Educating Your Cardholder for DoD Travel Card [Read-Only]

GSA SmartPay Conference

Educating Your Cardholders:
Train-the-Trainer for DoD
Travel Card

Stacy Eslich
Citi® Commercial Cards, Government Services

The Tenth Annual GSA SmartPay® Conference

Towards New Horizons!

Denver, Colorado
July 22nd - July 24th, 2008

Goals and Objectives

y To provide you with the information you need to educate your
cardholders
– Through the transition
– Ongoing

Agenda

1. Program Overview
– What Your Cardholders Need to Know
– The Cardholders Responsibilities

2. Guiding the Cardholders through the Transition
– Card Distribution
– Action Items
– What Won’t Be Changing
– What Will Be changing

3. Resources to Help You and Your Cardholders
– Training resources

4. Cardholder FAQs

1. Program Overview

Program Overview

What Your Cardholder Needs to Know

y Cardholder Benefits
– The government travel card (GTC) is a non-interest bearing account
ƒ No interest, no over the limit fee, no late fee until approximately day 75
(sign me up!)
y first late fee charged after two billing cycles plus 15 days
– Mission critical status available
– The Citi® Travel Card is accepted at up to 30 million locations worldwide
– Dedicated Customer Service Center
– Lost Luggage Insurance
– Travel Accident Insurance
– The assistance of their helpful APC(s)

y Cardholder Mandated Use
– Public Law 105-264, the Travel and Transportation Reform Act of 1998
– DoDFMR Volume 9, Chapter 3 (mandatory use for all unless you travel 2 times
or less a year)

Program Overview

The Cardholder’s Responsibilities

y Cardholder Responsibilities
– Use the GTC for all authorized official travel and travel-related
expenses
– Do not use the GTC for non-official travel expenses
ƒ Understand DoD’s policies and procedures
– Pay the undisputed balance on time and in full via split disbursement
(military)
– Dispute applicable transactions within 60 days of statement billing date
– Keep address and phone number up to date
– Check in with your new APC when transferring

2. Transition

Transition

Tool To Assist Getting the Word Out

y Citi® Marketing Kit
– Phase 1 Pre-Card Distribution
ƒ Banner Advertisement
ƒ Flyer
ƒ Newsletter article
ƒ Poster
ƒ Table Topper
ƒ Cardholder email
– Phase 2 Post-Card Distribution

Transition

Tool To Assist Getting the Word Out

y Citi® Marketing Kit
– Phase 2 Post-Card Distribution
ƒ Banner Advertisement
ƒ Flyer
ƒ Newsletter article
ƒ Poster
ƒ Table Topper
ƒ Cardholder email

Transition

Card Distribution

y Cardholders with an existing open account will automatically be issued a
Citi® Travel Card
– Cards will be mailed to the existing address of record (initial pull done
approximately July 11)
– Cards will be mailed between August 13 and September 15
ƒ HIGH PCS SEASON - keep address updated at Bank of America
– Your agency may have designated certain cards to be mailed “bulk” to
one POC
– PIN numbers

y OCONUS cards will be mailed first

y CONUS mailings will follow in geographic waves from West to East

Transition

Card Distribution Wave Schedule

Wave: Includes: First Mail Date:
August 13
OCONUS Outside the Continental US, US
(approx 400,000 cards) Territories, and 11 western US August 22
states: AK, HI, CA, OR, WA, ID,
CBAs NV, AZ, UT, CO, NM
(approx 8,600 cards)
Centrally Billed Accounts
CONUS Wave 1
(approx 200,000) 14 Central/Midwest US states: August 22
MT, WY, ND, SD, NE, KS, OK, August 29
CONUS Wave 2 TX, MN, IA, MO, AR, WI, MI
(approx 200,000)
9 Southeast US states: KY, WV,
CONUS Wave 3 TN, NC, SC, GA, AL, MS, LA
(approx 200,000)
14 Northeast/Midwest US states + September 8
CONUS Wave 4 WDC: ME, NH, VT, MA, RI, CT, September 15
(approx 200,000) NY, NJ, DE, MD, PA, OH, IN, IL

