the internet recipient. American Express Network Notes Servers TW Mail Gateway Extended Mail Gateway Recipient SMTP Internet

How American Express Encrypted E-mail Tool Works

After recipient login to the web-based tool, the encrypted e-mail will be decrypted and presented in a secure browser window. The web-based tool will also allow the recipient to reply securely to the American Express sender.

Encrypted e-mails will be subject to the same security filtering in place for regular e-mails sent to American Express recipients. Examples of security filtering are anti-spam, anti-virus, high risk attachment blocking, and inappropriate language blocking.

CORPORATE PURCHASING CARD BEST PRACTICES

In addition to the best

practices shared

throughout this

section, make sure to

obtain management

support from a senior

level champion to drive

greater program

visibility, promote

timely decisions and

adopt change in

processes across your

business.

Program Goals and Objectives

• Thoroughly understand your current purchasing process before you begin.

• Set goals and objectives for the Corporate Purchasing Card program that are aligned with overall business and

procurement objectives (i.e., transaction reduction, improve supplier management, reduce procurement and/or finance costs, reduce cycle time for purchases, increase employee satisfaction, improve spending controls, etc.)

• Choose metrics that correspond to goals and objectives and that are easily calculated and measured.

• Assign responsibility for tracking and communicating results. • Keep it simple! Track only a few significant measures.

• Goals and objectives should be well documented, clearly communicated and distributed to all key participants.

Policy and Procedures

• Develop a policy that defines the program’s overall structure and fits within other procurement policies.

• As the program grows and changes, a periodic review of procedures, compliance, audit and adjustment of policy is advisable. • Create a well-defined

Cardmember Application/ Agreement/

Acknowledgment Form (for PA Initiated Applications only) outlining the terms and conditions by which the Cardmember must abide, including the following: Card policy, general guidelines and usage, abuse and enforcement, account distribution detail,

Cardmembers, managers, and Program Administrator signatures.

“Effective communication is critical for getting

people to embrace the process changes

associated with Purchasing Card program

implementation. Your organization should

convey the Purchasing Card business case,

tailoring the message to fit each audience.”

– National Association of Purchasing Card Professionals

Cardmember/Account Holder Strategies

"Top performing organizations have educated their supplier base as

to the optimal efficiencies enabled by electronic payments, such as

working capital improvements and quicker settlement, as well as real

time validation of errors and the ability to view invoice and payment

status through a secure portal."

• Careful selection of the initial account holders helps ensure program success, allows for proactive program fine tuning and brings quick resolution to program issues. Poor account holder selection increases the risk of “perpetual pilots” and resistance to a program.

• Select account holders who most frequently request cheques or buy the commodities selected for the program. The Corporate Purchasing Card program yields the most benefit when the account holder is the actual user of the item or service.

• Choose account holders that are well-respected. This group has the ability to champion, at the peer level, the program beyond the pilot phase.

• Select account holders, plants or sites that will be the most difficult to convert. The most difficult customer likely will be the strongest proponents of the program after the program has proven itself to this group.

Supplier Strategies

• Determine potential

suppliers to include in your program by analyzing your current supplier database and/or financial system and develop a specific action plan to prioritize.

• Choose preferred suppliers from those with high

transaction/high dollar volume and non-preferred suppliers from those with low transaction/low dollar volume.

• Use suppliers who already accept American Express, where appropriate. This will reduce implementation time and allow for faster ramp up of one’s program. These suppliers have already received training and some have systems directly integrated with American Express.

• The practice of building strategic supplier partnerships increases negotiating power with preferred suppliers and eventually leads to overall purchase price reduction. • Take an active role in

contacting, educating, enrolling and training suppliers.

• Establish clear audit standards and procedures and promote adherence to Card usage through effective communication of policies and establishment of corrective measures.

• Establish internal control policy by defining the basic responsibilities of each group within the organization participating in the program (Cardmember, accounting, purchasing, department/cost center manager, and Program Administrator).

• Based on account type and supplier strategies, determine the appropriate spending thresholds. Additionally,

determine purchases and suppliers that should be

excluded from the program. Define key compliance areas (e.g., tax, preferred suppliers, reconciliation, internal procedures).

• Use American Express reports and transaction data to assist with compliance reporting.

• Initial audits should focus on ensuring that policies and procedures were adequately understood and properly applied by end-users.

• On-going periodic audits of transaction data for accuracy and completeness should occur once the program is fully running.

Audit/Control/Compliance Card Type Strategies

• Use the Card for the high volume transaction commodities and/or suppliers, as well as high dollar transactions with key strategic suppliers. • Select the right account

type.

• Use the Card/account for any transactions that are currently billed in a consolidated format and require back-end

processing for account distribution.

• Deploy the Card to the locations creating the most cheque requests, purchase orders or invoice transactions.

Financial Systems

• Establish financial system data requirements as part of the program design, including mapping process (downloading Corporate Purchasing Card transaction data from the reconciliation tool and importing into the company’s financial system, such as the GL).

• Communicate financial system data requirements to American Express as an integral part of account design and setup.

• Build an effective process for changes/corrections to Corporate Purchasing Card data prior to import into financial system.

• Achieve maximum process improvement by placing responsibility for reconciliation of transaction data with the Card/account holder.

• Determine payment process to the Card issuer

• Interface the Card data directly to accounts payable or the GL via CAR interface module or data file. This process removes accounting and accounts payable personnel from daily transaction processing to perform more value-added tasks.

Tax Compliance

• Involve your tax

professional early in the process of implementing a Corporate Purchasing Card program.

• Develop a company policy for handling sales tax on the transactions generated by Level 1 suppliers. Using our reconciliation tool, American Express can estimate taxes based on merchant province, Cardmember province, or turn the tax

calculation off.

• Recommend preferred suppliers to be “Level 3/Corporate Purchasing Card capable” in order to capture actual sales tax and other enhanced information.

Data Requirements

• Determine data and reporting requirements early in the account design; establish a solid “hierarchy” that provides the basis for American Express reporting.

• Program management is best served when

technology and automation replace manual processing that can be error-prone and costly. Technology increases efficiency and control.

• Role of client technologies team should be clearly defined and resources allocated appropriately. • The use of client-defined

Cardmember data fields (employee ID, cost center, universal field), in

conjunction with the Corporate Account Reconciliation tool, can

• Employ the Cardmember reference field at Level 3 point of sale suppliers to further characterize the transaction (i.e., override basic accounting defaults for Cardmembers who purchase for multiple cost centers, or capture

purchase order number, requisition, work order, project numbers, etc).

• Communicate

client-specific data requirements to the supplier(s) that have been enabled to capture Level 3 data via supplier seminars, one-on-one training, etc.

Provide timely feedback to the supplier regarding the accuracy of the data input at point of sale.