One of the biggest problems faced by merchants in the recovery of lost revenue from bad check writers is obtaining accurate information on the check writer at the point of sale. Accurate information is needed to contact a bad check writer and recover your lost revenue. Even if the check writer is using a store courtesy card as a form of identification, you should still obtain the driver's license number and phone number and write it on the check.

Too often, the driver's license number or the telephone number is transcribed by a cashier incorrectly. According to the U.S. Census Bureau, one out of every three Americans change their personal contact information every 12 months.

Stores that issue courtesy cards or discount cards normally only take contact information from a customer at the time of issuance. Therefore, when using the information on a courtesy card application to contact a bad check writer, a store may find the information is 33% more likely to be incorrect.

With the ChekXcept™ Card, a check writer needs to complete an application prior to the issuance of a ChekXcept™ Card. The application requires more information than requested by a supermarket courtesy card application. Also, a card holder is required to update their information on our web site every 12 months. If a card holder does not update their check writer information on an annual basis, the ChekXcept™ Card will be revoked.

In the event of a dishonored check, the National Automated Clearing House Association ("NACHA") requires a signed authorization from a check writer at the point of sale to electronically collect the face amount plus a processing fee. Our merchant clients post a sign at each register allowing us to deduct the face of the check and the state fees by draft.

We have incorporated the same language from our signs into the ChekXcept™ Card and the ChekXcept™ application form. This language authorizes the merchant, or his agent ChekXcept™, to electronically debit the check writer’s bank account for the face amount of the check plus a state allowable processing fee each time a dishonored check is received by a merchant at any location within the ChekXcept™ Network.

ChekXcept™ provides its client merchants with the names and card numbers of every bad check writer via email or through the internet everyday.

Many of our retail merchants have payment solution systems that allow them to input bad check writer information received from us directly into their cash registers. This allows them to flag a bad check writer at the point of sale. Each card has a bar code. Retailers scan the bar code on the card to determine if the card holder can use their check writing privilege. Retailers that do not have this software ability can obtain bad check writer information on the internet.

They simply click on a desktop icon we will provide and you are instantly taken to our card verification portal where you can enter the card number and get an immediate check approval or check denial. Remote retailers, like flea marketers, can print out the bad card numbers locally, or in various regional formats.

With the ChekXcept™ Card, the merchant no longer has to concern himself with insuring the proper information is either printed or written on the check by their cashiers. We already have all the information. The cashier just needs to check the expiration date on the card; make sure the name on the card is the same as the name on the check; scan the bar code on the card and complete the transaction. That's it!

Not only will the merchant know if the check writer at the point of sale has a dishonored check outstanding at that store location, but the participating merchant will now know if the check writer has a dishonored check outstanding anywhere in the ChekXcept™ network.

Bad check writers will no longer be able to write a check for goods and services anywhere within the network until he/she honors that returned check and pays the amount outstanding in full, plus a service charge. At that time, the card number is reinstated.

This prevents a bad check writer, for example, from visiting a network store in Virginia, paying for goods and services with a bad check and then visiting a network store in Pennsylvania where he tries to do the same thing.

If you provide a small business service such as lawn care or contracting or, you are a merchant at a flea market, carnival or special event, you need to become a member of our network. Offering a check payment option to customers is smart business. We publish all card numbers that have been revoked on the Internet daily. The business owner of a remote sales location merely needs to print the list out prior to the sales event and bring the information with him/her to the selling location, fair, carnival, special event or the flea market.

If a customer shows a cashier a ChekXcept™ Card, it means ChekXcept™ has pre-qualified the check writer and has maintained updated information on file about the check writer. As a result, a merchant no longer needs to be concerned about taking out of state checks from cardholders. Pre-approval means we can recover you lost revenue faster and easier because we know where to find the check writer.

Accepting the ChekXcept™ Card will attract new business at your retail location because check customers will shop at your store for the convenience the ChekXcept™ Card affords. We plan to offer the ChekXcept™ card to other member organizations like AARP and Automobile Club of America, after the initial introduction in select stores. Our goal is to have 500,000 active ChekXcept™ Card customers by July 2008. As our network grows, it will attract more shoppers and more shoppers attract more merchants.

When a shopper visits our website, he/she will see a list of all merchants within the ChekXcept™ Network. We plan to offer free links from our website to your website so shoppers wanting to know more about your service or product can do so by visiting you on line. Having an inexpensive link in a growing network of cardholders can provide you with an economical way of advertising to thousands of people. Here's another exciting feature.

The ChekXcept Card's application requires an email address from each applicant. This sets the stage for ChekXcept™ to offer geographically specific broadcast email advertising at inexpensive rates. This means that if we have 10,000 cardholders in your geographic area, you can target an email advertisement to those 10,000 people inexpensively. ChekXcept™ will handle the email advertising for you and all you need to do is concentrate on sales.