Page 15 - FCA Diamond Point Sept 24_Edits

FROM THE FIELD

BEING A PIONEER IN MILITARY BANKING (Cont’d)
The contract covered individual employee cards as well as cards for the agency transportation
offices. Additionally, the contract included travelers’ checks. Before the year was out CitiCorp
started issuing Diners Club charge cards and travelers checks for use by federal employees.

Two months later, in October 1983, the Army Banking Officer served as a representative on the
DoD task force to study the use of charge cards and travelers checks throughout the DoD. That
task force’s work resulted in the Secretary of Defense signing a memo on 28 September 1984
recommending the Military Departments and Defense Agencies implement the GSA government-
wide travel card program and consider the Army’s travelers checks program.

Captain Herko’s tenure as the Army Banking Officer lasted from Apr 1982 to May 1985. During
those last six months a draft of the Standard Operating Procedures for the Diners Club Card

Program was created to assign responsibilities and procedures for both the Government Travel

System (agency cards) and individual cards. Also, an initial 90-day test enrolled a handful of

military and civilian employees willing to receive, use, and pay for travel expenses related to official
travel. After that, another 90-day test period (May – July 2025) enrolled a larger population of

volunteer organizations and individuals.
The “heavy lifting” of evaluating the pilot program, gaining official approval of its implementation,

updating the operating procedures, and broadening participation became the responsibility of his

replacement, Captain Charles (Chip) Kacsur. Chip has graciously agreed to provide the following

comments that brought the program from its infancy to full maturity.

“The Diner’s Club Card – The initial “proof of concept” test was underway as I completed the

Training with Industry program for Banking and transitioned into the Army Banking Officer
position. To set the stage it is important to remember the status of credit or charge cards in the

early to mid-1980s. Credit, Charge, ATM and Debit cards are part of our daily lives now. Not so

much in 1985.

By 1985, BankAmerica Card had transitioned to VISA and Master Charge was becoming

MasterCard. Each becoming multi-bank credit cards. American Express and Diners Club were the

two “charge cards” with the expectation being that all expenses/charges must be fully paid on a
monthly basis. Also, the magnetic stripe on the back of the plastic cards was just beginning to

take hold. Many merchants at this time needed to use hand operated devices known as

“knucklebusters” to make a carbon copy of the customers card and produce a copy of the charge

for the customers. Those slips would be deposited with the appropriate credit card or charge card
vendor for reimbursement.

The Army was the first to conduct a test of the program within DOD utilizing the Diners Club
contract already available via DOD & GSA. This initial test of the charge card conducted with

volunteers from USAFAC did show the card could work. We continued to refine guidance of the

SOP as the worldwide test would run from Aug 1985 through February/March 1986. Eight sites

were designated as mandatory test sites in which all travelers were required to use the charge

card: USAFAC and Fort Benjamin Harrison, IN; Redstone Arsenal, AL; Aberdeen Proving Ground,
MD; Tank & Automotive Command, Warren, MI; Headquarters, Army Materiel Command,

Alexandria, VA; Corpus Christi Army Depot, TX; and Fort Meade, MD. Voluntary sites allowed for

travelers to “opt in” and participate included: Fort Hood, TX; Ft Leavenworth, KS; the Military

Community in Frankfurt, Germany and various HQDA staffs. Expectations were that the test would
have between 10,000-15,000 travelers using the card over the six-month test period.

The initial six-month test guidelines included: travelers qualified for the card if they were likely to
conduct TDY travel two or more times per year; in the grade of E7 and above for military personnel

and GS-7 and above for civilians. Cash advances would be limited to 40% of per diem and 100% of
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other reimbursable expenses. Soldiers and civilians not meeting travel or grade criteria could be
issued a card based on recommendation from a senior commander or civilian director.