Green Team December 13, 2006 Product: Customizable Credit Card Protection (C 3 P)

1. Green Team December 13, 2006 Product: Customizable Credit Card Protection (C3P) Final Presentation

2. Organization Chart Green Team

3. Presentation Outline • Problem/Solution Introduction • Process Description • Solution Characteristics • Market Analysis • Return On Investment • Milestones, Deliverables, Budgets • Risk Assessment • Conclusion Green Team

4. Our Project Our project is Customizable Credit Card Protection, which is a project addressing a common and growing problem in managing corporate credit cards. Green Team

5. Your Business • You own a business, for example, an Engineering company • Employees need to make purchases • Company credit account • Manual receipt tracking to validate purchases Green Team

6. Responsibility of Credit • Businesses are ultimately responsible for debts on corporate credit cards • Personal credit reports do not include corporate cards • Credit card companies do not provide protection from fraud committed by authorized card holders* * Visa.com Green Team

7. Problem Statement Organizations and private businesses have inadequate protection and controls over unauthorized use by authorized cardholders, which results in a loss of funds. Current methods of addressing unauthorized use are expensive and subjective. Green Team

8. Overall Scenario • Your employee needs to purchase items for the company e.g. computer components, etc. • The following slides will illustrate 4 scenarios outlining fundamental flaws in the current system of use corporate credit cards Green Team

9. Scenario A – Limiting by Type of Vendor • Situation • Your employee needs to purchase these items at a particular store Green Team

10. Scenario A – Limiting by Vendor • Problem • You cannot limit your credit card as to which stores these items can be purchased • Solution • Restrict purchases by Merchant Commercial Code (M.C.C.) • Fact • Surveyed company stated spending of $250,000 per year in efforts to prevent credit card misuse* * Admiral Julius Caesar, Senior VP of SAIC Green Team

11. Scenario B – Limiting by Product • Situation • Your employee can purchase whatever item they want within that store Green Team

12. Scenario B – Limiting by Product • Problem • You cannot limit your credit card as to which individual items can be purchased • Solution • Restrict purchases by Universal Product Code (U.P.C.) • Facts • Immense company loss due to legal fees and other efforts to recover the fraudulent spending Green Team

13. Scenario C – Controlling Spending Limits • Situation • Your employee may need a flexible credit limit as to the specific items that they need to purchase • Due to travel • If knowledgeable on which item would be better to purchase due to their area of expertise Green Team

14. Scenario C – Limiting Spending Limits • Problem • You cannot dynamically set a per diem amount on the credit card specific to certain trips or purchases • Solution • Restrict purchases by modifying per diem limit dynamically • Facts • Out of $2.5 trillion government budget* • $14 billion was spent on private purchases by employees • $2 billion was spent on unauthorized purchases by employees** ** Foiling credit card fraud by Jenny C. McCune • Bankrate.com * http://www.gpoaccess.gov/usbudget/ Green Team

15. Scenario D – Data Management • Situation • Receipts can be misplaced or lost Green Team

16. Scenario D – Data Management • Problem • The receipt tracking system is subjective and receipts can be misplaced • Labour intensive • Solution • Online data mining makes tracking employee spending habits much easier • Facts • One company reviewed stated that employees produced only 20% of all transaction receipts* * http://www.dallasnews.com Green Team

17. Solution - C3 Protection System What solution solves all these problems? Green Team

18. Solution Concepts • Regulate types of purchases • Reduce receipt checking • Improve accuracy • Automatic prevention of prohibited purchases • Organization saves money • Keeps control of money in hands of employer Green Team

19. Solution Characteristics • Customizable database • Restrict Purchases by • Universal Product Code (UPC) • Only at participating locations in USA • Merchant Commercial Code (MCC) • Everywhere, including overseas • Use contact RFID smart cards • Fast & Secure • Programmable for transaction routing • Modifiable sending of UPCs and MCCs • User interface software • Web-based GUI • User access for modification of card holder account • Reporting and Analysis tools • Drives Database Green Team

20. Software - Reporting and Analysis • Employee purchases • Tracked and listed by employee • Online Receipt Tracking • List accepted and rejected purchases • Grouped by purchaser, date, and MCC Green Team

21. C3P Initialization • Get credit cards from credit company • Organization leader enters data into database • Purchase restrictions • Card holder information (includes credit number from credit card) • Receive C3P Cards • Use C3P Green Team

22. Major Functional Component Diagram Green Team

23. Getting C3P Cards Green Team

24. Setting Card Holder Purchase Restrictions Green Team

25. Current Process of Making a Purchase Green Team

26. New Process of Making a Purchase Green Team

27. Purchase Verification Green Team

28. Graphical User Interface - MCC Green Team

29. Vendor – C3P Communication Green Team

30. Management Plan Green Team

31. Management Plan - Communications • Group Meetings • Sun. 8:00 PM, Wed. 8:00 AM, Fri. 9:00 AM • Minutes & Assignments sent via e-mail • Team web page • Discussion • Minutes • Research • Frequent Communications • E-mail • Phone Green Team

