POWERFUL PURCHASE CARD PROGRAMS FOR

SCHOOLSPresented by:

Diamond Mind is the leading expert on payment technology and solutions to over 800 independent schools.

We are devoted solely to schools, established in 2003.

Our purchase card program was designed specifically for K-12 in 2007 and has been continuously evolving.

250 schools across the U.S. use the Diamond Mind purchase card.

Currently a combined credit line of $200M available to our client schools and $45M being spent annually.

How are they different from other types of credit cards?

Why should a school use a purchase card?

What types of purchases can it be used for?

Tips for successfully implementing a program

Part 1

Part 2

Understanding

Implementing

UNDERSTANDING PURCHASE CARDS

Part 1

WHAT IS A

PURCHASE CARD?

An efficient and flexible form of credit card that is paid off each month and allows for better control, limits, and

visibility than other types of credit cards.

PERSONAL SMALL BUSINESSPURCHASE

CARD

Typical Number of Cards 1-2 Cards 1-5 Cards 10+ Cards

Accrues Interest/ Carries Balance Most Yes/Some No Most Yes/Some No No

Card ControlsBank Controlled,

Few Admin Options

Mostly Bank Controlled, Few Admin Options

Primarily School Admin Controlled,

More Admin Options

Guarantee Type Personal Combined Personal and School School

Fee Per Cards $0 - 450 $0 - 450 $0 - 75

RewardsUnlimited/capped

cash back or rewards

Unlimited /capped cash back or

rewards

Unlimited cash back

HOW IS IT DIFFERENT FROM

OTHER

TYPES OF CREDIT CARDS?

Purchase cards offer

Better cost controls

Reduced administrative

time

Encourage cost

reductions

WHY SHOULD A SCHOOL

USE A PURCHASE CARD?

Can save between 55% and 80% of traditional

processing costs* (roughly $74/transaction!)

Save an average of 8 days from the paper procurement cycle time of 12 days

Benefits of a purchase card program

Customize purchasing parameters (ie. transactions limits)PAYMENT CONTROLS

View invoices and control spending limits

Code transaction information for transfer into school accounting system

ONLINE MANAGEMENT TOOLS

REDUCED TIME

REDUCED PAPERWORKResponsibility for 1099 filings are managed by processor, not your school

* 2012 Purchasing Card Benchmark Survey Results by RPMG Research

Common Uses of a Purchase Card in Schools

• Travel (school trips, etc.)

• Computer Equipment

• Utilities and Grounds

• Renovation and Construction

• Teacher/Faculty Supplies

• Legal and Accounting Services

• Furniture

• Fuel

Uncommon Uses of a Purchase Card in Schools

• Wig and Toupee Shops

• Automobile and Truck Dealers

• Dairy Product Stores

• Duty Free Stores

• Tax Payments

• Debt and Personal Counseling

• Towing Services

• Video Game Arcades

WHAT IS A

PURCHASE CARD?

It’s an efficient and flexible form

of credit card that is paid off each month and allows for

better control , limits, and visibility

than other types of credit cards.

TIPSFOR SUCCESSFULLY IMPLEMENTING A PURCHASE CARD PROGRAM

Part 2

Elements of a Powerful Purchase Card Program

1Plan Ahead

2Empower

Employees

3Control

Regularly

4Eliminate Paperwork

5Transfer Data

6Expand Usage

7Maximize Monetary Benefits

Plan Ahead

Estimate your highest spend in a given period

Think of major purchases, travel, group trips, and upcoming events

Double that amount (think long-term growth!)

Your financials should support what you ask for

Ensure Your Credit Limit is Sufficient

1

Plan Ahead

Define roles and responsibilities for program management

Prepare internal policies and forms

• Create cardholder agreement

• Create card checkout forms when applicable

• Ask your program provider for best practices

Develop Internal Policies and Procedures to Manage Program

1

Plan Ahead

Excite about the benefits

Gain card holder or department head

buy-in

Educate on the process

Share the success stories a year later

Communicate with Stakeholders and Employees

1

Replace the need to use personal credit cards, checks, and petty cash

Take advantage of automatic currency conversion on foreign trips

Place ownership on cardholders for spending and reporting

Empower Employees

Issue individual cards to everyone who needs to make purchases or incur expenses

2

To group expenses by event or category (fuel, travel, maintenance, etc.)

