United Online (UNTD)

Billing

        Orders placed through FTD's consumer Web sites or toll free telephone numbers typically are paid for using a credit card or a debit card; therefore, consumers generally pay for floral and specialty gift orders before FTD pays florists and specialty gift providers to deliver them. FTD's florist members are

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Table of Contents

generally billed for products and services and are billed or credited for net order activity on a monthly basis.

        The vast majority of our pay accounts pay us in advance with a credit card. Other payment options for some of our pay services include automated clearinghouse ("ACH"), personal check or money order, or via a customer's local telephone bill. Pay Internet access accounts that elect to pay with a personal check or money order are not provisioned until their payment is received and they are required to subscribe for one of our prepaid multi-month billing plans.

        We utilize a combination of third-party and internally-developed software applications for customer billing. Customer billing is a complex process and our billing systems must efficiently interface with third-parties' systems, such as our credit card, ACH and telephone bill processors' systems. Our ability to accurately and efficiently bill and collect payment from our members is dependent on the successful operation of our billing systems and various third-party processors. In addition, our ability to offer new pay services or alternative payment plans is dependent on our ability to customize our billing systems.

Billing

        Orders placed through FTD's consumer Web sites or toll free telephone numbers typically are paid for using a credit card or a debit
card; therefore, consumers generally pay for floral and specialty gift orders before FTD pays florists and specialty gift providers to deliver them. FTD's florist members are

18

HREF="#bg10101a_main_toc">Table of Contents

generally
billed for products and services and are billed or credited for net order activity on a monthly basis.

        The
vast majority of our pay accounts pay us in advance with a credit card. Other payment options for some of our pay services include automated clearinghouse ("ACH"), personal check or
money order, or via a customer's local telephone bill. Pay Internet access accounts that elect to pay with a personal check or money order are not provisioned until their payment is received and they
are required to subscribe for one of our prepaid multi-month billing plans.

        We
utilize a combination of third-party and internally-developed software applications for customer billing. Customer billing is a complex process and our billing systems must
efficiently interface with third-parties' systems, such as our credit card, ACH and telephone bill processors' systems. Our ability to accurately and efficiently bill and collect payment from our
members is dependent on the successful operation of our billing systems and various third-party processors. In addition, our ability to offer new pay services or alternative payment plans is dependent
on our ability to customize our billing systems.

Billing

        The vast majority of our pay accounts pay us in advance with a credit card. Other payment options for some of our pay services include ACH, personal check or money order, or via a customer's local telephone bill. Pay Internet access accounts that elect to pay with a personal check or money order are not provisioned until their payment is received and they are required to subscribe for one of our prepaid multi-month billing plans.

        We utilize a combination of third-party and internally developed software applications for customer billing. Customer billing is a complex process and our billing systems must efficiently interface with third-parties' systems, such as our credit card, ACH and telephone bill processors' systems. Our ability to accurately and efficiently bill and collect payment from our accounts is dependent on the successful operation of our billing systems and various third-party processors. In addition, our ability to offer new pay services or alternative payment plans is dependent on our ability to customize our billing systems.

Billing

        The vast majority of our pay accounts pay us in advance with a credit card. Other payment options for some of our pay services include ACH, personal check or
money order, or via a customer's local telephone bill. Pay Internet access accounts that elect to pay with a personal check or money order are not provisioned until their payment is received and they
are required to subscribe for one of our prepaid multi-month billing plans.

        We
utilize a combination of third-party and internally developed software applications for customer billing. Customer billing is a complex process and our billing systems must
efficiently interface with third-parties' systems, such as our credit card, ACH and telephone bill processors' systems. Our ability to accurately and efficiently bill and collect payment from our
accounts is dependent on the successful operation of our billing systems and various third-party processors. In addition, our ability to offer new pay services or alternative payment plans is
dependent on our ability to customize our billing systems.

BILLING

The vast majority of our pay accounts pay us in advance with a credit card. Other payment options for some of our pay services include ACH, personal check or money order, or via a customer’s local telephone bill. Pay access accounts that elect to pay with a personal check or money order are not provisioned until their payment is received and they are required to subscribe for one of our prepaid multi-month billing plans.

We utilize a combination of third-party and internally developed software applications for customer billing. Customer billing is a complex process and our billing systems must efficiently interface with third-parties’ systems, such as our credit card, ACH and telephone bill processors’ systems. Our ability to accurately and efficiently bill and collect payment from our accounts is dependent on the successful operation of our billing systems and various third-party processors. In addition, our ability to offer new pay services or alternative payment plans is dependent on our ability to customize our billing systems.

The vast majority of our pay accounts pay for our services in advance with a credit card. Other payment options for some of our pay services include ACH, personal check or money order, or via their local telephone bill. Pay access accounts that elect to pay with a personal check or money order are not provisioned until their payment is received and they are required to sign-up for one of our prepaid multi-month billing plans. Fees charged to accounts for live telephone technical support are generally billed to a credit card and are charged on a per-minute basis.

We utilize a combination of third-party and internally developed software applications for customer billing. Customer billing is a complex process and our billing systems must efficiently interface with third-parties’ systems, such as our credit card, ACH and telephone bill processors’ systems. Our ability to accurately and efficiently bill and collect payment from our accounts is dependent on the successful operation of our billing systems and various third-party processors. In addition, our ability to offer new pay services or alternative payment plans is dependent on our ability to customize our billing systems.

BILLING

        The vast majority of our pay accounts pay for our services in advance with a credit card. Other payment options for some of our pay services include electronic check payment, or "ACH", personal check or money order, or via their local telephone bill. Pay access accounts that elect to pay with a personal check or money order are not provisioned until their payment is received and they are required to sign-up for one of our prepaid multi-month billing plans. Fees charged to accounts for live telephone technical support are generally billed to a credit card and are charged on a per-minute basis.

        We utilize a combination of third-party and internally developed software applications for customer billing. Customer billing is a complex process and our billing systems must efficiently interface with third-parties' systems, such as our credit card, ACH and telephone bill processors' systems. Our ability to accurately and efficiently bill and collect payment from our accounts is dependent on the successful

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operation of our billing systems and various third-party processors. In addition, our ability to offer new pay services or alternative payment plans is dependent on our ability to customize our billing systems.