Value Management Group International, LLC:

1
Value Management Group International,
LLC Dispute Resolution and Chargeback
Performance Improvement Opportunities
2
Agenda

• An Overview of Value Management Group
  International LLC (VMGI)
• Significant Opportunities through Improved
  Dispute and Chargeback Performance
• VMGIs Dispute Resolution and Chargeback
  Performance Improvement Qualifications
• Case Study
• Potential Project Objectives, Tasks and Areas of
  Review
• VMGI Contact Information

3
Value Management Group International, LLC (VMGI)

• We assist consumer lenders in the realization of
  performance improvement through superior
  strategy, operations management, and financial
  management.
• VMGI possesses the requisite experience and
  skills needed to be successfulthose skills
  include
• Strong analytical competence
• Broad exposure to front and back office
  environments
• The right balance between creativity and
  practicality
• Deep industry insights and knowledge
• VMGIs Mission To offer the most in-depth and
  insightful advice to improve the financial
  performance of consumer lenders.
• VMGI has experience in many different kinds of
  projects with card issuers such as
• Operational Performance Improvement Strategy
  Development and Implementation
• System Conversion Assistance Vendor Services
  Review
• Budget Management Competitive Assessments
• Contract Negotiations Revenue Enhancement
• VMGI personnel have assisted consumer lenders in
  the identification and realization of Dispute
  Resolution and Chargeback performance
  improvement.

4
Value Management Group International, LLC (VMGI)

• VMGI strives to deliver projects in which
• The measurement of relative success is clear
• The client is fully aligned with the project
  goals and objectives
• There is frequent communication and consensus
  regarding project progress and results
• VMGI Staffing - Our relatively small project
  teams are comprised of highly experienced and
  smart consultants that quickly diagnose the
  situation and then develop and manage the best
  solution.
• Post Project Management - We typically provide
  post-project support from the same VMGI project
  personnel in an effort to provide consistency and
  maximize benefit realization.
• VMGIs unique approach to management consulting
  has delivered outstanding results for our clients
  
• A recent project is projected to yield a five
  year return that is approximately 80 times
  greater than VMGIs Professional Fees.
• A recent project identified annual performance
  improvement opportunities of approximately 20
  times greater than VMGIs Professional Fees.

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Significant Opportunities through Improved
Dispute Resolution and Chargeback Performance

• The major associations are beginning to implement
  changes that will greatly impact the manner in
  which Dispute Resolution and Chargebacks are
  performed.
• These changes will have dramatic impacts on the
  operations of Dispute Resolution groups
  throughout the card industry.
• Consolidation of reason codes, elimination of
  multiple chargebacks and changes to arbitration
  guidelines make it critical to have the most
  efficient and nimble organization possible.
• Missed deadlines and improper reason code
  assignments can cost thousands in write-off and
  penalties.
• In spite of the importance of dispute resolution,
  many organizations possess significant untapped
  performance improvement opportunities due to a
  variety of factors, such as
• Multiple and under-integrated systems and
  underutilization of dispute resolution specific
  technology
• Ineffective and outdated processes and procedures
• Underutilization of the power of effective
  performance metric analyses
• Underutilization of effective chargeback
  preventative measures
• Lack of knowledge of the Dispute Resolution
  process changes

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VMGIs Dispute Resolution and Chargeback
Performance Improvement Qualifications

• VMGI possesses deep experience in the critical
  aspects of Dispute Resolution and Chargebacks
• Our knowledge base covers the end-to-end dispute
  resolution and chargeback process
• We possess extensive knowledge of point solutions
  such as
• System platforms
• Work flow management software
• Association specific solutions
• VMGI is independent of point solution vendors,
  thus allowing for unbiased and completely
  objective analysis

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Case Study

• For a leading national card issuer, VMGI led the
  reorganization of the overall dispute resolution
  and chargeback process.
• Key activities and project benefits included
• Physical, technological and quantitative review
  of end to end dispute and chargeback process
• Review of several applicable point solutions
• Assessed capabilities of the following
• System platforms
• Capacity
• Training
• Representative skill levels
• Workflow management
• Management reporting
• Organizational Structure
• Correspondence management
• Developed a revamped organizational structure
• Developed general workflows and procedures
• Developed a transition plan
• Developed a capacity plan
• The expected opportunity in reduced operating
  costs was estimated to be approximately 2.5
  million over five years.

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Potential Project Objectives, Tasks and Areas of
Review

• Potential Project Objectives
• Lower the cost to initiate disputes and perform
  chargebacks
• Reduce write-offs from internal mistakes such as
  missed deadlines
• Reduce operational costs through improved org.
  structure, processes and work flows
• Potential Project Tasks and Areas of Review
• Baseline assessment of Disputes and Chargebacks
  Performance Drivers
• Organization structure
• Representative skill levels
• Cost per chargeback, arbitration success, missed
  deadlines and other mistakes
• Customer service levels and industry practices
• Systems
• Workflow management
• Management reporting
• Vendor management

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VMGI Contact Information

• VMGI Contact
• Scott Smith, Executive Director, VMGI
• P.O. Box 406
• Chesterfield, MO 63006-0406
• Phone [phone]
• Email sesmith_at_vmgillc.com