Green Team
December 13, 2006
Product: Customizable
Credit Card Protection
(C3P)
Organization Chart
12/13/2006
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2
Presentation Outline
•
•
•
•
•
•
•
•
Problem/Solution Introduction
Process Description
Solution Characteristics
Market Analysis
Return On Investment
Milestones, Deliverables, Budgets
Risk Assessment
Conclusion
12/13/2006
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3
Our Project
Our project is
Customizable Credit Card Protection,
which is a project addressing a common and
growing problem in managing corporate
credit cards.
12/13/2006
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4
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
12/13/2006
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5
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
12/13/2006
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6
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.
12/13/2006
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7
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
12/13/2006
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8
Scenario A – Limiting by
Type of Vendor
• Situation
– Your employee needs to purchase these items at a
particular store
12/13/2006
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9
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*
12/13/2006
* Admiral Julius Caesar, Senior VP
Green Team
of SAIC
10
Scenario B – Limiting by
Product
• Situation
– Your employee can purchase whatever item they want
within that store
12/13/2006
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11
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
12/13/2006
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12
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
12/13/2006
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13
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
12/13/2006
* http://www.gpoaccess.gov/usbudget/
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14
Scenario D – Data
Management
• Situation
– Receipts can be misplaced or lost
12/13/2006
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15
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*
12/13/2006
* http://www.dallasnews.com
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Solution - C3 Protection
System
What solution solves all these problems?
12/13/2006
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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
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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
12/13/2006
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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
12/13/2006
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20
C3P Initialization
1. Get credit cards from credit company
2. Organization leader enters data into
database
1. Purchase restrictions
2. Card holder information (includes credit
number from credit card)
3. Receive C3P Cards
4. Use C3P
12/13/2006
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Major Functional Component
Diagram
12/13/2006
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22
Getting C3P Cards
12/13/2006
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23
Setting Card Holder Purchase
Restrictions
12/13/2006
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24
Current Process of Making a
Purchase
12/13/2006
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25
New Process of Making a
Purchase
12/13/2006
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26
Purchase Verification
12/13/2006
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Graphical User Interface MCC
12/13/2006
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Vendor – C3P Communication
12/13/2006
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Management Plan
12/13/2006
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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
12/13/2006
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Management Plan - Tools
• Old Dominion
University
– Labs
– Meeting Rooms
• Microsoft Project
2003
– Used to manage
project
12/13/2006
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32
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
12/13/2006
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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
12/13/2006
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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
12/13/2006
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Vendor – C3P Communication
12/13/2006
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36
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
12/13/2006
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37
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
12/13/2006
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38
Credit Card Data
Security 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
12/13/2006
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39
Evaluation Plan
Phase 0 - Conception Phase:
Phase 1 - Prototype Proof of
Concept:
1. Team Formation
2. Initial Concept
3. Feasibility of Project
4. Milestone
5. Cost analysis
6. Budget analysis
7. Project test cost factors
8. SBIR Proposal
9. Project Approval
10. Website Development
1. Software development
12/13/2006
2. Software and hardware testing
3. Documentation
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40
Evaluation Plan
Phase 2 – Product Development:
Phase 3 - Production out years:
1.
2.
3.
4.
5.
6.
7.
1.
2.
3.
4.
