ICP offers ecommerce merchants a solution to reduce payment acceptance costs and improve the experience of their customers. Visit www.cardpresent.net to learn more.

1. Business Review
September 2009

2. 2
Internet Card Present Industries, Inc.
ICP Industries, Inc.
• ICP Industries is a Delaware
corporation formed in 2008,
headquartered in Foster City,
California
• The company will provide Card
Present payment processes and
technologies to the ecommerce
industry
• The ICP management team is
composed on card payment and
security technology experts

3. 3
eCommerce – The Problems
The Right Solution
91% of all eCommerce transactions are
paid using Visa, MasterCard or
American Express credit and debit card
products
 eCommerce merchants pay the highest
card transaction rates due to “card not
present” network rules and regulations.
 eCommerce transaction fraud is over
3 times the rate for in-store retail
transactions.

4. 4
• Provides PIN based debit – the lowest
cost and most secure type of card
transaction – to eCommerce Merchants
for the first time
• Lowers merchant payment acquisition
costs
• Decreases merchant liability
• Reduces chargebacks and criminal
consumer fraud
ICP – The Right Solution
ICP offers eCommerce merchants “Card Present” payment
No other company can offer this unique combination of value.
ICP is the right solution for eCommerce.

5. 5
Opportunity
• Internet based eCommerce is forecast to reach
$1.6 Trillion in 2014
• Online payments are processed as “Card Not
Present” or CNP
• Security is the number one concern of online
consumers
• eCommerce Merchants are actively seeking
ways to reduce their payment acquisition
costs – often at the expense of consumer
preference and convenience
• PIN based debit is not an option for
eCommerce transactions
Growth and Demand

6. 6
The ICP Solution - Consumer
• Provide consumers with a device that allows
credit, PIN based debit card, gift card and
non-association branded debit network card
transactions to be processed from any
personal computer
• Secure all personal and financial information
in the device itself. Card data is never stored
on the PC or in merchant customer profile
systems
• Manage all de-encryption and transaction
processing – providing the merchant only the
data needed to close the receivable and ship
goods.
Increased Security

7. 7
The ICP Solution - Merchant
• Lowers effective interchange rates
• Reduces risk based fees
• Decreases merchant liability
• Increases payment options
• Decreases chargebacks
• Reduces PCI compliance obligations
• Provides PIN based debit – the lowest cost and
most secure type of card transaction – to
eCommerce Merchants - for the first time
Reduced Cost and Liability
Offer eCommerce Merchants a “Card Present” solution

8. 8
The ICP Solution - Merchant
Card Payment: Pay Less – Get More
Payment Type Transaction
Amount
Merchant
Reduction
Merchant
Reduction
Transaction
Cost Savings
PIN Debit $250 90 basis points 50% $1.12
Transaction Example:
 Card present rates represent an average of 60 basis point reduction against CNP
 Even a 10% conversion (your most frequent customers) yields millions in cost avoidance
 This does not consider the costs associated with chargebacks, risk management and PCI –
which all decrease substantially with the introduction of card present and PIN based debit.
Payment Type Annual
eCommerce
Volume
Merchant
Reduction
(blend average)
Merchant
Reduction
Annual Payment
Acceptance Cost
Savings
Credit/Debit $500M 60 basis points 50% $15,000,000.00
Annual Savings:

9. 9
The ICP Difference – Unique Value
• Brick and Mortar retailers keep payment
acceptance costs down through PIN
debit and Card Present rates
• In-Store terminals allow consumers to
use their preferred payment method,
while securing their personal and
financial information
• eCommerce Merchants currently must
choose between lower-cost or consumer
preference
Security and Convenience Online
ICP is the only company providing core value to both consumers and
eCommerce Merchants

10. 10
ICP Products & Services
eDevices
• Embedded encryption and security modules
• Numeric pads for PIN entry
• USB compatible
• User authentication
• Manufactured by AvaTrac – a global
electronics manufacturing leader
• PCI PED & PCI DSS compliant
ICP has patented it’s technologies and processes for
eCommerce card present transaction management

11. 11
ICP Products & Services
• ICP provides a full complement of payment options to eCommerce
Merchants for transactions initiated through ICP’s payment engine, these
include:
• Credit card
• Debit card – PIN based and “as-credit”
• Non association branded debit network card (bank card)
• Gift card
• ACH – recurring and non-recurring direct debit bank transfer
• ICP provides a customized integration to merchant shopping cart
• ICP provides customized integration to merchant processor and/or
acquiring bank
• Most importantly – ICP meets the requirements for card present rate
capture by assuring that the card, card-holder and merchant are present
during the transaction
Online Payment

