Exhibit B - Rebate Incentive Share~1.pdf
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- Attached to
- Notice of Intent
- Solicitation number
- 00002576
- Issued by
- Oregon
About this file
This is Exhibit B of Master Agreement No. 00819 for Fleet Card Services, establishing the rebate and incentive share structure for participating states and purchasing entities. The document outlines three distinct incentive components designed to reward participating entities based on volume spending and payment performance. Incentive Share Component 1 provides a standard volume incentive of 170 basis points (1.70%) calculated quarterly on total volume spend. Incentive Share Component 2 offers a prompt payment incentive ranging from 0 to 20 basis points depending on the entity's average file turn days, with maximum incentive achieved when payments are received within 1-5 days of invoice. Incentive Share Component 3 provides an annual national volume incentive paid to participating states based on aggregate spending across all participating entities, with basis points ranging from 10 to 30 depending on total annual spend thresholds ($50 million to $400 million or higher).
Payments for Incentive Share Components 1 and 2 are distributed quarterly on or before the 60th day following each calendar quarter end, while Component 3 is paid annually within 60 days of the calendar year end. Payment methods include account credit, mailed check, ACH, or EFT transfers as specified in participating addendums. All incentive calculations exclude credits, disputed items, fees, fuel purchases at designated Tier 1 truck stops (Flying J, Loves, TA, Petro, Pilot), and charges associated with lost or stolen cards. Conditions for rebate eligibility include monthly billing, full payment within 45 calendar days of invoice, credit approval, and electronic reporting for prompt payment incentives. The agreement also establishes a foreign transaction fee of 1.5% and an overnight delivery fee of $15.00 per occurrence.
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Text version
MASTER AGREEMENT NO. 00819 – FLEET CARD SERVICES PAGE 32 OF 138
EXHIBIT B
FLEET CARD REBATE/INCENTIVE SHARE
This Exhibit includes the Rebate/Incentive Share components for Fleet Card Services.
Rebate amounts will be based on total spend less write-offs, returns, and fraudulent charges.
A single payment combining Incentive Share Components 1 and 2 will be paid directly to the Participating State/Purchasing Entity on a quarterly basis as determined in the Participating Addendum. Incentive Share Payments can be made via account credit, mailed check, ACH or EFT payment (standard or non-standard format) as determined in the Participating Addendum. Incentive Share Payments must be received no later than the 60th day following the end of each calendar quarter.
Incentive Share Component 3 will be paid to the Participating State on an annual basis. Incentive Share Payment can be made via mailed check, ACH, or EFT as determined in the Participating Addendum.
Incentive Share Payment must be received no later than the 60th day following the end of each calendar year.
Delivery of the rebate may be adjusted in any Participating Entity’s Participating Addendum.
1 Basis Point = .0001 or .01%
INCENTIVE SHARE COMPONENTS
1. INCENTIVE SHARE #1 – STANDARD VOLUME INCENTIVE
Each Participating Entity will receive a basis point (percentage) of their quarterly standard sales volume. The formula for calculating the Standard Volume Incentive is:
Quarterly Total Volume x basis points = Quarterly Standard Volume Incentive.
Basis Points Offered: 170 basis points (1.70%)
Conditions. The Rebate set forth herein is expressly conditioned on the following: (1) monthly billing; (2) payment in full within 45 calendar days of the billing date appearing on the Purchasing Entity’s invoice; (3) credit approval.
Quarterly Total Volume spend by all Purchasing Entities for all card liability products in a Quarter.
“Quarterly Total Volume” includes the total amount of all purchases made using Cards at retail locations that appear on invoices provided to the Purchasing Entity in three calendar months.
Quarterly Total Volume shall not include: (i) those amounts representing credits, disputed items, fees, late fees or charges posted to their accounts (such as returned check fees, collection costs, administrative fees and reporting fees), (ii) fuel purchased at Tier 1 Truck Stop locations* (currently Flying J, Loves, TA, Petro, and Pilot), or (iii) any amounts posted to an account with respect to which a Card has been reported lost or stolen. *Purchasing Entities will be charged the posted cash price at Tier 1 truck stops.
2. INCENTIVE SHARE #2 – PROMPT PAYMENT INCENTIVE
MASTER AGREEMENT NO. 00819 – FLEET CARD SERVICES PAGE 33 OF 138
Each Participating Entity will receive a basis point (percentage) of their Quarterly Total Volume based on the entity’s average speed of pay. The formula for calculating the Prompt Payment Incentive is:
Quarterly Total Volume x Basis Points for Entity average file turn days = Quarterly Prompt Payment Incentive.
Note: The payment terms for the Master Agreement is forty-five (45) days.
Conditions. The Prompt Payment Incentive set forth herein is expressly conditioned on the following: (1) electronic reporting (i.e. no paper reports); and (2) our receipt of payment in full in accordance with one of the Average File Turn Days in the Prompt Payment Table.
Basis Points Offered:
Avg File Turn Days
Basis Point
Basis Point
Basis Point
1 20 21 7.375 41 1.25
2 19 22 7 42 1
3 18 23 6.625 43 0.75
4 17 24 6.25 44 0.5
5 16 25 5.875 45 0.25
6 15 26 5.5 46 0
7 14 27 5.125 47 0
8 13.5 28 4.75 48 0
9 13 29 4.375 49 0
10 12.5 30 4 50 0
11 12 31 3.75 51 0
12 11.5 32 3.5 52 0
13 11 33 3.25 53 0
14 10.5 34 3 54 0
15 10 35 2.75 55 0
16 9.5 36 2.5 56 0
17 9 37 2.25 57 0
18 8.5 38 2 58 0
19 8.125 39 1.75 59 0
MASTER AGREEMENT NO. 00819 – FLEET CARD SERVICES PAGE 34 OF 138
20 7.75 40 1.5 60 0
3. INCENTIVE SHARE #3 – NATIONAL ANNUAL VOLUME INCENTIVE
Each Participating State will receive an incentive based on the total National Annual Volume (total annual sales for all Participating States/Participating Entities). The formula for calculating the National Annual Sales Volume Incentive is:
National Annual Volume (for all Fleet products) x basis points = National Annual Sales Volume Incentive.
Conditions. The Rebate set forth herein is expressly conditioned on the following: (1) monthly billing; (2) payment in full within 45 calendar days of the billing date appearing on the Purchasing Entity’s invoice; (3) credit approval.
Total annual volume spend by all Participating States/Purchasing Entities for all card products in a calendar year. “National Annual Volume” includes the total amount of all purchases made using Cards at retail locations that appear on invoices provided to the Purchasing Entity in a calendar year. National Annual Volume shall not include: (i) those amounts representing credits, disputed items, fees, late fees or charges posted to their accounts (such as returned check fees, collection costs, administrative fees and reporting fees), (ii) fuel purchased at Tier 1 Truck Stop locations* (currently Flying J, Loves, TA, Petro, and Pilot), or (iii) any amounts posted to an account with respect to which a Card has been reported lost or stolen. *Purchasing Entities will be charged the posted cash price at Tier 1 truck stops.
Basis Points Offered:
Total Annual Spend Basis Points $50,000,000 – $100,000,000 10 $100,000,001– $200,000,000 15 $200,000,001– $300,000,000 20 $300,000,001– $400,000,000 25 $400,000,001+ 30
FEES
Below is a list of fees allowed under this Master Agreement.
Fee Type Fee Amount Foreign Transaction Fee 1.5% of the total transaction value Overnight Delivery Fee $15.00 per occurrence
File details come from the government source that posted it. Updated .