To enable temps or volunteers (book fair, auctions, etc.)

Create controls and log of card usage

Empower Employees

Use department cards where appropriate

2

Utilize your system to make your job easier!

Empower Employees

Train your staff on online expense tracking and expense management

2

Align credit limits with each employee’s needs

Vary credit limits over time as needed

Get the most out of available restrictions, (e.g., max transaction amount, limited acceptance, foreign transactions)

Daily reporting and real-time transaction information

Control Regularly

Manage controls for each card

3

Group cards into departments

Delegate responsibilities to department heads

Control Regularly

Group Cards as Needed

3

Lists every item purchased in an order

Contains all Level II data: purchase order number, customer number, description, additional details, etc.

Control Regularly

Get further insight into purchases through Level III data

3

Move it online

Use multi-tier approval process if necessary

Eliminate Paperwork

Simplify expense tracking, reporting, and approval

4

Upload Receipts

Eliminate Paperwork

Minimize Paper Receipts

4

Responsibility to issue 1099-MISC is transferred to the banks and processors of the business who accepts the card

Skip filing 1099-MISC

Auto-assignment or entered one-by-one

By employees or business office

Approver control on accounting code assignments

Transfer Into Accounting System5

Pre-assign transactions to your account codes

Transactions exportable in various formats

Transfer Into Accounting System5

Transfer all transactions into your financial system

Provide transaction details

Level III data available

Reduce work for business officer

Transfer Into Accounting System5

Make your auditors happy!

Make it a default payment option

Review the list of most common credit card acceptors used by independent schools at www.diamondmindinc.com/acceptors

Run a match of your frequently used vendors against lists provided by card associations

Expand Usage6

Get cash back

Maximize cash back with more frequent or faster payments

Watch for promotional categories

Automate invoice payments

Pay electronically

Get the most with auto-debit

Benefit from predictable cash flow

Insight into where you are spending and paying bills

7 Maximize Monetary Benefits7

Powerful Purchase Card Program Elements Recap

1Plan Ahead

2Empower

Employees

3Control

Regularly

4Eliminate Paperwork

5Transfer Data

6Expand Usage

7Maximize Monetary Benefits

Case Study – DM Client School in Wilton, NH

Number of Students: 108

Staff Members: 49

Grades: 9 – 12

Annual Revenue: $4 Million

New finance manager arrived in 2010

Overview

Case Study - DM Client School in Wilton, NH

Business manager surprised by current process

• Several employees frequently used personal credit cards to make purchases for school

• Wasn’t sure if employees had any spending or transaction limits

• No official system to enforce the limits that did exist

Only able to reimburse employees once a month

Challenging to stick to a campus-wide budget and limit spending with such a system

School needed to track and limit spending

• Tried bank card program, loved the security, but still did not have enough controls or accounting system compatibility

The Problem

Case Study - DM Client School in Wilton, NH

She was referred to Diamond Mind by a peer school because she was particularly interested in a service provider who specialized exclusively in independent schools

With the Diamond Mind MasterCard, they could set spending limits and restrict purchases to specific categories

She also could send spending notifications and alerts, as well as manage all of these options online

Data could also easily be transferred into her QuickBooks accounting system. We even customized her desired data export format.

They would enjoy all these added benefits and count on the security of the MasterCard brand

The Solution

Case Study - DM Client School in Wilton, NH

School has 20 Diamond Mind Purchase Cards for employees

$30K available credit line per month

Today, the business manager has a clear picture going into each month of who is spending and what items are being purchased.

Because she is using a Purchase Card program, she can reconcile quickly and easily each month and has control over employee spending.

The Outcome

THANK YOU!www.diamondmindinc.com