Neiman Marcus 2009 Annual Report Download - page 413

SCHEDULE 4.8(d)
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 [***] hours is allowed
per month during the hours of 12 am and 6 am CST, however, Bank will ensure in advance that system maintenance does not conflict
with any NMG special sales event. Internet functionality shall include:
• Real-Time Application Processing with Fraud Authentication— Bank application processing product must be completely
processed back to Internet within a [***] window. Authentication product is a necessity to release new account number
immediately back to Internet applicant if automatically approved or if referred to NMG Credit Services, a referral/reference
number generated. 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 either re-test applicant is required if applicant calls for manual verification. In the event that fraud expenses increase for [***]
compared to fraud expenses from prior year as a result of application fraud trends discussion with NMG and Bank must be held
to discuss alternatives and implement new fraud strategies to either enhance or replace current authentication tools. Excluding
auto-declined applications, this may include automatically referring all internet applications to perform further manual
verification by NMG Fraud before approving.
• Real-Time Authorization Processing (on NM/BG 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 over-limit percentage
parameters and TRIAD 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 ticket-level authorization prior to the item being
shipped. At order time, an initial authorization is performed to ensure the account is approvable and until all items in the order
are shipped, [***] until shipped to ensure the account is still in good standing. All authorizations not able to be approved
systemically will require a batched queue-related decision process with NMG Credit Services to manually decision pending
transactions. Some of these manual referrals include verifying the cardholder's address discrepancies between the CMOS and
credit systems to further detect fraudulent address sending.
• [***]Month Promotional Plan Offer — On furniture and Home Décor items, Bank shall offer NM On-line customers a
[***]month, no interest tender option for those purchases over [***] dollars. The real-time authorization processing for these
Accounts must allow for these requests to be sent to NMG Credit Services for manual intervention. These requests are setup to
bill [***] of the billed balance with no interest to ensure that [***] equal payments exist for each item based on item ship date.
• New Account Prescreening or Prospecting — In coordination with NM On-line personnel, new account and existing account
prescreening options on the web can 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-