The U.S. Department of Energy was awarded the 2012 SmartPay 2 Innovation award for its use of JPMorgan’s single-use account payment system that allows firms to pay vendors quicker and to track individual purchase orders.
The DOE was given the award by the U.S. General Services Administration for enabling CH2M-WG Idaho, one of its major contractors, to use the technology to pay vendors faster, reduce paper use in payments and increase payment security.
JPMorgan’s SUA is an electronic credit-card based payment system that replaces a general account number with a one-time use, 16-digit account number assigned to a credit limit equal to a payment amount.
The account number is only active for a certain time period and is electronically matched to a purchase order or contract within the system, thereby reducing the risk of fraud.
“As the first federal agency to pilot and successfully process an SUA payment, DOE has led the charge among federal agencies in card-based payment automation,” Andrew Pilkington, the president of the global commercial card division at JPMorgan, said. “We applaud DOE and CWI for their willingness to innovate by providing their vendors with our breakthrough electronic payment alternative. DOE is a model that other federal agencies can follow to solve payment challenges.”