NPC Check January 2008 Sales Summit January 2008 Forecasted - - PDF document

NPC Check

January 2008 January 2008 Sales Summit

Forecasted Consumer Spending

Consumer Spending (in Trillions)

$’s 2006 % $’s 2011 % Checks $1.8 24.5% $1.1 12.4% Electronic Checks (1) $ 7 10 4% $1 5 16 2% Electronic Checks (1) $ .7 10.4% $1.5 16.2% Credit Cards $1.9 26.1% $2.8 30.7% Debit Cards $1.0 14.1% $1.8 19.1% Other, Incl. Cash $1.81 24.9% $1.99 21.6% Total $7.21 100.0% $9.19 100.0%

Source: October 2007 Nilson Report, Does not include Mortgages, B2B, or B2G (1) Electronic Checks includes ACH Conversion at Point of Purchase (POP), Pre-authorized Payments (insurance, utilities, telecom, cable, etc.) and Remote Payments (Tele & Web)

Checks are Still Alive & Well for our Industry-Why?

Even though the % of Consumer Checks combined with Electronic Checks are forecasted to decline from 34% to 28% over next 5 years, Checks are forecasted to decline from 34% to 28% over next 5 years, Checks are Still Alive & Well because: 1. $ Volume still significant-$2.5 Trillion in 2006 to $2.6 Trillion in 2011 2 Volume Shift-Electronic Check will grow to almost $1 0 Trillion by 2011 2. Volume Shift-Electronic Check will grow to almost $1.0 Trillion by 2011 3. The Emerging Market for Cards, such as Utility, Government, Charitable, Property Mgmt, Telecom, etc., will accept large volumes of Checks and will prefer an Integrated Electronic Processing Solution 4 Merchants/Businesses will promote Electronic Check acceptance-overall 4. Merchants/Businesses will promote Electronic Check acceptance-overall cost per item will be less than Credit/Debit Card 5. Consumers will continue to use Check as a payment option-habit, record keeping, float, and the fact some consumers don’t have credit/debit cards 6. Electronic Check acceptance, especially for the Bill Pay growth sectors, will deliver to the Consumer many of the same types of conveniences that card payment enjoys today 7. Electronic Check Processing for the B2B/B2G industry will be grow g y g

Top 10 Reasons Merchants/Businesses will continue to Embrace NPC Electronic Check Processing Embrace NPC Electronic Check Processing

• Will speed up Availability of Funds (Cash Flow)

p p y ( )

• Will eliminate or reduce Uncollected Funds (NSF)
• Will eliminate or reduce Fraud Items
• Overall Processing Cost per Item will be less than

C dit d t D bit C d P i Credit and most Debit Card Processing

• Will Increase Employee Efficiency
• Will Reduce the Risks associated with Employee

handling handling

• Will eliminate bank fees associated with NSF items

for paper checks

• Will eliminate bank deposit fees
• Will provide detail online electronic reporting
• Can provide electronic integration with variety of

accounting systems

Multitude of NPC Check Solutions

• Check-Writer Present at Point of Purchase (POP)
• NPC eGold-ACH Conversion with Guarantee
• NPC eSilver-ACH Conversion w/o Guarantee

NPC eSilver ACH Conversion w/o Guarantee

• NPC Back Office Conversion (BOC)
• NPC eBronze, Check Verification Only
• NPC Traditional Paper Check Guarantee
• Check-Writer Not Present at Point of Purchase

– Recurring ACH Debit/Online Bill Pay – Tele-Debit, ACH auth by Phone, with Guarantee – ARC Lockbox, Electronic Processing of Checks received through the Mail or Dropbox Remote Deposit Capture (RDC)/Check 21 & POP Remote Deposit Capture (RDC)/Check 21 & POP On March 1, 2008, NPC’s ARC Lockbox, BOC & POP Solutions will be full scale RDC/Check 21 capable to process all non-ACH eligible items, i.e Business Checks, etc. On April 1, 2008 NPC , p , shall have certified these Solutions for high volume/speed multi-feed equip. configurations.

