BMO SPEND & PAYMENT SOLUTIONS® VOLUME 13 • ISSUE 1 • SUMMER 2012

Letter from the Executive Managing Director / 2Using your magnetic stripe card in a Chip and PIN world / 3The changing Canadian payments landscape / 4details Online home page redesign / 7What’s new with Diners Club International? / 7

IN THIS ISSUE

Business travel can be stressful.

Whether it’s navigating security

at the airport, filling out expense

reports, or ensuring that travel

decisions are all made in

accordance with company policies

and procedures, there are

challenges throughout the journey.

If happy travellers are productive

travellers, it’s in a corporation’s

best interests to make their road

warriors happy. But how?

Reduce traveller stress One of the greatest frustrations travellers face is getting

through security. Joe Monaghan, a BMO Spend & Payment

Consultant with almost 30 years of product

development-focused industry experience, recommends

making use of available technology to reduce the stress of

getting to and from destinations and dealing with the

inevitable challenges. “Technology lends itself very well to

making travel easier… We can alleviate some of the business

travellers’ frustrations by leveraging platforms that are

available to us today.”

One of the most powerful tools

is one your employees probably

already have – the smart phone.

Get to know your smartphone1. Why not leverage smart phone

technology to allow quicker passage

through security? Traveller

information, including boarding

pass, can be stored and accessed

on a smart phone.

2. Some restaurants and coffee

shops allow you to pay with a smart phone.

3.There are smart phone applications that can help make

expense reporting simpler. For example, some apps allow

the traveller to take a picture of a receipt and then place it

automatically into the appropriate category of an expense

report. No need to fax receipts back to the office! There is

still some effort involved, but having an expense report

partially filled out by the time the trip is over takes a lot of

work out of filing it. The traveller only needs to edit and

audit the report, instead of creating it from scratch.

ApexSHARING THE BEST IN SPEND & PAYMENTS TRENDS AND INNOVATIONS

Leveraging technology to simplify expense management

Continued on page 5

SPECIAL ISSUETRAVEL & ENTERTAINMENT

http://www.bmo.com/spendandpayment

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Letter from the Executive Managing Director

Technology is evolving at a remarkable pace. As it does, it changes

how, where and when we do business. With technology at our

fingertips, we can use our cell phones to email, surf the web, do our

banking, and pay for purchases. We now have multiple convenient

methods of payment and record-keeping. Our detailed banking

information is accessible online. Credit cards have new and improved

security features, such as the encrypted microchip.

Increased security has changed the way we travel as well, and has had

an impact on the time it takes us to get from one location to another.

In this issue of Apex, we look at some of the emerging technologies

and the impact they’re having. We share ideas about how to use

technology to meet the demands of your business travel experience

along with solutions that can help you spend less time in security

lines at the border and in airports.

At BMO Spend & Payment Solutions, we strive to provide a suite of

solutions and level of service that always meets and exceeds your

expectations. Our goal is to find ways to help you do business more

simply and productively, whether you’re in the office or on the other

side of the world. We are committed to bringing you solutions that

make it easier for you to streamline your processes, balanced with

the security you’ve come to expect from BMO.

Terry Wellesley

Executive Managing Director and Group Head, North America

BMO Spend & Payment Solutions

Managing Editor:Melanie Da-Silva

Editor:Tanja Vukojevic

Editorial Board:Craig WeinerAndre Blanchard Judy StaffordCynthia SchlesingerLourdes SantiagoCarol FerrettiFrank MarzariPaul Shamon Vic Iwanow Jeremy WylieSandra Radice

Contributors:Joe MonaghanGene KlipinLiora Pelunsky Diana Zajc

If you would like to learn more about how BMO’s products and services can help you, please visit our website atbmo.com/spendandpaymentor contact us atbmo.sps@bmo.com

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The card payment industry is

continually evolving to provide

customers with greater convenience

and security. Chip and PIN technology

used in Europe, Canada and many

other markets for several years is a step

forward for security. The cards have

a built-in, encrypted microchip that

keeps customer information secure and

makes the card extremely difficult to

counterfeit. Because the card owner’s

four-digit Personal Identification

Number (PIN) is required for

purchases, no one else can use the card.

Chip and PIN technology is convenient,

too. No need to sign a receipt or swipe

your card. Just insert the card and enter

your PIN. And for merchants that do

not have Chip terminals yet, there is a

conventional magnetic stripe to ensure

universal acceptance.

The shift to Chip and PIN technology is

occurring at different paces worldwide.

Canada, most European, Latin

American and Caribbean countries

have converted to this technology,

along with increasing numbers of

markets in the Middle East, Africa,

and Asia-Pacific countries. The U.S.

still uses magnetic stripe cards.

MasterCard magnetic stripe cards are

still accepted and cardholders are

unlikely to have difficulty using them

in major metropolitan areas around the

world. However, outside of major

tourist centers, some merchants may be

unfamiliar with magnetic stripe cards.

If you have any problems, ask the

merchant to swipe the card through the

terminal and follow the prompts.

If the clerk is unwilling, ask to

speak with a store manager or call

MasterCard cardholder assistance at

the number printed on the back of

your MasterCard®*.

