Neiman Marcus 2008 Annual Report Download - page 674

SCHEDULE 4.8(b)
Internet Services
All Internet-based system functionality provided and maintained by the Bank must be available to cardholders 24 hours a
day, 7 days a week with a minimum [***] system availability. Scheduled system maintenance not exceeding 4 hours is allowed per
month during the hours of 12 am and 6 am CST. Internet functionality shall include:
• Real-Time Application Processing with Fraud Authentication – Provided Bank product offers extended application functionality
beyond NM Online real-time application process (to be implemented in June 2005), Bank application processing product must be
submitted through CDM or comparable system and completely processed back to Internet within 45-second window.
Authentication product is a necessity to release new account number immediately back to Internet applicant. Authentication
product must give NMG the ability to influence question weighting structure and type of demographic or credit bureau-related
questions asked. Detailed fraud reporting and if available, the ability for Universal Agents to quickly view applicant's category
questions whenever necessary are other requirements. In the event that fraud expenses increase for 2 consecutive months
compared to fraud expenses from Fiscal Year 2004 as a result of authentication changes by moving from the NMG to the Bank
authentication and system platform, formal discussion with the Management Committee must be held to discuss alternatives and
implement new fraud strategies to either enhance or replace current authentication tools. The authentication tools would also be
beneficial in other application arenas if available.
• Real-Time Authorization Processing (on NM/BG revolving/option accounts) - Direct communication to and from NM Direct/On-
line CMOS system with a less than 2-second response time per authorization request is a requirement. Current or comparable
system over-limit percentage parameters and rescore tier I and II matrix guideline increase processes must be in place to eliminate
as much manual intervention as reasonably possible. Authorization processing through this channel must be done from a line or
ticket-level authorization prior to the item being shipped instead of at order time or as a total authorization request. If items
including drop ship or back-ordered items are not shipped within 30 days of the authorization request, the item must be re-sent
through the systemic authorization processes for re-authorization. All authorizations not able to be approved systemically will
require a batch or queue-related decision process with NMG Credit Services to manually decision pending transactions. If
approved manually by the Universal Agent on the same day as the sale date, an immediate release of that order within the CMOS
system must occur as it does today.
• Signature Account (SIG600) Functionality – On furniture and Home Décor items, upon NMG's request, Bank shall offer NM On-
line customers a 6-month, no finance charge Signature Account tender option for those purchases over $600 dollars. The real-time
authorization processing for these Accounts must allow for these requests to be sent to NMG Credit Services for manual
intervention. SIG600 accounts are setup to bill 1/6th of the billed balance to ensure that 6 equal payments exist for each item based
on item ship date. The Signature Account Agreement and terms letter following a Signature Account approval must be automated
within the respective credit systems. SIG600 denials will automatically receive appropriate adverse action letter. If the Bank
system can support a signature sale