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What Is Interchange Plus Pricing?
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What Is Interchange Plus Pricing?

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What Is Interchange Plus Pricing? What Is Interchange Plus Pricing? Presentation Transcript

  • Interchange+  Pricing  Simplified Ver.  1  -­‐  Summer  2011
  • Interchange  Simplified What  is  Interchange?   Simply  put,  Interchange  Plus  pricing  passes  along  hard  costs  that  are  paid  to  VISA  and  MasterCard.   It  also  adds  a  very  small  markup  to  those  costs  to  cover  the  risk  associated  with  each  transac?on  –   the  ‘plus’  in  the  name. When  a  merchant  accepts  credit  cards,  there  are  many  different  ways  those  cards  can  go  through   the  interchange  system,  each  with  a  specific  cost  based  on  a  number  of  different  factors.  These   costs  are  called  interchange  fees,  dues  and  assessments. Interchange   Dues  &   Assessments Fees CARD  ISSUER  (I.E.  RBC) CARD  ASSOCIATIONS Interchange  fees  are  the  amount  that  is  paid  to  the  card  issuer,  and  dues  &  assessments  are  paid  to   the  card  associa?ons. 2
  • Introducing  Interchange+  Pricing OK...let’s  talk  Interchange+ Interchange  Plus  is  a  new  type  of  merchant  pricing  program  that  completely  eliminates  all  Non-­‐ Qualified  fees  and  surcharges  associated  with  premium  and  high-­‐spend  credit  cards! INTERCHANGE PLUS Interchange+   Cost  for  processing  a  credit  card   + A  markup  from  the  Acquirer   = Pricing transacNon,  paid  to  card  issuer   (such  as  Payfirma)  to  cover  risk   (ie:  Royal  Bank  Avion   associaNon  with  credit  card   VISA®) purchase Think  of  it  this  way  –  on  a  Prime  Plus  Mortgage,  you  are  the  paying  the  actual  cost  of  the  product.   The  ‘Plus’  is  the  small  mark-­‐up  added  to  compensate  the  loaning  bank  for  any  risk. 3
  • Commonly  Used  Interchange  Rates 4
  • Commonly  Used  Interchange  Rates 5
  • Working  for  Canadian  Merchants Why  is  Payfirma  offering  Interchange+?   Canadian  businesses  are  fed  up  with  hidden  fees,  excessive  surcharges  and  convoluted  billing   structures  when  it  comes  to  payment  processing.   In  May  of  2010,  the  Ministry  of  Finance  released  the  Code  of  Conduct  to  address  merchant   complaints.  The  Code’s  first  and  most  important  recommenda?on  was: Payfirma  is  offering  Interchange  Pricing  as  the  simplest,  most  transparent  and  cost-­‐effec?ve  model   to  ensure  merchants  are  fully  aware  of  the  costs.  The  model  also  enables  these  business  owners  to   maximize  the  profit  on  each  transac?on! 6
  • What  is  the  BeZer  Offer? Interchange+  vs.  Interchange  DifferenNal   If  merchant  has  the  choice  between  these  two  rates  how  do  they  know  which  one  is  the  beUer  offer? We’ll  use  a  $10,000  credit  card  sales  example  to  compare  the  same  transac?on  with  Interchange+   Pricing  versus  Interchange  Differen?al.   Let’s  compare... 7
  • How  they  Compare Now  that  we’ve  compared  the  cost   difference  between  Interchange+  and   Interchange  Differen?al,  it’s  easy  to  see   the  advantage  of  Interchange+  Pricing. 8
  • How  Canadian  Merchants  can  benefitFor  the  majority  of  businesses,  switching  to  an  Interchange+  pricing  model  will  result  in  significant  savings,  and  will  eliminate  all  non-­‐qualified  fees  moving  forward.  Other  benefits  include: COMPLETE  TRANSPARENCY  TO  UNDERSTAND  AND  MANAGE  YOUR  COSTS  PROPERLY LOW  PROCESSING  COSTS  THAT  ARE  NORMALLY  RESERVED  FOR  LARGE  MERCHANTS  ONLY EASY  TO  READ  MONTHLY  STATEMENTS  WITH  CLEAR  AND  CONCISE  RATES NO  MORE  SURCHARGES  BASED  ON  CARD  TYPE  USEDTo  find  out  what  op?on  is  best  for  you,  contact  one  of  our  Interchange  Experts  and  have  your  account  analyzed.You  can  get  started  right  away!  Either  call  us  directly  at  1-­‐800-­‐747-­‐6883,  or  visitpayfirma.com/interchange_plus,  and  one  of  our  friendly  Interchange  Experts  will  call  you  back. 9 7
  • For  more  informaNon: Payfirma  Corpora4on 2002  -­‐  1188  West  Georgia  Street Vancouver,  B.C.    V6E  4A2 800.747.6883  toll-­‐free 866.649.0050  facsimilePayment  Acceptance  Simplified