NPC’s Partnership in POP Check Processing C s a t e s p O C ec

• cess

g

Best in the Industry

• Best in the Industry-

Proven 6 Yr, POP Programs

• g a

s

• 6,000+ merchants

with ….

NPCs Retriever Check- P i l t Paying almost $1,000,000/year in residuals to sales groups

NPC Check’s POP Solutions-Increase your Residuals & Retention y

I R id l

You are you leaving Money on the table if you are not presenting NPC Check’s POP Solutions to your

• Increase Residual

Revenue by 25% or more

• n each Card Merchant

y Merchants

• Increase Net Lease

Commissions by $200 to $400 per Merchant $400 per Merchant

• Increase Merchant

Retention by 25%-35%, or y , more

NPC’s Check Solutions NPC’s Check Solutions

NPC eGold - Conversion w /Guarantee

– Promote as a “Secure

NPC eGold - Conversion w /Guarantee

Payment” – Process and accept checks “just like a credit checks just like a credit card” – Guarantee of all approved and accepted checks – Check is returned to consumer consumer – Similar fee structure as bankcards

NPC eSilver – Check Conversion w/Verification NPC eSilver Check Conversion w/Verification

• No guarantee from Point of Sale
• Check is handed back to consumer
• Merchant not funded on checks that do not clear
• 72 hour funding
• Verification against negative database
• NSF items automatically represented

NPC Traditional Paper Guarantee NPC Traditional Paper Guarantee

• No conversion

Paper check deposited at merchants bank

• Paper check deposited at merchants bank
• NSF Paper check forwarded to GETI

Ch k i t i d

• Check imager not required

NPC Recurring ACH Debit Program C ecu g C eb t

• g a
• Merchants can automatically debit

customers checking acct on regular custo e s c ec g acct o egu a basis

• No paper check is written

No paper check is written

• ACH conversion of funds
• Merchant will input & mange via online

web interface

Recurring ACH Debit

(Continued)

Recurring ACH Debit (Continued)

NPC ARC and BOC Program NPC ARC and BOC Program

• General term used in Industry-Remote Deposit

General term used in Industry Remote Deposit Capture (RDC)

• Electronically process paper checks received

y p p p via MAIL or DROPBOX

• Electronic Check Conversion
• No Guarantee
• No Verification
• e

cat o

NPC ARC and BOC Program NPC ARC and BOC Program

• Web Based program

Web Based program

• Check Imager

NPC Tele-Debit Program NPC Tele Debit Program

• 1. Must be “Face-to-Face”
• 2. Consumer signs ACH Auth receipt

NPC Tele-Debit Program NPC Tele Debit Program

1 Di l t ll f #

• 1. Dial toll free #
• 2. Enter “PIN”
• 3. Enter checking/routing #
• 4. Enter $$$ amount of transaction
• 5. Receive an authorization #

Merchant funded electronically in 4 business days GUARANTEED! bus ess days GU

NPC Tele-Debit Program NPC Tele Debit Program

R i d t b thi h Required to buy this phone …

NPC Tele-Debit Target Industry NPC Tele Debit Target Industry

Towing Business Contractors Plumbing Business Limo / Taxi Drivers Pizza Delivery Landscapers / Lawn Care

NPC Check 21 Processing NPC Check 21 Processing

• New processing method allowing for ALL checks to be

p g g electronically processed

• Consumer checks, and some Business Checks, can

and will continue to be processed via ACH, but, checks and will continue to be processed via ACH, but, checks not eligible for ACH such as Business Checks will now be accepted and processed using Check 21

• Front/Back Image of Check is required
• Front/Back Image of Check is required
• Available as an option for NPC’s POP/ARC/BOC

–

Single feed imager and 4Access g g

• Estimated release date March 2008

–

Multiple feed high speed imager

• Estimated release date April 2008

Estimated release date April 2008

Checks-By-Phone Checks By Phone

• Merchant can accept checks payments over

Merchant can accept checks payments over the phone

• ACH process

p

• Guarantee
• Web interface or

Web interface or file transfer

• Specific requirements

Specific requirements

• Released Feb 2008

www NPCcheck com www.NPCcheck.com

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