Comptroller Peter Franchot has announced that the State of Maryland has received a $5.7 million rebate from U.S. Bank. The rebate is the result of 76 state agencies spending more than $286 million on small purchases through Maryland’s Corporate Purchasing Card program for the period of April 26, 2016 through April 25, 2017.
“Taxpayers want and expect us to do everything we can to watch out for their financial best interest and to save them money,” Comptroller Franchot said. “In my role as the state’s fiscal watchdog, it’s what my office does each day. The Corporate Purchasing Card program allows state agencies to make small purchases in an efficient and effective way, providing accountability and allowing vendors to be paid in a timely manner.”
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.
The State of Maryland first began using the VISA corporate purchasing card program in March 1997. Since then, the state has purchased approximately $4.1 billion worth of goods and services, while earning $56.9 million in rebates.
