State of Kansas – ASTRA Meeting - PowerPoint Presentation

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State of Kansas – ASTRA Meeting

American Express Overview

Ragina Ireland – Senior Account ManagerSlide2

State Master Agreement

The State of Kansas has a

long standing relationship

with American Express. This relationship is solidified with a State Master Agreement, which allows for the simplified signing of many state agencies with a single document, an APA (agency participation agreement).Under this agreement, the State of Kansas receives a discount rate of 2.20%.Here are the agencies allowed to use this document to gain American Express acceptance under that agreement: State agencies and departments Public Education Tolls & Transit Healthcare & Convention Centers Local Entities (counties, cities, towns, municipalities)

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Letter of Endorsement

3Slide4

American Express Overview

Global

Commercial CardMore than 100,000 clients worldwide, including nearly 70% of the U.S.

Fortune

100

companies and 83% of the

Fortune

Global

500Top commercial card issuer based on charge volume in US1Innovative payments leader

OPEN Small Business

Average of 8.4 years American Express customer tenureAverage of $2MM in annual business revenueProducts and services include: cards and business solutions

Products include: credit and charge cardsIssuing Markets around the worldMembership Rewards® program

Consumer Card Services

Global Merchant Services

Payment / Process ConsultationIndustry ExpertiseMarketing SupportRelationship ManagementBusiness Insights Analytics

Publications: e.g. Food & WineConsumer Travel ServicesBusiness Travel

Other Businesses

Payment NetworkAmerican Express branded partner issued cardsMarketing support

Global Network Services

1) Source: Business Travel News estimate 2009

Serve

FXIPAcertifyLoyalty EdgePrepaid Products

Enterprise Group

American Express is a leading global payments, network and travel companySlide5

Benefits of Accepting American Express Cards for State and Local Government:

Accepting American Express Cards at your agency may help improve your operational efficiencies, reduce your costs, and improve customer service.

Maximize Collections:

Potential to Get

Paid Earlier and Reliably

Benefit from reliable payment streams from American Express Cardmembers that elect

automatic billing

.

Engage Cardmembers, 23% of whom report

making payments more than 30 days before the due date

, which is 2.3 times as many as Non-Cardmembers who report doing the same.

1

Benefit from Cardmembers, who based on average spend figures, are

financially responsible and highly creditworthy

.2

Benefit from Cardmembers who reported spending more, on average, with state and local government agencies using any payment method, than Non-Cardmembers.

1

Lower Expenses: Save from Increased Online/ Automated Bill Payments

Lower administration and in-person costs versus cash or check

Streamline payment processes versus cash or check

Decrease costs related to bounced checksReduce traditional bill collection costs, such as postage and invoicing expenses

Enhance Service:

Provide Choice

Increase customer satisfaction through the power of choice and convenience

1

2

3

1

Source: Internet panel survey conducted in June 2011 by Brookfield Research, commissioned by American Express. Payment data covers reported payments made in the 12 months prior to the survey using any payment method (except as otherwise indicated).

Definition of Cardmembers

:

Respondents who reported having an American Express Consumer, Business or Corporate Card and using an American Express Card to pay mandatory expenses to state and local government agencies in the 12 months prior to the survey

.

Definition of Non-Cardmembers

:

Respondents who reported that they do not have an American Express Card and that they used their Visa, MasterCard, Discover or Diners Club credit or charge card to pay mandatory expenses to state and local government agencies in the 12 months prior to the survey.2 Higher FICO scores indicate high creditworthiness (76% of Charge & 57% of Lending portfolios had FICO > 720. Data as of March 2010 for AXP Lending Trust (AMXCA) and June 2010 for AXP Charge Trust (AEIT).

Potential Benefits of Accepting American Express Cards

5Slide6

Maximize Collections: Larger, Faster & More Reliable Payments

6

2.3 x

86%

62%

American Express

Cardmembers

Reported making state or local government payments, using any payment method, more than

30 days before the due date

23%

10%

1.4x

Welcoming American Express Cards may help you secure more payments before the due date and gain a more reliable payment stream through recurring billing.

Reported being

likely to use automatic charging

of regularly occurring payments to pay state or local government agencies, using any payment method

Average payments reportedly made

to state and local government agencies, using any payment methodAmerican Express CardmembersNon-

CardmembersAmerican Express Cardmembers1.4 x

$1,944

$1,404LargerFaster

More Reliable

Non-

Cardmembers

Non-CardmembersTHIS DOCUMENT CONTAINS UNPUBLISHED, CONFIDENTIAL AND PROPRIETARY INFORMATION OF AMERICAN EPXRESS. NO DISCLOSUREOR USE OF ANY PORTION MAY BEMADE WITHOUT THE EXPRESS WRITTEN CONSENT OF AMERICAN EXPRESS. © AMERICAN EXPRESS.Source: Internet panel survey conducted in June 2011 by Brookfield Research, commissioned by American Express. Payment data covers reported payments made in the 12 months prior to the survey using any payment method (except as otherwise indicated).

