1 Market Size Federal Reserve System statistics from November 2001* confirm an enormous market for checks in the United States American consumers make 80 billion retail payments annually 50 billion payments by check (62.5% of all non-cash payments) 30 billion payments electronic credit and debit card payments (37.5% of all non-cash payments) Federal Reserve System statistics reveal important details surrounding the market for checks in the United States 25.7% of all check transactions are written for remittance or bill payment 19% of all check transactions are written at the point- of-sale * Source: Federal Reserve November 2001 U.S. Retail Payments System Study

2 POS SALES PRESENTATION

3 “Check use in America continues to rise year after year and I see no end in sight.” Alan Greenspan Chairman Federal Reserve 1999 THE CHECK IS HERE TO STAY!

4

5

6 HOW DO YOU PROTECT YOUR BUSINESS FROM FRAUDULENT AND BAD CHECKS?

7 “I NEVER GET BAD CHECKS.” “I ONLY TAKE LOCAL CHECKS.” “I DON’T TAKE CHECKS.” What is the answer?

8 IF YOU TURN DOWN A GOOD CHECK YOU LOSE A CUSTOMER. How much can you afford to lose if you guess wrong? IF YOU ACCEPT A BAD CHECK, YOU LOSE MONEY, BUT…

9 E-CHEX IS A LOW COST SOLUTION TO AN EXPENSIVE PROBLEM…

10 CHECKS ARE NOW PROCESSED... JUST LIKE CREDIT CARDS. 48 hour deposits and guaranteed funds.

11 YOU CAN TRUST THE TRANSACTION All funds are processed by the Federal Reserve through FDIC insured banks.

12

13 THE LATEST IN TERMINAL EQUIPMENT TURNS YOUR COUNTER TOP INTO A BRANCH OF YOUR BANK…

14 Verifone 3300 with CR 1000i Optical Check Scanner Checks are processed through easy to use Electronic Check Conversion terminals and check readers. CR 600 MICR Reader

15 Easy to use Electronic Checks Credit/Debit/EBT. Smart Card enabled. Loyalty & Gift Card. Drivers License swipe. CR1000i Check Scanner Verifone OMNI 3200 Verifone OMNI 3740 Optical Check Reader Equipment solutions for all processing requirements.

16

17

18 YOU’LL NEVER…

19 TAKE ANOTHER BAD CHECK! We guarantee it!

20 WAIT IN LINE AGAIN TO DEPOSIT A CHECK! Make all deposits electronically.

21 MAKE ANOTHER COLLECTION CALL! Guaranteed checks mean no more chasing bad check writers.

22 NO MORE… DEPOSIT SLIPS! BANK DEPOSIT! COLLECTIONS! LOST SALES! BAD CHECKS!

23 THE COST?

24 THE COST OF ACCEPTING CHECKS… E-Chex converts CHECKS from a paper form of payment to a less expensive ACH form of electronic payment, reducing costs by as much as 55%. *BancAmerica Robertson Stephens Report Per Transaction The cost of accepting personal checks is among the highest of any form of payment.*

25 THE COST OF NOT ACCEPTING CHECKS... 2 checks declined a week 52 weeks a year 104 lost sales a year $65.00 average check $ lost per year Restrictive check policies result in lost revenue.

26 HOW MUCH BAD CHECK PROTECTION DO YOU NEED? E-Chex has check protection programs tailored to virtually any business.

% Accept any check from anywhere without risk! CONVERSION WITH GUARANTEE Checks are approved or declined at the terminal based upon check writer information reported to the NCIS. Approved checks are deposited electronically into your bank by E-Chex in about 48 hours. There are no deposit slips or trips to the bank to make deposits. When a check is “Approved” the receipt printer prints a receipt to be signed by the check writer authorizing the transaction. If a check is “Declined” the receipt printer will print a referral telephone number of the reporting agency. All checks are guaranteed and will be paid by E-Chex. + $0.35 Per Transaction Process checks just like credit cards. NO MORE BAD CHECKS! NO MORE COLLECTION CALLS!

28 $0.50 Per Transaction We’ll verify your checks and do your check related banking! VERIFICATION WITH CONVERSION Checks are approved or declined at the terminal based upon check writer information reported to the NCIS. Approved checks are deposited electronically into your bank by E-Chex in about 48 hours. There are no deposit slips or trips to the bank to make deposits. When a check is “Approved” the receipt printer prints a receipt to be signed by the check writer authorizing the transaction. If a check is “Declined” the receipt printer will print a referral telephone number of the reporting agency. If checks are returned by the check writer’s bank, E-Chex will submit them two more times for electronic collection. If unable to collect, E-Chex will return the item to your account. Your store counter top becomes a branch of your bank. Your funds are available in 48 hours. NO DEPOSIT SLIPS OR TRIPS TO THE BANK!

29 $0.40 Per Inquiry If you knew which checks were bad would you take them? VERIFICATION ONLY Checks are approved or declined at the terminal based upon check writer information reported to the NCIS. Approved checks are deposited by you into your bank. If checks are returned by your bank, you may submit them to E-Chex for collection. You will be paid the full face value of the check upon collection by E-Chex. We know 17 million BAD CHECK writers and so will you when you subscribe to our NATIONAL CHECK INFORMATION SYSTEM.

30 RATE ANALYSIS Discount Rate$___________ Discount Rate$___________ Transaction Fees $___________ Discount Rate$___________ Statement Fee$___________ Statement Fee$___________ Return Item Fee $___________ Return Item Fee $___________ Terminal Lease $___________ Terminal Lease $___________ Customer Service $___________ Customer Service $___________ Misc$___________Misc$___________ TOTAL$___________TOTAL$___________ MONTHLY VOLUME $___________ MONTHLY VOLUME $___________ EFFECTIVE RATE __________% EFFECTIVE RATE __________% Current Program E-Chex Program

31 THE PROBLEM

32 TWO CHECK CLOSE “I NEVER GET BAD CHECKS.” “Can you tell which of these two checks was printed on a computer and is counterfeit?” “NO” “Our check reader will stop the counterfeiters cold. It will not read a counterfeit check. If you never accept the check you can’t have a counterfeit check loss. One or two of those a year can be very costly.”

33 TWO CHECK CLOSE “I ONLY TAKE LOCAL CHECKS.” “Can you tell which of these two checks is written on a closed account and is fraudulent?” “NO” “Many times when a check writer is going to move they will close their account, write some checks and be gone before they bounce. We can stop this before it happens. We know 15 million bad check writers and will share that information with you. A few checks on a closed account can be very costly.”

34 LOST SALE CLOSE “I DON’T TAKE CHECKS.” “Restrictive check policies result in lost business. In fact…(turn to page 23 and review). The increase in business through unrestrictive check policies will result in a big increase in business.”