Agenda

1. Agenda • Merchant processing overview • Pricing methodologies • Reading merchant statements • Convenience fees • PCI • Q&A

2. Up to 87% Interchange Fees Total Cost of Acceptance Processor Fees Acquirers fees or portion of discount rate Interchange Fees Total cost of acceptance Up to 6% - Admin and Access Fees – for Associations Assessment/ Access Fees

3. + Processor Fees Interchange Mgmt + Chargeback Defense + Revenue Lift, ie PayPal, BML, DCC Interchange Fees + Statements, Reporting + VAR certifications + Forums, Advice Assessment/ Access Fees Total Cost of Acceptance

4. Pricing Methodologies • Tiered pricing • 2 tiered – Qualified and Non-Qualified • 3 tiered – Qualified (swiped), mid qualified(keyed, rewards), non qualified (downgrades, corporate) • 9 tiered – Tiered for Debit, Credit and Rewards • Target rate • Based on industry and main cards accepted • Will have billback (pass through or enhanced) • Interchange pass through • Passing through of interchange, assessments, access fees and processor discount rate • Over 230 interchange categories – Sent to the issuer • Assessments – 0.11% - Sent to the Associations • Access fees - $0.0195 Visa and $0.185 MasterCard – Sent to the Associations

5. Reading Statements • Are fees charged on gross or net • Review miscellaneous fees • Setup fees • Annual fees • PCI Compliance fees • Monthly fees

6. Convenience Fee • Visa – No specific Program • MasterCard - Government and Education Convenience Fee Program • Discover – No Specific Program • MasterCard’s Convenience Fee Program • Can charge a differentiated convenience fee for MasterCard transactions • Covers both card present/face-to-face and card not present/non face-to-face environments • To participate, merchants must register with MasterCard. • May be a fixed dollar amount, a fixed percentage on the amount owed or a tiered rate based on differing levels of amounts owed. • Cannot be assessed a convenience fee that is higher than any other card-based payment offered through the same payment channel. • Other non-card based payments (e.g., ACH, e-check) need not adhere to the same fee.

7. Convenience Fee - continued • Specific to MCC 9311(Tax Payments): • The calculation of the convenience fee on a credit card can be a fixed dollar, percentage or tiered amount. • The calculation of the convenience fee on a signature debit transaction can be calculated as a fixed dollar, percentage or tiered amount. • The convenience fee does not have to be the same amount or used the same calculation method as it relates to credit or signature debit transactions offered via the same channel. • Merchant Requirements: • The fee must be properly disclosed to the client prior to the transaction and there must be an opt out option • Clearly identify the convenience fee on the transaction information documentation (TID) • Process the convenience fee using the correct and same merchant category code

8. Convenience Fee - continued • The following merchant category codes (MCCs) are eligible:  • MasterCard MCC • 8211 (Schools, Elementary and Secondary) - the convenience fee may only apply transactions for tuition and related fees and school-maintained room and board;  • 8220 (Colleges, Universities, Professional Schools, and Junior Colleges) - the convenience fee may apply to transactions for tuition and related fees and school maintained room and board;  • 9211 (Court Costs including Alimony and Child Support) - the convenience fee may apply to any transaction;  • 9222 (Fines) - the convenience fee may apply to any transaction; • 9311 (Tax Payments) - the convenience fee may apply to any transaction; • 9399 (Government Services---not elsewhere classified) - the convenience fee may apply to any transaction.

9. Convenience Fee - continued • Visa does not allow convenience fees to be charged in a face-to-face or in-person environment, they only allow a convenience fee to be accessed in alternative payment channels (except for registered merchants in the Visa Tax Payment Program who are also MCC 9311 ~ Tax payment; where card present/face-to face transactions are allowed). • If a merchant, wants to accept all card brands and collect a convenience fee where allowable and within all of the card company’s rules, they can implement a flat fee in all card-not-present channels as long as all of the card brands are changed the same flat fee for all method of payment (cash, checks, echecks, ACH) through these channels. This would mean that a convenience fee could NOT be charge in the face-to-face/in-person channel on any of the card brands except for transactions in MCC 9311 ~ Tax Payments, where the fee can be charged on all brands. • If the merchant wants to charge a convenience fee in the face-to-face channel in addition to the card-not present channels, then they would not be able to accept Visa through the face-to-face or in-person channel (except for registered merchants in MCC 9311 ~ Tax payments where card present/face-to face transactions are allowed). Visa prohibits convenience fees in a face-to-face environment and by imposing a fee on all cards but Visa; the remaining brands are no longer at parity and therefore would prohibit the fee as well. However, if they choose not to accept Visa in the in-person channel they would not have to charge a flat fee convenience fee they would have the option of a percentage or tiered fee as long as the fee is not more then the merchant fee.

10. Central Region Contacts • Brian Bert – Account Executive – Wisconsin • Brian.Bert@chasepaymentech.com • (262) 365-3423 Cell • Chris Giese, Territory Manager - Illinois, Indiana, Georgia, Minnesota, Wisconsin • Chris.Giese@chasepaymentech.com • (920) 206.9851 Office • (920) 390-1037 Cell