Green Team November 15, 2006 Product: Customizable Credit Card Protection (C 3 P)

1. Green Team November 15, 2006 Product: Customizable Credit Card Protection (C3P) Milestone Presentation

2. Organization Chart Green Team

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

4. Inspiration - Scenario • You own a business, for example, a construction business • Large employee base • Employees need to make purchases • Company credit account • Manual receipt tracking to validate purchases Green Team

5. 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

6. Inspiration – Limiting by Vendor • Since your employees should only need to shop for building supplies and maybe other general supplies Green Team

7. Inspiration – Limiting by Vendor • They should not be using this card in stores other than those that sell these types of merchandise Green Team

8. Inspiration – Limiting by Vendor • By differentiating the types of stores the card is used in we can limit card purchases to only certain vendors Green Team

9. Inspiration – Limiting by Product • Hardware stores and construction supply stores have a wide selection of products for sale Green Team

10. Inspiration – Limiting by Product • Some of these items you do not want your employees to purchase on the company credit card Green Team

11. Inspiration – Limiting by Product • To guard against these unauthorized purchases, our solution will allow business leaders to customize specific items that each employee is allowed to buy from certain stores Green Team

12. Inspiration – Setting spending limits • Your company’s budget is limited and fraudulent purchases can prohibit you from making necessary purchases news.bbc.co.uk/1/hi/uk/3476815.htm Green Team

13. Inspiration – Setting spending limits • Per diem spending limits prohibits overspending with the company credit card by entrusted employees news.bbc.co.uk/1/hi/uk/3476815.htm Green Team

14. Inspiration – Data Mining • A building site may need a certain amount of wood on a daily basis and many purchases are spur of the moment or outside of the original plan news.bbc.co.uk/1/hi/uk/3476815.htm Green Team

15. Inspiration – Data Mining • The receipt tracking system is subjective and receipts can be misplaced news.bbc.co.uk/1/hi/uk/3476815.htm Green Team

16. Inspiration – Data Mining • Online data mining makes tracking employee spending habits easier news.bbc.co.uk/1/hi/uk/3476815.htm Green Team

17. Inspiration - Web Interface • And all of these settings are easily customizable through a web interface on our webpage. news.bbc.co.uk/1/hi/uk/3476815.htm Green Team

18. Solution - C3 Protection Card • So what is C3P? – Customizable Credit Card Protection Green Team

19. Credit Card Misuse • Visa Business Card Spending • $190 Billion in 2006 * • EPA research • Government Credit Card Holders • 11% cannot produce receipts of purchases * • 9% of those that could be produced purchased prohibited items * * http://www.epa.gov/oig/reports/1995/bankrep.htm#CHAPTER%204 Green Team

20. Examples of Credit Card Misuse • Out of a $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

21. Examples of Misuse • Surveyed Company • Misuse Prevention • $250,000 spent per year • $100 per employee • Corporate credit cards • Responsibility of corporation • Not card holder • Company loses money on misuse * Admiral Julius Caesar ** James Brunelle Green Team

22. Problem Characteristics • Tracking physical receipts • Labor Intensive • Inaccurate • Difficult to identify and filter misuse • Unreliable • Easy to lose • Employees produced 20% of all transaction receipts* • Organization loses money • Companies are reimbursing employees for unauthorized and personal purchases * http://www.dallasnews.com Green Team

23. Solution Concepts • Regulate Types of Purchases • Reduce Receipt checking • Improve Accuracy • Automatic prevention of prohibited purchases • Improve reliability • Organization saves money • Keeps control of money in hands of employer Green Team

24. 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 • Software • Web-based GUI • User access for modification of card holder account • Reporting and Analysis tools • Drives Database Green Team

25. Software - Features • Package includes • GUI • Database • Checking software • Customizable database to hold approved purchases • GUI Interface • Able to customize MCCs and/or UPCs by creating an ‘acceptance’ list • Able to analyze and graph employee spending habits • Incoming UPCs and MCCS are compared with an ‘acceptable’ database of allowed codes Green Team

26. 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

27. Major Functional Component Diagram Green Team

28. Getting C3P Cards Green Team

29. Modification of Database Green Team

30. Old Process of Making a Purchase Green Team

31. New Process of Making a Purchase Green Team

32. Purchase Verification Green Team

33. Vendor – C3P Communication Green Team

34. Graphical User Interface - MCC Green Team

35. Graphical User Interface - UPC Green Team

36. Return on Investment • Reduces fraud • Corporate money is spent according to company policy • Reduces loss of money due to unscrupulous purchases • Saves time that would otherwise be used to perform manual audits • Reduces the number of investigations required and their corresponding court costs Green Team

37. Management Plan Green Team

38. 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

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

40. Development Plan - Software Solution • An approximately 4,450 LOC solution including: • Networking package • Accepts incoming connections • Sends out data • Database code • Data lookup • Web interface • Users and administrators to view and edit information Green Team

41. Networking Package • Networking program suite • Uses an established networking library • Allow incoming data from the modem • Queuing logic & mutual exclusivity • Ensure no data loss or corruption • Credit Card Data • Format credit card data • Forward it to the credit card company Green Team

42. Database Package • Convert incoming transaction data • MCC • Place of purchase • Purchase amount • UPC • Analysis engine • Compare the pieces of incoming data with the allowed settings that are stored on the C3P MySQL server • Database engine • Stored and arrange data for formatting in reports Green Team

43. Database Fields • Shall include the following: • Card ID number • Card user name • Company name of card user • Approved list of MCCs • Approved list of UPCs • Company credit card number Green Team

44. Web Interface • Written in PHP • Easy-to-use interface • Customers and administrators • Update user information and products • Provide access to spending reports • Individuals & groups • Reports of misuse Green Team

45. 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

46. Evaluation Plan • Financial • Technical • Schedule • Personnel • Weekly Progress Reports • Unit and Acceptance Test • Required to complete milestones • Risks directly related to factors focused on Green Team

47. Marketing Plan • Primary target market: Businesses • Advanced target market: Concerned parents • Corporate buy-in • Benefits to the customer • Initial businesses for beta testing • Advertising & Marketing strategy Green Team

48. Primary Target Market • Users of Credit Cards • Businesses • Corporations • Concerned Parents • Initial phase: Businesses • Small businesses report billions of dollars in losses through embezzlement each year* • * http://www.fbi.gov/publications/financial/fcs_report052005/fcs_report052005.htm Green Team

49. Primary Target Market • Advanced Phases: Concerned Parents • Parents are concerned with giving children control of a credit card yet are even more concerned about giving a child real cash* • Minors are Credit Card Company’s new target consumer** • http://www.bankrate.com/fox/news/cc/20000508.asp • ** http://www.bankrate.com/fox/news/cc/20000508.asp Green Team

50. Benefits to the customer • Secure and efficient control of company funds • Reduced costs to prevent and lessen the effects of fraud • Parental control of children's spending Green Team