22 May 2008 | Jake Kanter
Buyers must monitor transactions made outside of preferred suppliers to help combat procurement card misuse, a study has revealed.
The survey of 30 US companies - including Starbucks and oil corporation Chevron - by financial services firm JPMorgan, found purchasers should audit non-traditional transactions on procurement cards, to ensure compliance is maintained.
It found best practice organisations must review evening and weekend card purchases and also assess retail receipts from websites such as Amazon or eBay.
Together with this advice, the report compiled nine other steps to help improve buying practices and safeguard against procurement card fraud. These included securing senior management support for a procurement card programme and establishing checks and balances for cardholders.
It also suggested potential users should be trained before receiving a card and technology should be used to highlight misuse.
Rich Erario, managing director, commercial card and electronic procurement, invoicing and payables at JPMorgan, said by adopting best practices "organisations are better positioned to launch an effective card programme, improve compliance and auditing processes and practices, and further accelerate efficiency."