Smart Payment Processing™ 800-846-4472www.MercuryPay.com
Recur} Happen again. Persist. Return. Come back. Reappear. Come again.
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
Presents:
Using MercuryFund (and PCI!)to build recurring revenue
™
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
One-stop billing
• Remove cost barrier to sales
• Monthly fees easier to pay than one annual lump sum
• Retention
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
Facilitate revenue for:
• Installation of equipment
• Merchant training
• Service/maintenance contract
• Software upgrade
• PCI compliance upgrade, network architecture, validation assistance
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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.
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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.
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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.
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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.
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
Q2 Revenue
Dealer Portfolio Apr-10 May-10 Jun-10
New Merchants 2 2 2
Processing Merchants 4 5 7
# of Merchants Attritions 0 0 0
Number of Merch. on Service Contract 3 4 5
Credit Card Residual Income $203 $270 $336
Service Contract Income $305 $405 $504
Total Income $508 $675 $840
Revenue model
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
Q3 Revenue
Dealer Portfolio Jul-10 Aug-10 Sep-10
New Merchants 2 2 2
Processing Merchants 8 9 11
# of Merchants Attritions 0 0 0
Number of Merch. on Service Contract 6 7 8
Credit Card Residual Income $401 $466 $530
Service Contract Income $602 $699 $795
Total Income $1,003 $1,165 $1,325
Revenue model
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
Q4 Revenue
Dealer Portfolio Oct-10 Nov-10 Dec-10
New Merchants 2 2 2
Processing Merchants 12 13 14
# of Merchants Attritions 0 0 0
Number of Merch. on Service Contract 9 10 11
Credit Card Residual Income $593 $656 $718
Service Contract Income $890 $984 $1,077
Total Income $1,483 $1,640 $1,795
Revenue model
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
Get your merchants attention
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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!
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
Mercury can help - PCI Partner Program
www.MercuryPay.com/PCIpartner
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
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!
Smart Payment Processing™ 800-846-4472www.MercuryPay.com
Thank you!Greg Castro
Director of Channel Development800-846-4472 ext. 4834