Your Payment Professionals

Payment Processing, Inc.I have a great rate… NOT!

Your Payment Professionals

Payment Processing, Inc.

I have a great rate… NOT!

Issuers

Cardholder

Merchant

Issuing Side Acquiring Side

HOST - Front-End,

Processor

HOST - Back-End, Processor

Merchant’s Local Bank

PPDirect

Transaction Process

Cost of Processing

Interchange

Monthly Service Fee

Authorization Fee(s)

Interchange

Four Contributing Interchange Factors:

1. The type of card used for purchase.

2. The way the transaction was handled.

3. The type of business accepting the card.

4. The amount of the sale/purchase.

There are 250 Interchange Rates

Interchange

Interchange CAN AND WILL

be anywhere between

0.00% - 3.10%

THIS DOES NOT MATTER!!!

Interchange• Example• How much will a

transaction cost if I run a $1,000.00 ticket?

• What information do we need to answer this correctly?

Interchange

1. What type of Business?

Utility Company

New Car Dealer

Petro Restaurant

Interchange

2. What type of Card?

Consumer Card Rewards Card

Corporate CardCheck Card

Interchange

3. Swiped or Keyed in Transaction

Interchange

Discount Rate

Discount Per Item

Dues & Assessments

% of total dollar amount of settled sale with no maximum or minimum limits imposed

Fixed item fee regardless of amount of sale, but can vary by interchange category

Small % of total dollar amount of settled sale that goes directly to Visa & MasterCard

$0.00 - $35.00

.0925% - .0950%

0.00% - 3.10%

The Only “Rate” That Matters

The only rate that matters is the effective rate of accepting cards.

Total Fees / V,MC Sales = Effective Rate

This is the “rate” that tells the entire story!!!

The “Rate” That Matters

$135,674 V,MC Sales & $2,794 Fees

$97,354 V,MC Sales & $1,974 Fees

$42,962 V,MC Sales & $1,346 Fees

$64,397 V,MC Sales & $1,642 Fees

2.06%

2.03%

3.13%

2.55%

Types of StatementsTiered

1.75% 2.50% 3.21%

Qualified Mid -Qualified

Non -Qualified

Types of StatementsSurcharge

Hamburger Menu Price = $2.50

• Bun = $1.50• FF = $2.00• Cheese = $3.00• Ketchup =$1.00• Lettuce = $1.00• Tomato = $1.00• Plate = $1.25• Napkin = $0.50• Pickle = $1.00

Actual price = $14.75

Interchange

TechnologyOur terminal level software is

programmed to automatically seek and identify the best possible level of interchange for each specific transaction and assign it appropriately.

The PPI Difference….