Download Cash Application

IFO Chapter Meeting
Tampa, Florida
September 9, 2014
Presentation by: Scott Tillesen
Today’s Agenda
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About Tech Data Corporation
Accounts Receivable Management
Cash Application
Credit Cards
Fraud
Debtors Prison
And … whatever else the group would like to
discuss
Accounts Receivable Mgmt.
Collection of A/R:
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Need to take a tough stand
The Seller part is done, now the Buyer needs to
pay
Importance of a ‘route of escalation’
Stick to a process
Have one or more outsourced steps
The value of a strong credit application
The importance of a new account process
Cash Application
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U.S. Invoicing: 22,000 invoices / $30+ million
daily.
EDI, Email, Internet, and Paper payment.
Payment via: wire transfer 53%, ACH 10%,
check 35%, credit card 2%.
All payments made to banks*
Check by phone
Handled by Accounting Department
Cash Application - continued
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Remittance detail via EDI transaction, bank
OCR or keyed, emailed files.
Cash Application Rules:
Rule #1. Application is by customer direction only.
Rule #2. If customer doesn’t supply application
directions, re-read Rule #1.
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Objective of minimizing contact.
Typical problems with misapplied credits
Credit Cards
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High-cost alternative for a low-margin
business.
Without encouragement: $200,000,000
annually.
Tokenization for PCI compliance
Gateway / Acquirer Processor
“Level” of processing: I, II, III.
Evaluation surcharge opportunity.
Individual customer financial performance.
Fraud Schemes –
Case #1 The Pretender
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Background
End user: US Dept. of Information Sciences
Product: $160,000 of HP Computers
Customer: Reilly Computer Services, Tampa FL
Financing: Direct payment to De Lage Landen
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Scheme
Mimic real website site, email, and purchase orders
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Outcome
Recovered the shipment, alerted Federal authorities
Fraud Schemes –
Case #2 Familiar Faces
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Background
End user: Various
Product: Computers
Customer: Several dozen
Financing: Regular supplier credit lines
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Scheme
Malware intrusion to capture ID’s and Passwords
Ship to freight forwarders, ultimately to Eastern Russia
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Outcome
Stopped shipments in transit to freight forwarders, recovered
some shipments at freight forwarders. Alerted federal
authorities. Required password changes on affected accounts.
Implemented additional security features.
Fraud Schemes –
Case #3 Work at Home
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Background
End user: Various
Product: Computers
Customer: Several dozen
Financing: Regular supplier credit lines
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Scheme
Malware intrusion by fraudsters to capture ID’s and Passwords
Unwitting accomplices thru www.CareerBuilder.com
Forward products to freight forwarders, then to eastern Russia
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Outcome
Recovered some shipments at freight forwarders and at the
homes of unwitting accomplices. Alerted local and federal
authorities. Required password changes on affected accounts.
Implemented additional security features.
Fraud Schemes –
Case #4: Classic Bust-Out
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Background
End User: Two Retailers
Product: Computer Display Devices
Customer: California Based
Scheme
Make legitimate purchases by the Customer, “arms’-length”
B2B resale at a discount, dissolve the Customer business.
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Outcome
Perpetrators were investigated, brought to trial, and
convicted.
Jailing Debtors
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Credit in America – Initial funding & expansion
Colony to colony differences
Stability of statute law
Efficiency of legal system
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Colonial bankruptcy
Halt race to file individual suits
Reduce incidence of fraud
Equitable distribution
Provide a second chance
Three colonies had debt discharge
Jailing debtors - continued
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English law creditor’s rights
Sale of personal and real property
Jailing if debt unsatisfied or if potential of fraud.
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Debtor’s prison
Possibly were a deterrent
Seldom were effective
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Indentured servitude
Federal abolishment in 1833
United Nations prohibited slavery or servitude
in1948
Jailing debtors –
The Case of H. Beatty Chadwick
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Lawyer and respected citizen
Wife filed for divorce
She claimed he sent money out of the country
Court ordered him to retrieve the money
One year later was imprisoned
Released after spending14 years in prison
when: “… incarceration had lost its coercive
effect and would not result in him surrendering
the money.”
Scott Tillesen
Vice President Credit & Customer Care – The
Americas
Tech Data Corporation
5350 Tech Data Drive, MS A#-18
Clearwater, Florida 33760
Email: [email protected]
Phone: 727-538-5880
LinkedIn: www.linkedin.com/in/tillesen