Ibill First Data Settlement

[killshot]

Just got this email

April 6, 2005

Dear Client,

IBill is pleased to announce that we have reached a settlement with First Data regarding unpaid Reserve Releases and the unfunded transactions for September 16th to September 22nd 2004. In addition, iBill is also committed to paying 100% of the balance of payments owed to clients. To find more information on both go to http://www.ibill.com/merchantinfo/login/login.cfm.

To accept the First Data Release and the iBill settlement information please log into the Merchant Info website and choose "First Data Release Information" and follow the screens to initiate the process.

For any questions or concerns regarding the FDMS settlement, please contact either your Account Manager or iBill's Client Service department at [email protected].

Thank you,

iBill

[Jon2]

Things that make ya go humm

Jon

[killshot]

and this from their merchantinfo page

We have entered into an agreement with First Data Merchant Services Corporation regarding the release of certain funds related to your account. First Data has agreed to release funds associated with your Visa reserves that date from April 2004 through September 2004, and settlement funds for transactions processed through September 22, 2004 (the last date on which First Data processed any transactions for iBill).

Visa reserves are calculated at 60.87% of the total reserve amount collected by iBill. The 60.87% is based on our Visa transaction volume over the three-month period prior to September 2004. (Please note that First Data did not hold reserve funds specifically related to MasterCard transactions).

Unfunded transactions relate to the transactions processed by First Data but not settled for the period from September 16 through September 22, 2004. (First Data had already released to iBill the settlement funds for all prior transactions).

You will need to validate and agree to the amounts being funded from First Data. Upon your agreement, your account will be approved for payout. These funds will be released from a First Data managed account. These funds will not flow through iBill.

In order to receive these funds, you will need to revalidate or provide your ACH instructions.

The release of funds from First Data will reduce the total amount otherwise owed by iBill. The First Data release will appear as a separate line item in your account detail.

[Sosa]

and what about for just affiliates or am I confused

[killshot]

Dear Clients:

Today iBill announced that it is making a payment to its clients of $41,600,000. The payment is comprised of $21,600,000 in cash and $20,000,000 in Secured Notes.

iBill Recent History
On January 21, 2005, iBill was acquired by Interactive Brand Development Inc. ("IBD"). IBD spent nearly seven months negotiating the iBill transaction. After considerable and contentious deliberations, IBD elected to complete the acquisition based on its belief that iBill, as a pioneer on the Internet, has great potential despite a historical capital deficit.

Since the acquisition, only 60 days ago, IBD has taken dramatic corrective steps. IBD engaged one of the leading turn-around advisory firms in the United States. The firm evaluated the cash, the financial statements, the operations and most all aspects of the business and delivered its findings to the IBD board of directors. Based in part on these recommendations, the management of IBD has implemented a series of measures to stabilize the business and to position it for future growth. Most importantly, IBD has successfully made critical arrangements with both former and current third party processors; including: (i) a written settlement agreement with FDMS to release certain funds held since September 16, 2004; (ii) a written agreement with its EU processor to release funds held since December 14, 2004; (iii) arrangements with M2 to process Gkard Secured payments independently and make direct payments to clients, which occurred on March 15.

The Result

1. Gkard Secured payments are CURRENT and on cycle.
2. EU credit card payments billed thru ICC/ECB will be CURRENT by the end of April
3. FDMS funds are being released.
4. iBill is on the road to recovery and fulfilling its responsibilities again.

Note Payable
In addition to the successful implementation of the above, under IBD's direction, iBill has committed to fund the balance of the payments owed to clients in the form of a Note. The combined programs will provide significant and immediate cash payouts together with a long-term financial commitment by the company. The form of the Note Payable is below. Each Note Payable is guaranteed by iBill and will be redeemable for cash plus 3% interest paid in arrears from March 29, 2005. This Note Payable will be subject to an amortization schedule of 50% of the face amount plus accrued interest payable in two installments on March 29, 2006 and March 29, 2007. After you ACCEPT the terms on the Merchant Info page, a signed note for the settlement amount will be mailed to you. Participation in the plan will be cutoff after April 26, 2005. iBill may choose to defer the issuance of the Note Payable for those clients who are currently on Do Not Pay status, or who have a credit balance.

