THE government is moving away from paper-based cash advances and reimbursement processes with the new Government Purchase Card (GPC) designed to digitize small-value purchases and improve transparency over government agencies’ transactions.
Local executives of American multinational payment card services corporation Visa Inc. and the Land Bank of the Philippines (LandBank) led the roll out last Tuesday of the ‘LandBank Visa GPC,’ which functions as a credit card for government agencies to use when purchasing certain items within monthly limits of P100,000 up to P5 million.
The GPC may be used for travel expenses, such as airfare, car rental, ferry/cruise and toll fees; computer software, services and digital content; hotel/lodging; representation expenses; fuel, lubricants, oils, automotive parts and services; and miscellaneous small-value purchases.
Instead of relying on traditional cash advances, reimbursements and manual liquidation procedures, government agencies can procure through a secure and fully digital payment system.
During the news briefing, LandBank First Vice President for Retail Banking Group Kristine Marie G. Cuevas said government agencies can determine their spending caps, depending on how much they require, and assign limits to officials and employees.
Before agencies are issued GPCs, a memorandum of agreement must be executed with LandBank and include the monthly purchase limits, allowed merchants and timelines of billing and due dates. Unauthorized transactions will automatically be declined.
The card will soon be equipped with a digital expense management system (EMS), which automates all expense processes from transaction capture and reconciliation to approval workflows and reporting. This is targeted for the fourth quarter of 2026, according to Visa.
Visa Philippines Country Manager Jeffrey Navarro said the card will enable agencies to monitor expenditures in real time to help manage budgets and spending limits.
‘By providing accurate data, it can allow more financial control and better governance by the implementing institution,’ Navarro said. ‘What’s really more important is the governance behind it that LandBank is creating so that government agencies can have more control, visibility, transparency and ability to audit.’
LandBank Executive Vice President of Branch Banking Sector Marilou L. Villafranca said the card would also make government spending easier to audit, providing a digital trail that may be accessed by the Commission on Audit.
The bank has issued 773 cards so far, with the Bureau of the Treasury, along with its 16 regional offices, as the first government agency to adopt the enhanced GPC.
Cuevas said LandBank aims to onboard more agencies, including local government units, state universities and colleges, and government-owned and controlled corporations.
The GPC may be revoked if cardholders are found making unauthorized transactions or personal purchases, in addition to being personally liable to pay for such transactions or purchases.