IMC Best Practices Meeting

1. IMC Best Practices Meeting Marty Hawke, General Manager Niles D. Crum, Payment Processing Specialist June 26, 2008

2. Agenda • PPD Overview • Credit Card Market Overview • Best Practices • Credit Card Processing • Risk & Fraud • Building eCommerce enabled web sites • Monetizing Subscriber Base with PPD’s Referral Program

3. About PPD, The Direct Division of PPI Payment Processing, Inc. is the industry leader for integrated payment solutions,helping almost 750 partners & more than 26,000 merchants with efficient, cost-effective payment processing.

4. Technical Support From Needs Analysis to Installation & Ongoing Technical Support • Integrated Processing Solutions to St&-Alone POS Terminals • 24/7/365 Technical Assistance • Middleware Recommendations & Integration What We DoMerchant Services PPD Is a Merchant Services Provider • Registered Agent with Chase Paymentech, First Data Corporation & Global Payment Systems • All Major Credit Cards (Visa, MasterCard, AMEX, Discover, JCB) • Better than bank pricing

5. Administrative Support for All Banking & Transaction Issues • One-On-One Assistance with Reporting, Procedures &Process Resolution • Understanding Your Statements • Chargeback/Dispute Resolution & Support What We DoMerchant Services Risk Management Support • State-of-the-Art Risk Monitoring & Transactional Review • FraudTalk Training for All New Merchants • Ongoing Fraud Training Tools & Reminders

6. Credit Card Market Overview

7. Credit Card Market Overview

8. Credit Card Market Overview

9. Credit Card Market Overview

10. Credit Card Market Overview • In 2006, electronic payments comprised over two-thirds of all non cash payments in the U.S. • Debit card payments now exceed credit card payments • Card payments alone comprised over half of all non cash payments • Check payments continued to decrease and did so at a more rapid pace than the previous three-year period • Check clearing is increasingly electronic

11. Where the Money Goes Visa or MasterCard Association 5% Issuing Bank 81% Acquiring Bank 8% Payment Processing Direct 6%

12. Credit Card Best Practices for Publishers • Marty, please insert a Vance or Ascend Media merchant statement page that shows data rate 1, stard or eirf charges which Albert should have a copy of. Make sure to black out their name so we don’t embarrass them.

13. Credit Card Best Practices for Publishers

14. Risk & Fraud Best Practices Examples • Use a PABP validated payment application • Balance your merchant account statements against your daily payment records, e.g. batch closure reports or transaction receipts • Control access to issuing credits, this can prevent employees from issuing returns to their own credit cards • All transaction records and account statements should be stored in a secured area with controlled access • Respond to chargeback retrieval requests immediately • A positive authorization verifies that the credit card is a valid card number with an available balance – it is not a guarantee that the transaction is not fraudulent

15. Risk & Fraud Best Practices for Publishers • Risk, Fraud & Security education & training are included in our service • Security Compliance is now an industry requirement for all merchants • Fines start at $10,000 • You don’t have to go it alone • PPI provides complete compliance services to help you get it done • You may use our PPI Compliance Portal to register for security services.  Necessary when an Internet connection is used for payment card processing

16. eCommerce Enabled Web Sites for Publishers • In 2006, electronic payments comprised over two-thirds of all non cash payments in the U.S. • DBA conspicuously posted that matches the DBA on the application • Products & price list • Privacy policy • Customer service phone number • Refund policy • CVV Code • Delivery method & days, i.e. UPS 2-3 days • Checkout process complete with shopping cart & personal information/credit card form • The check out process must be secure. A security certificate must be present to certify that it is secure. A small lock box on the lower right hand corner of the page identifies the security certificate

17. Monetizing Your Subscriber Base with PPD’s Referral Program

18. Monetizing Your Subscriber Base with PPD’s Referral Program Benefits: • Subscribers get improved service by having PPD’s professional expertise • Subscribers reduce their credit card processing costs, thereby increasing their bottom line • Subscribers can take advantage of additional PPD offerings such as check guarantee programs, gift cards & cash advance programs • Publication earns a portion (20%) of the monthly residual profits from each subscriber for as long as they use our services • Publication becomes more important to its reader base by providing a source where the subscriber can lower its operating costs thus setting itself apart from its competition • PPD builds its business by gaining new customers

19. Monetizing Your Subscriber Base with PPD’s Referral Program Marketing Ideas • Email to subscribers a letter to announce the program. Suggested letter provided by PPD, which could also work as a “Publisher’s Letter” • Provide Payment Processing Direct a position on its website • Provide advertising space in its newsletters • PPD author’s a one page article on credit card processing  • Provide attendance and booth space at conferences • Provide circulation data including the subscriber’s principal contact, email address & phone number. PPD allowed to mentionpublication’s name as an endorsement of the program • Provide display or classified advertising to support the program

20. Monetizing Your Subscriber Base with PPD’s Referral Program

21. Thank You For Your Time and For Your Business Marty Hawke, General Manager Niles D. Crum, Payment Processing Specialist June 26, 2008