Convenient Electronic Check Payments for Merchants and Their Customers Accepting Checks over the Internet eCheck Training ...
Discussion Topics <ul><li>Electracash Overview </li></ul><ul><li>ACH Summary </li></ul><ul><li>eCheck Marketing </li></ul>...
Electracash Overview
Brief History <ul><ul><li>Founded in 1997 – been in business 8 years </li></ul></ul><ul><ul><li>California corporation: he...
<ul><ul><li>eCheck: accessing DDA via the Internet  </li></ul></ul><ul><ul><ul><li>Both one-time and recurring payments: f...
Risk Management/Fraud Controls <ul><ul><li>Authorization that customer intended the transaction (“I agree” verbiage prior ...
ACH Summary
ACH and NACHA <ul><li>“ ACH” = Automated Clearing House.  “NACHA” = the National ACH Association – the network that govern...
NACHA Restricted Businesses <ul><ul><li>Types of business highly prone to fraud, especially from Canada: </li></ul></ul><u...
Specific Transaction Types <ul><ul><li>We do handle Canadian transactions, as well as US, however Canadian items require s...
Return Codes <ul><ul><li>R01- Insufficient Funds: NSF’s can be resubmitted up to two times; costs the merchant each time <...
eCheck Marketing
<ul><ul><li>10 million households  without a credit card  are online </li></ul></ul><ul><ul><li>89% of US Adults have a ch...
<ul><ul><li>Nearly two-thirds of all households now pay at least one bill with an automatic debit  (Source: NACHA) </li></...
Consumer Benefits: eChecks <ul><li>Consumer benefits are tangible and intangible </li></ul><ul><ul><li>Convenience … easy,...
Merchant Benefits: eChecks <ul><ul><li>Lower remittance processing costs (electronic payments are substantially less expen...
Target Markets: eChecks <ul><ul><li>Recurring payments, returning users </li></ul></ul><ul><ul><ul><li>Utilities (gas, ele...
Benefits when Marketed <ul><li>Customer use of electronic bill payments is driven by several criteria (in priority order)*...
Marketing Tactics <ul><ul><li>Electracash has landing pages, sales sheets and PDF files for </li></ul></ul><ul><ul><ul><li...
Electracash Web Site Re-Design
Electracash Web Site Re-design
Features for Merchants <ul><ul><li>Offer flat rate and/or percentage fee structures, depending on type of business:  based...
Target Markets: Direct Deposit <ul><ul><li>Direct Deposit is the electronic (ACH) transfer of a payment from a company’s c...
Benefits of Direct Deposit <ul><ul><li>Reduces check preparation & bill payment costs </li></ul></ul><ul><ul><li>Lowers ti...
eCheck Sales Pricing, Core Points, FAQ’s
Online Inquiry Form
Qualifying the Prospect
Pricing Schedule All pricing in US Dollars <ul><li>Attachment to Application/Agreement </li></ul><ul><li>Merchant must ini...
Pricing Considerations
Hold Backs and Exposure Limits <ul><ul><li>Deferred Contingencies (aka “Hold Backs”) </li></ul></ul><ul><ul><ul><li>Calcul...
Frequently Asked Questions <ul><li>From the merchant’s perspective: </li></ul><ul><li>What is ACH? </li></ul><ul><li>When ...
Electracash Operations Boarding, Merchant Technical Support, Merchant Customer Support, Payor/Consumer Help Desk
Canadian Item Handling
Canadian Item Handling MANAGED ACH MERCHANTS  Managed ACH Merchants will receive an authorization receipt after successful...
Canadian Customer Auth Form Dear Canadian Consumer: All online check processors are required by the Canadian Payments Asso...
Administrative Areas
Account Admininistration Once you have entered in your username and password you will be brought to the main menu  Electra...
Customer Service
Help Desk: Search The consumer helpdesk enables merchants to manage their customer’s transactions: cancel subscriptions, v...
Help Desk: Search <ul><li>Search any customer by: </li></ul><ul><li>Reference number (Sale ID) </li></ul><ul><li>Customer ...
Help Desk: Creating a Ticket After you search for the customer, the details are displayed.  You can view the previous cust...
Help Desk: Creating a Ticket
Help Desk: Customer History Customer Service History  will allow you to view notes by representatives or those the system ...
Help Desk: Transaction Status  The transaction status is displayed. If the transaction has not been batched (still not sen...
Help Desk: Password Lookup You can also look up the  password  and user name from the Subscription History Screen. Click  ...
Help Desk: Transaction History Transaction History  will show all transactions made through Electracash, and the status of...
Help Desk: Issuing Refunds To Issue a Refund,  select  Issue Refund  on the specific transaction you would like to refund....
Help Desk: Issuing Refunds <ul><li>Issuing partial and full refunds: </li></ul><ul><li>To work on the ticket later, check ...
Merchant Support
Merchant Admin: Reports The Reports link in the main menu will take you to the different reporting options that Electracas...
Merchant Admin: Reports <ul><li>Sales Reports provide real-time reporting of the transactions processed to date.  </li></u...
Merchant Admin:  Sales Report/Deposit Date Payout reports will give you the amount of your payout on a specific date as we...
Merchant Admin: Payout Report Payout reports will give you the amount of your payout on a specific date as well as the tra...
Merchant Admin: Payout Detail The payout is then broken down into detail of Sales, Fees, Holdback Deposits (reserves), Ret...
Merchant Admin: Subscriptions Electracash gives you the option to be able to pull active and inactive subscriptions. The a...
Merchant Admin: Inactive Subscriptions The inactive subscription report will give you the customer’s name, cancel date, an...
