98215. NationsBank Wins DoD Travel Card Contract

By Staff Sgt. Alicia K. Borlik, USA
American Forces Press Service

        WASHINGTON -- NationsBank of Delaware will replace 
American Express as the Defense Department's travel card 
contractor Nov. 30.
        The Defense Finance and Accounting Service announced 
the two-year card contract April 2. DoD can renew the 
contract up to three times in one-year increments. 
        DoD cardholders should receive their new NationsBank 
Visa this fall, before the start date, said Cathy Ferguson, 
accounting service spokesperson. The American Express card 
is valid through Nov. 29. Military travelers should begin 
using the new card Nov. 30 even if travel began before that 
date, she added.
        One change cardholders will notice is the increased 
acceptance of the Visa card, Ferguson said. "It is accepted 
worldwide at more than 14 million merchant locations and 
340,000 [automated teller machines]," she said. American 
Express is accepted at about 4 million locations.
        The travel card payment schedule will not change. Users 
must pay bills within 30 days to avoid late or delinquent 
accounts. The finance service will offer a new split-
disbursement option to service members and civilians that 
allows for easier payment. Payments will go directly to the 
card contractor.
        Service program managers will notice the biggest 
changes, said Paul Filla Jr., another accounting service 
spokesperson. The card service will be completely web-based, 
allowing program managers to track card usage more closely. 
Managers will also have the power to turn cards on and off 
to avoid improper usage, Filla said. "They can also limit 
the person to what types of vendors they can use," he said.
        NationsBank also offers limited access and prefunded 
cards and travelers checks to further control cardholders' 
spending habits. Service program managers control these 
special options, Filla said.
        Limited access cards are regular NationsBank Visa cards 
with a set limit depending on the temporary duty. This limit 
can be increased as necessary. A prefunded card has a set 
limit for one-time use only.
        NationsBank and DFAS instructors will train service 
managers on the new system, Filla said. More details will be 
worked out over the summer when the individual services meet 
to discuss card issue and usage.
        Military personnel and DoD civilians use the military 
travel card for official travel costs such as travel 
advances, permanent change of station moves, lodging, rental 
cars, meals and other expenses associated with travel.
        More than 900,000 military travel cards are in use. In 
1997, card charges totaled more than $2.2 billion. 

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