Virginia and Florida

Transition

Card Distribution

y Work with your HL3 APCs if you have special card distribution needs, i.e., a
deploying unit

y Advise your cardholders to confirm receipt of their card upon receipt .. this
is how we will know they have received the card,
www.citimanager.com/DoDTravel

y Restricted card status, i.e., active or de-active will transfer to Citi

y CARDS WILL NOT BE ACTIVE FOR USE
UNTIL November 30 at 12:00 AM EST

Transition

Card Distribution

y The card will look different .. advise your cardholders which card to keep
(the Citi® card) and which card to destroy (the Bank of America card)

y The card will be mailed with a cardholder agreement and a cardholder
guide
– The cardholder agreement must be agreed to,
www.citimanager.com/DoDTravel

Bank of America Card Citi® Card

Transition

Cardholder Agreement

y What are your cardholders agreeing to?
– Liability for charges
– Suspension and cancellation
– Cancellation payment plans
– Proper use of card
– Fees

Transition $20
1%
Cardholder Agreement $29
2%
y Cardholder Fees $29
– Expedited card delivery $29
– Foreign currency transaction $80/$85
– NSF and Stop Payment $45 enrollment and $10 monthly
– Cash Advance Transaction
– Late fees
– Reinstatement
– Salary Offset
– RPP

Transition

Action Items for Your Cardholders

y Pre-Authorizations
– Try to keep to a minimum (i.e., making a hotel reservation on the Bank of America card
for a date post transition)

y Recurring Transactions
– Identify recurring transactions and supply merchant with the new account number for
post November 29 transactions

y Verify Bank of America has the current mailing address or the new card will go to the wrong
address
– Continue updating Bank of America’s EAS

y Confirm receipt of the new card online or by telephone

y Agree to the cardholder agreement
– when they confirm receipt of the card
ƒ www.citimanager.com/DoDTravel

y Bring both cards if traveling over November 30, 2008
– The Bank of America cards will be shut down on November 30, 2008 at 12 AM EST

Transition

What Won’t be Changing for the Cardholder

y Cards will still be issued Standard or Restricted

y Standard
– Minimum credit score of 660
– Credit limits:
ƒ $7,500 Travel
ƒ $665 Cash
ƒ $250 Retail

y Restricted
– Issued if credit check is declined or Credit score of 500-659
– New cards are mailed deactivated
ƒ APC must activate card prior to use
– Credit limits:
ƒ $4,000 Travel
ƒ $365 Cash
ƒ $100 Retail

y Cardholder must confirm receipt and agree to the cardholder agreement before use. In addition restricted
accounts may need to activated by their APC

Transition

What Won’t be Changing

y The travel cards will continue to have blocks on certain merchants using Merchant Category
Codes (MCC)

– What are they? They are 4 digit codes assigned to merchants by VISA and Master Card
that identify the merchant’s primary business

– The MCCs are grouped by travel, cash and retail and spend limits are assigned

ƒ ex. if a standard cardholder has an overall credit limit of $7,500 and withdraws $600
(limit is $665) and then attempts to withdraw $100 .. a decline will result.

– The travel cards have a list of acceptable MCCs assigned to them determined by your
leadership.

ƒ If the cardholder uses the card at a merchant type that is not designated for usage, the
transaction will be declined/referred

Example of approved MCCs: Example of blocked MCCs:

• 3001 American Airlines • 5992 Florists
• 3395 Thrifty Rental Car • 7273 Dating Escort Services
• 3503 Sheraton Hotels • 7297 Massage Parlors

Transition

What Won’t be Changing

y Delinquency
– Cardholders are past due at 45 days past billing
– Suspension can occur at 61 days past due
– First late fee will be assessed at approximately day 75 (two billing cycles plus
15 days)
– Second late fee will be assessed at day 90 and monthly thereafter
– Cardholders become eligible for salary offset at 90 days past due
– Cardholders are eligible for cancellation at day 126
ƒ and can be enrolled in salary offset
– If the debt is charged off, the cardholder could be reported to the credit bureau

y Reinstatement of accounts canceled under SmartPay 2 contract
– We won’t know if applicant had a cancelled or charged off account with Bank of
America

y Account Upgrades

Transition

What Will be Changing for The Cardholder - The Application

Transition

What Will be Changing for The Cardholder - The Application

Transition

What Will be Changing

Online Statements
– Upon receipt of first paper statement cardholders are eligible to sign up
to access online statements
– Virtually no APC action is necessary
– Cardholder will be able to view past statements (up to 36 cycles) two
business days after cycle
– Viewing of new unbilled transactions will also be available
– Payment can be made online
– www.citimanager.com