Some cardholders have reported that a

limited number of unattended kiosks

at train stations or in parking lots are

programmed only to accept Chip and

PIN-enabled cards. If you know you’ll

be making transactions at unattended

kiosks, it’s a good idea to ensure

that you have cash just in case.

BMO®was the first issuer in the U.S.

to convert an entire consumer credit

card portfolio to Chip and PIN

technology when it converted all

Diners Club retail clients. Now Diners

Club corporate clients in the U.S. have

ability to request Chip cards for their

employees that are frequent travelers.

Using your magnetic stripe card in a Chip and PIN world

TIP:Once you’ve converted to Chip and PIN technology, memorize your PIN. You’ll need it if you’re using your card overseas, but it may be achallenge to remember if you’re not using it regularly on home soil.

http://www.bmo.com/spendandpayment

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The Canadian payment landscape

provides customers with innovative

options that offer them increased

choice, convenience and speed,

whether they’re spending in person or

online. In fact, debit card transaction

volumes now outpace checks. By 2003,

Canadians were the world’s highest

per-capita users of debit cards.

The increased Chip and PIN

technology, mobile phone payments

and contactless cards make payment

almost instantaneous. Contactless

cards let payment providers capture

many small payments that have

historically been made with cash.

Mobile phones are part of the new

payment trend as well. Chips are either

attached to or embedded in mobile

devices, permitting tap & go payments.

More people have mobile phones than

credit cards, so this is an important

and evolving payment method.

Financial institutions are not the

only payment options anymore.

Approximately 20 percent of all online

transactions take place over alternative

payment systems, and the number is

expected to grow to nearly 30 percent

in the next three years. Even traditional

payment methods are evolving to meet

consumer demand. For example,

though checks are being used less

frequently, customers now have instant

access to copies of their cancelled

checks online.

Canada’s Minister of Finance created

a Task Force for the Payments System

Review and asked them to recommend

ways to bring Canada’s payments

system into the future. The task force

discovered that business to business

(B2B) payments haven’t kept up with

new technology used frequently in

customer to business (C2B)

transactions, and suggested eight

initiatives:

• Support phase-out of customer

checks issued and received by

government

The changing Canadian payments landscape

• Drive government adoption of

e-invoicing and payments

• Campaign to communicate vision

for digital economy

• Provide enablers for small and

medium enterprises to adopt B2B

e-invoicing and digital payments

• Support vertical industry adoption of

B2B e-invoicing and digital payments

• Support insurance industry in

phasing out cheque payments to

customers

• Improve capabilities of core

payments infrastructure

• Enable e-payment by providing

incentives and supportive regulation

These initiatives will help to create

a stable payments landscape, which

is critical for both C2B and B2B

transactions. As payment options

increase and evolve, BMO will

continue to balance innovation and

customer choice with security,

reliability and cost-effectiveness

for consumers and merchants.

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Monaghan envisions a future travel

experience that begins when a traveller

creates an itinerary using an online

booking tool. That itinerary is stored in

the airline’s global distribution system

and is accessible on the traveller’s

smart phone. The itinerary becomes

the framework for the expense report

because it holds pertinent information

– departure and return dates, along

with airline, hotel and car – that is

needed to build the expense report.

When charges are billed by various

vendors within the relevant time frame,

they automatically feed the expense

report. The data is all readily available

to the traveller on the smart phone,

so it’s easy to make any necessary

changes.

From a corporate perspective, this type

of expense report system means that

data will flow directly from the supplier

to the corporation, ensuring its

accuracy. It also makes it easier to

compile and analyze data, which the

corporation can then use to negotiate

deals with different vendors.

Monaghan concedes, “There are

security concerns to be mindful of,

but as the technology improves,

security will improve.” Monaghan

is certain that the technology will

improve. “Frustrations, challenges

and problems breed technology.”

Technology is also being directed

toward expanding payment methods,

as well as simplifying data compilation

and expense reporting.

Payments with memory Corporate travel expense data will

be integrated, making it easier to

personalize and bundle services, to

share experiences with other travellers,

and to recall the history of those travel

experiences.

• Intelligent passenger records

• Digital footprints

– mobile payments and history will

have a positive impact on

personalization

• Contactless cards and group buying

– top and pay, square mobile credit

card reader – cell phones can

become a point of sale machines

– Digital collectives

These technologies are just emerging.

As they become more sophisticated,

they will be directed toward different

payment methods – paying for a meal

using a smart phone instead of a card,

and having the data automatically

placed in an expense report.

Technology can be harnessed to make

travellers as productive as possible

by alleviating some of the common

frustrations. If they get to their

destinations less stressfully, they’ll do a

better job. And that’s a win for everyone.

Our BMO Spend & Payments Solutions

advisors have real-world industry

experience that helps them understand

your business. Their knowledge and

expertise can help you find the

technology solutions that are right

for you. Additionally, BMO has strategic

partnerships with Best in Class booking

and expense management experts.

Talk to us today.

