GSA SmartPay Benefits
Some of the benefits for customers using GSA SmartPay solutions as a method of payment for government procurement include:
- Cost Savings Realized: Customers have the opportunity to realize administrative cost savings through payment efficiencies. The estimated administrative savings for the purchase card alone is $1.7 billion per year ($70 per transaction) when used in place of a written purchase order. Agencies also pay no direct fees and features include automated account reconciliation, spend audits, and data mining options, which are compliant with P.L. 112-194 data mining requirements.
- Agency Refunds: Agencies have the opportunity to earn refunds based on the dollar volume of transactions and the speed of payment. Since the program’s inception in 1998, customers have earned more than $4.8 billion in net refunds for mission support. In Fiscal Year 2020 alone, net government refunds totaled $403 million.
- Safety and Transparency: The GSA SmartPay Program provides secure solutions for efficient payment transactions. Customers also have access to tools that promote increased transparency through access to spend and performance data.
- Electronic Access to Data: Through GSA SmartPay contractor bank online systems, account managers and account holders have immediate access to complete transaction-level data, helping to mitigate fraud, waste, and abuse.
- Worldwide Acceptance: Through the use of commercial payment infrastructure, customers are able to use GSA SmartPay solutions anywhere in the world where merchants accept cards.
- Identification for Discount Programs: GSA SmartPay solutions provide automatic point-of-sale recognition for many GSA discount programs, including Federal Strategic Sourcing Initiative programs, the GSA City Pair Program, and more. A GSA SmartPay travel payment solution is required to obtain airfare discounts through the GSA City Pair program, creating billions in annual savings governmentwide.
- Other Benefits: GSA SmartPay payment solutions provide other less tangible benefits including travel insurance and eliminating the need for imprest funds or petty cash at the agency.