Seems to me that everyone's missing the point.....

The value of a PCard is two-fold: 
* it enables the Buyer to establish controls over who buys what for how much
from whom (and reducing maverick spend is a key benefit of eprocurement for
both buyer and supplier)  
* it ensures the Supplier receives guaranteed payment (less PCard fee)
within 2 - 4 days of purchase, compared with 60 - 120 days in mainstream
circumstances.

With eprocurement systems capable of being configured with a virtual Pcard
number according to user setup configuration (and I agree that there needs
to be tight security around this), limits are placed on misuse / maverick
spend.

What are the alternatives?  For the Supplier, not much. Other solutions that
I've seen retain control of the payment decision with the Buyer - and that
means payment in 60 - 120 days, regardless of the 'terms of payment'
agreement between buyer and supplier.  Applications can be configured to
effect electronic funds transfer from Buyer to Supplier account on
pre-agreed triggers, but guess what?  buyers don't want to lose payment
control, and the issue of who holds account data, etc. arises.

... or have I missed the point?


Geoff

-----Original Message-----
From: Anders Rundgren [mailto:[EMAIL PROTECTED]]
Sent: Tuesday, 2 October 2001 12:33 PM
To: [EMAIL PROTECTED]
Cc: [EMAIL PROTECTED]
Subject: Re: The end of P-Cards?


>having any online, ubiquitously connected system with easy rule update and
>change is an interesting challenge no matter who or how it is deployed
>(especially with strict security and audit control for what is permitted
>and/or changed, aka the whole objective of the system in the first place,
>problem is also that traditionally, 90percent of fraud has been insider
>fraud)

And having an *external*, off-line, rule-based, hard-to-update-solution
like P-cards is the short-cut to always having more or less incorrect data.

>some of the larger corporations are starting to even have further
>deployment of  p-cards with the infrastructure providing statement->edi
>translation that flows everything directly into the backend accounts
>payable system.  auto-industry with possibly 60,000 suppliers is one that
>comes to mind.

The world is obvously full of losers :-)

Using systems like OBI (Open Buying on the Internet), P-Cards
become completely redundant.  For physical requisitions they
have maybe 5 years more to live.  On the Internet I wonder if
they are used in any major extent today.

<snip>
>Not only does not having seemless end-to-end transaction authentication in
>conjunction with transaction authorization an invitation for fraud ... but
>also making it really simple and easy for insiders to access the system and
>make rule changes is also an invitation to fraud. Typically, if you aren't
>worried about insiders and fraud/skimming/etc  ... then you probably aren't
>good candidate for p-card rules in any case; just direct transaction
>presentment to backend automated accounts payable may be sufficient (x9.59
>at POS and network supporting seemless, end-to-end strong transaction
>authentication).

3D Secure et al how do you characterize that?
Not end-to-end?  I think that the definition of "end" will change
after introduction of such systems.  The universities' "Shibboleth"
federated authentication system is a similar trend.

Anders

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