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NabTheDeal Group Buying Model Protects Businesses and Consumers


February 22, 2011 - Austin, TX

NabTheDeal today announced continued market plans and entrenched commitment to ensure their customers' buying rights are not violated. As class action suits are filed against other online group buying companies, NabTheDeal's "Nab it for Free" model is keeping their online community free of any legal disputes or financial issues related to the Credit Card Accountability, Responsibility and Disclosure Act of 2009. Businesses choosing to participate with NabTheDeal avoid the potential voucher redemption liability associated with the Credit Card Act.

According to the Credit Card Accountability, Responsibility and Disclosure Act of 2009, sold coupons must comply with the requirements of the Credit Card Act and Regulation E. The Act prohibits expiration dates of fewer than five years from the date of issuance, and Regulation E and the Board's commentary suggest that the consumer must have access to the unused purchase funds underlying the Coupon for at least five years from the date of purchase. The final disposition of funds may be subject to state escheat or abandonment laws. For example, some states like Texas require issuers of gift cards to remit the underlying funds to the state, on behalf of the consumer, if they have been unused for a period of three to five years. The burden to track, account for, and comply with this act is squarely on the issuer of the gift cards, an accounting and reporting nightmare for any small business.

"When we created NabTheDeal, it was a priority to develop a model that enables the benefits of coupons to drive business, while avoiding the onerous requirements of the Credit Card Act," said Dane Hebert, CFO for NabTheDeal. "Based on the other group buying businesses in play, we saw too many consumers paying upfront for a discount and then losing the opportunity to redeem vouchers before expiration. Our platform removes up front charges to consumers and eliminates the burden on businesses of additional tracking and accounting required by the Act. As a result, we're lowering advertising costs while delivering an improved consumer experience."

NabTheDeal simplifies and streamlines the daily deal for both businesses and consumers. Members of the NabTheDeal community can "Nab" a deal for free and redeem it the same day, versus being restricted to the next day redemption model other group buying businesses require. Because there are no up front charges, members will never lose money on a lost or expired coupon.

For participating businesses, NabTheDeal eliminates the typical revenue sharing model employed by companies like Groupon and other daily deal websites. Instead, NabTheDeal charges a small, fixed transaction fee only on redeemed coupons. A business only pays for a successful campaign -- one that gets the customer into the business. This model gives business owners higher margins and improved cash flow.

Today, Texas businesses like Mama Fu's, Silver Grill Café and My Texas Smile are already participating in NabTheDeal campaigns and have expressed a preference for the new model. Nationwide, NabTheDeal is expanding to other key markets, offering businesses the opportunity to realize the benefits of their approach.

For more information on business participation contact NabTheDeal at 1.888.318.1703 or http://www.nabthedeal.com

About NabTheDeal
Headquartered in Austin, Texas, and one of the fastest growing companies in the Southwest, NabTheDeal has redefined the group buying experience, so businesses can offer products and services to an extensive online community without sacrificing revenue. NabTheDeal enables consumers to claim a deal for free. With a proven ability to connect loyal customers with businesses, NabTheDeal provides multiple deals and packaged offers that can be shared.

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