
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, February 25, 1994                   TAG: 9402250093
SECTION: BUSINESS                    PAGE: A-9   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

GOVERNMENT TELLS WORKERS TO CHARGE IT

The government is telling some employees to use plastic when they buy paper clips and make other small purchases.

The General Services Administration said it has awarded subsidiaries of First Bank System Inc. of Minneapolis a contract to provide Visa charge cards to more than 65,000 federal workers for routine purchases.

GSA officials estimate that up to 75,000 more cards may be issued over the next two years by First Bank subsidiaries Rocky Mountain BankCard System and Colorado National Bank of Denver.

Rocky Mountain BankCard System said it processed more than $535 million in government purchases in 1993 and predicts charges to the card will be about $645 million in the first year.

"By using the IMPAC card, we save taxpayer dollars through streamlining the procurement process and expanding the electronic commerce network," said GSA Administrator Roger W. Johnson.

IMPAC stands for International Merchant Purchase Authorization Card. Officials said using the cards will simplify buying by making it easier for the government to keep track of expenses and will speed payments to vendors.

Using charge cards to pay for low-dollar business supplies is an increasingly competitive part of the credit card industry. Private companies spend about $250 billion a year on routine office purchases.

Rocky Mountain BankCard System and its parent, First Bank System, are the largest U.S. issuers of Visa Purchasing cards.

by CNB