77 State Agencies Account for $260 Million in Small Purchase Buys
ANNAPOLIS, Md. (May 25, 2011)—Comptroller Peter Franchot today announced that the state of Maryland has received a $3.9 million rebate from Bank of America. The rebate is the result of 77 state agencies spending more than $260 million on small purchases through Maryland’s corporate purchasing card program for the period of April 26, 2010, through April 25, 2011.
“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 $14.1 million in rebate payments.
The state of Maryland first began using the VISA corporate purchasing card program in March 1997. Since then, more than $2.4 billion worth of goods and services have been purchased, earning $26 million in rebates.