Copyright © 2005 Secure Payment Systems, Inc. All Rights Reserved. Electronic Check Processing and Deposit Web-Based Accounts Receivable Conversion (ARC) / Check 21 Solution

 Checks deposited faster  Drastically reduces transaction fees  Sales tool for reselling Business Opportunities

According to the Federal Reserve, as of September 11, 2006, approximately 17 percent of the checks or slightly over 6 million checks a day, were deposited via Check 21! Industry Fact

Understanding Check 21 -Check 21 provides a Retailer/Merchant/Biller with the opportunity to convert any type of paper check, for purposes of transmitting it electronically, where it may re-emerge in the bank clearing system as the legal equivalent of the original check through a substitute check document known as an Image Replacement Document (IRD) -It is applicable to ANY type of Check or instrument with a MICR* line -It does not require permission or notification of any kind -IRD must meet certain formatting requirements *Magnetic Ink Characters at the bottom of every check

expresscheck21 SM expresscheck21 SM is our brand new check21/ARC solution expresscheck21 is a hybrid, “patent pending” web-based platform that processes and deposits all types of paper items into electronic transactions or substitute checks, all through a single point of entry system expresscheck21 is designed for businesses who want to accept consumer and non-consumer checks at their business location. The checks are processed in the back-office where they are scanned and electronically deposited eliminating time consuming bank visits, saving on multiple register scanners, and bank NSF fees

 Web-based, convenient, secure, and easy to set-up  24/7 online access to retrieve check images and payment status  Highly scalable to support any payment volume, from single users to large payment processing environments  Ability to accelerate check clearing by sending the check items directly to the Federal Reserve  Automatically captures the dollar amount on the check during scanning thereby reducing entry time and errors  Substantial savings on returned item fees Key Features & Functionality

 Secure and easy to set-up (web-based)  Enables acceptance of all types of checks at the point-of-sale  Requires no check scanning equipment at the register  Simplifies and speeds up check handling & processing  Lowers the cost of payment processing  hour funds availability*  Improves response time and accuracy  No more waiting in line at the bank  Promotes better customer service  Faster notification of returned items (3-5 days vs 7-10 days)  Facilitates better access, storage, retrieval, & distribution of checks  Enables consolidation of banking relationships for business locations  Substantial savings on returned items fees  Banks can accept images from us and settle directly with their merchants** Benefits *24 hour funds availability at a minimal surcharge **A small transaction fee reduction may apply

expresscheck21 requires a computer (Windows 2000 or newer operating system), internet access with Internet Explorer 5.0 or greater, and one of the recommended scanners mentioned below: Digital Check TS Accepts 100 checks at a time -Processes checks per minute, + or – 3,000 per day -Images both sides of checks in one pass Digital-Check TS – 230/65 -Accepts 25 checks at at time -Processes 65 checks per minute, + or – 500 per day -Images both sides checks in one pass Magtek MICRImage -Accepts 1 check at at time -Processes + or - 30 checks per day -Images both sides checks in two passes expresscheck21 Technology Digital Check TS Digital Check TS – 230/65 Magtek Imager Web Hosted expresscheck21 Software

Consumer Items Non-consumer Items Checks received are scanned and processed via expresscheck21’s high speed web hosted software and sent electronically to Secure Payment Systems for processing expresscheck21 automatically distinguishes and converts consumer items (processed as ACH items) and non-consumer items, including corporate checks and payroll checks (processed as Check 21 IRD) expresscheck21 Process

expresscheck21 electronically debits funds from the customers account and deposits funds in merchants bank account. Funds are available within 48 hours, alleviating a trip to the bank 3. Consumers Bank Merchants Bank Upload files into your in-house accounts receivable system 4. expresscheck21 Process Contd …

 Open your web browser & log onto:  Click on expresscheck21 Website under “Product Links” Web Browser

 Enter your customer information in uppercase letters: -File Code -User Name -Password  Hit ENTER Customer Login

Welcome Page From the Welcome Page, you can view important announcements and transaction cut-off times You can also access the IRD and ARC System  Select ARC System from the menu on the left hand side to get started

Main Menu  The Main Menu supplies you with all the options available in our ARC System  Select Scan Checks to begin processing checks

 Easy-to-use solution, requiring a computer, check scanner, and internet access  24/7 access to retrieve check images and authorization via our secure website  Concise, real time reporting available on-line  Real-time verification database reduces risk of accepting bad checks and collection costs  No bank deposit fees  Files to update your in-house accounts receivable system Conclusion We are Committed to Providing Superior & Affordable ACH and Check Processing Solutions

Secure Payment Systems Scripps Ranch Blvd. Suite 109 San Diego, CA Tel: Fax: Interested in a Web Demo? Getting Started