Transition

What Will be Changing for The Cardholder – Online Statement

Transition

What Will be Changing for The Cardholder – Online Statement

Transition

What Will be Changing for The Cardholder – Online Statement

Transition

What Will be Changing for The Cardholder – Online Statement

Transition

What Will be Changing for The Cardholder

Transition

What Will be Changing for The Cardholder

Transition

What Will be Changing for The Cardholder

Transition

What Will be Changing for The Cardholder – Online Statements

Transition

What Will be Changing for The Cardholder – Online Statements

Transition

What Will be Changing for The Cardholder – Online Statements

Transition

What Will be Changing for The Cardholder – Online Statements

Transition

What Will be Changing for The Cardholder – Online Statements

Transition

What Will be Changing for The Cardholder – Online Payments

Transition

What Will be Changing for The Cardholder – Online Statements

Transition

What Will be Changing for The Cardholder – Online Statements

Transition

What Will be Changing for The Cardholder – Online Statements

Transition

What Will be Changing for The Cardholder – Online Statements

Transition

What Will be Changing: Payment Addresses and Methods

y Check Payments
– Cardholders should use the payment coupon
– Payments will post within two business days of receipt

y Wire Payments
– Payments made by 1:00 PM ET will post the same business day
– Payments made after 1:00 PM ET will post the following business day

y Third party PC banking system
y Voice Response Unit (VRU)

– Pay by phone is now called quick remit and there is no fee

y Two NSFs within 12 months result in the loss of online payment access
for one year

3. Resources for You and Your Cardholders

Resources

Training Resources for You and Your Cardholders

y Your service websites
y DTMO

– www.defensetravel.dod.mil
ƒ Travel card FAQs
ƒ Policy
ƒ Newsletters
ƒ and more!

y www.gsa.gov/smartpay
– Travel cardholder training
– Travel card program APC training

y Citi
– Cardholder agreement and program guide
– APC training

Resources

Training Resources for You and Your Cardholders

y Citi ... You have a dedicated team
– cardholder customer service
– APC customer service (Monday. - Sat., 7 AM - 9 PM ET)
– Technical Help Desk (7 AM - 11 PM ET)
– Training Team

4. Cardholder FAQs

Cardholder FAQs

FAQs are from the DTMO’s website, www.defensetravel.dod.mil

Q: What authority requires that I use a travel card and where is it stated?
A: Public Law 105-264, the Travel and Transportation Reform Act of 1998, prescribes

mandatory use of the government travel card - Federal Travel Regulation (FTR) and
DoD FMR Volume 9, Chapter 3 carries out the requirement and provides the exceptions

Q: What if I can’t pay my bill because I haven’t received my reimbursement?
A: Individually billed accounts are the obligation of the cardholder. There is no condition

on payment after reimbursement. Accounts not paid after 60 days are suspended.
Late fees begin to incur at 75 days.* However, if the government is responsible for the
delay in payment, late fees are reimbursable

Q: Will getting a Government Travel Charge Card hurt my credit rating?
A: Not unless you don’t pay your bill. Travel card issuing banks generally do not report

travel card activity to the credit bureaus unless the account charges off (i.e., delinquent
amounts over 210 days not recoverable). Also, a salary offset procedure will likely be
utilized before charging off an account. Simply having a government travel card will not
harm your credit rating. While credit bureaus do take into account the AMount of
available credit and credit adjustments in assessing a credit score, the typical
government travel card is not going to negatively affect that rating, if it is reflected at all

* SmartPay® 2 late fees will begin after two billing cycles plus 15 days

Before We Go - Classes at the Conference

Wednesday Afternoon and Thursday DoD Courses Offered

Wed. 3:30-4:40 PM Preventing Fraud and Misuse Plaza Ballroom DE
Training Guide for the New Travel Card APC Grand Ballroom Tower

