The Next Evolution in Payment Technology - interest free

Cash to check to credit card. Now there is an easier way to pay - payroll deduction is an interest free way to pay over two months without ever writing a check or mailing an envelope.

FOR IMMEDIATE RELEASE

Introducing Clear, the Interest-Free Way
to Make Purchases Worldwide

E-Duction teams with MasterCard to unveil
the first-of-its-kind Payroll Deduction Card – Clear"

Blue Bell, PA, July 1, 2002 — A new form of voluntary employee benefit aimed at helping Americans better manage their finances was launched today. Clear provides employees with an easy and convenient way to make day-to-day consumer purchases and pay for them interest-free, 365-days-a-year through automatic payroll deductions. Clear combines all the convenience of a traditional payment card with the added value of interest-free purchasing and a convenient method of payment. The payments - for anything from home improvements to utilities, dinners to vacations - are deducted automatically from an employees paycheck over a two-month period without interest charges or late fees.
Clear provides employees with a powerful new interest-free way to help manage their personal finances," says Kirk Watkins, CEO of E-Duction. It represents the next wave of payment innovation—one that started when checks replaced cash, continued with the advent of credit cards, and expanded with the adoption of debit cards."
Clear vastly streamlines the entire payment process. We allow consumers to pay over time directly from their payroll, instead of transferring money to a bank, then moving it again to pay credit card charges," adds Watkins.
The Clear concept has attracted some of the worlds largest consumer financial services companies including MasterCard International. The use of the MasterCard brand provides access to more than 24 million MasterCard acceptance locations worldwide.
How Clear Works
For employees, its a simple, seamless way to avoid interest charges. Employees simply present Clear anywhere MasterCard cards are accepted. Merchants process the transactions just as they would with any payment card. The payments are drawn directly from employees payroll over the next two months interest-free. The only cost to employees is a $29 annual fee. Usage is capped to prevent misuse. For instance, a typical employee earning $40,000 receives a line of credit calculated as 2.5 percent of their annual salary, or $1,000. If the employee then goes to a merchant and buys a $400 lawn mower, $100 is deducted from their bi-weekly payroll for the next four pay periods. There are no interest charges, late fees or penalties to pay because the payments are automatic - employees can never forget to send in their payment. Each month, employees receive a statement that explains their charges and deductions. They can even access the statement online at www.E-Duction.com.
A large number of our employees have requested the card," says Helen Dubil, Manager, HRIS & IIR Administration at Reliance Standard Life Insurance Company. Their reasons for getting the card range from the ability to pay for emergency purchases and recurring bills, to being able to spread payments out over time without interest or late fees. This is one of the few voluntary benefits that works for me as well as my employees," she added. Employers pay nothing to offer the benefit to their employees. And the E-Duction technology makes Clear easy to implement.
We have spent the past three years developing the technology to simplify a very complicated process—accounting for variable purchases and applying them against employee payroll," says Tim Myers, Chief Information Officer of E-Duction. Were the first company in the world to meet this challenge—allowing for dynamic variable payroll accounting of transactions taking place at millions of locations worldwide."

About E-Duction
E-Duction was launched to capitalize on a growing trend that has emerged in payment technology – payroll deduction. In 2001, E-Duction introduced the first credit card, Clear, that gives employees interest-free purchasing power, 365-days-year. Clear is an innovative voluntary benefit that allows employees to make purchases at over 24 million MasterCard acceptance locations worldwide, and spread payments out over 2 or 6 months. E-Duction has teamed with some of the worlds leading financial institutions, and MasterCard International Incorporated. For more information about E-Duction, please contact Garrett Allen at Gregory FCA Communications at 610-642-8253 or garrett@gregoryfca.com.

About MasterCard International
MasterCard International has a comprehensive portfolio of well-known, widely accepted payment brands including MasterCardâ, Cirrusâ and Maestroâ. More than 1.7 billion MasterCard, Cirrus and Maestro logos are present on credit, charge and debit cards in circulation today. An association comprised of more than 15,000 member financial institutions, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard is a leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. MasterCards award-winning Pricelessâ advertising campaign is now seen in 90 countries and in 45 languages, giving the MasterCard brand a truly global reach and scope. With more than 24 million acceptance locations, no card is accepted in more places and by more merchants than the MasterCard Card. For the year ended December 31, 2001 gross dollar volume exceeded US$986 billion. MasterCard can be reached through its World Wide Web site at http://www.mastercard.com.

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