12/13/2006
Documentation
Software development
Hardware development
Marketing
Funding
Website
Software testing
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Purchasing
Staffing
Determine production facility
Production/Training
41
C3P Innovative Functionality
Cards
MTU puchasing
X
Government Credit
X
Food Stamps
X
Worldwide Purchasing
X
Lecarte Purchase
X
NASA SmartPay
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
PayPal
X
X
Mastercard
X
X
X
X
X
C3P
X
X
X
X
X
12/13/2006
X
X
X
X
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X
X
X
X
X
X
42
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
12/13/2006
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43
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
12/13/2006
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44
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
12/13/2006
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45
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
12/13/2006
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46
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
12/13/2006
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47
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
12/13/2006
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48
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
12/13/2006
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Milestones and Deliverables
Phase 0 (CS410)
Phase 1 (CS411)
Feasibility Presentation
Team Website
Presentation
Software
Requirements Document
Design Document
Application Code
Data Management Code
Formatting Code
Milestone Presentation
Presentation
Demonstration Prototype
Completed Prototype
Final Presentation
Product Website
Presentation
Testing
Test Plan Document
SBIR document
NSF SBIR Proposal Phase 2
SBIR document
NSF SBIR Proposal Phase 1
12/13/2006
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Milestones and Deliverables
Phase 2: Critical Design
Phase 3: Production Out
Years
Hardware
Hardware Requirements Document
Database Setup
Production
Card Company Contract
Vendor Contract
Software
Requirements Document
Design Document
Database Application Code
POS Application Code
Data Management Code
Test Plan
Financing
Venture Capital/Investment
12/13/2006
Distribution
Distribution Contract
Marketing
Advertising Campaign Launch
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Project Flow - Outline
ID
Phase
Start
Finish
Length
1
2
Phase 0
8-30-06
12-18-06
109 days
Phase 1
12-19-06
4-17-07
120 days
3
4
Phase 2
4-17-07
4-27-08
375 days
Phase 3
4-27-08
8-1-08
70 days
12/13/2006
2006
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2007
2008
52
Phase 0: Organization Chart
12/13/2006
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53
Project Flow – Phase 0
(CS 410)
Finish
Length
Conception 8-30-06
9-19-06
20 days
Planning
9-18-06
10-3-06
15 days
Initial
Research
9-20-06
10-6-06
13 days
Feasibility
Presentation
10-9-06
10-18-06
8 days
Milestone
Presentation
11-3-06
11-15-06
9 days
Approval
Presentation
11-16-06
12-18-06
23 days
SBIR
Creation
10-31-06 12-13-06
44 days
Website
Creation
9-18-06
74 days
Phase
Postmortem
12/13/2006
Start
12-1-06
12-14-06 12-18-06
9/06
4 days
Green Team
10/06
11/06
12/06
54
Phase 1: Organization Chart
12/13/2006
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55
Project Flow – Phase 1
(CS411)
Phase
Start
Finish
Length
Prototype
Planning
12-19-06
1-1-07
13 days
Research
Tech.
1-2-07
1-7-07
5 days
Setup
Prototype
1-8-07
1-19-07
11 days
Design
1-19-07
2-20-07
32 days
Development
2-20-07
3-10-07
18 days
Testing
3-10-07
4-1-07
21 days
Demonstrate
Prototype
4-1-07
4-5-07
5 days
3-13-07
4-17-07
34 days
SBIR
Phase 2
12/13/2006
12/06
Green Team
1/07
2/07
3/07
4/07
56
Phase 2: Organization Chart
12/13/2006
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57
Project Flow – Phase 2
Phase
Start
Finish
Length
Develop
Team
4-17-07
5-30-07
43 days
Planning
5-30-07
7-22-07
52 days
Requirements
7-22-07
8-27-07
36 days
Setup
8-27-07
10-3-07
36 days
Design
10-3-07
11-26-07
54 days
Development
11-26-07
1-18-08
52 days
Testing
1-18-08
4-10-08
82 days
Documen
-tation
3-10-08
4-27-08
48 days
12/13/2006
Spring
07
Green Team
Summer
07
Fall
07
Winter
07/08
Spring
08
58
Phase 3: Organization Chart
12/13/2006
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59
Project Flow – Phase 3
Phase
Start
Finish
Length
Develop
Team
4-28-08
5-20-08
22 days
Hire
Personnel
4-28-08
5-2-08
5 days
Office
Setup
4-27-08
4-30-08
3 days
Obtain
Loan
4-28-08
5-9-08
11 days
Initial
Rollout
4-28-08
7-21-08
82 days
Nationwide
Rollout
7-21-08
8-1-08
10 days
12/13/2006
4/08
Green Team
5/08
6/08
7/08
8/08
60
Phase 1 Budget
Hard Resources
Product
TOTAL
Personnel Resources
Resource
Project Manager
Database Maintenance Team
Database Administrator
Technical Director
POS Terminal Programmers
Programmer III
Software Development Team
Web Developer
GUI Programmer
Programmer II
Risk Management Director
Documentation Specialist
Finance Director
TOTAL
# Units Cost/Unit Total
$0
#
1
Salary* Overhead Hourly Hours Total
$75,616 $105,862
$55
260
$14,336
2
1
$73,252
$56,926
$102,553
$79,696
$53
$42
148
285
$15,810
$11,830
2
$57,397
$80,356
$42
44
$3,683
2
1
3
1
1
1
$52,920
$46,282
$45,368
$68,141
$35,751
$108,901
$74,088
$64,795
$63,515
$95,397
$50,051
$152,461
$39
$34
$33
$50
$26
$79
105
439
319
16
239
161
$8,103
$14,815
$31,658
$795
$6,230
$12,785
$120,045
TOTAL Resources
*Salary.com
12/13/2006
$120,045
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61
Phase 2 Budget
Hard Resources
Product
DELL PowerEdge 6800 Advanced
Windows Server 2003, Enterprise Ed.