Leveraging technology to simplify expense management Continued from page 1

Tips for travelling withyour tablet device

People rarely leave their cellphones behind on an airplane.They turn them on to checkmessages and email as soon as the “fasten seatbelt sign” goes off.But it’s a different story for theiriPads and e-readers. Tablet devicesare frequently left in seat pockets,and many remain unclaimed,perhaps because the ownersassume that someone has already found and taken them. But thisisn’t necessarily the case.

Airlines have retrieved and areholding hundreds of the devices.They’d gladly return them to theirrightful owners but often can’tbecause most tablet devices don’thave any identifying features.

Tips for travelling with your tablet device:

1. Have your name engraved on it or tape your business card tothe back.

2. Check your seat area carefullybefore disembarking from theplane.

3. Purchase a brightly colouredcase for your device. It’s morelikely to catch your eye whenyou gathering your belongs.Plus, it will be easier to identifyif you’re describing it to theairline’s Lost and FoundDepartment.

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Team building while giving back

BMO Spend & Payment Solutions held its most recent annual sales conference

in Kissimmee, Florida in Fall 2011. Given the economic and social challenges

faced by the residents of this area, and highlighted on the news program

60 Minutes, it seemed appropriate that the team-building exercise be one that

would make a difference in the community.

Approximately 80 members of the BMO Spend & Payment Solutions team spent

several hours at HOME (Helping Others Make the Effort) in Osceola County.

They weeded, cleared brush, trimmed trees, mulched, planted vegetables, swept,

scrubbed, washed windows, sanded and stained picnic tables and a playground

set to improve the appearance of a home for single mothers and children.

The team was thrilled to have the opportunity to make a difference, and the

highlight of the day was the ice cream party for the kids living at HOME.

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details Online® homepage redesign

The redesigned DOL page was launched onSaturday, May 12, 2012 and includes thefollowing enhancements:

• New Banner to display consistent brandacross all our details Online sites

• New Header containing Contact Usinformation

• New Home Page layout/experience

• Introduction of a My Profile link

• Improved Quick Links

• Introduction of Corporate Links and BMO defined Useful Links

• Enhancements to the Corporate Newsand BMO News (System News)

• Introduction of an Administration Message Space and Contact details

• New Footer containing Privacy, Legaland Security links

What’s new with Diners Club International®†?

• Diners Club International has made enhancements to Global Vision,

including a fresh new look, enhanced navigation and a customizable

home page. You’ll also get to the information and reports you need with

fewer clicks.

• Diners Club is pleased to announce that its airport lounge program has

expanded to almost 500 lounges, including eight new ones in Toronto and

Vancouver, Canada. We also have a new presence in Los Cabos, Mexico,

Guam and Mauritius. To see the ever-expanding worldwide listing of

Diners Club lounges, go online to

www.dinersclubinternational.com/airport-lounges.html

• BMO has recently designed the suite of Diners Club International corporate

cards to have its own unique and distinctive look.

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® Registered trade-marks of Bank of Montreal. ®* MasterCard is a registered trade-mark of MasterCard International Incorporated. ®† Diners Club, Diners Club International with the SplitCircle Device and Club Rewards are trademarks of Diners Club International Ltd.

APEXSUE (07/12)

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PreCheckWould you like to reduce your waiting time in airport security lines? You may be able to — now or in the near future, depending on which airportsyou use. The TSA’s new program, “PreCheck,” allows U.S. citizens travellingwithin the U.S. who pass a background check and meet certain undisclosedTSA criteria to use special lanes, keep shoes, belt and jacket on, leave laptopsand liquids in carry-on bags and walk through a metal detector instead of afull-body scan.

Even if you become a TSA PreCheck member, you won’t be guaranteedexpedited security screening. Random screening checks of PreCheckmembers will help maintain security.

Currently only Delta and American Airlines are participating in this program, though several more airlines are expected to join this year. The airlines can invite members of frequent flier programs to join PreCheck. If travellers agree, theirbackground data will be shared with the TSA. PreCheck is free if your airline invites you to join. If you apply on your own,

be prepared to pay $100. If you are already enrolled in the U.S. Customs andBorder Protection’s “Global Entry” program, you can transfer to PreCheck withyour Global Entry number.

NexusIf you travel frequently between Canada and the U.S., consider the NEXUSmembership card. This card expedites border crossing between the twocountries for low-risk, pre-approved U.S. and Canadian citizens, permanentresidents, and legal residents of other countries who are living in the U.S. orCanada temporarily. It costs $50 (CN or US), to apply for the card. Applicantsmust pass criminal history and law enforcement checks by both countries andbe interviewed by a CBSA and/or U.S. CBP officer before being issued aphoto-identification card that allows them to use automated self-serve kiosks in dedicated areas at certain international and Canadian airports and usededicated lanes at the land border.

Consider registering with these programs now to save time and stress.

Did You Know?

A faster, lower-stress way to go through airport security

Upcoming events Please check our website under“News, Articles & Events” forupcoming events where our BMOSpend & Payment team will be inattendance.

July 28-31, 2012 Washington, DC NACUBO (National Association ofCollege & University Business Officers)

www.nacuboannualmeeting.org