Thurs. 8:00-9:10 AM Best Practices for Payments, Collections and Plaza Ballroom AB
Managing Delinquencies Plaza Ballroom F

EAS 1 - CitiDirect® Part I

9:30-10:40 AM EAS AdHoc Reporting Governor’s Square 14
Citi/DoD Roundtable Plaza Ballroom DE
EAS 2 - CitiDirect® Part II/Online Statements Plaza Ballroom F

12:30-1:40 PM What’s New for SmartPay® 2 Transition Grand Ballroom Tower

2:00-3:10 PM Training Guide for the New Travel Card APC Plaza Ballroom AB
3:30-4:40 PM Disputes - Resolution Without Delay Plaza Ballroom DE
EAS 1 - CitiDirect® Part I Plaza Ballroom F
EAS 2 - CitiDirect® Part II/Online Statements Plaza Ballroom F

Reminders

y Visit the Citi® Welcome Center
– Exhibit Area Entrance, Sheraton Denver
– Conference Slide Show – come see yourself shine

y Visit the Citibank® One-on-One Mini-Sessions
– Governor’s Square Room 10

y Please take a moment to complete your GSA survey for this session

IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be
used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby
("Transaction"). Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.

Any terms set forth herein are intended for discussion purposes only and are subject to the final terms as set forth in separate definitive written agreements. This presentation is not a commitment to lend, syndicate a
financing, underwrite or purchase securities, or commit capital nor does it obligate us to enter into such a commitment, nor are we acting as a fiduciary to you. By accepting this presentation, subject to applicable law
or regulation, you agree to keep confidential the existence of and proposed terms for any Transaction.

Prior to entering into any Transaction, you should determine, without reliance upon us or our affiliates, the economic risks and merits (and independently determine that you are able to assume these risks) as well as
the legal, tax and accounting characterizations and consequences of any such Transaction. In this regard, by accepting this presentation, you acknowledge that (a) we are not in the business of providing (and you are
not relying on us for) legal, tax or accounting advice, (b) there may be legal, tax or accounting risks associated with any Transaction, (c) you should receive (and rely on) separate and qualified legal, tax and accounting
advice and (d) you should apprise senior management in your organization as to such legal, tax and accounting advice (and any risks associated with any Transaction) and our disclaimer as to these matters. By
acceptance of these materials, you and we hereby agree that from the commencement of discussions with respect to any Transaction, and notwithstanding any other provision in this presentation, we hereby confirm
that no participant in any Transaction shall be limited from disclosing the U.S. tax treatment or U.S. tax structure of such Transaction.

We are required to obtain, verify and record certain information that identifies each entity that enters into a formal business relationship with us. We will ask for your complete name, street address, and taxpayer ID
number. We may also request corporate formation documents, or other forms of identification, to verify information provided.

Any prices or levels contained herein are preliminary and indicative only and do not represent bids or offers. These indications are provided solely for your information and consideration, are subject to change at any
time without notice and are not intended as a solicitation with respect to the purchase or sale of any instrument. The information contained in this presentation may include results of analyses from a quantitative model
which represent potential future events that may or may not be realized, and is not a complete analysis of every material fact representing any product. Any estimates included herein constitute our judgment as of the
date hereof and are subject to change without any notice. We and/or our affiliates may make a market in these instruments for our customers and for our own account. Accordingly, we may have a position in any such
instrument at any time.

Although this material may contain publicly available information about Citi corporate bond research, fixed income strategy or economic and market analysis, Citi policy (i) prohibits employees from offering, directly or
indirectly, a favorable or negative research opinion or offering to change an opinion as consideration or inducement for the receipt of business or for compensation; and (ii) prohibits analysts from being compensated for
specific recommendations or views contained in research reports. So as to reduce the potential for conflicts of interest, as well as to reduce any appearance of conflicts of interest, Citi has enacted policies and
procedures designed to limit communications between its investment banking and research personnel to specifically prescribed circumstances.

©© 2008 Citibank, N.A. All rights reserved. Citi and Arc Design, Citibank and CitiDirect are trademarks and service marks of Citigroup Inc. or its affiliates, used and registered throughout
the world.