Definition of Cardmembers: Respondents who reported having an American Express Consumer, Business or Corporate Card and using an American Express Card to pay mandatory expenses to state and local government agencies in the 12 months prior to the survey. Definition of Non-Cardmembers: Respondents who reported that they do not have an American Express Card and that they used their Visa, MasterCard, Discover or Diners Club credit or charge card to pay mandatory expenses to state and local government agencies in the 12 months prior to the survey.Slide7

80%

72%

American Express

Cardmembers

Non-

Cardmembers

American Express Cardmembers report making online Government related payments more than non-Cardmembers.

67%

34%

Reported Likelihood of Electing Automatic Bill Payment

Reported making Online Payments using any payment method

American Express

Cardmembers

Non-

Cardmembers

Reported making

state or local government agency payments online or over the internet in the 12 months prior to the survey.

Said they are extremely or very likely to pay state or local government agencies using automatic bill payment if their respective cards are accepted. 1.1 x2.0 x

THIS DOCUMENT CONTAINS UNPUBLISHED, CONFIDENTIAL AND PROPRIETARY INFORMATION OF AMERICAN EPXRESS. NO DISCLOSUREOR USE OF ANY PORTION MAY BEMADE WITHOUT THE EXPRESS WRITTEN CONSENT OF AMERICAN EXPRESS. © AMERICAN EXPRESS.Source: Internet panel survey conducted in June 2011 by Brookfield Research, commissioned by American Express. Payment data covers reported payments made in the 12 months prior to the survey using any payment method (except as otherwise indicated). Definition of Cardmembers

: Respondents who reported having an American Express Consumer, Business or Corporate Card and using an American Express Card to pay mandatory expenses to state and local government agencies in the 12 months prior to the survey. Definition of Non-Cardmembers: Respondents who reported that they do not have an American Express Card and that they used their Visa, MasterCard, Discover or Diners Club credit or charge card to pay mandatory expenses to state and local government agencies in the 12 months prior to the survey.

Drive Savings from Online Payments7Slide8

85% of Cardmembers agr

eed

that American Express acceptance makes the overall

payment process faster.

91% of Cardmembers agre

ed

that it is important to them that

merchants accept the payment methods they prefer.

89% of Cardmembers agre

ed

that American Express acceptance

makes the overall payment process more convenient.

85% of Cardmembers agreed that American Express acceptance makes the

overall payment process more efficient. 77% of Cardmembers agreed that American Express is the most secure way to pay over the internet.

THIS DOCUMENT CONTAINS UNPUBLISHED, CONFIDENTIAL AND PROPRIETARY INFORMATION OF AMERICAN EPXRESS. NO DISCLOSUREOR USE OF ANY PORTION MAY BEMADE WITHOUT THE EXPRESS WRITTEN CONSENT OF AMERICAN EXPRESS. © AMERICAN EXPRESS.Benefit from higher customer satisfaction by offering Constituents the opportunity to pay with American Express.

Accepting American Express provides convenience and security which may improve customer service and enhance perception of your agency.

Source: Internet panel survey conducted in June 2011 by Brookfield Research, commissioned by American Express. Payment data covers reported payments made in the 12 months prior to the survey using any payment method (except as otherwise indicated).

Definition of Cardmembers: Respondents who reported having an American Express Consumer, Business or Corporate Card and using an American Express Card to pay mandatory expenses to state and local government agencies in the 12 months prior to the survey. Definition of Non-Cardmembers: Respondents who reported that they do not have an American Express Card and that they used their Visa, MasterCard, Discover or Diners Club credit or charge card to pay mandatory expenses to state and local government agencies in the 12 months prior to the survey.Enhance Customer Service: Accept American Express8Slide9

My Merchant Account/OMS provides you with online servicing tools that are convenient, flexible and customizable to fit your needs.

MY MERCHANT ACCOUNT/OMS – OVERVIEW

Convenience. Control. Efficiency.

View up-to-date financial activity 24/7Get customizable monthly e-statements

Respond more quickly to disputes with automatic alerts

Keep your account information up to date

Contact us any time via secure e-mail

americanexpress.com/mymerchantaccount

Key BenefitsSlide10

Welcome customers who actively seek the American Express logo when they shop. Millions of Cardmembers look for merchants that accept the Card to earn points, miles or cash back with their purchases.

47%

of American Express

®

Cardmembers are more likely

to try a merchant when the American Express logo is visible

.*

52%

of American Express Cardmembers agree that they

feel more confident about purchasing from merchants that display the American Express logo

.*

*Source: Brookfield Research, August 2009

DecalsSignage and SuppliesPrint & Electronic LogosBuckslips & Invoice Labels

_____________________________to order business supplies 24/7,visit: americanexpress.com/decals or call 1-800-528-5200.

“

This document contains sensitive, confidential, and trade secret information, and must not be disclosed to third parties without the express prior written consent of American Express Travel Related Services Company, Inc.

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