Misconceptions
Contrary to popular myth, no one at iBill or IBD has absconded with funds. The fact is that new capital has been injected into iBill. IBD is conducting a comprehensive audit into all 2004 transactions. No one at iBill has compromised credit card data and the credit card data remains secure. Understandably, extreme frustration has lead to sometimes emotional conclusions. In some cases, business competition has inflamed inaccurate rumors.

The Alternatives and Consequences
In collaboration with its turnaround advisors, IBD evaluated all possible options, including a formal reorganization of iBill under Chapter 11 and reached the same obvious conclusion each time; anything other than a cash and Note Payable plan would likely result in iBill closing its doors. If, after nine years in the industry, iBill was forced to shut down, our analysis is that client recoveries would be severely compromised. Clients could eventually only receive pennies on the dollar; pennies recovered after several years. As a result, we arrived at this plan. IBD feels that this is the only viable alternative to the unnecessary losses and delays which would result from a formal reorganization of iBill under Chapter 11.

The plan is a structured settlement with defined terms. It is not negotiable. You do, however, have the right not to accept the plan. IBD is critically aware that one size rarely fits all; and in this circumstance it is likely even more the case. However, IBD is seeking to avoid what would otherwise be inevitable through a formal reorganization where substantial loses would occur. Under our plan, participating clients receive 100 cents on the dollar today (though not all in cash upfront).

We appreciate the support clients have shown iBill. We hope we have reciprocated by demonstrating decisive action in our first 60 days of leadership.

Interactive Brand Development, Inc.
-----------------------------------------------

Here is the note payable i have to sign and mail back for the rest of my money

------------------------------------------------

Note Payable

FOR VALUE ACKNOWLEDGED AND RECEIVED, Internet Billing Company LLC, a Georgia limited liability company, ("Maker" or "Payor") promises to pay on or before March 29, 2007, to the order of XXXXXXXX, a Sole Proprietor corporation, ("the Holder" or "Payee") the sum of: $XX,XXX.XX, reduced by any chargebacks or adjustments, as agreed to by the parties with interest at the rate of Three Percent (3%) paid in arrears from March 29, 2005. This Note Payable will be subject to an amortization schedule of 50% of the face amount plus accrued interest payable in two installments on March 29 2006, and March 29, 2007. After 90 days from the execution of this Note, Maker at its discretion may elect to convert the note into a Secured Convertible Note. Such Secured Convertible Note will have identical amortization provisions as the Note Payable.

Presentment, demand, notice of dishonor and protest are hereby waived, and the parties hereto assent to indulgence of the Payee without waiver by the Payee of any of his, her, or its rights hereunder.

The Maker of this note reserves the right to pre-pay whole or in part of this note prior to maturity. Should the note not be repaid at or before the due date, then the note shall accrue interest at the highest possible legal rate permitted in the State of Florida.

Internet Billing Company LLC

Acceptance:

The undersigned Holder/Payee does hereby acknowledge that they have read and understood, in its entirety, the ?Limited Release? and that said ?Limited Release? represents the full and final satisfaction of all claims due and owing from First Data Merchant Services Corporation and Internet Billing Company LLC, with respect to the particular claims described therein. The Holder/Payee further acknowledges that any and all sums due and owing to any and all affiliates will be satisfied solely by the Holder/Payee and not by First Data Merchant Services Corporation or Internet Billing Company, LLC. Finally, the Holder/Payee accepts the validity of the Note Payable enumerated herein and understands that it represents full and final settlement of a claim.

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Basically
so basically i get a little now from the first data thing
and then i get the rest in 2 payments.. one this year and one next year
plus 3% interest

[killshot]

Originally Posted by Sosa

and what about for just affiliates or am I confused

I'm not sure about affiliates...
they might be eternally screwed

[killshot]

"Should the note not be repaid at or before the due date, then the note shall accrue interest at the highest possible legal rate permitted in the State of Florida."

anyone know what the highest possible interest rate is in florida?

[Koshka]

IBILL still owes me. I have lost faith in getting my money back.

[BergyK]

So basically we have to wait for 2 years in order get paid in full?

[Mr Dickovitch]

Originally Posted by killshot

"Should the note not be repaid at or before the due date, then the note shall accrue interest at the highest possible legal rate permitted in the State of Florida."

anyone know what the highest possible interest rate is in florida?

