Terry, This is indeed not a system for ordering production material. I don't see that purchasing cards was meant for that either. At least in Europe such material is always invoiced.
The prime candidate for the proposed (and running) system is the ordering of low-value items where the order and payment can be settled immediately. Like when buying an air-line ticket or buying a software package from a supplier that you don't have a long-term agreement with. And where the supplier refuses to give you credit. Long term it is the only way to go for local payments, to get away from the issuing of company cards that is an expensive process, gives little control and puts a lot of burden on the purchaser as well (those d--m slips). But there are no limitations in .PAY w.r.t. order complexity although a free-format order is very hard to automatically authorize, here the authorizing process is likely to be based on supplier and purchaser. Disputes and charge-backs are asynchronous processes that should be fully possible to support, either using manual methods or providing streamlined support for some of it. As all messages are digitally signed and parties are usually in B2B fully identified, the information is there. A good step is actually running this to get some more feeling for how it works. Although the system on the net is consumer or SME-oriented. cheers, Anders ----- Original Message ----- From: <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Cc: "internet-payments" <[EMAIL PROTECTED]> Sent: Friday, September 27, 2002 22:56 Subject: Re: Purchasing Cards - The Next Generation This seems to be a very elementary approach to payments, one that generally takes the consumer model and fit it to business. Granted the p-card does work for simple MRO supply purchases and some of the other direct material, but a true business oriented payment systems should address the business processes that are really in place. Purchase orders and the resultant invoices are not normally on line item - they are complex. Suppliers do not always fulfill an order with one shipment. The receiving dock does not always accept a complete shipment. The production line often disputes one or more items in a shipment. Payments need to be able to support all of these occurrences. Payment detail at the line item is essential as are dispute resolution and charge back processes. Where is the real time, communications based solution that addresses these issues? Terry Retter Director, Strategic Technology Services and Programs Global Technology Centre PricewaterhouseCoopers 650 688 6601 Anders Rundgren <anders.rundgren@t To: internet-payments <[EMAIL PROTECTED]> elia.com> cc: 09/27/2002 01:18 Subject: Purchasing Cards - The Next Generation PM Currently purchasing cards apparently rely on close ties with issuers as well as supplier support. .PAY (*), an "input specification" to a proposed OASIS payment standard track, changes this by making each party do what they are best at which means: - Issuers/Banks pay - Suppliers deliver goods or services - Employers control/authorize/archive what their employees do How does this work? 1. The merchant sends a "rich" transaction request to the buying organization 2. The purchasing-server authenticates the purchaser 3. The purchasing-server checks the Level III-like items and authorizes if ok 4. The purchasing-server sends the transaction request to a PSP/bank fo fulfillment using ACH, credit-cards, debit-cards, etc. 5. The PSP/bank returns the complete transaction 6. The purchasing-server sends this back to the merchant (there are some minor deviations but the principle is as above) The net result is that the entire concept of a purchasing card disappears, and a real-time B2B-transaction takes its place. And how about those non-web-based transactions? Well, unfortunately we will have to wait another 5 years or so until the phone-makers heve recovered from the current recession and see some light in the tunnel. *) Reading only: http://buyer.x-obi.com/dotpaybuyer/faq.html Running .PAY: https://buyer.x-obi.com/dotpaybuyer/buyer cheers, Anders _________________________________________________________________ The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and delete the material from any computer.