Comptroller Peter Franchot today announced that the State of Maryland has received a $5.7 million rebate from U.S. Bank. The rebate is the result of 77 state agencies spending approximately $285 million on small purchases through Maryland’s Corporate Purchasing Card program for the period of April 26, 2017 through April 25, 2018.
“Maryland taxpayers expect us to make sure we protect their financial best interests and look for ways to save them money,” Comptroller Franchot said. “As part of my job as the state’s fiscal watchdog, my agency is dedicated to this task. The Corporate Purchasing Card program allows state agencies to make small purchases in an efficient and effective way, to provide accountability and to allow 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 the new vendor U.S. Bank at a higher rebate percentage than the previous contract.
The State of Maryland first began using the VISA corporate purchasing card program in March 1997. Since then, the State has purchased more than $4 billion worth of goods and services while earning $62.6 million in rebates.