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• Introductions
• MiDeal Overview
• Purchasing Card Overview
• Works Technology
• Payment Automation ePayables
• Next Steps
• Questions
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Client Management
William Mungai
Vice President, Client Manager
Public Sector Banking
Phone: 617.434.9679
Email: william.mungai@baml.com
Joseph (Joe) Kiss
Senior Vice President, Senior Client Manager
Public Sector Banking
Phone: 989.964.7821
Email: joseph.kiss@baml.com
Client Team
Christopher Brin
Vice President, Treasury Solutions Officer
Public Sector Banking
Phone: 757.884.3938
Email: christopher.brin@baml.com
Kenneth (Ken) Harroun
Vice President, Treasury Solutions Officer
Public Sector Banking
Phone: 248.631.0550
Email: kenneth.harroun@baml.com
Extended Team
Nancy Cournaya
Vice President, Senior Card Account Manager
Card Account Management - Central
Phone: 312-992-6295
Email: nancy.p.cournaya@baml.com
Client

Bank of America is the provider for the State of Michigan Electronic Payment Card Services – Statewide Procurement
Card Contract since 2008. Under the Contract, Bank of America provides purchasing card and ePayables services to municipalities and government bodies within the State as long as they are a member State of Michigan Mi Deal program and meet the program volume requirements.
• Purchasing Card participant volume requirement of $1,000,000 annually
A current listing of approved program members is available at: http://www.michigan.gov/mideal .
Benefits of Mi Deal / State of Michigan
• The need to go through the RFP process is eliminated
• Easy enrollment
• No program or cardholder fees
• Networking and Best Practices
• Assigned Card Account Manager
• Assigned Card Account Specialist for servicing needs
• Works application to manage your card program
• Rebate rate tier determined by adding state and local government bodies
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• Many of our government clients have embraced the electronic payment process because it provides a unique opportunity to reduce expenses and increase efficiencies. More importantly, it minimizes the risk of fraud and increases transparencies for auditors and constituents alike without changing the accounts payable processes currently in place.
• Purchasing cards are the quickest and easiest way to eliminate low dollar/low value transactions
• Purchasing Cards fit perfectly into most organization’s AP process and can drive out paper in a short amount of time
• The average organization has the potential to more than double the number of transactions under $2,500 that are paid by p-card and increase fourfold the number of transactions from $2,500-$10,000.
• Penetration in P-card spending payments has increased for office equipment, travel, computers, maintenance/repair/operations, telecommunications, printing
& duplicating, media/advertising and transportation/delivery services.
• P Card spend increased nationwide 17.6% from 2007-2009
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Controls:
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Manage cards in real time – at the push of a button within Works, increase/decrease funds on card or disable cards in real time
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Dispute transactions
Fraud Prevention:
Bank of America has instituted a number of procedures to decrease exposure to fraud including:
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Card PIN Activation
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Card Expiration Date
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Card Verification Value
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Physical Card Features
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Ability to offer zero-dollar cards and declining balance cards for optimized control
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Enforce corporate and individual spending policies
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Block merchants using Merchant Category Codes (MCC)
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Impose single transaction limits, daily/weekly/monthly spending limits
Bank of America was recently recognized by Javelin (an independent research and study entity) for the 8 th straight year as ‘Best in Class’ for Fraud
Detection/Prevention, Servicing, and Claims Resolutions in 2013 for our card programs.
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The survey was done across the top 25 card issuers
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Bank of America scored a 79 which was 8 points ahead of our closest competitor CitiBank
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The average score across all participants was 55
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®
 The most innovative web-based electronic payment solutions systems in the industry
 Data can easily be integrated into accounts payable systems with
40+ standard reports including receipt imaging & management
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Custom reporting by spend by vendor, department, project, grant,
GL code, hierarchy, etc.
Automated 1099 reporting
 Automated Reconciliation
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General Ledger (GL) allocation and export for GL upload
 Tools to mitigate fraud:
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Real-time card controls including card issuance and suspension
Optional pre-purchase approval process
Declining balance card issuance
Merchant Category Code (MCC) restrictions and transaction limits to purchasing authority
 Works® accommodates unique cardholder, manager, auditor, accountant and administrator permissions
 Two years of online data retention
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®
Card maintenance and Active
Card Controls
Real-time manipulation of credit availability
Online hierarchy management
Pre-approval and postapproval workflows
Easy integration into your ERP system
Spend monitoring for encumbered funds and discretionary/ incremental funds

Bank of America Merrill Lynch was the first to market with the solution and is the largest issuer of ePayables programs, processing more than $12 billion and 2.1 million transactions in 2012.
ePayables is a complementary solution to the Purchasing card designed to further increase payment transformation from check to a card solution. In order to qualify we can perform a vendor analysis for you and provide a sample proforma of expected enrollment. The minimum requirement to participate is to have an expected vendor enrollment figure of $2 million based off of the vendor analysis.
• Replace 30-40% of non-payroll AP check volume
• Turns a costly check into a “free” electronic payment
• Eliminates per-item banking fees and processing costs
• Optimizes your efficiency and working capital
• Extends float opportunity and provides cash payout incentives
• Requires no changes to the upfront accounts payable process
• Enhances transaction risk management
Invoice received and approved to pay
Client ERP/AP
System
Works processes AP file
Works funds card
Push pay – payment pushed to vendor’s merchant account
Card processor ePay– vendor charges card
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Payment method
Record of payment
Payment action
Remittance advice
Vendor cash received
Client paid cash
Confirmation of payment
Check
Check run file
Print on check per supplier ID
Check stub with invoice line-item detail
Check deposited; funds clear in
5-7 days
Cash withdrawn upon check clearing
Positive pay file ePayables Payments
Card run file
Dynamically fund one card number per supplier ID
Email notification with invoice lineitem detail
Card transaction authorized; cash transferred in 2-3 business days
Bank statement paid in 30-45 days after transaction posts
Works ® exports file with posted card transaction details
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BUYER BENEFITS
Reduce costs and efficiencies
▪ Make AP payments with no transaction fees
▪ Incentive cash payouts based on spend
▪ Increases float for improved cash flow
Improve transaction risk management
▪ Helps control card payments by only authorizing pre-approved payment amounts
▪ Reduced risk of fraud through elimination of checks and cards issued with $0 credit limits
▪ Improve buying power by offering your vendors a faster, more reliable payment option
Further payment automation strategy
▪ Replaces costly paper payment with lowcost electronic payments
▪ Provides vendor enrollment support
▪ More than 75,000 vendors enrolled to accept ePayables on approved invoices
SUPPLIER BENEFITS
Control and costs
▪ Receive electronic payments without need to give bank information to customers
▪ Reduced payment receipt processing cost by eliminating paper payments
▪ Uses existing card technologies, processes and protections
Relationship
▪ Strengthens relationship with buyer while reducing the costs and risks associated with paper payments
Efficiency and float
▪ Remittance data transmitted electronically with payment for easy application to account
▪ Funds made available on card at time of remittance (remittance can be via email or fax)
▪ Improve Days Sales Outstanding (DSO)

• Please contact your client manager or treasury solutions officer to setup a follow up discussion.
• Review the State of Michigan contract to see how it can help your organization earn a rebate for utilizing a Purchasing Card / ePayables program.
• Create a customized financial benefit analysis for your organization to see the value of converting to an electronic card solution.
• We are pleased to offer a one on one demonstration of our proprietary online reporting tool and card management application, Works™ for your organization.
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"Bank of America Merrill Lynch" is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation ("Investment Banking
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