Merchant Admin: Manage Websites <ul><li>Manage Websites section enables merchants to set up their site profiles;  Merchant...
Merchant Admin: Site Management Site name-  What you want your website to be called in our system. Site URL-  The URL that...
Merchant Admin: Manage Products <ul><li>Manage products: Select the site that the product is associated with and click Cho...
Merchant Admin: Add Product When finished, click the add product button.  At this point the product will be assigned a pro...
Merchant Admin: Add Recurring Product <ul><li>To add a recurring product that is not password managed, click the button fo...
Merchant Admin: Profile The Merchant profile section allows merchants to modify their contact information with Electracash...
Returns Handling <ul><ul><li>No notification to merchant of NSF in advance of re-presentment (“redeposit”).  </li></ul></u...
Electracash Underwriting
Underwriting Requirements <ul><li>We send an application with contract, pricing schedule, and EFT authorization form </li>...
Underwriting: Application
Underwriting: EFT Authorization <ul><li>Attachment to Application/Agreement </li></ul><ul><li>Merchant must sign </li></ul...
Sources for Underwriting <ul><ul><li>Better Business Bureau </li></ul></ul><ul><ul><li>Federal Trade Commission </li></ul>...
Merchant Boarding
Merchant Boarding, p. 2
Reseller Network
Reseller: Support Points <ul><li>Value added service that expands portfolio in a wide open market – no more competing with...
Reseller Program <ul><ul><li>URL links for Reseller web sites that automatically populate the Affiliate number in our inqu...
Affiliate Management
Affiliate Management
Affiliate Reporting: Lead Status
Affiliate Online Activity Reporting
Technology
Security <ul><ul><li>Completely redundant Internet connections, database and web servers </li></ul></ul><ul><ul><li>128-bi...
Technology Considerations <ul><li>Technology Escalation Procedures:  Memphis Merchant Support:  901-684-6266 or 877-684-62...
Points of Contact <ul><li>Merchant Sales </li></ul><ul><li>Merchant Support (customer service, e.g., billing) </li></ul><u...
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Merchant Training on Administration and Consumer Helpdesk (ppt)

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Merchant Training on Administration and Consumer Helpdesk (ppt)

  1. 1. Convenient Electronic Check Payments for Merchants and Their Customers Accepting Checks over the Internet eCheck Training for Resellers
  2. 2. Discussion Topics <ul><li>Electracash Overview </li></ul><ul><li>ACH Summary </li></ul><ul><li>eCheck Marketing </li></ul><ul><li>Roles between Electracash and its resellers </li></ul><ul><li>eCheck Sales </li></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Customer Types </li></ul></ul><ul><ul><li>Core Points </li></ul></ul><ul><ul><li>FAQs </li></ul></ul><ul><li>Electracash Operations </li></ul><ul><ul><li>Boarding & Underwriting </li></ul></ul><ul><ul><li>Merchant Technical Support </li></ul></ul><ul><ul><li>Merchant Customer Support </li></ul></ul><ul><ul><li>Payor/Consumer Customer Support </li></ul></ul><ul><li>eCheck Underwriting </li></ul><ul><li>Resellers </li></ul><ul><ul><li>Assignment </li></ul></ul><ul><ul><li>Tracking/Reporting </li></ul></ul><ul><li>Technology Considerations </li></ul>In this training session, we will covering the following topics:
  3. 3. Electracash Overview
  4. 4. Brief History <ul><ul><li>Founded in 1997 – been in business 8 years </li></ul></ul><ul><ul><li>California corporation: headquartered in Signal Hill, near Los Angeles and Long Beach, with technical offices in Memphis, TN </li></ul></ul><ul><ul><li>Serves thousands of merchants </li></ul></ul><ul><ul><li>Processed nearly two million eCheck transactions in 2003 and 2004 </li></ul></ul><ul><ul><li>Growing at more than 60% per year the past several years </li></ul></ul><ul><ul><li>Top management personnel average 25 years of experience each in the financial services industry </li></ul></ul><ul><ul><li>Maintains an excellent reputation in the electronic payments industry </li></ul></ul><ul><ul><li>Active participant in NACHA Internet Operating Council </li></ul></ul><ul><ul><li>CTO is AAP-certified </li></ul></ul>Electracash is established, profitable, and growing fast
  5. 5. <ul><ul><li>eCheck: accessing DDA via the Internet </li></ul></ul><ul><ul><ul><li>Both one-time and recurring payments: from checking/savings accounts, from consumers and businesses </li></ul></ul></ul><ul><ul><ul><li>Virtual Terminal: enables merchant’s employees to enter checking account transactions on customers for Internet processing – phone, mail, over the counter </li></ul></ul></ul><ul><ul><ul><li>Two simple implementation options </li></ul></ul></ul><ul><ul><ul><ul><li>Electracash Managed Service: Electracash hosts check payment page </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Electracash Gateway Service:: XML-based interface for real-time and/or batch processing (with CSV and HTTP Post options) </li></ul></ul></ul></ul><ul><ul><li>Direct Deposit: Ability to send money from a business to its customers, vendors, and employees </li></ul></ul>Electracash Products eCheck enables customers of merchants to make one-time or recurring payments online from their demand deposit accounts:
