National Auto Care Corp Streamlines Claims Processing with J.P. Morgan's Single-Use Accounts Technology

Automated One-Time-Only Credit Card Payments Helps Reduce Paper Check Reliance and Improve Customer Service

NEW YORK, January 29, 2009 – National Auto Care Corp. (NAC), an Ohio-based vehicle service agreement provider, has significantly improved its claims processing operations in less than a month by using J.P. Morgan’s Single-Use Accounts technology to help manage one-time electronic payments for automotive repair orders. Already known in the industry for providing fast payments to car dealers and repair facilities, National Auto Care has leveraged J.P. Morgan’s automated credit card payments system to help reduce the number of paper checks issued, cut warranty claim processing time in half, improve risk mitigation, and increase its electronic payments base from approximately 60 percent to 80 percent of all claims processed.

Single-Use Accounts are an electronic accounts payable tool that provides customers with the flexibility of a purchase card while delivering powerful security, antifraud and reconciliation features.

National Auto Care is using J.P. Morgan’s Single-Use Accounts technology to help process more than 4,000 monthly claims valued at approximately $2 million. The technology automatically assigns a unique credit card number when a car dealer or repair facility requests approval for repairs covered under NAC’s vehicle service agreements. Usage parameters are assigned automatically to each credit card number based on the service order, such as the name of payment recipient, the exact dollar amount available and the type of repair that is approved. Once repairs are completed and the credit card number is used, the claim is automatically paid if the service center name, dollar amount and repair type match. NAC is alerted and the payment is held should these parameters not be met.

“National Auto Care has been providing superior customer service for nearly 25 years. Our success hinges on our ability to quickly and accurately pay our customers’ claims,” said William Speaks, CEO, National Auto Care Corp. “With J.P. Morgan’s Single-Use Accounts technology, National has further increased the speed at which we pay our customers, while helping to reduce the number of paper checks being issued. Customers can be paid today for work that was completed this morning. Not many businesses in any industry can achieve those results.”

Other benefits seen by National Auto Care include:

• By streamlining the payments process, NAC has been able to maximize its staffing resources. While more claims are being processed each day, NAC has not had to hire additional staff to handle the increased payment output. NAC pays hundreds of claims each business day.
• Automated reporting and reconciliation of pre-purchase information to actual transaction data without manual data entry.
• Due to strictly enforced credit limits on each card, NAC no longer has to spend time calling repair facilities to get reimbursed for credit card overcharges.
• Reduced Accounts Payable costs by replacing paper-based process and integrating with existing ERP systems.
• Robust fraud and security controls of ACH with the flexibility of traditional purchasing cards.

“As unique credit card numbers are assigned to each approved transaction, customers like NAC are finding increased control and streamlined reconciliation as a result of the payment-to-invoice one-to-one relationship,” said Eduardo Vergara, global commercial card executive, J.P. Morgan. “In addition, our technology can be implemented quickly with existing business systems, freeing companies from having to further invest in new financial management tools.”

About National Auto Care Corp.
National Auto Care, established in 1984, is engaged in the design, marketing and administration of extended service agreements sold by franchised and independent automobile, motorcycle and RV dealers located throughout the United States and Puerto Rico.

About J.P. Morgan Treasury Services
The Treasury Services business of J.P. Morgan is a top-ranked, full-service provider of innovative payment, collection, liquidity and investment management, trade finance, commercial card and information solutions to corporations, financial services institutions, middle market companies, small businesses, governments and municipalities worldwide. With more than 50,000 clients and a presence in 39 countries, J.P. Morgan Treasury Services is the world’s largest provider of treasury management services and a division of JPMorgan Chase Bank, N.A., member FDIC. More information can be found at www.jpmorgan.com/ts.

About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.2 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan, Chase, and WaMu brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.