Neiman Marcus 2008 Annual Report Download - page 675

initiated as a secondary plan on the option/revolving account, this option will be used instead of a secondary account upon mutual
agreement by Bank and NMG in writing. Should this one-account option be used, no further Signature Account Agreement forms
or terms letter will be required for NM On-line customers.
• New Account Prescreening or Prospecting – In coordination with NM On-line personnel, new account and existing account
prescreening options on the web will be discussed by NMG and Bank The Parties intend to encourage creditworthy third party
customers, either during the check-out process or afterwards through an e-mail confirmation, to open an NM or BG charge
account with or without a promotion (i.e. bonus InCircle points or free shipping). Other prospecting options to encourage existing
NM or BG cardholders to use their charge card to shop will also be discussed by NMG and Bank with input from NM On-line
personnel with respect to specifications and design of such options.
• E-Pay Functionality – Electronic payment functionality must give the cardholder the ability to pay their bill on-line, even on their
closing or due date, until 7 p.m. CST if not later and be posted with this same date by the next business day. The MOD-10 check-
digit routine and other NMG account number logic (i.e. account must begin with 04 or 05, be 12-digits) must be part of initial
process to eliminate "account not found" transactions. Should an on-line customer request to change or cancel their payment on
the same day, Universal Agents must have an ability to correct these payments. Daily transmissions of these electronic payments
will be submitted through TRAMS or comparable receivable system to post payments regularly. Returned payment transmission
or reporting must be given to NMG daily to immediately reverse payment transaction. Initial ACH Authorization Form
requirements to initiate an e-pay request must be explored further between Bank and NMG. Recurring payment functionality with
this e-pay product would also be included if Bank has such capability. As a note, NMG currently utilizes several ACH vendors
through the IVR including Harbor Payments (Bank of New York) that can be used for this e-pay process fairly easily.
• E-Bill Functionality - On-line bill presentment must be readily available to cardholders within 24 hours of each cycle close and
should contain at a minimum all data that is currently printed on the NM or BG monthly billing statement. Billing functionality
should allow cardholders to view up to 12 months of their billing statements on-line. The Parties will cooperate to implement the
ability to display sub-total amounts per item in addition to selective marketing and InCircle loyalty messages and displays.
Universal Agents must have ability to view and discuss on-line e-bill functionality with cardholders whenever necessary.
• E-Service Functionality – The Parties will also cooperate to provide real-time memo and cycle-to-date balance information as
well as customer address maintenance and credit card re-ordering capabilities provided these on-line requests do not immediately
update cardholder credit system data. Instead, a security question (i.e. last four digits of SSN) will be asked of cardholder at time
of entry and updated data sent to a credit queue for manual approval before actually updating the credit system. Upon such time,
if any. review would be required until NMG Credit Services is comfortable with customer-initiated updates received from the on-
line channel and manual control could be eliminated.