  6. 6. Risk Management/Fraud Controls <ul><ul><li>Authorization that customer intended the transaction (“I agree” verbiage prior to final submission by Payor) </li></ul></ul><ul><ul><li>Authentication that user is who he/she claims to be </li></ul></ul><ul><ul><ul><li>Age Verification available </li></ul></ul></ul><ul><ul><ul><li>User Authentication available (additional cost of about $0.35 USD) </li></ul></ul></ul><ul><ul><li>Verification that account number is valid (StarChek covers 40% US) </li></ul></ul><ul><ul><li>Risk analyses of merchant applicants (underwriting) </li></ul></ul><ul><ul><li>Fraud scrubbing </li></ul></ul><ul><ul><li>Negative database – 6+ years of data </li></ul></ul><ul><ul><li>Positive database – 6+ years of data </li></ul></ul>
  7. 7. ACH Summary
  8. 8. ACH and NACHA <ul><li>“ ACH” = Automated Clearing House. “NACHA” = the National ACH Association – the network that governs ACH eCheck transactions </li></ul><ul><ul><li>Rules and regulations </li></ul></ul><ul><ul><li>Charge for all transactions, including returns and resubmits </li></ul></ul><ul><ul><ul><li>Have return codes (“R codes”), with limits on returns, with potential fines to the bank; banks can require termination of specific merchants </li></ul></ul></ul><ul><ul><li>Require Standard Entry Class Codes on a per transaction basis </li></ul></ul><ul><ul><ul><li>Business-to-consumer </li></ul></ul></ul><ul><ul><ul><ul><li>PBR – Consumer cross-border payment </li></ul></ul></ul></ul><ul><ul><ul><ul><li>PPD – Prearranged payment and deposit (written authorization) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>RCK – Re-presented check </li></ul></ul></ul></ul><ul><ul><ul><ul><li>TEL – Telephone-initiated </li></ul></ul></ul></ul><ul><ul><ul><ul><li>WEB – Internet-initiated </li></ul></ul></ul></ul><ul><ul><ul><li>Business to business (corporate): CBR – Corporate cross-border payment </li></ul></ul></ul>
  9. 9. NACHA Restricted Businesses <ul><ul><li>Types of business highly prone to fraud, especially from Canada: </li></ul></ul><ul><ul><ul><li>Outbound telemarketing </li></ul></ul></ul><ul><ul><ul><li>Health benefits packages (not insurance, but supplemental medical benefits) </li></ul></ul></ul><ul><ul><ul><li>Gaming </li></ul></ul></ul><ul><ul><ul><li>Credit repair services </li></ul></ul></ul><ul><ul><ul><li>Anti-telemarketing devices </li></ul></ul></ul><ul><ul><ul><li>ID theft prevention packages </li></ul></ul></ul><ul><ul><ul><li>Those who sell anything that can be deemed fraudulent, deceptive or promote unfair practices (subjective evaluation by Electracash) </li></ul></ul></ul><ul><ul><li>Electracash does have average ticket restrictions, avoiding those > $1500 </li></ul></ul><ul><ul><li>Accounts with these practices must be closed three (3) days of the discovery. </li></ul></ul>
  10. 10. Specific Transaction Types <ul><ul><li>We do handle Canadian transactions, as well as US, however Canadian items require special handling </li></ul></ul><ul><ul><ul><li>Payor’s signature on form, must be faxed to Electracash before transaction can be released for processing </li></ul></ul></ul><ul><ul><ul><li>New Canadian Payments Association rule that works around this requirement, but not supported by enough banks, yet </li></ul></ul></ul><ul><ul><li>We do handle business-to-business as well as business-to-consumer transactions </li></ul></ul><ul><ul><li>TEL transaction requires a written authorization </li></ul></ul><ul><ul><li>Regulation E applies to all sales transactions </li></ul></ul><ul><ul><ul><li>Promulgated by the Federal Reserve Board of Governors in order to ensure consumers of a minimum level of protection in disputes arising from electronic funds transfers </li></ul></ul></ul><ul><ul><ul><li>Federal Reserve assigns Reg E PIN # to each transaction when processed through the ACH </li></ul></ul></ul>
  11. 11. Return Codes <ul><ul><li>R01- Insufficient Funds: NSF’s can be resubmitted up to two times; costs the merchant each time </li></ul></ul><ul><ul><li>Administrative Returns – Electracash implementing pre-notes to reduce these : </li></ul></ul><ul><ul><ul><li>R02- Account Closed </li></ul></ul></ul><ul><ul><ul><li>R03- No Account/ Unable to Locate Account </li></ul></ul></ul><ul><ul><ul><li>R04- Invalid Account Number </li></ul></ul></ul><ul><ul><li>R05 – Web Entry to Corporate Account </li></ul></ul><ul><ul><li>R07 – Authorization Revoked by Customer </li></ul></ul><ul><ul><li>R08 – Payment Stopped or Stop Payment on Item </li></ul></ul><ul><ul><li>R09 – Uncollected Funds </li></ul></ul><ul><ul><li>R10 – Customer Advises Not Authorized </li></ul></ul>All except for R01 and R09 will automatically result in the account being added to the Negative Data Base <ul><li>= “Unauthorized” categories </li></ul><ul><ul><li>The most common return codes we deal with in ACH are: </li></ul></ul><ul><ul><li>Full list available in the Electracash Merchant Administration Manual </li></ul></ul>
  12. 12. eCheck Marketing
  13. 13. <ul><ul><li>10 million households without a credit card are online </li></ul></ul><ul><ul><li>89% of US Adults have a checking account </li></ul></ul><ul><ul><li>More than 967 million ACH debit payments were initiated over the Internet in 2004 (w orth over $300B, and up 40% versus 2004) </li></ul></ul><ul><ul><li>86% of all business payments are by check </li></ul></ul><ul><ul><li>23% of households do not have a credit card </li></ul></ul><ul><ul><li>45% of all credit card holders are within 5% of their credit limit </li></ul></ul><ul><ul><li>83% of all consumer bills are paid by check </li></ul></ul><ul><ul><li>80% of all non-cash payments are by check </li></ul></ul>Positioning <ul><ul><li>Adding online checks has increased merchants’ site revenues by as much as 20% </li></ul></ul><ul><ul><li>(Source: Electracash Merchant Survey 11/2002) </li></ul></ul>To reach more consumers, demand more payment options <ul><ul><ul><li>Source: NACHA and the US Federal Reserve </li></ul></ul></ul>
