Email from Ibill - FYI

[Vick]

Haven't used Ibill as a processor for 2.5 years but still have rebills (yes Cloud 9 Entertainment members stay that long)

I get this email today which is a little confusing. Does this mean Ibill gets to keep the reserves (what are permanent reserves as referred to below?)

Ibill has already debited me for holdback for the period 10/1 to 10/31 - is this an additional hold fee?

So I call and you can guess no one can really answer what the email is about except it went out to parties that have over 1% CB ratio but guess what ..... I haven't had a CB or refund with Ibill since April 2003!!!!

Am thinking this is in error and won't apply to me but (of course) my account rep isn't in and support couldn't answer

Here's the email ......

Dear iPay Complete Merchant,

As disclosed in your contract, iBill is required to withhold certain amounts as credit card reserves on your account. Please be advised that iBill will be debiting your account on Friday November 21, 2003 for credit card reserves. The hold fee will apply to credit card sale transactions from October 1st through October 31st. You can estimate the amount of the debit by taking the gross Visa and MasterCard sales in October and multiplying the total by the appropriate reserve %. Please make sure that sufficient funds are in your account to avoid any additional fees.


You will be able to identify the debit by the following descriptor:


"iPayReserves"


Going forward, reserves will be collected once per month on the 15th for the first six months of service only. Once reserves have been collected for a full six months, that amount becomes the permanent reserve for your account. These reserves will be assessed periodically in relation to your business volumes and chargeback levels, among other things. Should it become necessary, iBill reserves the right to collect additional reserves.


If you have any questions or concerns, please call 1-800-764-4266 or email support@ibill.com


Thank you for your business.


iBill