1. Key Components of Developing and Managing an Authorized Agent Payment Network Utility Payment Conference

2. The Bill Payments Landscape 36.8% of U.S. Households are financially underserved Source: MasterCard Worldwide July 2008

3. Why People Do Not Have A Checking Account Reason Percent Do not write enough checks 28.6 Do not like dealing with banks22.6 Do not have enough money 14.0 Service charges are too high10.2 Cannot manage or balance a checking account6.6 Minimum balance is too high 6.5 Do not need/want a checking account5.3 Credit problems3.6 No bank has convenient hours or location0.4 Other 2.1 Source: Federal Reserve Survey of Consumer Finances

4. Corporate Goals Increase revenue Decrease cost Increase customer satisfaction Increase employee satisfaction Strategic competitive positioning

5. Corporate Vendor Application Non-Contracted Authorized

6. Authorized: Vendor Strengths Needed  Leading edge technology and business model capability State-of-the-art data center Business continuity and disaster recovery program Custom Real time or batch reporting capabilities User friendly payment transaction entry application  Outstanding Service Agent services (recruit, monitor, manage) Client service (personal manager, quick turnaround) Benchmarking “Best Practices” Managed through a defined Service Level Agreement  Industry leading funds transfer application On time delivery of funds Reliability of delivery  Financial Stability (Security of Funds)

7. Electronic Bill Payment Overview Application Signature Electronic Bill Pay Sectors 1. Software/Hardware Application 2. Client Services 3. Agent or Trustee Network (Free, Fee, Mixed) 4. Data and Funds Transfer 5. Data Accuracy/Exception Processing 6. NSF, Return Item Processing and Check Truncation 7. On-Line Data Lookup 8. Service Level Agreement (SLA) 9. Report Card and Business Review Meetings 10. Management Developed Reports 11. Non-Exclusive Contract

8. Electronic Bill Payment Overview Application Signature Software/Hardware Application  Real time or batch – Custom designed  FREE or FEE to your customers (or, mixed network)  Process cash, check, money order  Scanning, Check Truncation, Image Processing  Custom receipt  Agent balancing process (no late data processing or funds transfer)

9. Electronic Bill Payment Overview Application Signature Client Services  Single point of contact for IT and Operations  Develop Client protocol for daily interface  Timely response  Quarterly performance and annual business review meetings

10. Electronic Bill Payment Overview Application Signature Trustee Network  FREE, FEE or mixed  Custom selection criteria  Recruit, train, manage, and monitor  Strict credit approval  Special signage  Low turnover rate  Rapid response to agent issues  Immediate update of Agent/Trustee status  Network coverage  Monitoring

11. Electronic Bill Payment Overview Application Signature Data and Funds Transfer  Real time from POS (provides most advantages and eliminates or reduces ancillary cost)(resolves critical action issues/processes)  Customized timing for posting file  Not dependent upon agent balancing  Assures no unreported transactions  Client developed controls for major processes  Data available via secure on-line website  Reports to facilitate analysis and management  Special Receipt Number Validation

12. Flow of Funds All funds guaranteed at the time a receipt is produced. DayDescription 1  Payment processed  Data transmitted to vendor server in real time  Customized balance file produced  Payment data transmitted to Client 2  Retailer deposits funds  ACH initiated to transfer funds of all agents to concentration account then to Client  Internal application balances and identifies deficiencies 3  Funds received by Client  ACH deficiencies addressed by vendor

13. Electronic Bill Payment Overview Application Signature Data Accuracy/Exception Processing  Check digit algorithm for “both” manual and scanner application  Real time Account Number Validation (ANV) (eliminates un-postables)  Do Not Accept Check process designed within ANV for maximum efficiency  Research and response to Client inquiries at the time of call or within 72 hours  Critical Action Payment Notification  Custom download capabilities

14. Electronic Bill Payment Overview Application Signature Service Level Agreement (SLA)  Developed to capture major electronic payment processing expectations  Specific performance measurements  Daily/Quarterly review and management of SLA

15. Checks are scanned at POS for Back Office Conversion Processing Check Conversion Client Benefits: Lower processing cost for merchants (helps retain agents). Lower processing cost for merchants (helps retain agents). Allows for electronic processing which lowers return rate. Allows for electronic processing which lowers return rate. Removes agent from return check processing. Removes agent from return check processing. Allows for lower bill pay transaction fee. Allows for lower bill pay transaction fee. Expedites and facilitates processing. Expedites and facilitates processing. Virtually transparent to the customer and more streamlined for the merchant. Virtually transparent to the customer and more streamlined for the merchant.