  14. 14. <ul><ul><li>Nearly two-thirds of all households now pay at least one bill with an automatic debit (Source: NACHA) </li></ul></ul><ul><ul><li>Online bill payment is the most popular application on the Internet, with a 25% annual growth rate (Source: Jupiter) </li></ul></ul><ul><ul><li>Electronic bill payment will grow five times faster at biller web sites than at bank sites (Source: Gartner) </li></ul></ul>The question for most recurring billers is how to provide electronic bill payment – not if or when. Source: Jupiter Consumers are demanding more electronic bill payment options… Consumer Check Use Online CAGR = 25% Bill Payment Households (millions) (Bank and Non-Bank Registered)
  15. 15. Consumer Benefits: eChecks <ul><li>Consumer benefits are tangible and intangible </li></ul><ul><ul><li>Convenience … easy, quick, saves time, no paper checks, 24x7 access </li></ul></ul><ul><ul><li>Control … know the payment is made, not delayed in the mail </li></ul></ul><ul><ul><li>Choice … </li></ul></ul><ul><ul><ul><li>Flexible payment date (for bill payment) </li></ul></ul></ul><ul><ul><ul><li>Option to credit card, which consumer may not have, may have maxed out, or simply may not wish to use </li></ul></ul></ul><ul><ul><li>Financial Benefits … no postage, late fee avoidance, cash flow management </li></ul></ul>
  16. 16. Merchant Benefits: eChecks <ul><ul><li>Lower remittance processing costs (electronic payments are substantially less expensive than paper-based payments) </li></ul></ul><ul><ul><li>Improved cash flow by reduced average days outstanding (i.e., accounts receivable) </li></ul></ul><ul><ul><li>Low cost option for receiving payments on the Internet </li></ul></ul><ul><ul><li>Lower cost of managing past due and delinquent accounts </li></ul></ul><ul><ul><ul><li>Reduced number of collection notices sent </li></ul></ul></ul><ul><ul><ul><li>Reduced bad debts </li></ul></ul></ul><ul><ul><ul><li>Reduced dependency on collection agencies </li></ul></ul></ul><ul><ul><ul><li>Improved collection employee effectiveness </li></ul></ul></ul><ul><ul><ul><li>Reduced exceptions and return item costs </li></ul></ul></ul>
  17. 17. Target Markets: eChecks <ul><ul><li>Recurring payments, returning users </li></ul></ul><ul><ul><ul><li>Utilities (gas, electric, water, waste management), insurance, car payments, rent, mortgage </li></ul></ul></ul><ul><ul><ul><li>Entertainment sites </li></ul></ul></ul><ul><ul><ul><li>Subscriptions </li></ul></ul></ul><ul><ul><li>Travel </li></ul></ul><ul><ul><ul><li>Airlines, Hotels, Car rentals, </li></ul></ul></ul><ul><ul><ul><li>Travel web sites (Expedia, Travelocity, Priceline, Orbitz, others) </li></ul></ul></ul><ul><ul><ul><li>Online ticketing integrators </li></ul></ul></ul><ul><ul><li>Rent/mortgage/property management </li></ul></ul><ul><ul><li>Business-to-business invoice payments and Internet purchasing </li></ul></ul><ul><ul><li>Unless special, low-risk circumstances, avoid large average tickets (even in the B2B space) </li></ul></ul>
  18. 18. Benefits when Marketed <ul><li>Customer use of electronic bill payments is driven by several criteria (in priority order)* </li></ul><ul><ul><li>Very proactive marketing of the service </li></ul></ul><ul><ul><ul><li>Notices on the bill </li></ul></ul></ul><ul><ul><ul><li>Bill inserts </li></ul></ul></ul><ul><ul><ul><li>Trained CSRs informing users of the service </li></ul></ul></ul><ul><ul><ul><li>Mass advertising </li></ul></ul></ul><ul><ul><ul><li>Posting on the merchant’s web site </li></ul></ul></ul><ul><ul><li>Payment types accepted (check, credit card, debit card) </li></ul></ul><ul><ul><li>Availability of recurring and one-time convenience payment options </li></ul></ul>* Source: Edgar, Dunn & Company analysis
  19. 19. Marketing Tactics <ul><ul><li>Electracash has landing pages, sales sheets and PDF files for </li></ul></ul><ul><ul><ul><li>eChecks </li></ul></ul></ul><ul><ul><ul><li>Direct Deposit </li></ul></ul></ul><ul><ul><li>Re-designing web site; will include statements about and links to resellers </li></ul></ul><ul><ul><li>Industry-specific/product-specific trade shows </li></ul></ul><ul><ul><li>Press releases </li></ul></ul><ul><ul><li>Developing an Electracash brochure </li></ul></ul><ul><ul><li>Launching a reseller campaign </li></ul></ul><ul><ul><li>Merchants may implement promotions to drive usage, especially at introduction of the service </li></ul></ul>
  20. 20. Electracash Web Site Re-Design
  21. 21. Electracash Web Site Re-design
  22. 22. Features for Merchants <ul><ul><li>Offer flat rate and/or percentage fee structures, depending on type of business: based on </li></ul></ul><ul><ul><ul><li>Industry segment </li></ul></ul></ul><ul><ul><ul><li>Transaction volume </li></ul></ul></ul><ul><ul><ul><li>Average transaction size </li></ul></ul></ul><ul><ul><li>No hidden fees – all pricing established up front </li></ul></ul><ul><ul><li>NSF notification (usually in 3 or 4 days) </li></ul></ul><ul><ul><li>Daily distributions (after first five business days) </li></ul></ul><ul><ul><li>Outstanding customer and technical support </li></ul></ul><ul><ul><ul><li>24/7 merchant technical support </li></ul></ul></ul><ul><ul><ul><li>LiveChat for merchant and customer support </li></ul></ul></ul><ul><ul><ul><li>Toll-free help desk phone numbers </li></ul></ul></ul>