PowerVault MD3000 Disk Storage Array
Microsoft Project Server
RFID Cards
Card Programmer
Card Printer
Domain Name Registrations
TOTAL
Personnel Resources
Resource
Project Manager
Database Maintenance Team
Database Administrator
Technical Director
POS Terminal Programmers
Programmer III
Software Maintenance & Installation Team
Web Developer
GUI Programmer
Programmer II
Risk Management Director
Documentation Specialist
Finance Director
TOTAL
TOTAL Resources
# Units Cost/Unit Total
3
$17,605
$52,815
Dell.com
5
$3,295
$16,475
InternetSolutions.com
1
$6,338
$6,338
3
$999
$2,997
10000
$0.52
$5,200 http://www.maxking.com/shopcart/product.php?productid=16375$cat=249&page=1
10
$64
$640 http://www.maxking.com/shopcart/product.php?productid=16213
5
$2,000
$10,000 http://www.maxking.com/shopcart/product.php?productid=16282$cat=304&page=1
1
$15
$15
$94,480
#
1
Salary* Overhead Hourly Hours Total
75,616
105,862
$55
403 $22,220
3
1
$73,252
$56,926
$102,553
$79,696
$53
$42
121
541
$19,442
$22,456
3
$57,397
$80,356
$42
160
$20,089
3
2
7
1
1
1
$52,920
$46,282
$45,368
$68,141
$35,751
$108,901
$74,088
$64,795
$63,515
$95,397
$50,051
$152,461
$39
$34
$33
$50
$26
$79
555
739
250
16
499
144
$64,248
$49,878
$57,792
$795
$13,008
$11,435
$281,364
$375,844
*Salary.com
12/13/2006
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62
Phase 3 Budget
Hard Resources
Product
Domain Name Registrations
TOTAL
Personnel Resources
Personnel Resources
Project Manager
Database Maintenance Team
Database Administrator
Technical Director
POS Terminal Programmers
Programmer III
Software Maintenance & Installation
Team
Web Developer
Programmer II
Risk Management Director
Documentation Specialist
Finance Director
Marketing Director
C3P Rep (Vendors)
C3P Rep (Businesses)
Customer Support Team
Web Customer Support Specialist
Attorney II
TOTAL
# Units Cost/Unit
Total
1
$15
#
1
$15
$15
Salary*
Overhead
Hourly Hours Total
$75,616
$105,862
$55
257
$14,135
3
1
$73,252
$56,926
$102,553
$79,696
$53
$41
139
15
$22,048
$1,230
2
$57,397
$80,356
$41
208
$17,056
1
2
1
1
1
1
1
1
$52,920
$45,368
$68,141
$35,751
$108,901
$95,703
$25,944
$25,944
$74,088
$63,515
$95,397
$50,051
$152,461
$133,984
$36,322
$36,322
$38
$33
$49
$26
$79
$69
$18
$18
200
208
32
35
144
425
107
107
$7,600
$13,728
$1,568
$910
$11,376
$29,325
$1,926
$1,926
3
1
$41,014
$76,844
$57,420
$107,582
$29
$56
139
30
$4,021
$1,680
$128,529
TOTAL Resources
*Salary.com
12/13/2006
$128,544
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63
Funding By Phase
Funding By Phase
Funding By Phase
12/13/2006
$300,000
$0
$120,045
$120,045
$94,480
$281,364
$375,844
$15
$128,529
$128,544
$624,434
$250,000
Budget Cost
Phase 1
Hard Resources
Personnel Resources
Total
Phase 2
Hard Resources
Personnel Resources
Total
Phase 3
Hard Resources
Personnel Resources
Total
TOTAL Funding
$200,000
Hard Resources
$150,000
Personnel Resources
$100,000
$50,000
$0
Phase 1 Phase 2 Phase 3
Phase
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64
Funding Plan
• National Science Foundation (NSF)
– Phase 1: Funding award up to $100k
– Proposal Deadline: December 4, 2006
– Topic: Information Technology
• Phase 1 Total Budget: $120,045
• CIT Commercial Giving Program Commercial
Finance Group
– Additional funds needed above the $100k
– No deadline
– Phase 1: $20,045
12/13/2006
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65
Funding Plan
• National Science Foundation (NSF)
– Phase 2: Funding award up to $750k or two
years (whichever is reached first)
• Phase 2 Total Budget: $375,844
12/13/2006
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66
