Who is ecashflow Systems?



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Who is ecashflow Systems? In business since 1998. Locations: Denver, CO Operations & Tech Center Omaha, NE Sales & Marketing Offices Management: 60 Plus Years of Business experience including Information Technology, Banking, Retail, Telecommunications. 4 former CEO s including former Telecheck executive Formed to Assist Merchants with Bad Check Collection An Associate Member of NACHA NSF Check processing today: In excess of 200,000

Industry Statistics 1.3 Million Bad Checks daily in America 2001 6.9 Billion ACH payments worth more than $20.3 Trillion Fed processed 16,993,800,000 checks Unit cost for a check increased from 3.6 cents to 4.0 cents NSF fees average $5.00 per return (many times twice) Federal ACH volume has increased from 1.5 Billion in 1993 to 3.8 Billion in 2000, a 153 percent increase

Industry Statistics (Continued) ecashflow Systems best collection rate is 87% prior to sending the item to the collection company. However, these rates can vary depending upon the specific industry. Merchant always receives 100% of the value of the check when collected.

epayed Process Developed for merchants that accept checks for payment of services and products. You continue to deposit checks to your account as you do today. If the check is returned NSF, the check is sent directly to ECS. ECS creates ACH (electronic) items from the paper check. ACH speeds collection of check, and allows for presentation of an item to any bank within 24 hours.

epayed Process (Continued) Allows for 3 presentations of an NSF item(paper checks allows only 2). Before 3rd presentation, our automated sweep technology calls the bank daily to verify funds. After 3rd presentation, if check is not collected we send item to our professional collection company that uses proven conventional recovery methods. Merchant receives 100% of the face value of the check when collected. Collected funds are electronically sent to clients account daily.

Why is it important to use electronic (ACH) process? New NACHA rules, enacted in 1998 permit up to three presentments to collect a NSF item. ACH items can be presented for payment to any bank in the country within 24 hours. ACH items take priority over paper checks. Shortens the amount of time to obtain Collected Funds.

Our Process Customer writes check for services Check is charged back against Merchant account and forwarded to ECS C Item is sent to our Collection Company using traditional collection methods M Merchant receives check for payment ECS changes check to an ACH and re-presents to customers bank $X C M Merchant deposits check at their bank B B $ Customer has funds, the check is paid and monies are sent electronically (ACH) to the merchant account daily $X Customer does not have funds and the ACH item is returned NSF to ECS $ B Check is presented for payment at customers bank Unable to collect check, returned to Merchant Item is collected and 100% of the face value of the check is Proprietary Information sent to the Merchant of ecashflow Systems C ECS calls Customer s bank daily to verify funds before resubmitting M $ Customer has funds, the check is paid and monies are sent electronically (ACH) to the merchant account daily $X Customer does not have funds the check is returned NSF to merchants bank B $ Customer has funds, the check is paid and monies are sent electronically (ACH) to the merchant account daily $X Customer does not have funds and the item is returned for the third time

How does ecashflow Systems make money? Banking rules and regulations were changed in 1998 to allow check processing companies such as ecashflow Systems to earn a fee while collecting NSF checks. We work directly with the customers bank to settle funds. These fees are authorized to be charged against the individuals account who wrote the NSF check. Fee structure varies by state. Fee s range from $15.00 to $30.00 per check.

System Information Hardware and Operating System Tandem Non-Stop Technology, same system used to run Stock Exchanges, Banks and ATM networks. Proven Software Developed by and Proprietary to ecashflow Systems.

Overall Benefit Increase the number of checks collected. Our systems best collection rate is 87%. Increase your companies cash flow by collecting NSF checks faster. Our automated sweep technology can reduce float time. Lower your internal costs by outsourcing all collection activity, allowing your internal employees to focus on the core business. Lower your hard banking costs by not paying submission and return check fees. 100% of the face value of the check is paid directly to the merchant even if we use our outside collection partner. Drive customer retention by eliminating embarrassing collection activity between you and your customer. All collection activity and the status of any check can be viewed online 24x7 via the Internet or optional daily/daily reports via fax or email.

Merchant Implementation Merchant does not pay any fees for this service! No special equipment is required. Only merchant involvement is to add disclosure sentence to customers monthly statement. If point of sale checks accepted, a new endorsement stamp will be required. Our Customer never pays a fee!

Current Clients City of Billings, Montana Ace Hardware The Bi-Lo Center Denny's Restaurants Ellis Oil Centers FISI/Madison Financial Grace Allen Private Schools Hank's Supermarkets IGA Supermarkets Just for Feet Shoe Stores Kendrick Kwik Stops McDonald's Restaurants Leukemia Society of America Quality First Designs One Dollar Discount Stores Texaco USA, Inc. Phoenix Telecommunications University Photography North-South Shipping & Supply Red Lion Casino Video Magic Stores Wireless Cellular, USA Xanadu Express Zero+1 Support Systems Peerless Tyre Co TKC Little Learners St Vincent DePaul Department Stores Birch Communications Capital Card Services (Testing) AT&T Broad-ban(Pending Start Date)

Notification Reports *Store Notification Report* Date : Tuesday, January 8, 2002 * Detailed Report * Feerless Co Reportt Dates : 500 King Street From : December 31, 2001 Denver, CO 80239 Through : January 7, 2002 Fax : 303-321-4741 Signed Check # Amount RR Dated Debit V. Code Cashier Driver License # Guar [Store # KS69 Feerless Tyre, Co. / 4214 Huntoon St.] John D Ronso 3126 20.00 NS 12/20/2001 Jamie E Haly 1034 25.90 NS 12/14/2001 Donna Scoty 0676 54.49 NS 12/11/2001 Jonah J Feldhus 1995 8.86 NS 12/11/2001 Kathleen M Carrom 4016 63.36 NS 12/21/2001 Christopher J Esco 0729 15.00 NS 12/20/2001 Cindy Clak 4081 12.21 NS 12/22/2001 Jewelia A Oswold 2876 13.50 NS 12/24/2001 Jim P Heim 2777 13.35 NS 12/24/2001 Robert J Nuget 9425 10.11 NS 12/24/2001 236.78 KO284 K1122 KO347 K12476 K51280 KO469 K45650 K51045

Notification Reports *Reimbursement Report* Date : Tuesday, January 8, 2002 * Group Report * Feerless Co Report Dates : 500 King Street From : December 31, 2001 Denver, CO 80239 Through : January 7, 2002 Fax : 303-371-4749 Signed Check # Amount Refunds RecChrg Driver License # Ver_Code [Store # KS69 Feerless Tyre, Co. 4214 Huntoon St.] Micky G Newma 1577 15.06 1.00 0.00 KO-48-834 Micky G Newma 1589 22.65 1.00 0.00 KO-48-834 37.71 2.00 0.00 [Store # KS72 Feerless Tyre Co 1001 North 3rd St] Suitton B. Tadly 6156 15.10 1.00 0.00 K0-01-187 15.10 1.00 0.00

Contact Information Sales & Marketing Operations & Tech Center Address: 11620 M Circle 4600 S. Ulster, Suite #700 Omaha, NE 68137 Denver, CO 80237 Email: steve@ecashflowusa.com rod@ecashflowsystems.net jeff@ecashflowusa.com ken@ecashflowsystems.net Toll Free: (888) 522-9301 (888) 339-6062 Telephone: (402) 891-1527 (303) 486-0840 FAX: (402) 891-1582 (303) 486-0851 Web Site: http://www.ecashflowusa.com