  23. 23. Target Markets: Direct Deposit <ul><ul><li>Direct Deposit is the electronic (ACH) transfer of a payment from a company’s checking account into the checking and/or savings account of an individual or business. </li></ul></ul><ul><ul><ul><li>Payroll </li></ul></ul></ul><ul><ul><ul><li>Expense reimbursement </li></ul></ul></ul><ul><ul><ul><li>Revenue sharing </li></ul></ul></ul><ul><ul><li>Allows businesses to pay </li></ul></ul><ul><ul><ul><li>Vendors </li></ul></ul></ul><ul><ul><ul><li>Partners </li></ul></ul></ul><ul><ul><ul><li>Shareholders </li></ul></ul></ul><ul><ul><ul><li>Employees </li></ul></ul></ul>Electracash can disburse funds around the globe, and even divide payments among several different accounts and between different financial institutions.
  24. 24. Benefits of Direct Deposit <ul><ul><li>Reduces check preparation & bill payment costs </li></ul></ul><ul><ul><li>Lowers time and labor requirements associated with payments administration </li></ul></ul><ul><ul><li>Eliminates lost & stolen checks </li></ul></ul><ul><ul><li>Diminishes fraud due to lower potential for stolen and counterfeit checks </li></ul></ul><ul><ul><li>Decreases processing costs (companies report savings more than 40 cents in processing costs for each paper check converted into direct deposit) </li></ul></ul><ul><ul><li>Provides incentive and convenience for your employees with direct deposit of payroll (employees do not have to take time to deposit their checks) </li></ul></ul><ul><ul><li>Enhances reliability versus paper checks </li></ul></ul>
  25. 25. eCheck Sales Pricing, Core Points, FAQ’s
  26. 26. Online Inquiry Form
  27. 27. Qualifying the Prospect
  28. 28. Pricing Schedule All pricing in US Dollars <ul><li>Attachment to Application/Agreement </li></ul><ul><li>Merchant must initial acceptance </li></ul>
  29. 29. Pricing Considerations
  30. 30. Hold Backs and Exposure Limits <ul><ul><li>Deferred Contingencies (aka “Hold Backs”) </li></ul></ul><ul><ul><ul><li>Calculated based on estimated ACH activity per merchant </li></ul></ul></ul><ul><ul><ul><ul><li>Generally 5% of sales volume held back each month, until total hold back is approximately equivalent to one month of ACH sales volume; can be higher or lower, depending on returns history of merchant </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Funding options include Letter of Credit or cash deposit </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Contractually required by processing banks (we have risk with window of liability) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Required to ensure all monies paid out ultimately clear without payor contention or merchant financial problems </li></ul></ul></ul></ul><ul><ul><ul><li>Released within 180 days of final disbursement (usually after 60 days) </li></ul></ul></ul><ul><ul><li>Exposure Limits </li></ul></ul><ul><ul><ul><li>Exposure limits are designed to thwart attempts at fraud </li></ul></ul></ul><ul><ul><ul><li>Exposure limits are calculated on a per merchant basis: </li></ul></ul></ul><ul><ul><ul><ul><li>Highest volume conducted over a four-day period (to account for volume peaks) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>A reasonable percentage of estimated uncollected items at any one time </li></ul></ul></ul></ul><ul><ul><ul><li>Portfolio monitoring to flag us when merchant approaching limit; our action is to apprise merchant and assess whether increase is required </li></ul></ul></ul>
  31. 31. Frequently Asked Questions <ul><li>From the merchant’s perspective: </li></ul><ul><li>What is ACH? </li></ul><ul><li>When do funds arrive in my account? </li></ul><ul><li>How quickly am I notified of NSF’s? </li></ul><ul><li>Do you have online reporting? </li></ul><ul><li>Why do I have to pay an application fee? Your pricing is too high. </li></ul><ul><li>Why do I have to pay basis points rather than a fixed per transaction fee? </li></ul><ul><li>What is a hold back, and what does it mean to me? </li></ul>
  32. 32. Electracash Operations Boarding, Merchant Technical Support, Merchant Customer Support, Payor/Consumer Help Desk
  33. 33. Canadian Item Handling
  34. 34. Canadian Item Handling MANAGED ACH MERCHANTS Managed ACH Merchants will receive an authorization receipt after successfully completing the transaction. An authorization form is present on the receipt page which the customer can download and fax to Electracash. Electracash must receive the completed authorization form within 3 days of the transaction. The transaction will be placed on hold status until the completed authorization form is received. Upon receipt of the authorization form, Electracash will immediately issue the transaction to the specified financial institution for debiting. VIRTUAL TERMINAL MERCHANTS Virtual Terminal Merchants submit transaction requests via (for example) a call center to the Electracash Virtual Terminal Interface. Merchants must provide their customers the authorization form to complete and fax to Electracash within 3 days of the transaction. The transaction will be placed on hold status until the completed authorization form is received. Upon receipt of the authorization form, Electracash will immediately issue the transaction to the specified financial institution for debiting. ACH GATEWAY MERCHANTS ACH Gateway Merchants submit batch transaction requests to the Electracash ACH Gateway. Upon receipt of the transaction requests, the ACH Gateway will return to the merchant an approved response pending receipt of the Canadian Authorization Form. The merchant must provide the customer an authorization form that must be completed and faxed to Electracash within 3 days of the transaction. The transaction will be placed on hold status until the completed authorization form is received. Upon receipt of the authorization form, Electracash will immediately issue the transaction to the specified financial institution for debiting.
