Press Release

BANKSERV AND INSTA-CHECK FORM STRATEGIC ALLIANCE

Full-service electronic check conversion and check guarantee service immediately available to install for more than 30,000 U.S. retailers

OCTOBER 12, 2000 - SAN FRANCISCO, CA - BankServ, one of the nation's leading payment services providers to retailers, financial institutions and online businesses, and Insta-Check, Inc., one of the largest check guarantee providers in the U.S., today announced they have formed a strategic alliance to provide their services to each other's customers.

Under the terms of this alliance, retail merchants and chain stores who use BankServ's point-of-sale electronic check conversion services will have the option of using Insta-Check for their check guarantee services. Insta-Check will also offer BankServ's conversion services to its 30,000 check guarantee customers.

"Customers of both our companies stand to benefit greatly from our new relationship," said Dave Kvederis, president and CEO of BankServ. "Insta-Check offers a wonderful service, which guarantees payment to merchants on any check that the merchant may accept from any customer. Whether a returned item is caused by an administrative error or for insufficient funds in the customer's account, a merchant with the BankServ-Insta-Check service will never have to wait to be reimbursed for that returned check."

Anil Gajwani, president and CEO of Miami-based Insta-Check, said BankServ's position as a market leader in electronic check conversion was the key factor in his decision to partner with BankServ. "Check conversion makes an immense amount of sense," said Gajwani. "Our customers have been asking us for help in managing the huge load of paper checks they are handling daily. Our companies' combined conversion-guarantee product eliminates both paper and losses."

"Electronic check conversion at the point-of-sale" is a service that converts a paper check into an electronic item, which is then processed for payment through the automated clearing house (ACH) system. After a consumer authorizes a merchant to convert a check, the check is scanned through a device that reads the magnetic ink imprint at the bottom, and the check's authenticity is verified through several databases (some newer scanners capture a full digital image of the entire check). The information is then electronically transmitted to BankServ's data center where the transaction is converted into an electronic funds transfer (EFT). This process benefits retailers by allowing them to consolidate their cash functions, lower their handling costs and bank fees, reduce fraud, and speed up the delivery of check payments into their merchant bank accounts.

According to the National Automated Clearing House Association (NACHA), the U.S. ACH network serves 20,000 financial institutions, 2.5 million businesses, and 100 million individuals. The system is commonly used for direct deposit of payroll and government benefit payments, for the direct payment of consumer bills, for business-to-business payments, federal tax payments, and, increasingly, for e-commerce payments. In 1999, more than 6.2 billion ACH payments were made, worth more than $19 trillion.

About BankServ

Founded in 1996 by CEO Dave Kvederis, BankServ is one of the country's leading providers of payment solutions for retailers, financial services companies and online businesses. Hundreds of U.S. retail businesses use BankServ's electronic check conversion services in point-of-sale and back-office applications, and the company is one of the leading providers of such services to customers of major financial institutions. BankServ also processes nearly $2 billion a day in international and domestic wire transfers on behalf of 110 U.S. financial institutions. BankServ is also considered the market leader in straight-through online electronic payment solutions for Internet businesses, including Internet checks, ACH funds transfers and Internet global wire transfers. Headquartered in San Francisco, BankServ also maintains offices in Atlanta, Austin, Boise, Boston, Chicago, Dallas, Houston, Lafayette, La., Las Vegas and New York.

About Insta-Check

Insta-Check, Inc., based in Miami, Fla., provides check guarantee services for more than 30,000 businesses in the U.S. Privately held, the company was founded in 1978 by its current president and CEO, Anil Gajwani, and it has been the fastest growing check guarantee company in the U.S. during last five years. Insta-Check's senior management team represents more than 75 years of experience in the check guarantee business, and the company prides itself for its position as an innovator in providing leading-edge and customized solutions to the merchant community. More information about Insta-Check can be found online at www.insta-check.com.

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