16. Checks are scanned at POS for Back Office Conversion Processing Check Conversion Back Office Conversion vs. POP: BOC provides Client the flexibility to allow or disallow customers the option to opt out of check truncation. BOC provides Client the flexibility to allow or disallow customers the option to opt out of check truncation. POP forces the merchant to decision items as eligible for truncation. BOC allows for all items to be scanned and vendor decides if items are eligible based on NACHA rules. POP forces the merchant to decision items as eligible for truncation. BOC allows for all items to be scanned and vendor decides if items are eligible based on NACHA rules. POP requires a customer signature authorizing truncation. BOC requires signage indicating the check will be truncated unless opted out by customer. POP requires a customer signature authorizing truncation. BOC requires signage indicating the check will be truncated unless opted out by customer. Utilizes a change in NACHA rules for BOC introduced in March 2007 Utilizes a change in NACHA rules for BOC introduced in March 2007

17. Check Truncation & Electronic Representment Processing Return Checks Returned check data is electronically configured to re-present  Electronic transaction more reliable than paper  Process options allow for 1 or 2 re- presentments Eliminates fluctuations in NSF per item cost (sets a fixed fee) Electronic Bill Payment Overview

18. Electronic representment provides for extremely high clearance rate  Paper checks have low clearance rates  Paper can only be represented once Representment much faster Excellent tracking and reporting Check Truncation & Electronic Re-presentment Electronic Bill Payment Overview

19. Check Truncation & Electronic Re-presentment Comprehensive NSF information Secure website Superior image display Print capability Provides information for easy analysis Electronic Bill Payment Overview Superior on-line return item application

20. Check Truncation & Electronic Re-presentment Electronic Bill Payment Overview SOAR lets you edit store numbers and custom data fields to improve the accuracy of your reporting and same-day Detailed Data Downloads (DDL). Click here for more comprehensive item detail of each item.

21. Vendor Web Reporting Web site reporting to facilitate payment lookup and analysis

22. CUSTOMIZED TO MEET YOUR NEEDS PAYMENT REJECTS/CANCELED FUND TRANSFERS RETURNED ITEMS TRANSMISSION DATA TRANSMISSION DATA CATEGORIZED BY GEOGRAPHY PAYMENT ADJUSTMENT DATA TRUSTEE PAYMENT VOLUMES BY LOCATION ACTIVE TRUSTEE LISTS WITH BUSINESS HOURS REPORTS

23. MARKETING AWARENESS PROGRAM Press Release Billing Inserts Bus Shelters, Bus Backs, Metro Cable TV Novelties Bag Stuffers at Retail Stores Ethnic Festivals In-Store Signage

24. Meeting Corporate Objectives Decrease cost Increase customer satisfaction Increase employee satisfaction Strategic Competitive Positioning

25. Summary of Services Bill Payment Services Customized to Your Needs Real-Time Processing Critical Action Notification Negative Check File (Do Not Accept Check) Account Number Validation Superior Customer Services Scanning at Point of Sale Check Truncation Using BOC Agent Services Reports Electronic Processing of Check Returns Image Processing Termination for Convenience Non-Exclusive Contract

26. Where You Save Bill Payment Services Customized to Your Needs Reduce customer calls Reduce customer complaints Reduce mailing and mailing errors (bills not updated based on most recent payment) Reduce check processing cost Reduce rejected check cost (NSF) and time range for identifying (Potential revenue stream from NSFs) Reduce special orders (non-pay disconnects, collections, etc.) Reduce late payment charges Reduce account adjustments Reduce payment arrangement corrections Reduce drive backs to customer premise Reduce after hour reconnects Reduce charge off cost associated with compressed time period for rejected checks

27. Where You Save Bill Payment Services Customized to Your Needs Other areas of interest: 2 nd alternative to disaster recovery application Reduce labor cost Serving the under-served customer Reduce customer cost for paying bill (driving, public transportation cost, etc.) Increase employee satisfaction Enhanced bill payment hours (after 5:00pm, weekends, and holidays) Integration with other payment channels (KIOSK, Credit/Debit card pay-by-phone, internet, etc.)

28. Speaker Information Speaker Wayne Norris Executive VP, Client Development Global Express Financial Services Silver Spring, Maryland 919-365-4978 wnorriw@global-express.net