77 State Agencies Account for $266 Million in Small Purchase Buys -
ANNAPOLIS, Md. (May 18, 2012) – Comptroller Peter Franchot today announced that the state of Maryland recently received a $4.1 million rebate from Bank of America. The rebate is the result of 77 state agencies spending more than $266 million on small purchases through Maryland’s Corporate Purchasing Card program for the period of April 26, 2011 through April 25, 2012.
“The state’s corporate purchasing program is an efficient way for agencies to make small purchases, provides for better accountability and allows vendors to receive their payments quickly,” said Comptroller Franchot. “Taxpayers should also expect that we’re doing everything we can to save them money,” said Comptroller Franchot. “This is one of many ways our office does that.”
Under the program, the Comptroller’s Office issues one payment each month to Bank of America 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 much sooner than the normal 30-day payment cycle. Bank of America pays a rebate when the state reaches pre-set purchase volumes. Since this contract was approved by the Board of Public Works in 2007, Maryland has earned $18.4 million in rebate payments.
“Much like a taxpayer’s personal rebate credit card, we get money back for purchases made throughout the year, said Comptroller Franchot. “For 2012, $4.1 million will be given back to the state coffers. This money helps fund needed projects and programs throughout Maryland.”
Maryland first began using the VISA corporate purchasing card program in March 1997. Since then, the state has purchased $2.6 billion worth of goods and services, while earning $30.2 million in rebates.