The Huntington National Bank (Nasdaq: HBAN) (http://www.huntington.com) announced today its development of a purchasing card program which gives businesses an alternative, less costly method of procurement than paper-based purchase orders.
The Huntington Mastercard Purchasing Card provides businesses a payment tool designed to maintain or improve control over small dollar purchasing activity while reducing costs. At the business’s direction, cards are issued to employees to make purchases directly for supplies. Each card is pre-set with controls, determined by a business’s managers, which restrict how and where employees can use their Purchasing Cards.
At the time of purchase, these controls are checked electronically when the account number is scanned or entered into the terminal. If the purchase is within the employee’s authority, the transaction is approved. If the purchase is beyond the employee’s authority, the transaction is denied, giving the company the control it needs to manage spending.
The Purchasing Card program gives businesses a way to drastically reduce their costs associated with processing purchase orders and expense reimbursements without giving up the control and monitoring component that’s very important in running any size business,” said April Goyer, senior vice president of BankCard Business Services at The Huntington.
Businesses nationwide spend between $300 billion to $400 billion annually on corporate purchases. The majority of these purchases are less than $5,000 each — but the cost to process each purchase order can range from $35 to $150.
“Businesses are looking for answers to help stem the growing costs associated with these transactions. In conjunction with Mastercard, we’ve developed a solution that streamlines the purchasing process and gives businesses the information and control they need, all at a lower cost,” said Goyer.
Huntington Bancshares Incorporated is a regional bank holding company headquartered in Columbus, Ohio with total assets of $28 billion. The company’s banking subsidiaries operate 322 offices in Ohio, Florida, Indiana, Kentucky, Michigan, and Nest Virginia. In addition, Huntington’s mortgage, trust, investment banking and automobile finance subsidiaries manage 74 offices in the six states mentioned as well as Georgia, Illinois, Maryland, New Jersey, North Carolina, Pennsylvania, Texas and Virginia.