Smart Payment Processing ™ 800-846-4472 Recur} Happen again. Persist. Return. Come back. Reappear. Come again

Smart Payment Processing™ 800-846-4472www.MercuryPay.com

Recur} Happen again. Persist. Return. Come back. Reappear. Come again.


Presents:

Using MercuryFund (and PCI!)to build recurring revenue

™


What is MercuryFund™?

A means to the end: recurring revenue

One-stop billing:

You set the terms, Mercury® handles the billing

Advance funding:

Merchant repays a cash advance through daily credit card sales

Lease referral service:

You make the sale, receive the cash, and the merchant pays the leasing company


One-stop billing

• Remove cost barrier to sales

• Monthly fees easier to pay than one annual lump sum

• Retention


Facilitate revenue for:

• Installation of equipment

• Merchant training

• Service/maintenance contract

• Software upgrade

• PCI compliance upgrade, network architecture, validation assistance


Mercury’s one-stop billing services

• ACH deposits into your account

• Collect merchant payments at the end of each month

• Include the monthly payment information in the merchant’s processing statement

• Deposit funds monthly into your bank account less an administrative fee of only 2%

• Provide a payment agreement you can customize

• Refer collection agency services if needed


How one-stop billing works

• Merchant signs a new merchant services agreement acknowledging the monthly billing fee and terms and conditions

• You and merchant co-sign a Merchant Authorization and Indemnity Letter acknowledging the total amount the merchant owes and the number of monthly payments, or recurring payment amount

• Billing begins the month following receipt of the letter and agreement, as long as the merchant is processing and until the debt is paid


Billing preferences

Option 1: Fixed amount – fixed payments

The merchant pays the same amount each month until the debt is paid. Typically used for POS installment payments.


Billing preferences

Option 2: Fixed amount – step-down payments

The monthly amount varies, for up to 12 monthly intervals, until the debt is paid. Typically used for POS installment payments where the monthly payment continues to decrease over the term of the debt agreement.


Billing preferences

Option 3: Fixed amount – no end date

Bill your merchant a fixed amount on a recurring monthly basis with no end date. Typically used for service contracts, supplies, etc.


Billing preferences

Option 4: Step-down payment – no end date

Bill your merchant on a monthly basis with no end date.The monthly amount changes after a specified number of months. Typically used for service contracts, supplies, etc., but the monthly amount decreases after a given period.


Merchants per month 2

Average Processing Volume $34,000

Average Residual Income $50

Average Promotion % 68%

Average Attrition 1.00%

Annual Service Contract $1,200

Payment Schedule (months) 12

% of Merchants on Service Contracts 75%

Total Merchants on Service Contracts 1

Revenue model

Revenue Model Assumptions


Q1 Revenue

Dealer Portfolio Jan-10 Feb-10 Mar-10

New Merchants 2 2 2

Processing Merchants 0 1 3

# of Merchants Attritions 0 0 0

Number of Merch. on Service Contract 0 1 2

Credit Card Residual Income $0 $68 $136

Service Contract Income $0 $102 $204

Total Income $0 $170 $340

Revenue model


Q2 Revenue

Dealer Portfolio Apr-10 May-10 Jun-10

New Merchants 2 2 2






Total Income $508 $675 $840

Revenue model


Q3 Revenue

Dealer Portfolio Jul-10 Aug-10 Sep-10

New Merchants 2 2 2






Total Income $1,003 $1,165 $1,325

Revenue model


Q4 Revenue

Dealer Portfolio Oct-10 Nov-10 Dec-10

New Merchants 2 2 2





Service Contract Income $890 $984 $1,077

Total Income $1,483 $1,640 $1,795

Revenue model


Recurring Revenue TrendFe

b-10

Mar

-10

Apr-

10

May

-10

Jun-

10

Jul-1

0

Aug-

10

Sep-

10

Oct

-10

Nov

-10

Dec-

10

Jan-

11

$0

$200

$400

$600

$800

$1,000

$1,200

Credit Card RevenueService Contract Revenue

Revenue model


PCI: Reasons to upgrade merchants

Top reasons to upgrade merchants to PA DSS validated versions 17:

1. Small investment of only $1,000 compared with huge liability for average fine of $35,000 if breached

2. Most critical step toward PCI compliance

3. ASI’s one stop billing program powered by Mercury facilitates the upgrade

4. New version installation presents opportunity to discuss service contract, review network architecture, introduce to Mercury’s PCI Partner Program and knowledgeable assistance with PCI validation

5. Opportunity for you to earn an additional $100 per merchant

6. Protect your revenue stream


Get your merchants attention


Headline relevance to your merchants

• More than 90% of compromises happen to small, level 4 merchants

• 80% of those small merchants are brick and mortar stores

• The average direct cost of a breach for small merchants is $35,000!


What is validation about?

In addition to the PCI compliance requirement, businesses must also validate their compliance. Validation shows that a merchant’s entire payment processing environment is secure.

Requirements for Level 4 merchants: (processing less than 20,000 Visa e-commerce transactions annually and all other merchants processing up to 1,000,000 Visa transactions annually).

• Annual SAQ recommended • Quarterly network scan by ASV if applicable• Compliance validation requirements set by acquirer

For more information, go to: www.visa.com/cisp

http://www.visa.com/cisp


PCI Self-Assessment Questionnaire Overview

A

B

C

D

PCI SAQ 1.2 Versions

Card-not-present (e-commerce or mail/telephone-order) merchants, all cardholder data functions outsourced. This would never apply to face-to-face merchants.

Imprint-only merchants with no electronic cardholder data storage or stand-alone dial-up terminal merchants, no electronic cardholder data storage

Merchants with payment processing systems (POS, IP terminals, electronic cash registers) connected to the Internet, no electronic cardholder data storage

All other merchants 226 questions

41 questions

26 questions

13 questions


Mercury can help - PCI Partner Program

www.MercuryPay.com/PCIpartner

http://www.mercurypay.com/PCIpartner


PCI Partner Program Key Benefits

Merchant benefits:

• Breach reimbursement up to $40,000

Dealer benefits:

• $100 for each enrolled merchant

• Additional revenue opportunity from consultation fees


MPS Incentive Program

Mercury Payments will give $500 toward the cost of your customers

upgrade!

• Non Mercury customers on version 15.1 and older

• 1 year contract required

• Through July 2010


To summarize...

Build recurring monthly revenue using ASI’s one stop billing program powered by Mercury

Protect what you’ve built with PCI compliance upgrades, service contracts, and merchant validation


Learn more

To learn more about MercuryFund visit:

www.MercuryPay.com/mercuryfund

To learn more about Mercury’s PCI Partner Program visit:

www.MercuryPay.com/PCIpartner

Free marketing material for merchants!

http://www.mercurypay.com/mercuryfund




Thank you!Greg Castro

Director of Channel Development800-846-4472 ext. 4834

[email protected]

Documents

Smart Payment Processing ™ 800-846-4472 Recur} Happen again. Persist. Return. Come back. Reappear. Come again