Articles and reports posted on TAPC and our sister site, The Accounts Payable Network, have long described the cost-cutting benefits of using procurement cards. However, the best way to drive home the point is through real-world examples like Cape May County, New Jersey.
According to a news release published on Cape May’s web site, the county recently received a rebate of more than $50,000 from their Bank of America p-card program. The rebate is the result of making approximately $5 million worth of purchases on the card in 2008.
Cash rebates are one of the chief benefits of many p-card programs as they demonstrate how AP departments can add to the bottom line. With the rebates and other cost-saving benefits, such as reduced paper invoice and check volumes, the card program saves the county about $1.4 million a year.
Cape May began using the p-card in February 2005. When the program started, only 9 individuals had access to the cards. Today, the county has more than 150 cardholders.
While a surge in the number of cardholders can pose a fraud risk, the county takes several measures to reduce the potential for abuse. “There are spending safeguards that limit the amount and frequency of activity and safeguards that limit items purchased on each card,” says Treasurer Ed Grant. “All of this is done on an internet based program which allows all activity to be monitored by multiple departments on a 24/7 basis.”
