Net Account
	Net Account is a fully integrated end-to-end, real-time, Internet payment processing and cash management system that can process and manage pre-paid, stored value, debit, or credit transactions, offering unlimited scalability with very precise account management and control.  In effect, Net Account is a virtual credit, debit and value storage vehicle all in one, designed for the Internet, that allows businesses and consumers to quickly and easily establish an account online in real time, make online purchases without releasing private financial information, and control and track online expenditures for multiple authorized users.  The primary benefit to transaction processors, financial institutions, corporations, and governments lies in the security, ease of use, flexibility, and functionality that Net Account provides to their respective customer bases. 1. The Net Account infrastructure handles the basic and necessary functions of (i) transaction management, (ii) application distribution, (iii) database abstraction, (iv) security interfaces, (v) recovery, (vi) logging, and (vii) session management services for global payment systems.  See “Glossary” for an explanation of these terms.   2. Net Account is a closed-loop online payment method that enables buyers to purchase online goods and services and move financial value between accounts while virtually eliminating fraud due to theft of private and confidential financial information.   3. Net Account is secure because it utilizes Public Key Infrastructure (“PKI”) and Digital Certificate technologies to ensure that the person initiating a financial transaction is the authorized account owner or user.  It also provides a closed-loop system so that transactions can be completed without confidential user or financial information being exposed to the Internet.   4. Net Account is easy to use because it is a pure online payment system offering a master account with the option of sub-accounts and can be funded by a variety of methods such as credit, debit, prepay, and stored value.  It also offers enhanced account management and purchase control functionality as compared to existing payment methods.
	Key Net Account Benefits for Buyers and Sellers
	Payment Options - Net Account is based on an online account that can be funded from a variety of sources, including a credit facility that can be applied for and approved immediately online.  Approved Net Account users will receive an initial line of credit from their financial institution (credit amount is dependent upon the parameters established by the underwriting financial institution making the offer) and/or use a facility to maintain a prepay balance.  In addition, customers of businesses utilizing Net Account may choose a prepaid, debit, or stored value account option as their primary payment facility instead of a credit account option or, in some cases, may be offered these non-credit options if declined for credit by the underwriting financial institution.  Payments can be initiated from PCs, wireless and mobile devices, and smart cards. Immediate Use – In a single, online session, users can apply for, be approved, and use a virtual credit, debit or other financial institution account offering when utilizing Net Account.  Unlike with credit cards, users who qualify for a line of credit can use it immediately.  There is no card to get lost or stolen.   Security Features - By using a combination of digital certificates, pass-phrases (more secure than passwords), advanced encryption technology and business policy management, Net Account effectively prevents fraud and identity theft.  All parties using Net Account in an electronic transaction are authenticated.  On the buyer-side of a transaction, users know they are dealing with legitimate businesses, and on the seller-side, the online businesses are assured of receiving payment for goods and services they deliver.  Also, the Net Account’s patent applied for “triple-signature security” requires every Net Account transaction to be digitally signed by both parties and confirmed by eCharge² before it is processed.  Net Account ensures that no one but the account owner (or authorized sub-account users) can initiate a financial transaction.  Because the financial transaction takes place within the Net Account’s closed-loop system, private user and financial information are never exposed to the Internet.   Account Management - Net Account provides the ability to manage online financial transactions through the use of sub-accounts.  A CFO of a large corporation, small business owner or head of households can set up sub-accounts for purchasing categories, personnel or family members, while administering separate user and financial control options for all of them.  The line-item detail captured on every transaction combines with other Net Account features to enable complex account management including Stock Keeping Unit (“SKU”) level transaction details, purchase history, and the ability to link to customer loyalty programs.  Users can view their statement online at anytime as well as verify their most recent transactions in real time.  Sellers can settle their payments shortly after confirming shipment with advanced tools that allow individual or batch transaction settlement.  Also, Net Account has unique “federated identity management” features that allow users the ability to access and manage non-financial accounts and transactions, such as healthcare accounts, taxpayer accounts, travel accounts, etc.   Lower Cost - Digitally signed transactions ensure positive identification of every buyer, seller, and funding authorization. Otherwise a transaction will be denied.  The unique security features of Net Account offer sellers the ability to create a non-repudiated transaction that ultimately reduces costs due to the reduction of charge-backs and associated fees as well as fees related to administration and overhead of fraud resolution (card-not-present fees).   Increased Sales - The security features of Net Account offer sellers the ability to gain e-sales from buyers leery of exposing confidential user and financial information online.  The variety in funding sources enables those without credit cards to conduct eCommerce (e.g. those without credit cards due to inability to be approved or lack of desire for credit).  Unlike credit cards, Net Account can offer real-time payments to users.  For industries that make large volumes of customer payments, this can dramatically reduce processing costs and increase customer stickiness that increases overall net sales. Micro-Payments – Net Account is a cost effective solution that enables buyers to make purchases over the Internet at almost any price.  Transactions that would otherwise be uneconomical for sellers are now possible with Net Account.
	Key Net Account Benefits for Transaction Processors and Financial Institutions
	In addition to the ability to provide the above benefits for their customer base, transaction processors and financial institutions will benefit from the Net Account technology in the following ways:   Implementation – Many large transaction processors and financial institutions have grown their companies through acquisitions and now have multiple data centers needing a common, secure, identity management front-end solution that can integrate with varied legacy back-office business applications and payment processing platforms.  Net Account allows these entities to implement a common, secure solution globally across each application platform that utilizes consistent regulatory, legal, and standardized business practices.   Federated Digital Identities – Utilizing Net Account’s technologies combined with value-add products and services from strategic alliances, transaction processors and financial institutions can provide their customers the ability to use one digital identity for multiple applications.  For example, the same Net Account digital identity can be used in a payment transaction, with a healthcare account, a brokerage account, an e-government account and the data to support these transactions.   Outsourced Turn-key or Licensed Options – The Net Account technologies can be purchased as a turn-key outsourced operation or licensed by components to compliment existing financial institution or transaction processor capabilities.  The Company is committed to delivering market leading technologies and service solutions to its clients through its internal research and development along with the product and service integration of several of its strategic alliance partners.   Secured Online Debit Accounts – Utilizing the unique Net Account “secured transaction protocol” and supporting technologies, financial institutions and transaction processors will be able to offer their existing pin-based debit card customer base with access to the Internet to make debit purchases.  This capability will position online business and government entities to be able to capture a significant share of the rapidly growing debit card usage online.   Distribution Channel – Financial institutions and transaction processors can participate in the strategic market distribution of the Net Account technologies and services to their corporate, government and consumer customer market segments and/or geographic territories.  Additionally, these entities can leverage the Net Account “8 card” identity authorization, settlement and loyalty branding capabilities to deliver financial products and services both online and in the traditional card-based payment processing environments.   HIPAA Compliant (Health Insurance Portability and Accountability Act) – Net Account’s identity management is the patient’s key to their health records and allows for payment of healthcare services in a secure way online.