Small Business Payment Solutions: Business Cards

August 2008BB&T, Member FDIC.

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Today’s Presenters:

Dee Moore is Vice President and Commercial Card Sales Manager in BB&T’s Bankcard and Merchant Services division. Dee has almost twenty years of banking industry experience, fifteen of which have been in credit cards. Dee is a graduate of West Virginia State University and the West Virginia School of Banking and she holds a Certified Treasury Professional certification from the Association of Financial Professionals.

John Yarley is a Senior Business Leader with Visa USA’s Small Business Products Department. He has more than sixteen years ofbroad-based experience in debit and credit card product management and merchant processing, and has previously held product management positions in a number of major U.S. banks. John holds a Master’s of Business Administration degree from Ohio State University.

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Agenda

Small Business: The Foundation of Our EconomyWhat Business Owners Tell UsVisa Business Products and ServicesHow Businesses Pay Today Core Product Features

• Tracking Business Expenses – Online Reporting• Protections – Zero Liability, Liability Waiver and Visa

Protection• Purchase Savings• Other Enhancements

Case StudySummary

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Small Business: The Foundation of Our Economy

Small businesses make up more than 99.7% of all employers. Small businesses create more than 50 percent of the non-farm private gross domestic product (GDP). The 22.9 million small businesses in the United States are located in virtually every neighborhood. Small businesses make up 97 percent of exporters and produce 29 percent of all export value. Small businesses with employees start up at a rate of more than 500,000 per year. Four years after start-up, half of all small businesses with employees remain open.

Reference: U.S. Small Business Administration

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Webinar Audience Question #1

The MOST critical need I am seeking to address with a business payment solution is:

1. Cash flow2. Vendor acceptance3. Rewards and purchase savings4. Flexible reporting5. Security

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What Business Owners Tell UsSmall Business Owners are seeking compelling value propositions

from their Business Cards Cash Flow SolutionsA comprehensive payment solution set to address Small Business cash flow needs – Business Check Card and Business Credit CardsCoverage & UtilityMore than 7.4 million Visa merchant outlets offer extensive coverage and utility to Small Business cardholdersRewards & Purchasing SavingsRewards Programs and Merchant Offers provide compelling rewards and purchase savings for Small Business Visa cardholdersEfficiency Tools Online Reporting Tools give business owners the capability to:a. review account statements for the past 18 monthsb. Receive email alerts to manage accountc. view an image of monthly paper statementd. download transaction information to financial softwareEmotional ElementsSecurity features such as ‘Visa’s Zero Liability’ and card enhancements such as ‘Purchase Security and Extended Protection’

Coverage & Utility

Rewards & Purchasing Savings

Efficiency Tools

Emotional Elements

Cash flowSolutions

Rational EmotionalSmall Business Owner Benefits

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Visa Business Products and Services

Bank Online Reporting Tools

Web-based reporting solutions that allow

expense monitoring and streamline accounting

Visa Rewards Rewards earned on everyday business purchases across payment products

Merchant Offers Merchant discounts and special offers

in broad expense categories

Visa Business Credit Card

Provides convenience and a grace period

for routine business purchases

Visa Business Check Card

Provides Small Business

Owners and their authorized employees

access to funds from Small Business

checking accounts

Visa Business Line of Credit

Provides access to short-term working

capital for cash flow fluctuations and

peace of mind

Liability Waiver Protection from

employee misuse

Business Differentiators

Payment Flexibility

Available on all Business Card products, cardholder availability subject to issuer offer

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Webinar Audience Question #2

How do you now pay for the majority of your business purchases?

1. Check2. Credit Card3. Cash4. Debit Card5. Other

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14%

23%

38%

39%

42%

46%

95%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other

Debit/ATMCard

**Bank DDA

Cash

*Non-Bank DDA

GPC Cards

Check

How Businesses Pay TodayChecks are the primary competitor to business cards within small business wallets

14.2 $14,766 $291

7.8 $2,993 $77

3.6 $4,114 $300

5.6 $769 $36

4.0 $4,963 $300

7.9 $1,548 $65

4.0 $3,206 $197

Avg. # of Transactions

Avg. Monthly Spending

Median Ticket Size

*Non-Bank DDA payments include those arranged directly with vendor or PayPal, or through other online bill payment services**Bank DDA payments include those arranged through the bank’s online bill payment service and those arranged with the bank offlineSource: Visa Small Business Payment Panel 4Q’06-1Q’07

General Purpose Cards

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2002 2005 2010 (f)

Business Spending Growth Trends

Small business spending reached $4.7T in 2005, with an additional $1T forecasted growth in the next 5 years

Core Small Business Non-Payroll Spending Growth

Source: Global Insight, Visa USA Product Development and Management, Visa USA Interchange Strategies

T&ERent

All OtherRaw Materials and Inventory

Maintenance, Repair,

and Operations

Core Business Services

$80B

$99B

$125B

$291B$366B$652B

$1,348B

$1,222B

$4.0T

$1,610B

$1,338B

$800B

$420B$412B

$4.7T

$5.7T

$1,969B

$1,596B

$918B

$514B

$586B

e.g., Drywall

e.g., Database Management

e.g., Cleaning Services

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Webinar Audience Question #3

The ONE key feature I am looking for in a Business Payment Solution is:

1. Flexible reporting2. Security and protection3. Purchase savings and/or reward programs4. Low fees5. All of the above are very important to me

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Core Product Features: Tracking Business Expenses

Quickly access individual account information online Review account statements for the past 18 months Benefit from same-day credit for payments made before 2 p.m. ET Sign up for email alerts to help manage accounts View an image of monthly paper statements Download transaction information to financial software

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Core Product Features: Protections

Zero Liability:No liability for fraudulent purchases; applies to your BB&T Business Credit Card

