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Slide 1: April 25, 2007 San Antonio | London | Frankfurt | Kuala Lumpur | Hong Kong | Moscow | Tampa CONFIDENTIAL
Slide 2: One Measurement to Rule Them All REVENUE!  Proven methods that increase revenue ― Attract new customers ― Reduce shopping cart abandonment ― Maximize expenditures ― Prevent revenue leakage ― Provide a better user experience than the competition So what options do you have? ― Expensive marketing campaigns for customer acquisition ― Simplified “shopping cart experience” ― Search engine optimizations Been there / done that. What else? CONFIDENTIAL  
Slide 3: Alternative Payment Solutions Proven to Increase Revenues Consumers’ and merchants’ concerns about credit card use mean there is a pent-up demand for alternative payment vehicles that are less costly and more secure, Schatt says ... ...alternative payment options could account for up to 26% of all online payments by 2009, up from 14% of all payment volumes this year, he says.   But there are a lot of “me too” payment options offering another mechanism for using Credit Cards, Debit Cards and ACH processing Therefore we can ask: “is there a new payment method, that provides a truly unique purchasing demographic; unserved by credit cards, debit, and ACH; that is safe and secure which will in turn decrease shopping cart abandonment and provide a better user experience than my competition? CONFIDENTIAL
Slide 4: Bill2Phone™ Designed for Revenue Optimization “Over 60% of decisive consumers would prefer to add online charges to their existing local phone and/or broadband bills instead of credit card.” – Javelin Strategy & Research, March 2006 maximizes revenue by ― Billing to over 100 Million Households ― Reaching 60-80 Million* unserved/unbanked online purchasers who cannot, or chose not to use credit cards on line ― Protecting users against identity theft ― Integrating sophisticated fraud management ― Reducing cart abandonment from “payments fear” *US Banker, “Landing the Unbanked with Lure Aiming to Build Credit.” 4/2007 *Ceridian, “Federal Reserve banks on paycards.” 11/2006 CONFIDENTIAL
Slide 5: Bill2Phone Decreases Abandonment Statistics ― When offered by a wallet provider, 34% of UK users bill to telephone ― When offered by a wallet provider, 80% of Swiss users bill to telephone ― 60% of unbanked [but comprising a desirable demographics] more likely to buy when offered a no credit card needed option – Javelin Strategy & Research ― 15% of US consumers are un-banked (no credit card) for example Tweens ― Phone billing provides access to 100 m households (US) Highly Collectible ― Phone service is viewed as a utility by the online Guest ― Pre-screening virtually eliminates non-paying or non-billable Guests Increase Conversion to Sale with non-cannibalizing Bill2Phone option ― 40-60% of all eCommerce transactions terminate when a credit card is requested ― Online cart abandonment cost US online marketers $63B in 2004 – Internet Retailer ― ‘No credit card required’ increases online conversion when messaged appropriately ― Consumers get 30-60 days of interest free payment options A gateway solution not a back office replacement – you remain in control ― We are NOT outsourcing your payments solutions, customer interaction, nor brand ― Standard Credit Card like transactions: Authorize, Authenticate, Refund, Void, Sale, Settle, etc. CONFIDENTIAL
Slide 6: Bill2Phone is as Sophisticated as Credit Cards Best Technical Payments Solutions ― Virtual Terminal: Allows you to manage individual transactions ― Subscription Manager: allows you to define recurring billing ― BC WebTrack™ Reporting: Full transaction lifecycle management ― eStatements & Purchase Confirmation: clearly communicates to end-users their purchases to minimize customer confusion ― Customer Service: BSG can provide customer service for its merchants ― Credit Card like APIs: Near-Real Time and/or Batch solutions Advanced Risk Management Solution ― Assistance from the Local Exchange Carriers (LECs) allows for more accurate authorizations ― Advanced integrated fraud management solutions available maximizes profit while reducing charge backs  Data Modeling  Velocity Checks, Geolocation & the largest BTN negatives database  Underwriting Risks ― Dedicated risk management team & in-house analytics High Availability operations ― Real-time redundant environments ― Load balancing CONFIDENTIAL
