INTERNET MERCHANT ACCOUNT SERVICES OVERVIEW

   The ability of most Internet businesses (service providers,
Web-based "storefronts", etc.) to accept Visa & MasterCard credit
cards as payment is essential, especially since more and more
customers are preferring to pay by credit card due to the
convenience and protection a credit card purchase offers.

   While most banks do not offer this service directly to
businesses that obtain the majority of their sales by mail or
phone, usually due to the higher risk, it does not hurt to ask.
Most banks will also require that you have a storefront. If you
can't get a credit card merchant account from your bank, there
are alternatives...companies that specialize in setting up
credit card merchant accounts for 'non-traditional' businesses.
These types of companies are called Independent Sales Organizations
(ISO's). They usually are associated with a bank looking to
provide merchant card services, and act as a middleman -
assuming the risk and insuring the account. Since the ISO's are
taking a greater risk than your local bank is willing to take,
it is not unusual or unreasonable for them to require start-up
costs ranging up to $500. Always ask if your business is
qualified before you apply. Also be wary of unbelievably low
discount rates, perhaps under 2%, a "hook" which usually has
other exorbatant costs attached - or only applies to
businesses that have a storefront.

   To process credit card transactions, you will need to
acquire processing equipment - either a 'swipe' terminal or
computer software program. Beware of ISO's who require
expensive binding equipment leases. If you are accepted and
given a merchant account you may get stuck with an overpriced,
personally guaranteed, equipment lease on equipment that may
be totally useless to you if your account is ever closed. Some
ISO's will build the start-up cost into the lease, meaning
less or no cost up-front...but costing you much more overall.
Most of the credit card processing software or terminals can
be purchased for no more than $300 to $400...a huge savings
compared to leasing. If you have a computer, try to obtain
software to process your credit card transactions. For
Internet businesses it is usually cheaper, quicker, more
convenient, and more reliable.

   First Alliance Internet (FAI) is an ISO that offers merchant
account services to 'non-traditional' businesses. FAI is a
division of Financial Alliance Processing Services, Inc., a
subsidiary of Deluxe Corporation and currently supports over
50,000 merchants across the nation. All applications are
pre-qualified. We have software programs to process charges
that operate in DOS and MAC environments.

   Qualifications: Company owner(s)/officers must be at least
18, have good personal credit, and the company must be based
in the United States.

   Costs: The following cost structure applies, generally, to
businesses whose majority of transactions are 'keyed' (entered
manually). Card 'swiped' transactions would pay a lower rate,
as may certain other business types:

Start-up cost: $195 (application fee, processing & shipping)
Processing Software: $295 (DOS single user)
                     $395 (MacIntosh)
Visa/MC Discount Rate: 2.70% plus 25 cents/transaction
Monthly Statement Fee: $9.50
There are no monthly minimums and no lease to sign.
American Express also available, at no extra cost,
with a discount rate of 3.50% + 25 cents/transaction
for most types of business.

For further information, and to apply, please call Dave Dauer
at the FA district office...(800)480-6694.

Dave Dauer / District Sales Manager
Bob Gerver / District Operations Manager

First Alliance, a division of
Financial Alliance Processing Services, Inc.
A registered agent of Old Kent Bank & Trust, Grand Rapids, MI