Copyright © 2005 EFT Network, Inc. All Rights Reserved. Premier Back Office Electronic Payment Processing Solution

2 2 While NACHA’S Point of Purchase conversion rule allows for some economies, Point of Purchase conversion falls way short of a total solution for checks received at the Point of Sale. NACHA’s Point of Purchase conversion does not:  Process all checks at a single point  Allow for consolidated accounting from multiple locations  Eliminate transportation costs for non-consumer checks  Keep check out times to a minimum  Reduce time consuming check handling processes NACHA’s Point of Purchase requires:  Costly scanning equipment for each check out lane  Significant training of Store Personnel  Change in customers routine for paying by check Current Business Challenges of Point-of-Sale Check Conversion 1

3 3 Is it possible to do the following:  Replace an expensive imaging scanner at the Point of Sale with an inexpensive rubber stamp  Convert more checks than allowed by NACHA’s POP (Point of Purchase) Program, and still be in compliance with NACHA Rules  Greatly reduce the time it takes to convert all checks at the point of sale, yet process checks electronically  Retain the check and authorization in such a manner that allows for easy retrieval of both with one inquiry  Have a system that virtually eliminates the need to constantly train employees for POS conversion Is There a Better Solution? 2

4 4 Wouldn’t it be great to have a better way to process checks electronically that can:  Eliminate the need for a scanner at every Register  Drastically reduce Transaction Fees  Accept all types of checks at the Point of Sale  Keep check-out times to a minimum  Consolidate handling of check items  Greatly reduce the Personnel training required  Improve funds availability through the faster depositing of checks  Be used as a sales tool for Reselling  As part of a front-end RCK System for potential clients Opportunity 3

5 5 EFT Network’s Solution

6 6 is an entirely new way for Retail owners to process and deposit any type of check at the point-of-sale  is our high-quality back office electronic payment processing solution that requires only one image scanner per store  A combination of robust technology, and fresh evaluation of ACH Rules, the image capture process is now performed in the back office, processing non-consumer payments, using the new Check 21 Act, and processing consumer payments as ACH items, all through a single scanner.  Eliminates the expense and installation of image scanners at every check-out counter The Competitive Edge 5

7 7 Special Authorization Stamp This stamp provides the authorization to process the customers payment for their purchase electronically. This Authorization is the same type taken for all generic EFT authorizations, the difference is this Authorization takes place at point of sale, and uses the back of the check instead of a separate piece of paper. Back of Check Consumer Receipt The same information is stamped or printed on the sales receipt and handed to the consumer for their notification and records. Authorization Stamp 6

8 8 The Special Authorization Stamp can be broken down into 3 sections Authorization allows the check to be used as source information for the purpose of obtaining the customers bank account information from the MICR line to access the consumers account. In essence we are not using the check as a check, but as the source for information we need. In the same section we are disclosing the type of transaction we intend to perform,  PPD for consumer accounts  CCD’s for Corporate accounts  Paper Drafts for items we can not clear electronically Notification notifies the consumer and obtains their authorization for a return transaction fee if the transaction is returned unpaid. Abides the NACHA rules and Reg. E to describe the manner in which the Company can be notified in the event the Consumer wants to stop the transaction from being processed. What the Stamp Says and Does 7

9 9  Submit checks and transfer funds electronically  Convert more checks than allowed by NACHA’s POP (Point- of-Purchase) Program and still be in compliance with NACHA policies  24/7 access to retrieve check images and authorization via our secure website  Real-time verification database (optional) reduces risk of accepting bad checks and collection costs  Upload files to update your in-house accounts receivable system Key Features 8

10 Technology Behind

11 Leveraging EFT’s Patent Pending Check 21 Imaging technology using multiple types of check imaging scanners linked to a Web based system allows retailers to perform a type of back office conversion. Stamping the authorization to the back of a check keeps the check and the authorization together. This greatly simplifies research requests. Images of both sides of the customers check with the authorization is captured in a single pass, in the back office. Imaging Technology Digital Check TS Digital Check TS – 220e Magtek Imager EFT Web Hosted Software 10

12 The Consumer presents a completed check to the Merchant, who stamps or prints the endorsement stamp on the back of the check authorizing the ACH transaction. Step – by – Step The Consumer signs the authorization for conversion and return fee. The check can Be processed through EFT’s verification System (optional). The Merchant can either print or stamp the authorization verbiage onto the sales receipt and given to the Consumer.

13 Consumer Items Non-consumer Items ACH Network Step – by – Step 12 At the end-of-day, the checks are scanned in the back office using one of our high-speed image scanners that easily interface with our web hosted software. The checks are transmitted and processed through the ACH. The images of both sides of the source check with the authorization is captured at a single point and is processed as one of the following transactions:  PPD for Consumer accounts  CCD’s for Corporate accounts  Paper Drafts  Check 21 IRD’s for items we cannot clear electronically

14 Step – by – Step 13 EFT Network electronically debits funds from the customers account and deposits funds in Merchants bank account. Funds are available within 24 to 48 hours, alleviating a trip to the bank. 5. Upload files into your in house accounts receivable system. 6. Consumers Bank Merchants Bank

15 EFT Network Software

16  Go to your browser and access the web-site.  Log onto  Select Customer Login on the left navigation Web Browser 15

17  Enter your customer information all in uppercase letters. -File Code -User Name -Password  Select OK Customer Login 16

18 Welcome Page  Here you can access: -Transaction cut-off times -Notification of results status -Customer Survey & Daily Messages  Select System on the left hand screen to get started 17

19 Main Menu  The Main Menu supplies you with all options available in our System  Select Scan Checks to begin processing checks 18

20  Requires one scanner per store, versus multiple scanners  Process all checks electronically  Merchant does not need to sort consumer items from non-consumer items  Minimize the change to consumers’ routine for paying by check  Requires less training that is required for POP  Consolidation of deposits for multiple company locations  Reduce Bank transaction return fees  Database verification reduces risk of accepting bad checks  NSF checks will be reported within three (3) business days Benefits for, YOU 19

21 Premier Back Office Electronic Payment Processing Solution Provides:  Concise, real time reporting available on-line  Expedited deposits  Lower transaction fees  Reduces bad debt risk and collection costs  New revenue from mark-up on check processing at POS & return fee to Merchants  No expensive software to buy  Accounting for deposits made easier  24/7 access to stored images Conclusion 20

22 EFT Network, Inc. is Committed to Providing Superior, Affordable, ACH and Check Processing Solutions 21

23 22 EFT Network, Inc. 245 Saw Mill River Road Hawthorn, NY Tel: Fax Contact: Alex Bacon, Vice President of Sales & Marketing Getting Started