Slide 7: Bill2Phone Transaction Flow Standard ecommerce purchase 1. 4. 1. 2. 5. 8. 3. 2. User selects merchant service & registers with merchant by paying with Telephone Number Merchant validates user by sending authenticate request to BSG Clearing Solutions BSG authenticates user through a number of queries to Telco & other validation databases Merchant confirms to user that charge successfully posted & releases content Merchant settles transaction Telco invoices user Telco settles with BSG BSG settles with Merchant 3. 3. 5. 6. 7. 4. 5. LECS 6. 7. 8. CONFIDENTIAL
Slide 8: Offerings: Features and Benefits Feature Category Risk Management Features Authentication Authorization Telephone Billability Credit Limits Fraud Analysis Advanced Gateway LEC Endorsed Benefit Reduced Fraud Pre-processed records, reduced costs Simple to use (merchant) LEC Association based rules and enforcement Payment Services eBill presentment Invoicing Online self care & User Portal Transaction Verification User email notification Aggregation Virtual Terminal & Recurring Billing Txn LifeCycle Mgmt Reports w/ Drill Down Multiple payment options Simplified user experience Safe to use LEC Endorsed Simplified but sophisticated merchant interface General API Based vs Telco based Competitive Rates LEC marketing opportunites Simplified merchant interface similar to CC New demographic LEC subscriber base CONFIDENTIAL
Slide 9: Bill2Phone as part of the Advanced Payment Gateway (APG™) Bill2Phone Credit Card Acquiring All major card brands Diverse connectivity into multiple processing platforms ― Multiple acquiring banks ― Domestic/international options ― High risk programs ― ― Adv Risk Mgmt ― ― ― ― ― ― ― Card Verification Schemes Multi-Point Velocity Controls Card Issuer & IP Address Geolocation Rule Weighting & Neural Model Scoring Nonsensical & Obscenity Data Filters Complex Boolean Rules User-Definable Rules & Data Inputs  Advantages of One Gateway, One Provider & 20+ years handling financial transactions Simplify with a single source payment service provider Minimize development costs and IT overhead with a managed ASP service Eliminate fraud with fully integrated risk management systems Streamline reconciliation and minimize expenses with competitive acquiring services for payment processing ― Simplify reporting with a one-click interface and instant exports ― Packaged solutions with competitive prices ― ― ― ― CONFIDENTIAL
Slide 10: A Client Centric Approach Sales ― Review new products, assist in LEC underwriting process, always available as a point of contact for customer Dedicated account manager is merchant’s first line of contact for all issues, responsible for merchant boarding Directly interfaces with all LECs on merchants behalf 24/7 real-time billing management reports Staff available to answer questions regarding settlements, reporting, and positions Client Relations Department ― LEC Relations Department ― BC WebTrack™ ― Accounting ― Service…is THE difference, Resourcing is the Key! CONFIDENTIAL
Slide 11: In Summary BSG Highest focus on Customer Service  Client Services  LEC Services  Customer Call Center  Near Real Time & Batch  Recurring Billing, Virtual Terminal  Highly available redundant environments  Payments Gateway API  Fraud Analyzer  Risk Modeling  Integrated or stand alone solution  $3 Billion processed globally  $180+MM Revenue  750 clients  Public Company  Wallet, ACH, Credit Card single source provider  Tax filing services  Revenue Recovery services More than 22 years experience in Telecom Payments Solutions Best Technical Solution Most Advanced Fraud Protection Leadership & Financial Strength Growth alignment call 888.393.5854 | email: sales@bsgclearing.com
Slide 12: Contact Information Thank you! For further information contact BSG Clearing Solutions at 888.393.5854 or send an email to sales@bsgclearing.com call 888.393.5854 | email: sales@bsgclearing.com