32. Management Plan - Tools • Old Dominion University • Labs • Meeting Rooms • Microsoft Project 2003 • Used to manage project Green Team

33. Major Functional Software Components • The software solution is made up of the following areas: • Networking package • Database package • Database structure • Graphic user interface • Credit card data security standards Green Team

34. Networking Package • Transaction control daemon • Listens for incoming transactions from vendor credit card machines • Sends out accepted credit card information to the credit card company • Queuing logic • Ensures efficient processing of transactions • Protects against data loss • Mutual Exclusivity • Protects data being changed by GUI from interrupting transactions • Secures database from corruption • Credit Card Data • Format credit card data • Initiate corporate credit card transaction process Green Team

35. Database Package • Converts incoming transaction data • MCC • Place of purchase • Purchase amount • UPC • Analysis engine • MySQL Database stores customer information • Compares the incoming data to the allowed purchases, places of purchase, and spending limit • Translates the incoming C3P card number to the corporate credit card number from our database Green Team

36. Vendor – C3P Communication Green Team

37. Database Structure • Database will be contain these fields: • C3P Card ID number • Card user name • Company name of card user • Approved list of MCCs • Approved list of UPCs • Employee’s corporate credit card number Green Team

38. Graphical User Interface • Web-enabled GUI • Allows dynamic modification from any computer connected to the internet • Customizable online spending portfolio • Update spending limitations for each card user • Easily select types of vendors or specific products using check boxes • Does not require knowledge of UPCs or MCCs • Spending analysis tools • Graphs and charts showing company spending as well as individual spending • Also reports rejected purchases in order to keep company leaders abreast with attempted spending Green Team

39. Credit Card DataSecurity Standard • Build and maintain a secure network • Protect cardholder data • Maintain a vulnerability management plan • Implement strong access control measures • Regularly monitor and test networks • Maintain an information security policy Green Team

40. Evaluation Plan Phase 0 - Conception Phase: • Team Formation • Initial Concept • Feasibility of Project • Milestone • Cost analysis • Budget analysis • Project test cost factors • SBIR Proposal • Project Approval • Website Development • Phase 1 - Prototype Proof of Concept: • Software development • Software and hardware testing • Documentation Green Team

41. Phase 2 – Product Development: Documentation Software development Hardware development Marketing Funding Website Software testing Phase 3 - Production out years: Purchasing Staffing Determine production facility Production/Training Evaluation Plan Green Team

42. C3P Innovative Functionality Uses existing card readers Tracks purchases and patterns Customizable database of MCC Customizable purchase restrictions Blacks-out MCC codes Blacks out UPC codes Prevents Duplication For Government Use For Personal Use For Business Use Can set Spending Limits Cards Green Team

43. Marketing Plan Overview • Primary target market: Businesses that issue corporate credit cards • Advanced target market: Concerned parents • Return on Investment • Vendor alliance • Advertising strategy • Initial businesses for beta testing • Overall Marketing strategy Green Team

44. Target Market • Initial Phase: Businesses that issue corporate credit cards • Businesses report billions of dollars in losses through embezzlement each year* • Advanced Phase: Concerned Parents who grant control of credit card to child • Studies prove that parents are concerned with giving children control of a credit card** • *http://www.fbi.gov/publications/financial/fcs_report052005/fcs_report052005.htm • **http://www.bankrate.com/fox/news/cc/20000508.asp Green Team

45. Benefits to the Customer • Secure and efficient control of company funds • Reduces corporate credit card fraud • Unscrupulous purchases protected against • Reduced costs to prevent and lessen the effects of fraud • Legal Fees/Court costs • Manual Audits • Corporate money is spent according to company policy • Advanced Phase: Parental control of children's spending Green Team

46. Vendor Alliance • UPC database exchanged for updating of POS terminals • Benefits to the vendor • Targeted vendors receive business from C3P cardholders • Advertising on the C3P website Green Team

47. Advertising Strategy • Distribution • Initial Roll-Out: Get initial business on board • Advertising Mediums (Once on board) • National Newspapers • Technology and business sections • MarketPro Technology Shows • TV/Internet • Business and Technology Magazines Green Team

48. Initial businesses for beta test • Initiate beta testing on local business • EDO & SAIC • Expressed interest and acknowledged innovativeness • These companies reflect financial losses due to credit card misuse Green Team

49. Overall Marketing Strategy • Meet with individual business leaders who have large employee use of corporate credit cards • Prove successful with single beta project • Pursue a greater region of businesses • Begin advertising campaign • Receive vendor buy-in - Companies such as Target, Wal-Mart, Home Depot, etc. • Take on full scale nationwide implementation • Initiate add campaign through all advertising mediums Green Team

50. Phase 0 (CS410) Feasibility Presentation Team Website Presentation Milestone Presentation Presentation Final Presentation Product Website Presentation SBIR document NSF SBIR Proposal Phase 1 Milestones and Deliverables Phase 1 (CS411) Software Requirements Document Design Document Application Code Data Management Code Formatting Code Demonstration Prototype Completed Prototype Testing Test Plan Document SBIR document NSF SBIR Proposal Phase 2 Green Team