ECHONLINE
The Company's service based on these technologies is the ECHONLINE service,
and it is aimed at enabling Internet Service Providers ("ISPs") to submit
transactions to the Company on behalf of themselves and of their own customers
using the Internet. During fiscal 1997, the Company reached agreements with
two software developers to develop commercial interfaces to ECHONLINE - one
for Unix, and one for Windows NT. The UNIX software is available at no
charge, and ISPs have been able to process transactions with ECHO within a
week of securing this software. The Windows NT software is available for a
modest fee, and ISPs and larger merchants that have acquired this software
have been able to process transactions with ECHO within a day of acquisition.
In 1998, another interface was announced by Go Software and listed on
Microsoft's Developers Internet page, generating significant interest in the
ECHONLINE service as a result.
Fulfillment Tracking
The Company believes that the primary security issue on the Internet regarding
e-commerce is not the security of credit card numbers but, instead, it is the
assurance that the merchant subsequently ships the product to the customer.
This problem presents financial risk to the Company in that the Company would
normally deposit the funds into the merchant's account from a sale on the
Internet within 24 hours. If the product is not shipped or delivered, the
Company must then seek to get the funds back from the merchant in order to
return them to the customer. If the funds are not available or the merchant
account has closed, the Company must still honor the refund request. To
address this issue, the Company has developed a fulfillment tracking system
that operates over the Internet. The system holds a customer's funds until the
merchant advises the Company that fulfillment (or shipment) has been made.
Upon notice, the company e-mails the customer that shipping has occurred and
then deposits the funds into the merchant's account. In management's opinion,
this seriously reduces the risk normally associated with Internet-based
transactions. |