Funding Plan
• Phase 3 funding obtained through venture
capital from outside investors
– Phase 3 Total Budget: $128,544
• Total Budget (All phases): $624,434
12/13/2006
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67
Cost Per Customer
Based on an average of 500 employees
LEASING
Component
Quantity
Cost
Total
Rental Fee - Server & Database Per Employee
$20
$10,000
Software Package
Yearly
$20,000
$20,000
Service Fee
Yearly
$5,000
$5,000
Per Employee
C3P Cards
$1
$500
LEASING TOTAL
$35,500
12/13/2006
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68
Cost Per Customer
• Leasing Per Year: $35,500
– Authentication code
– User manual
– Software Package
• Access to customizable database
• Purchase checking capability
• GUI
– Programmed RFID cards
– Rental Fee (Server & Database space)
– Service Fee
12/13/2006
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69
Break-Even Analysis
Break Even Analysis
12/13/2006
Break-Even Analysis (Out Years)
$2,000,000
Green Team
$1,500,000
Profit
Profit
-$128,544
-$57,544
$13,456
$84,456
$155,456
$200,747
$271,747
$342,747
$413,747
$484,747
$524,896
$595,896
$666,896
$737,896
$808,896
$842,875
$913,875
$984,875
$1,055,875
$1,126,875
$1,153,450
$1,224,450
$1,295,450
$1,366,450
$1,437,450
$1,455,141
$1,526,141
$1,597,141
$1,668,141
$1,739,141
$1,000,000
Profit
$500,000
$0
-$500,000
1 3
5 7 9 11 13 15 17 19 21 23 25 27 29
# of Companies
Break-Even Analysis (Initial Profit)
$2,000,000
$1,500,000
Initial Profit
Initial Cost of Customer Support = Out Years Budget
Will increase by 20% for every 10 companies
Customer
Support
Costs
# of Companies
Initial Profit
Total Revenue
0
-$624,434 $128,544
$0
2
-$553,434 $128,544
$71,000
4
-$482,434 $128,544
$142,000
6
-$411,434 $128,544
$213,000
8
-$340,434 $128,544
$284,000
10
-$269,434 $154,253
$355,000
12
-$198,434 $154,253
$426,000
14
-$127,434 $154,253
$497,000
16
-$56,434 $154,253
$568,000
18
$14,566 $154,253
$639,000
20
$85,566 $185,104
$710,000
22
$156,566 $185,104
$781,000
24
$227,566 $185,104
$852,000
26
$298,566 $185,104
$923,000
28
$369,566 $185,104
$994,000
30
$440,566 $222,125
$1,065,000
32
$511,566 $222,125
$1,136,000
34
$582,566 $222,125
$1,207,000
36
$653,566 $222,125
$1,278,000
38
$724,566 $222,125
$1,349,000
40
$795,566 $266,550
$1,420,000
42
$866,566 $266,550
$1,491,000
44
$937,566 $266,550
$1,562,000
46
$1,008,566 $266,550
$1,633,000
48
$1,079,566 $266,550
$1,704,000
50
$1,150,566 $319,859
$1,775,000
52
$1,221,566 $319,859
$1,846,000
54
$1,292,566 $319,859
$1,917,000
56
$1,363,566 $319,859
$1,988,000
58
$1,434,566 $319,859
$2,059,000
$1,000,000
$500,000
Initial Profit
$0
-$500,000
1
4
7
10 13 16 19 22 25 28
-$1,000,000
# of Companies
70
Risk Management Plan
• Identify Risk
• Categorize risk based on severity and
probability
• Reduce risks
– Avoidance
– Acceptance
– Transference
– Mitigation
• Re-evaluate risk level
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Risk Probability/Impact Matrix
P
r
o
b
a
b
i
l
i
t
y
1 No vendor buy-in
81-100%
Access to credit card
2
info
61 - 80%
Hardware/Server
3
malfunction
41 - 60%
1
21-40%
1-20%
4
2, 3
4
5
4 Software malfunction
Insulting to
5
employee
5
1
2
3
Impact: 1(Low) - 5(high)
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Risks
Risk#
Risk Description
Mitigation Actions
1
No vendor buy-in
Market to vendors by creating a
vendor alliance
2
Access to Personal Info from Credit
Card Companies
Encryption, policy of not reading
the information
3
Hardware/Server Malfunction or
Viruses
Hardware redundancy and software
security measures.
