Why is the statewide amount paid to JP Morgan Chase NA and US Bank National Association so large?
Payments to JP Morgan Chase Bank NA represent payments to the bank that provides the state procurement card services. This arrangement is similar to a citizen paying a credit card bill. State agencies use the tax-exempt procurement credit card as a streamlined way to pay for approved small dollar purchases of goods or services. This process allows the agency to avoid the cost, environmental impact, and time delay associated with requesting a state check or warrant to make the purchase. The statewide payment amount is large because the state pays the bank rather than the individual vendors – the bank pays the individual vendors. The information regarding which vendors were paid by the bank is not available on the state’s accounting system, but it is retained by each state agency. Payments to US Bank National Association are similar to the procurement card discussed above. However, US Bank National Association provides the state a card service that is used specifically for travel and mee