This was on some legal site, could be wrong:
FLORIDA, the legal rate of interest is 12%; the general usury limit
is 18%. On loans above $ 500,000 the maximum rate is 25%.

[ODA_webmaster]

im not signing a freaking thing..with those guys.... pay me... over the next..2 years..at 3%,??? while they collect 5+ percent. on my money..they aleady have.. plus, the note about... this is only for Visa.. reserves/transactions.... where the hell is my mastercard/JCB/Discovery money?? no thanks.. im not biting.... when the dust clears... i want it ..all at once... or.. just.. talk to my lawyer....

[rml1608]

I think they quit processing MC transactions all together... The amount of money they are paying me is about 1/3rd of what it would of been if MC got involved.. I'll still take a grand in a week over not seeing any money ever..

[ibill-fraud]

Originally Posted by MegaPartner_EriC

So basically we have to wait for 2 years in order get paid in full?

If Ibill is still here in 2 years, will be a miracle. And i love how gkard is now suppose to be secure even though us webmasters were processing with gkard back in Nov - Jan. Now they want to screw us on the Nov - Jan transactions and call those unsecured and all transactions going forward are somehow secure. I don't see anything owned by Penthouse, IBD, Ibill as being secure in anyway shape or form and gkard is partly owed by IBD.

[Rochard]

"In addition, iBill is also committed to paying 100% of the balance of payments owed to clients."

Bullshit. They still own money on their 900 crap from three years ago.

[PhillipB]

Who's iBill?

[fünkmaster]

Originally Posted by killshot

Basically
so basically i get a little now from the first data thing
and then i get the rest in 2 payments.. one this year and one next year
plus 3% interest

... wrong, basicly you got a nice wrong writing but nothing will happen.

[ibill-fraud]

From what i understand, once you click to authorize the release you will be giving up your rights to sue iBill and the other individuals and corporations should they decide to back out of the payments.

[tony286]

Originally Posted by Mr Dickovitch

This was on some legal site, could be wrong:
FLORIDA, the legal rate of interest is 12%; the general usury limit
is 18%. On loans above $ 500,000 the maximum rate is 25%.

There is no legal rate of interest , the bank gives you none on most savings accounts. I signed what ever I get is found money at this point, I get a lawyer all it will cost me is money and its a maybe if at that also. It all sucks but I think the whole third party billing model is very flawed.

[whatif_3]

Originally Posted by tony404

There is no legal rate of interest , the bank gives you none on most savings accounts. I signed what ever I get is found money at this point, I get a lawyer all it will cost me is money and its a maybe if at that also. It all sucks but I think the whole third party billing model is very flawed.

your flawed

what the hell does a savings account have anything to do with it? i dont see the fdic insuring the safetly of your funds up to 100K. the comparitive risk of your funds in ibills hands should get you a nice fat interest rate, 20%+

[tony286]

Originally Posted by whatif_3

your flawed

what the hell does a savings account have anything to do with it? i dont see the fdic insuring the safetly of your funds up to 100K. the comparitive risk of your funds in ibills hands should get you a nice fat interest rate, 20%+

Your a child lol There is no rate of interest you have to give anyone. Learn something then come back.

[killshot]

Originally Posted by ibill-fraud

From what i understand, once you click to authorize the release you will be giving up your rights to sue iBill and the other individuals and corporations should they decide to back out of the payments.

That is what it says in the statement.. but it wouldnt hold up in court

example

"hey ibill-fraud... hit me with your car.. I promise to not sue you"
You can hit me with your car.. and i can turn around and sue you for hitting me with your car.. because what you did was illegal regardless of any statements i made..

Same applies to ibill.. they can't just steal money and then make you promise to not sue them for stealing your money

[camcutie]

Called Ibill and asked when the FD funds will be released and they told me that FD is releasing the money at the end of April but did not know an exact date. Let's hope this happens... anything at this point would be nice.

XOXOXO
*Krystal*

[directfiesta]

Originally Posted by camcutie

Called Ibill and asked when the FD funds will be released and they told me that FD is releasing the money at the end of April but did not know an exact date. Let's hope this happens... anything at this point would be nice.

XOXOXO
*Krystal*

Exactly... A bird in the hand is better than 2 in the ... BUSH ...