19 October 2000 | David Arminas
The Office of Government Commerce (OGC) will examine the options for organising electronic markets with a team of economists, Jane Gibbs, the OGC's head of e-commerce , told SM.
Transaction flows will come under scrutiny, including who should pay for what in the supply chain, and on what basis, such as by volume or by transaction. "We are challenging the assumption that the supplier pays for everything, or that people pay a transaction fee," Gibbs said. "We're worried about transaction fees for e-procurement."
David Harbey, senior manager at Visa International, said: "Visa recognises the need to address the question of higher-value transactions and is in the process of a pan-European review of how to address this."
The government procurement card, run by Visa Purchasing, was launched in October 1997. The OGC has set a target of purchasing £55 million of low-value, routine goods with the card by the end of this year. It will issue guidelines soon on which methods of payment count towards the target of 90 per cent of low-value, high-volume goods to be bought electronically by April 2001.
Items purchased with the government card will count towards the target, Gibbs confirmed.