77 state agencies account for $284.8 million in small purchases
News Release, Office of Maryland Comptroller Peter Franchot
ANNAPOLIS, Md. (July 8, 2019) –Comptroller Peter Franchot today announced that the State of Maryland has received a $5.8 million rebate from U.S. Bank. The payment is the result of 77 state agencies spending $284.8 million on small purchases through Maryland’s Corporate Purchasing Card program for the period of April 26, 2018 through April 25, 2019.
“Marylanders expect their government to protect their financial interests and to save money whenever possible,” Comptroller Franchot said. “The Corporate Purchasing Card program allows state agencies to make small purchases in an efficient way, to provide accountability and to pay vendors in a timely manner, all while earning back a percentage of those dollars that can be put towards worthy programs.”
Under this program, the Comptroller’s Office issues one payment each month to U.S. Bank for all card purchases made during the previous month. Merchants are paid directly by VISA, usually within two business days of the purchase, which is shorter than the normal 30-day payment cycle. U.S. Bank pays a rebate when the state reaches pre-set purchase volumes. This contract for Purchasing Card services was approved by the Board of Public Works in 2013, with U.S. Bank offering a higher rebate percentage than the previous vendor.
Maryland first began using the VISA corporate purchasing card program in March 1997. Since then, the state has purchased over $4.3 billion worth of goods and services, while earning $68.4 million in rebates.