Important News About EFT and Credit Card Operations

Current Situation
   EFT - CompuDance currently creates an EFT Transaction File that you can upload to NationalEFT/AllianceACH,
   an EFT processor that we selected to process your EFT Payments.  The file is compatible with their requirements.
   The global payment posting operation will post to any Tuition Category.  This EFT operation was new with
   Version 7.1, released June 2005.

   Credit Cards - CompuDance also creates a Credit Card File of batch Credit Card Payments that you globally post
   to students/families on your ACCPL (Automatic Credit Card Payment List).  You can globally post to any
   Income Category, not just to a Tuition Category.  The file that is created, however, is not compatible with any
   specific bank or credit card processor.  It never has been.  This credit card operation has been a part of
   CompuDance since Version 6.0, June 2001.

Plans for the Future
   EFT - We are going to expand the global EFT Payments so that you can post to any Income Category, not just
   to a Tuition Category.  This will be available with Version 7.2, scheduled for release June 5 2006.  So, if you need
   to post EFT payments to the Costume Category for costume payments, you will be able to do so.
   
   We are also going to add another EFT processor, Smart Payment Solutions (SPS).  CompuDance will create an
   EFT Transaction File that is compatible with their requirements.  So, you will have a choice of EFT processors.

   Credit Cards - CompuDance will continue to create a Credit Card File of batch Credit Card Payments that you
   globally post to students/families on your ACCPL (Automatic Credit Card Payment List).  The good news is that
   this file will be compatible with the SPS requirements starting with Version 7.2, June 2006.  You will be able to
   upload that file to them just as you can now upload the EFT Transaction File.  This will save you hours of time
   manually entering all of these payments to a bank.  So, you will be able to use SPS for both your EFT and your
   Credit Card Payments.  That will not be true for NationalEFT/AllianceACH.

Comparison of Processors
   We originally selected NationalEFT/AllianceACH as our sole processor based upon price - they gave us the lowest
   price per EFT transaction; the lowest monthly service charge, and the lowest one-time setup charge.  However, as
   we have discovered, price alone does not equal quality.  We have been very disappointed with their customer
   relations,  customer service, accuracy of information, and stability of their price structure.  Setup charges have varied
   from $0.00 to $99.00.  Monthly service charges have varied from $7.00 to $15.00.  Studios have had problems getting
   calls and E-Mails returned, as have we.   Studios have been given erroneous information, as have we.

   We are currently negotiating with Smart Payment Solutions, a processor that we were considering when we made
   the original decision back in May.  We are convinced that their service, reliability, price stability, and ethical
   treatment of customers is superior.  Their bottom-line price may not be as low as NationalEFT/AllianceACH, but it
   will be close to competitive.  It will, at any rate, be less expensive than what many dance studios pay with
   StudioAutoPay (See: www.StudioAutoPay.com).  SPS is aware of our customer service needs and expectations.
   Two of our studios BETA tested the CompuDance EFT operation with them back in May 2005 when we were
   comparing processors, and it was 100% successful.  SPS support and help at that time was exceptional.

   We hope to be able to get you some concrete figures as to their cost within the next 8 weeks or so.

Your Decision
   If you are going to use only EFT, you can elect to sign up with NationalEFT/AllianceACH.  CompuDance will
   continue to create an EFT Transaction File that is compatible with their requirements.

   If wish to use EFT and the Credit Card batch processing payments along with the EFT payments, you will need to
   sign up with SPS.

   If you have been approved for EFT payments by NationalEFT/AllianceACH as of October 4, 2005, and if you
   subsequently wish to switch to SPS, we will personally refund your original NationalEFT/AllianceACH setup fee of
   $49.00 when you receive your approval by SPS.  We apologize for the inconvenience that we have caused you.