Credit Cards 101 Payment Processing, Inc. is a registered ISO/MSP of HSBC Bank USA, National Association, Buffalo NY, First National Bank of Omaha, Omaha, NE and a sponsored Independent Sales Organization of JP Morgan Chase. ©2005 Payment Processing, Inc. All Rights Reserved.

Overview Why Accept Credit Cards? Why Integrate Credit Card Processing? Card Payment Process Card Settlement Process Where PPI Fits In How PPI Helps You About PPI The Company We Keep Closing and Contact

Why Accept Credit Cards?

Why Integrate Credit Card Processing?

Card Payment Process

Card Settlement Process

Where PPI Fits In

How PPI Helps You

About PPI

The Company We Keep

Closing and Contact

Why Accept Credit Cards? Customer Satisfaction and Retention Increased Sales / Retention Larger Sales Improved Efficiency with Paperless Payments Improved Cash Flow – Secure Form of Guaranteed Payment Speed of Checkout Competitive Edge Internet Strategy

Customer Satisfaction and Retention

Increased Sales / Retention

Larger Sales

Improved Efficiency with Paperless Payments

Improved Cash Flow – Secure Form of Guaranteed Payment

Speed of Checkout

Competitive Edge

Internet Strategy

Why Integrate Credit Card Processing? Speed of Checkout and Processing Times Less Counter Equipment Accounting / Inventory Efficacy Consolidates Cash, Checks and Credit Card Transactions for Better Accounting / Inventory Management Maximizes Your Investment in Your POS

Speed of Checkout and Processing Times

Less Counter Equipment

Accounting / Inventory Efficacy

Consolidates Cash, Checks and Credit Card Transactions for Better Accounting / Inventory Management

Maximizes Your Investment in Your POS

Today’s Payment World – Complex Telephone PDA Computer Terminal Internet Dial-Up or Frame Relay Satellite Cellular PCCharge PayMover VeriSign ICVerify Authorize.net “ Processors” PPI Paymentech Vital Global Payments Card Presented Card Presented Card Presented Authorized Or Declined Authorized Or Declined Authorized Or Declined Merchant Bank Acquiring Bank Cardholder Bank Issuing Bank Merchant Bank Depository Bank When an authorization is received, funds are settled and deposited into the merchant’s DDA account within 48-72 Hours

PCCharge

PayMover

VeriSign

ICVerify

Authorize.net

“ Processors”

PPI

Paymentech

Vital

Global Payments

Card Payment Process Authorization Process Takes 3-15 Seconds Acquiring Bank Accepts Cards Has a Contract with the Merchant Requests Authentication and Authorization Pays the Merchant Reimbursed by Association Bills Fees to Merchant Issuing Bank Issues Cards Has a Contract with the Consumer Issues Authentication and Authorization Pays the Association Reimbursed by Cardholder Bills Fees to Cardholder Acquiring Bank Issuing Bank Transaction Server Customer Pays by Credit Card Joe’s Auto Service 

Acquiring Bank

Accepts Cards

Has a Contract with the Merchant

Requests Authentication and Authorization

Pays the Merchant

Reimbursed by Association

Bills Fees to Merchant

Issuing Bank

Issues Cards

Has a Contract with the Consumer

Issues Authentication and Authorization

Pays the Association

Reimbursed by Cardholder

Bills Fees to Cardholder

Card Settlement Process Wednesday Merchant Post Merchant Account 1 Merchant Account 2 Merchant Account 3 Monday Batch Closed by Processor Processor Tuesday “ Sweep” & FRB Post Cardholder Accounts FRB 1 FRB 2 FRB 3 $ $ $ Wednesday Monday Tuesday Thursday Tuesday Wednesday Wednesday Monday Tuesday Thursday Tuesday Wednesday Friday Wednesday Thursday

Where PPI Fits In Trusted Technology Partner Development Level Support Middleware Integration Configuration Testing On-Going End-User Support Magstripe Reader, Middleware, Connectivity Merchant Account Provisioning Credit / Debit / EBT Merchant Accounts ACH Check Processing Accounts Gift & Loyalty Programs Middleware Provisioning

Trusted Technology Partner

Development Level Support

Middleware Integration

Configuration

Testing

On-Going End-User Support

Magstripe Reader, Middleware, Connectivity

Merchant Account Provisioning

Credit / Debit / EBT Merchant Accounts

ACH Check Processing Accounts

Gift & Loyalty Programs

Middleware Provisioning

How PPI Helps You Get the Lowest Rates Terminals Address Verification Card Swiping vs. Hand Keying Transactions Avoid Duplicate Transactions Analyze Statements Decide on the Best Solution Fat Client vs. Thin Client Implementation Solve Support Struggles – Hardware, Software, POS, Bank PPI Partners with You to Help You Get the Best Rates and Support

Get the Lowest Rates

Terminals

Address Verification

Card Swiping vs. Hand Keying Transactions

Avoid Duplicate Transactions

Analyze Statements

Decide on the Best Solution

Fat Client vs. Thin Client Implementation

Solve Support Struggles – Hardware, Software, POS, Bank

PPI Partners with You to Help You Get the Best Rates and Support

About PPI Since 1995… Pioneer and Leader in PC-Based Transaction Processing Helped Over 500 Software Developers and 10,000 Merchants Implement Integrated Payment Processing A Technology Company Development Level & On-Going Support for Transaction Processing Top 5 Independent Processors

Since 1995…

Pioneer and Leader in PC-Based Transaction Processing

Helped Over 500 Software Developers and 10,000 Merchants Implement Integrated Payment Processing

A Technology Company

Development Level & On-Going Support for Transaction Processing

Top 5 Independent Processors

The Company We Keep

Thank You! http:// www.paypros.com 800-774-6462