  35. 35. Canadian Customer Auth Form Dear Canadian Consumer: All online check processors are required by the Canadian Payments Association to receive written authorization from any Payor prior to processing an online check transaction completely. This is called a Pre-Authorized Debit (“PAD”) form. Your online check will be not be processed until we receive this completed form with your signature, as well as a blank, VOIDED check. If you have questions about this form, please contact Electracash’s Customer Service Department at 1-800-444-6952.
  36. 36. Administrative Areas
  37. 37. Account Admininistration Once you have entered in your username and password you will be brought to the main menu Electracash Administration: www.electracash.com/a dmin
  38. 38. Customer Service
  39. 39. Help Desk: Search The consumer helpdesk enables merchants to manage their customer’s transactions: cancel subscriptions, void transactions, and refund transactions. “ View Open Tickets ” Directs you to the Help Desk “ Customer Search ” Brings you back to Screen 1 Below you see what tickets you have open. If there are none it appears as No Open Tickets You may locate customer’s detailed information using one of the following: 1. Reference number 2. Customer ID # (Reg E- Pin) 3. Bank account number 4. First and Last name 5. E-mail address Click [Search] or hit [Enter] Electracash Help Desk: www.electracash.com/cs
  40. 40. Help Desk: Search <ul><li>Search any customer by: </li></ul><ul><li>Reference number (Sale ID) </li></ul><ul><li>Customer ID </li></ul><ul><li>Last 5 digits of the A/C number </li></ul><ul><li>First name </li></ul><ul><li>Last name </li></ul><ul><li>Email </li></ul><ul><li>On the left top frame, you can view the open tickets. </li></ul><ul><li>In the left bottom frame, a list of all the tickets opened by you are displayed. </li></ul>
  41. 41. Help Desk: Creating a Ticket After you search for the customer, the details are displayed. You can view the previous customer service history for a particular customer or else create a new ticket to process a refund. You cannot process anything before you create a ticket on the customer. Select a Ticket by clicking Create Ticket
  42. 42. Help Desk: Creating a Ticket
  43. 43. Help Desk: Customer History Customer Service History will allow you to view notes by representatives or those the system has logged previously. Every time someone’s information is accessed, it is logged here. You can also access it from Screen 2 by clicking Customer Service History .
  44. 44. Help Desk: Transaction Status The transaction status is displayed. If the transaction has not been batched (still not sent to the bank), then a link is provided to keep the transaction on hold. This voids the transaction and moves it to the incomplete transaction history in the system.
  45. 45. Help Desk: Password Lookup You can also look up the password and user name from the Subscription History Screen. Click Password Management and you will see the following screen. From here you can change or email the password. Be sure to click [Submit] <ul><li>If there is no Password Management link then we do not handle the passwords for the site. </li></ul><ul><li>Passwords are CaPs SeNsItIvE. </li></ul>
  46. 46. Help Desk: Transaction History Transaction History will show all transactions made through Electracash, and the status of those transactions. The earliest date is when the first charge was made. It will indicate when the service was subscribed to. If there is recurring billing, it will be initiated at midnight. The customer will not see charges right away; it may take a few days. Therefore it will have a different date on their statement.
  47. 47. Help Desk: Issuing Refunds To Issue a Refund, select Issue Refund on the specific transaction you would like to refund. You will see this screen. You may click Close to close the ticket out as soon as you submit. At that time Click [Submit] or hit [Enter]. When a transaction appears as “uncollected,” we have not yet received the payment from the bank. Even though the customer has seen it clear on their statement, the payment hasn’t made it to us yet. Often times it is necessary to refund a customer when it is still showing as uncollected.
  48. 48. Help Desk: Issuing Refunds <ul><li>Issuing partial and full refunds: </li></ul><ul><li>To work on the ticket later, check in the ticket, so that you can check out the ticket again. </li></ul><ul><li>When finished working on the ticket, close the ticket. </li></ul><ul><li>Once the ticket is closed, you cannot work on it, so you have to create new ticket. </li></ul>
  49. 49. Merchant Support
  50. 50. Merchant Admin: Reports The Reports link in the main menu will take you to the different reporting options that Electracash offers.
  51. 51. Merchant Admin: Reports <ul><li>Sales Reports provide real-time reporting of the transactions processed to date. </li></ul><ul><li>Pull this report by deposit date or transaction time. </li></ul><ul><ul><li>Reports by deposit date give transactions that have been sent out to ACH. </li></ul></ul><ul><ul><li>Reports by transaction time are pulled according to the transaction date/time entered into the search fields. </li></ul></ul>
  52. 52. Merchant Admin: Sales Report/Deposit Date Payout reports will give you the amount of your payout on a specific date as well as the transaction and fee detail to support the payout amount.