12. 12
ICP Transaction Management Process
ICP Processing
Online
Merchant
Consumer makes
decision to purchase
from eCommerce
Merchant
Consumer
Customer
Account
configured
eDevice sent by
Merchant
ICP Payment
option is
presented at
checkout
Known customer has
received ICP eDevice from
Partner Merchant
Encryption Key certified and
eDevice enabled for
transaction processing
Customer installs and
registers eDevice with ICP
Device Process
Completed Prior
to Transaction
Consumer
selects ICP
payment
Device is
located and
identified
Transaction
information
passed from
Merchant to ICP
Consumer
authenticates
(PIN entry) on
eDevice
Consumer
swipes card &
enters PIN (if
debit)
eDevice
encrypts trans
information
ICP de-encrypts
transaction &
assigns fees
Requests Auth
from Acquirer
Transaction is
Authorized
Notification of
transaction
authorization
sent to Merchant
Funds
Settlement to
Merchant
Funds Settlement
may occur up to 3
days post-
transaction

13. 13
Market Strategy
In 2008, US eCommerce retailers had:
• Over $178 billion in transaction
volume
• Over 937,000,000 transactions
• Per ticket average over $192
• 6.5% of total retail market but 20% of
growth
• 65% of total in Top 500 retailers
eCommerce retailers are:
• Forecast to grow through 2014 by
annual volumes greater than 12%
• Actively promoting alternative
payment schemas to reduce cost
eCommerce Retail

14. 14
Global Growth Opportunity

15. 15
Market Strategy
• 55% of respondents make greater than 50 purchases online per year
• 54% of respondents purchase from over 10 different online merchants
• 93% type in their card information during checkout (card not present)
• 60% are worried about the security of their information online
• 65% would prefer to swipe their card for online payments
• 90% purchase traditional retail items online
• 93% purchase travel online
• 88% purchase services online
• 70% pay for government services online
Market Research
Source: ICP Industries, Inc. 2009 consumer internet payment survey

16. 16
Market Strategy
Card networks work for the Bank – not the Merchant
• Interchange - the percentage of the transaction
paid to the financial services firm that issued the
card to the consumer.
• Processing fees - imposed by the card network
and acquiring community
 $100 in goods purchased from Retailer.com =
270 basis point interchange (credit card
transaction)
 $.35 processing fees
 Net Settlement to Merchant of $96.95.
 Merchant cost of payment acceptance is $3.05
All card transactions are subject to both ‘interchange’ and processing fees.
Together these are called the ‘Merchant Discount’.

17. 17
ICP Management Team
Matthew Mullen – Chief Executive Officer
Over 18 years with of executive leadership in payment systems and ecommerce solutions
development, most recently as Vice President of Emerging Products with Visa. In this role,
Matthew led the strategic planning, development and market launch of new products to domestic
and international markets. Matthew received a Bachelor of Science degree in Business
Information Systems from Northfield University and completed post-graduate studies in Strategy
and Innovation at MIT’s Sloan School of Business.
Rebecca Cull – Chief Financial Officer
Over 20 years in merchant payment processing and credit fraud management including
Washington Mutual and Bank America Merchant Services, the fifth largest processor of merchant
transactions in the United States. She brings extensive knowledge of the credit card industry and
significant experience in SEC reporting for publicly traded companies. Rebecca holds a Masters
of Business Administration from Hayward State University and Bachelor of Science degree in
Business Administration from the University of California, Berkeley.
Alistair Duncan – VP Product & Processing
Over 20 years experience in the global payments industry, including roles with Visa International
as SVP of business to business payment products and executive leadership positions with leading
POS device manufacturers Verifone and Fortronic. In these roles Alistair was responsible for
defining and executing standards for device security and acquiring processor integration. Alistair
received a Bachelor of Science degree in Computer Science from Strathclyde University in
Scotland.

18. 18
Conclusion
Value to the Consumer and the Merchant
 eCommerce has not yet reached its full potential.
 Identity and transaction fraud remain the number one
concern identified by consumers when considering
purchasing goods and services over the internet.
 Merchants are aggressively pursuing new payment
models to reduce their operating cost, at the expense of
consumer preference and customer convenience.

19. 19
Conclusion
ICP – The Solution For eCommerce
• Highly secured, card present transactions
• Patented technologies and processes
• Long-term growth market
• Knowledgeable and experienced management team
• Savings for the merchant
• Security for the consumer