Value Management Group International, LLC:

1
Value Management Group International,
LLC Product Control File Review
2
Discussion Items

• Overview and Qualifications Value Management
  Group International LLC (VMGI)
• Product Control File
• Importance of the Product Control File
• Product Control File Review
• Next Steps
• VMGI Contact Information

3
Overview and Qualifications Value Management
Group International, LLC (VMGI)

• We assist card issuers in the realization of
  performance improvement through superior
  strategy, operations, and financial management.
• VMGI possesses the requisite experience and
  skills needed to be successfulthose skills
  include
• Strong analytical competence
• Broad exposure to front and back office
  environments
• The right balance between creativity and
  practicality
• Deep industry insights and knowledge
• VMGIs Mission To offer the most in-depth and
  insightful advice to improve the financial
  performance of credit card issuers.
• VMGI personnel have experience working with a
  number of the leading U.S. card issuers,
  including
• Wells Fargo Bank First USA GE Capital
• American Express Citibank USAA
• VMGI has experience in many different kinds of
  projects with card issuers such as
• Systems and Operational Performance
  Improvement Strategy Development and
  Implementation
• System Conversion Assistance Vendor
  Services Review
• Budget Management Competitive Assessments
• Contract Negotiations Revenue Enhancement
• VMGI personnel have assisted a number of card
  issuers in the identification and realization of
  third party processor performance improvement
  opportunities. We possess in-depth knowledge of
  First Data Resources (FDR) and Total System
  Services (TSYS) and the associated costs of doing
  business with these organizations.

4
Overview and Qualifications VMGIs unique
approach to management consulting has delivered
outstanding results for our clients

• VMGI strives to deliver projects in which
• The measurement of relative success is clear
• The client is fully aligned with the project
  goals and objectives
• There is frequent communication and consensus
  regarding project progress and results
• VMGI Staffing-Our relatively small project teams
  are comprised of highly experienced and smart
  consultants that quickly diagnose the situation
  and then develop and manage the best solution.
• Post Project Management-We typically provide
  post-project support from the same VMGI project
  personnel in an effort to provide consistent
  post-project support and maximize benefit
  realization.
• The benefits from our unique approach to
  Management Consulting have been outstanding
• A recent project is projected to yield a five
  year return that is approximately 80 times
  greater than VMGIs Professional Fees.
• A recent project identified annual performance
  improvement opportunities of approximately 20
  times greater than VMGIs Professional Fees.

5
Importance of the Product Control File

• For Credit Card Issuers that process with First
  Data Resources (FDR) the Product Control File
  (PCF) is the life blood of revenue generation and
  product management
• The PCF controls mission critical functions such
  as        
• Pricing, including fees, finance charges,
  introductory rates and penalty pricing
• Rewards and/or transaction-based pricing programs
  (ALP/TLP)
• Plastics generation and the mailing of plastics
• Report production
• The PCF is complex, allowing management literally
  thousands of choices when setting up a portfolio.
  The differentiated products within a portfolio
  are all made distinct by PCF settings

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Product Control File Review

• Due to the sensitive nature of the functions
  involved in the PCF it is of tantamount
  importance that the settings are reviewed
  periodically for consistency and accuracy
• Inaccurate file settings can be responsible for
  impaired interest and fee revenue. Errors in the
  PCF can lead to systematic undercharging of fees
  and interest
• Inaccurate PCF settings can also lead to
  overcharging of fees and interest. Because many
  of the functions controlled by the PCF are
  publicly disclosed there is legal liability
• Examples of problems caused by inaccurate PCF
  settings include but are not limited to
• Paying for transaction level pricing (TLP) flap
  balances after the TLP balance has been paid down
  by customer
• Not charging appropriate fees, or not at the
  correct rates
• Not charging interest on certain accounts
• Introductory rates not expiring as intended
• Internal Operations are impacted by the Product
  Control file as well, for example
• Operations such as risk policy associated with
  plastics re-issuance can be impacted by
  inaccurate settings
• FDR generated management reports are controlled
  by the PCF. Settings that are not periodically
  reviewed can lead unnecessary reports expense
• Other Opportunities
• Simply having a outside fresh look review
  current PCF setting decisions can lead to
  operational improvements and innovation within
  the portfolio

7
VMGI would like to meet with your organization to
accomplish the following objectives

• Personally introduce VMGI
• Our qualifications
• Our experience
• Discuss potential project structures, approaches,
  and compensation alternatives

8
VMGI Contact Information

• VMGI Contact
• Scott Smith, Executive Director, VMGI
• P.O. Box 406
• Chesterfield, MO 63006-0406
• Phone [phone]
• Email sesmith_at_vmgillc.com