  53. 53. Merchant Admin: Payout Report Payout reports will give you the amount of your payout on a specific date as well as the transaction and fee detail to support the payout amount. To get the detail of the payout you will click on the date link.
  54. 54. Merchant Admin: Payout Detail The payout is then broken down into detail of Sales, Fees, Holdback Deposits (reserves), Returns, and minimum balance. Each of these breakdowns also has a link to the supporting detail so that you can see exactly what is making up the figures for each category.
  55. 55. Merchant Admin: Subscriptions Electracash gives you the option to be able to pull active and inactive subscriptions. The active subscription report will give you basic subscription details on your current active members.
  56. 56. Merchant Admin: Inactive Subscriptions The inactive subscription report will give you the customer’s name, cancel date, and email address. This is useful if you would like to send an email offer to a former customer to rejoin your site.
  57. 57. Merchant Admin: Manage Websites <ul><li>Manage Websites section enables merchants to set up their site profiles; Merchants can modify their sites. </li></ul><ul><li>For merchants not web-based, the site information is the company name, and is still used to set up the account for processing, with subsequent product or products attached to each site/company. </li></ul><ul><li>Ex: For web-based </li></ul><ul><ul><li>Site: www.abcshoes.com </li></ul></ul><ul><ul><li>Product: one time billing $50.00 </li></ul></ul><ul><li>Ex: For non- web-based: </li></ul><ul><ul><li>Site: ABC Shoes, Inc. </li></ul></ul><ul><ul><li>Product: one time billing $50.00 </li></ul></ul>
  58. 58. Merchant Admin: Site Management Site name- What you want your website to be called in our system. Site URL- The URL that links us to your website. Content Section URL- The URL you want your customer’s to be redirected to after the transaction is completed. Technical Contact Email- The email address you want to be contacted at or Technical issues. Customer Service Email- This is the email address you want to be contacted at for Customer Service Issues. Order Notification Email- This is the email address you want to be contacted at for transaction notification. (optional) Declined Transaction Redirect- The URL that you want your customers to be redirected to so that you can request another form of payment. Once this information is entered, click the add site button. Your site will then be issued a site id that is required for processing on most integration options.
  59. 59. Merchant Admin: Manage Products <ul><li>Manage products: Select the site that the product is associated with and click Choose Site. </li></ul><ul><li>Option to add, modify, or inactivate a product. </li></ul><ul><li>Add, click the corresponding product type. We offer several different setup types for products. </li></ul><ul><ul><li>Standard Product- This is a one time billing product. </li></ul></ul><ul><ul><li>Recurring Product non-password managed ( you will set the recurring rules) </li></ul></ul><ul><ul><li>Add Password Managed Product requires a username/ password to access your sites. Recurring or non-recurring( you will set the values). </li></ul></ul>
  60. 60. Merchant Admin: Add Product When finished, click the add product button. At this point the product will be assigned a product ID. This product ID is required for most of the Electracash integrations.
  61. 61. Merchant Admin: Add Recurring Product <ul><li>To add a recurring product that is not password managed, click the button for Add Recurring Product (Not Password Managed) and then click the button for Choose product/function. </li></ul><ul><ul><li>You will then be prompted to enter in the description of the product, the price of the product, and your desired recurring rules. </li></ul></ul><ul><ul><li>Once you have entered in the information needed, click the add product button. Your product will then be assigned a product id. </li></ul></ul>
  62. 62. Merchant Admin: Profile The Merchant profile section allows merchants to modify their contact information with Electracash. They are also able to change their Merchant Administration password. Once the changes are complete, click Update Profile.
  63. 63. Returns Handling <ul><ul><li>No notification to merchant of NSF in advance of re-presentment (“redeposit”). </li></ul></ul><ul><ul><ul><li>Redeposit NSF twice per item (unless the merchant elects to turn off redeposits). </li></ul></ul></ul><ul><ul><ul><li>Redeposits currently on 1st and 15 th (item > 6 days in redeposit state). </li></ul></ul></ul><ul><ul><ul><ul><li>If again returned as NSF, no further action </li></ul></ul></ul></ul><ul><ul><li>Return rates vary widely by industry. </li></ul></ul><ul><ul><ul><li>We collect on NSF’s at approximately 30%. </li></ul></ul></ul><ul><ul><ul><ul><li>There are no collection rates on other types of returns, such transactions are non-representable. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>If the merchant can subsequently obtain a good account number from the customer, the transaction is re-entered as a new transaction. </li></ul></ul></ul></ul><ul><ul><li>Checks have a 60 day liability for unauthorized </li></ul></ul><ul><ul><ul><li>Some state laws give up to seven years </li></ul></ul></ul><ul><ul><ul><li>Notify of NSF and invalid account transaction in 3 days, at minimum </li></ul></ul></ul>
  64. 64. Electracash Underwriting