Liability Waiver:Protection from employee misuse up to $100,000* per cardholder

Visa Protections: Dispute resolution process

* See card disclosure for details; requires employee termination

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Core Product Features: Purchase Savings

• Discounts – online coupons• Suites of discounts are updated every six months

• Choice Hotels • Car Rentals• Personal Computers• Wireless Products

• Program Details

http://usa.visa.com/business/small_business/partner_advantage.jsp?it=fl|/|/VisaHome02.swf|ev_sbdisc_click&rand=285 9192

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Core Product Features: EnhancementsAuto Rental Collision Damage Waiver

Automatic coverage on rental vehicles for damage due to collision or theftPurchase Security and Extended Protection

Purchase Security will replace, repair, or fully reimburse covered cardholders up to a maximum of $10,000 in the event of theft or certain types of damageExtended Protection doubles the time period of the original manufacturer’s written U.S. repair warranty up to one full year on warranties of 3 years or less

Travel and Emergency AssistanceCoordination of cardholder’s medical, legal, and travel services while away from homeAdditional services offered: Medical Referral Assistance, Prescription Assistance, Legal Referral Assistance, Emergency Ticket Replacement and Emergency Translation Service

Luggage ReimbursementReimbursement for cardholders and families for the replacement cost of checked or carry-on luggage and its contents

* See card disclosure for details and limitations

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Business Card: Case Study

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Case Study – Client Profile

New business client looking for a NO COST payment solution designed to utilize technology to streamline the business procurement and travel expense process, while providing added security, visibility and benefits to the business. Focus on Travel, Food Services and Computer/Office Supplies/Postage.

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Case Study – Current Scenario

The business processes hundreds of checks and pages of paper for employee reimbursement of petty cash and travel expenses. Purchase of fuel, local items and food services are paid by check or on PO/store account. Computer hardware/services/software, office supplies and postage are paid by check and are limited to specific providers that will accept check/PO payment.

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Case Study – Product Solution

Benefits realized when using a Business Card as payment option:

Increased/extended cash flow – business receives cash management benefits not offered with checks. Multiple items are charged on the Business Card for a consolidated company settlement each month. Business maintains a higher average daily balance in its operating account to offset bank fees and is able to “sweep out”funds to earn additional interest income. Increased security and control – business has greater control over monthly expenses against its monthly budgeted amount. Business able to monitor purchasing compliance and usage of contracted/preferred vendors – data used to consolidate vendors and request vendor discounts. Reduction of paperwork and check issuance – business able to reduce paper and check costs – including check stock and postage costs. Rewards incentive – business can participate in a no cost Business Rewards program not offered with checks.

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Case Study – Implementation

Client selected and implemented a Business Card program in January 2008

$100,000 credit line20 cards issued to key department managers and procurement/ traveling employees

In 5 months, the business program accumulated 620 transactions for $103,000 in purchases.

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Case Study – Immediate Benefits

Eliminates employee check reimbursement of petty cash and travel. – Employees follow normal guidelines for petty cash and travel expenses, then pay with the

Business Card. Process is convenient for the employee; the business is able to monitor and track expenses; and Accounts Payable no longer issues multiple checks to employees for expense reimbursement.

Pay for fuel, local items and food services on the Business Card rather than with checks or multiple cards.

– Provides the business added security layers – business is able to track expenses via an online, real-time monitoring system. Reduces the number of checks written by Accounts Payable and streamlines paperwork. Plus, the business earns extended cash flow and Reward points.

Pay for computer hardware, services and software, office supplies and postage using the Business Card, for convenience and flexibility.

– The business receives the best value for its dollar by being able to purchase locally, globally and via the Internet. Direct debit can be set up as a clearing account where the business can review, approve and pay monthly expenses.

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Case Study – Results

Reduction of checks by 620Increased cash flow/float by $10,000 to $15,000 based on extension of payment terms Greater security and monitoring of business transaction data onlineConvenience, tracking and accountability of business employee managementAdded travel benefits to the business – travel and emergency assistance services, travel and accident insurance and auto rental collision damage waiver insuranceSingle payment to bank replaces multiple monthly payments to vendorsAccounts Payable can focus on expense analysis and other initiatives to increase productivity/reduce spending

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Case Study – Annual SavingsIn 5 months, the business program accumulated 620 transactions for $103,000 in purchases. Top 3 categories of card use include: Travel @ $26,000, Food Services @ $20,000, and Computer @ $9,700.

Savings:Reduction in check usage by 620, at a conservative cost of $10 (Treasury Studies have determined the cost of issuing a check is $12). $6,200 in savings YTD.

Earnings:Extended cash flow/float of $10,000 monthly. If invested short-term at 2% for 30 days for 5 months, added $83 to interest income. Business Rewards of 103,000 points to be redeemed by the business.Online/real time transaction data, with downloadable capability to the business accounting software to better monitor budgets in real time and perform financial reporting/data analysis. Data exported electronically saving time for keying data into the accounting software.

Cost:NONE!! This client selected a NO COST program, to include all tools and resources to manage a successful card program!

Overall Potential Annual Value – $12,000 saved in check costs with $200 earned in interest income and more than 200,000 reward points accumulated!

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Summary

Visa Business Cards – Check Card and Credit Card:

- Save time - Save money - Help you manage your payments

…So you can focus on your passion: your business!

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Thank You for Participating Today!

For Business Credit Card information, please:Call our Commercial Card Client Support Center at 1-800-397-1253 Visit our website at www.BBT.com/visabizDrop by one of our conveniently located banking centers

For Business Check Card information, please:Call 1-800-BANK BBT (option 4 - option 2)Visit our website www.BBT.com/business/products/checkcardDrop by one of our conveniently located banking centers