4
Software Malfunction
Thorough testing and 24/7 support
5
Insults Employee (can not be
trusted)
Marketing plan and training to avoid
insulting employees
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What this product
does not do
• Provide point-of-sale RFID readers
• Protect against blocking of authorized
purchases
– Will mostly be a result of human error
– Will decrease in occurrence as more
businesses use product
• Provide credit for businesses
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Pros
• Saves money
– Reduces the money spent on security measures and court costs
• Customizable
– Spending limits
– Tracks Items Bought
– Tracks Vendors Bought From
• Increased record-keeping efficiency
– Can produce receipts and spending reports for individual
employees as well as the company as a whole
– Provides an electronic format for receipt tracking and auditing
– Web-enabled interface allow for on-the-fly spending reports
• Smart Card Technology
– As quick as current magnetic-strip technology
– An emerging technology that is the way of the future
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Cons
• Vendors need RFID readers
– Requires New Technology
• Many vendors are getting scanners
– 7-11 is adding 5,600 RFID scanners this year*
• Accidental blocking of necessary purchases
– Solved with training and research
• 24/7 Server/Website Maintenance
• POS Terminals need updates
* mastercard.com
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Conclusion
• Regulates how funds are spent
–Saves money and time
• Vendors and credit customers will benefit
–Vendors will get higher quantity and more efficient business
–Credit customers are protected and have less wait-time in line
–Vendors will gain revenue from businesses that use UPC
blocking
• C3P will revolutionize the credit system world wide
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Questions
At this time, we welcome any questions you
may have.
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References
• Foiling credit card fraud by Jenny C. McCune • Bankrate.com
• http://www.gpoaccess.gov/usbudget/
• http://www.dallasnews.com
• http://www.fbi.gov/publications/financial/fcs_
report052005/fcs_report052005.htm
• http://www.bankrate.com/fox/news/cc/20000508.asp
• http://www.bankrate.com/fox/news/cc/20000508.asp
• salary.com
• mastercard.com
• James Brunelle, Edo Corp.
• Admiral Julius Caesar, SAIC
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Appendix A
Expert Testimony from Admiral Julius
Caesar from SAIC
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Expert Testimony – Current
Problems
• Navy sailors are given credit cards for travel
because they do not have enough personal cash
– Spending money in “Girly Bars”
– Tabs in excess of $15,000
• Private Business
– Employee used company credit card to put $14,000
down payment on a house
– Employee bought several $1,500 airline tickets, and
canceled the flight to collect the cash refund, which
he used to finance his private company
– Employee bought $1,500 in thongs at Victoria Secret
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Expert Testimony - Current
Solutions
• Only activating the credit card for the
duration of the travel
• Background credit checks on employees
to be entrusted with company funds
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Expert Testimony – Loose
ends left by current solution
• Can’t regulate purchases
• Company liable for purchases
– Employees can’t pay the company back
• Must be taken to court
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Expert testimony – Time and
Money spent on problem
•
•
•
•
~$25,000 per division per year
20 Divisions
~$250,000 per year for this company
Credit card companies dropped the Navy
as a customer because of fraud problems
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Expert Testimony - Data
• 2002: 1.4 million Government Travel
Cards in use
– $ 3.4 billion spent on purchases with these
cards
• One man made $262,800 in charges on
13 Government Credit Cards
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Expert Testimony – On C3P
• Target “high risk” employees
– In the 18-25 year-old bracket
• Don’t know how to use credit
– Employees with bad credit
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Appendix B
Merchant Commercial Code (MCC) – A specialized
code that categorizes a store based on what it sells
(e.g. Target and Wal-Mart have the same MCC) –
example MCC: 5598 – Snowmobile Dealership
Universal Product Code (UPC) – A code that
designates a specific product, different for every
brand and variation of a product (Lay’s and
Pringle’s potato chips still have different UPCs) –
Sample UPC: 02248604 Orbit Gum
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Security - RFID
• An embedded antenna that is
attached to the chip is used to
transfer information stored in the
chip's memory
• The range of operation is 2.5" to
3.9“
• Information can be written to the
card the same way it is read
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Authorized User Fraud
Liability
• Liability Options
– With the Corporate Card, your company is always protected from
fraudulent or unauthorized charges. You select the level of
liability for your Cardmembers and establish accountability for
payment of charges.
• Liability options include:
– Expanded Liability Protection Your company is responsible for
reimbursing the Cardmember for business expenses and is
liable for payment of business charges but is not liable for
penalties arising from Cardmembers' delinquency or personal
charges. American Express contacts employees with past-due
balances to encourage payment.
– Selective Liability Protection Your company and your
Cardmembers are jointly liable for payment of all charges, and
American Express requests payment from your company if the
Cardmember does not pay the outstanding balance.*
*Visa.com
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