  65. 65. Underwriting Requirements <ul><li>We send an application with contract, pricing schedule, and EFT authorization form </li></ul><ul><ul><li>Merchant must return: </li></ul></ul><ul><ul><ul><li>Completed application, with signature (4 pages) </li></ul></ul></ul><ul><ul><ul><li>Accompanying required documents (choice of documents offered) </li></ul></ul></ul><ul><ul><ul><li>Pricing schedule, with acceptance initialed </li></ul></ul></ul><ul><ul><ul><li>Signed contract (5 pages) </li></ul></ul></ul><ul><ul><ul><li>Completed EFT form </li></ul></ul></ul><ul><ul><ul><li>Voided check </li></ul></ul></ul><ul><ul><li>We do have available, as needed: </li></ul></ul><ul><ul><ul><li>Combined Direct Deposit Agreement and Application </li></ul></ul></ul><ul><ul><ul><li>Standalone agreements and applications for eChecks and Direct Deposit </li></ul></ul></ul><ul><ul><li>Merchant set-up form is filled out by or with merchant, in preparation for boarding </li></ul></ul>
  66. 66. Underwriting: Application
  67. 67. Underwriting: EFT Authorization <ul><li>Attachment to Application/Agreement </li></ul><ul><li>Merchant must sign </li></ul><ul><li>Used to initiate application fee </li></ul><ul><li>Requires a voided check </li></ul>
  68. 68. Sources for Underwriting <ul><ul><li>Better Business Bureau </li></ul></ul><ul><ul><li>Federal Trade Commission </li></ul></ul><ul><ul><li>Internet search </li></ul></ul><ul><ul><li>Credit bureaus (Equifax, Experian, others) </li></ul></ul><ul><ul><ul><li>Small business </li></ul></ul></ul><ul><ul><ul><li>Corporate </li></ul></ul></ul><ul><ul><ul><li>Personal </li></ul></ul></ul><ul><ul><ul><li>International </li></ul></ul></ul>
  69. 69. Merchant Boarding
  70. 70. Merchant Boarding, p. 2
  71. 71. Reseller Network
  72. 72. Reseller: Support Points <ul><li>Value added service that expands portfolio in a wide open market – no more competing with thousands of others just to shift share. Significant opportunity to make money! </li></ul><ul><ul><li>Competitive and flexible compensation – includes buy rates and commissions </li></ul></ul><ul><ul><li>Paid monthly, promptly with detailed accounting: Online access to Multi-tiered (drill down) tracking and reporting </li></ul></ul><ul><ul><li>Sales education and tools </li></ul></ul><ul><ul><li>High retention rates and customer satisfaction </li></ul></ul><ul><ul><li>Streamlined application process with fast approval and setup, plus high approval rates </li></ul></ul><ul><ul><li>Special pricing for customers negotiable </li></ul></ul><ul><ul><li>Direct deposit of funds </li></ul></ul><ul><ul><li>No software or reporting fees, no merchant setup fees </li></ul></ul><ul><ul><li>Daily settlement to the merchant </li></ul></ul>
  73. 73. Reseller Program <ul><ul><li>URL links for Reseller web sites that automatically populate the Affiliate number in our inquiry form/Salesforce </li></ul></ul><ul><ul><li>eCheck and Direct Deposit sales sheets/PDF files </li></ul></ul><ul><ul><li>EC brochure underway </li></ul></ul><ul><ul><li>Online status reporting – by merchant, by reseller (development underway) </li></ul></ul><ul><ul><li>For bigger Resellers, may co-sponsor print advertising </li></ul></ul><ul><ul><li>Reseller section on new website, with access to all relevant documents and information </li></ul></ul><ul><ul><li>Training materials addressing marketing, sales, underwriting requirements, pricing considerations, and operational support </li></ul></ul>
  74. 74. Affiliate Management
  75. 75. Affiliate Management
  76. 76. Affiliate Reporting: Lead Status
  77. 77. Affiliate Online Activity Reporting
  78. 78. Technology
  79. 79. Security <ul><ul><li>Completely redundant Internet connections, database and web servers </li></ul></ul><ul><ul><li>128-bit SSL encryption </li></ul></ul><ul><ul><li>Password-managed sites </li></ul></ul><ul><ul><li>Secure sites for transaction capture capability on both electracash.com and electracash.net </li></ul></ul><ul><ul><ul><li>Anything we have can be put behind SSL quickly </li></ul></ul></ul><ul><ul><li>Meets all US and Canadian federal regulations </li></ul></ul><ul><ul><li>Meets all NACHA banking and data security requirements </li></ul></ul>
  80. 80. Technology Considerations <ul><li>Technology Escalation Procedures: Memphis Merchant Support: 901-684-6266 or 877-684-6266 </li></ul><ul><ul><li>Michelle Mynatt is first point of contact 24/7 – Memphis x 301 </li></ul></ul><ul><ul><ul><li>Gets escalated from her to support developer (not 24/7, but we will support large customer needs) </li></ul></ul></ul><ul><ul><li>Procedures for service interruptions: TBD. Starting point: </li></ul></ul><ul><ul><ul><li>If it’s on our side, first point of contact is Kenny Sessions (24/7) – Memphis, x 307 </li></ul></ul></ul><ul><ul><ul><li>In the end, Mike Hoffmeyer, CTO, is “The buck stops here” guy – Memphis, x 310 </li></ul></ul></ul>
  81. 81. Points of Contact <ul><li>Merchant Sales </li></ul><ul><li>Merchant Support (customer service, e.g., billing) </li></ul><ul><li>Merchant technical support </li></ul><ul><li>After hours (24/7) </li></ul><ul><li>Customer Support Help Desk (payer/consumer) </li></ul><ul><li>Day-to-day support/decisions between Electracash and Reseller </li></ul><ul><li>Pricing plan </li></ul><ul><li>Reseller performance </li></ul><ul><li>Anything else </li></ul>Tammi Haney x-111 Megan Mattheson x-112 562-304-7878: Diane Bircher x-204 Supervisor: Debi Yoachum X-100 901-684-6266 Michelle Mynatt x-301 800-444-6952 Jody Hancock: 562-498-6888 x-106 Jody Hancock Jody Hancock Jody Hancock Electra cash Signal Hill: 562-498-6888 Memphis: 901-684-0348

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