Conference Call Highlights

Thank you for joining today’s call. For your convenience, highlights have been posted below.

PROCESSING SOLUTIONS

iBill Direct:

This program places clients on a direct domestic merchant account that is backed by a cross corporate guaranty from iBill

Placement is also based on clients utilizing iBill’s consumer protection technology (pay page management, risk management, customer service)
Specific benefits to the Webmaster include:
Daily and direct settlement by the bank
Elimination of rolling reserve, 6 month hold with quarterly reserve analysis
Elimination of MasterCard portal

Fraud parameters and new functionality configured by client versus at IPSP level
Our first direct accounts are up and running
iBill EU:
iBill continues to have a strong processing relationships in the EU and will continue to operate as an IPSP in that market

iBill EU clients will also be able to take advantage of the gkard program as a standalone or in tandem with their EU credit card processing.
gkard:

A new payment solution for domestic and international clients
iBill has partnered with gkard an existing pre-paid stored value program
gkard has been in place for 2 years and is currently accepted in 130 countries
This program enables consumers to load a secure Visa electronic Card through VISA, MasterCard and Greendot loading stations (Greendot coming soon).
The gkard is configured for one time sign-ups and rebills
Consumer experience for sign-up is no different from the current iBill sign-up process
Unlike other stored value solutions, there is no need to front load the card and verify amount
Virtual card automatically fund loads the card from the pre-loaded credit card for rebills
iBill clients and revsharers will also be able to set up gkard accounts and have direct settlement to their gkard account.
gkard eliminates the need for MasterCard portal
We are confident that the gkard is the future of our industry since there are limited avenues for IPSPs domestically

iBill now has access to multiple banks versus a limited few
Ability to develop consumer loyalty programs to increase retention
Webmasters can take advantage of direct one to one marketing to consumers through the issuance of cards
Virtual card has no attached fees for consumers
When physical card roll out and membership programs are launched, competitive fees will be added that our webmasters will participate in.
For consumers that webmasters sign-up, they will benefit from a recurring revenue stream of the participation
Physical gkard will accept ATM and POS transactions
Past Due Payouts:
iBill has always stated that we recognize all past due payments to our clients and our committed to meeting these obligations.
Currently First Data holds approximately $15M
We are not moving forward with any additional litigation with First Data, but are working to develop a release schedule of these funds
We are also working on obtaining additional capital into iBill. While this is in process, we do not expect to see outside funds into iBill until sometime after the first of the year.
Initially-based on potential release of monies from First Data and anticipated outside funding, we had hoped to have all past due amounts addressed by October 31.
Due to a delay in both avenues, we will be moving forward under the following program:
Starting in December, each client will be paid out over a 12 month period for past due amounts from the period of September 15 to October 31. This will include reserves.
Past due amounts will be paid with 6% interest
Promissory notes will be signed by Officers and Board Members of the company
Our goal is to payout much quicker than over a 12 month period
Clients will also have the ability to convert past due amounts into equity of IBD stock at a discount
By early next week, an online form will be available in the iBill Merchant Info area to request the promissory note or IBD equity option
CMI reporting will include statements of past due amounts for all clients to view

We appreciate your continued patience as we work through this transition. We are very confident in our ability to move forward and are excited about the opportunities ahead of us with gkard program. For those that have additional questions regarding the conference call, please email [email protected]. Please include your master account number and account type (iBill EU, gkard, iBill Direct ect) in the email. Your questions will be used to develop a FAQ to be posted on CMI.