BioPay Announces Check Guarantee Program for Grocers

Revolutionary Program Eliminates Check Cashing Risk and Increases Store Revenue

Herndon, VA — February 4, 2002

Biometric identification leader BioPay, LLC today announced its nationwide program for grocery stores which guarantees the face value of all checks cashed. BioPay's new Check Guarantee program uses biometrics to eliminate the risk of cashing bad checks and help retain revenue that would have otherwise been lost on fraudulent transactions. No other company offers such a program.

"Check cashing is an ideal way for grocers to distinguish themselves from competitors. For it to be a profitable customer service, grocers need to be assured they will be paid on the checks they cash," said Tim Robinson, president, BioPay. "Our Check Guarantee program gives them that confidence."

According to the Federal Bureau of Investigation, between April 1996 and January 2000, check fraud and related activities accounted for nearly $2.8 billion in losses. Criminals use sophisticated over-the-counter software to create real-looking checks and then cash them for millions of dollars every year. Merchants need to keep one step ahead of criminals to protect themselves. BioPay gives merchants that edge.

Beginning today, current customers and new grocery store merchants using BioPay's biometric check cashing system can take advantage of the Check Guarantee program. The program guarantees the face value of all payroll and government-issued checks entered into the BioPay system that are pre-printed, less than $800 and no more than one-month old. Each check cashing customer must also be enrolled in the BioPay system.

Easy Customer Enrollment

On initial check-presentment the customer gives the merchant his/her driver's license for scanning or inputting into the BioPay database. At the same time, the customer's two index fingers are scanned and an electronic photo is taken of the customer. The entire process takes less than two minutes and all information is stored within the BioPay system. A repeat customer need only scan their finger to complete future transactions.

BioPay's Check Cashing System

BioPay's system electronically scans a customer's finger, stores a template of the finger image, and then records check-cashing transactions associated with that person. A customer's negative check-cashing information is stored in a central database and shared between all merchants using the BioPay system. Advanced alert mechanisms warn the clerk of a potential bad check before the transaction is completed, enabling the transaction to be declined before it is processed saving the store money it may have otherwise lost. And, BioPay's database is the nation's largest commercial electronic biometric database.

"Check cashing is a very profitable part of our business and a convenient service our customers like and appreciate," said Tom Duthler, owner of Duthler Family Foods in Grand Rapids, Michigan. "We cash a large volume of checks so the potential for fraud is huge. We protect ourselves with BioPay at all our locations."

BioPay's system will be featured at the Food Marketing Institute's MARKETECHNICS® Convention February 3-5, 2002 in San Diego. Please come by Booth #543 to see a personal demo and learn more about the Check Guarantee program.

About BioPay, LLC

Since 1999, BioPay has been providing smart, secure methods for processing financial transactions. Its Paycheck Secure systems help businesses substantially reduce fraud and give consumers a convenient method for cashing checks. BioPay's payment service offers merchants a low-cost form of customer payment and gives consumers a secure, fast and convenient way to pay for purchases. BioPay's patent-pending systems for merchants, banks and financial service organizations have been implemented across the nation. BioPay's value to consumers and merchants has created the nation's largest commercial electronic biometric database. For more information on BioPay and its market-leading products please visit www.biopay.com.