IOPMS Merchant Services Training I

8/8/2019 IOPMS Merchant Services Training I

http://slidepdf.com/reader/full/iopms-merchant-services-training-i 1/42



For centuries, America

was an agrarian

society.

Family Farms produced most of the goods and services consumed.

Farmers Markets allowed for trade/barter.

Real and Personal Property, Tools, and Durable Goods were handeddown among family members.

There was little opportunity outside the family.

Thus, there was little or no need for credit.



The Early Markets

for Credit Were

Both

Small & Localized

The Need for Credit was small.

Credit was accommodated at the local level usually at the GeneralStores.

General Stores created & maintained their own accounts.

Credit accounts were usually settled at the end of the growingseasons.

America was primarily a Cash Based Economy

There was no need for revolving credit.

The typical American family didn’t require much credit.

Credit Card History



The Industrial Revolution Changed

Everything…

•Economy was no longer

Agrarian based

•Mass Transportation

systems were created•Mass Migration from the

country to the cities took

place

•Jobs moved to urban

centers

•People needed to set up

homes in new areas

•A way to purchase goods

and services became

needed.



Catalog Sales Companies Saw An

Emerging Market

• Fixed Retail Locations Sprung

up in Major Cities

• First Revolving Credit

Accounts Were Created

• “Credit Card” Type Charge

Plates Were Issued ToCustomers

• A Charge Plate Could Be

Used In Any In-chain Store In

The U.S.



In 1958, The First Successful“True” National Credit Card

Was Released

• Merchants could look up card numbers

in Warning Bulletins.

• Merchants began using “Knuckle Buster”

Imprint Machines and deposited paper sales drafts

• A first time Cardholder could use their card anywhere

the card was accepted.

• The Cardholder was billed for purchases at the end of the

month.

• Cardholders could carry over a balance up to the credit

limit.

• Card could be used for reoccurring payments.

• Bank of America set up the first interchange system for clearing

transactions between merchants.



Immediately

All Major U.S. Banks Saw

The Advantages Of Having TheirOwn Credit Card

•

BofA agreed to share its issuing/acquiring with other MajorBanks.

•A separate company was set up – VISA- and Major US Banks

were allowed to buy shares.



Other Small and Regional Banks

All Over The CountrySaw The Advantages of

Issuing Credit Cards

•MasterCharge, Inc.

was established and

competed with VISA.

•Small Regional Banks

were allowed to

purchase stock.

•MasterCharge became

MasterCard

Having the perfect card for

All your purchases…Priceless



Credit Card Authorization

Process Overview



The Authorization ProcessVisa and MasterCard Works with Direct Members

• Allows Card Holder Banksto Issue Credit Cards

• Allows Merchant

(Acquiring) Banks to workwith merchants to acceptCredit Card Transactions

Visa

• Allows Card Holder Banksto Issue Credit Cards

• Allows Merchant(Acquiring) Banks to workwith merchants to acceptCredit Card Transactions

MasterCard



Card Holder Banks Issue Credit Cards ToConsumers

• Tracks purchases and send out statements tocustomers at the end of the billing cycle

• Bills Customer interest for amounts not fully paidwithin the billing cycle

• Charges other related fees

Acquiring Banks Establish Merchant Accounts SoMerchants Can Charge A Fee For Service Calledthe Discount Rate.

• Automatically deposits merchant's funds into theiraccounts

• Processes VISA and MasterCard Transactions

• Provides the merchant with full accounting for alltransaction amounts

Distinction Between

Acquiring Banks & Card Holder Banks

A Bank can be BOTH

a Cardholder and a Merchant Bank.



• A CardIssuingBank Issues

Credit CardstoConsumers

• Consumer use creditcards to purchasegoods or services

• The merchant swipesthe card through anAuthorization Terminal

When aConsumershops at

merchant

locations

•The Authorization Center

•Determines if the Card hasbeen reported Stolen

•Determines if there isenough Open to Buy(Credit) left on the card toComplete the purchase

The Authorization

TerminalAutomatically

Dials VISA orMasterCard

AuthorizationCenters



•The Credit Card has notbeen reported lost orstolen,

•And…There is enough open

to buy left on the card,

•Then the AuthorizationTerminal prints a receipt.

•The Customer Signs and isgiven a copy.

•The merchant keeps theoriginal Sales Draft.

• At the end of the day themerchant settles the batchof transactions.

•48 hours later themerchant’s funds are

automatically depositedinto their account.

If theAuthorization

CenterReports…



Mail Order/Phone Order

Internet Merchants

Assumes More Risk

Mail/Phone and Internet merchants do not

have an opportunity to check the ID of their

customers. This introduces an element of Risk.

Thus, they contend with higher credit criteria

and documentation.

More documentation is required to get the

higher risk merchant account approved.

As a result these merchant typically have

increased losses due to cardholder disputes or

fraudulent transaction and will have increased

incidents of retrievable and charge-backs.

Therefore, they have Higher Rates due to the

increased risk factors.

Different tools have been created to help overcome the problems.

•AVS (Address Verification System) VISA,Verified by VISA

•CVV2, CVC Verification

•Secure Internet Gateways - Some provide transaction scrubbing.

•Transaction Monitoring Software



The Network Processor

Provides Conductivity

The Network

Processor

The Front End

National Processor -Provides the

Authorization Network

(i.e. local area nodes,

connections, data

centers and software

which enables the

authorizations to be

routed correctly.)

•Provides all accounting

functions for the

merchants, customers,

acquiring banks and

card issuing banks•Provides Software for

the Authorization Point

of Sale Terminals

•Provide Customer

Service for Merchants



Dial Up

Network

Consumer

MasterCard

Card Issuing

Banks

Consumer

Consumer

Consumer

Merchants

Merchants

InternetNetwork

Processor

IOPMS

Merchant

Banks



Credit & Debit Networks

Consumer

MasterCard

Card Issuing

Banks

Consumer Consumer

Consumer

Merchants

Merchants

InternetNetwork

Processor

IPOMS

Merchant

Banks

NYCE

Explore Interlink Pulse Cyrus

Honor

Star

Maestro

Dial Up

Network



There Are Two Kinds of Debit

Cards

Off-Line, or Signature Debit

Most common type of debit transaction

Does not require a PINNumber (PersonalIdentity Number)

Card always carries aVISA or MasterCardLogo

Also known as check

cards

Transactions areprocessed overexisting credit cardnetworks

Transactions areprocessed in batch

Settlement time is 24-48hours

On-Line Debit

Always require a PINNumber

Transactions are in realtime – can’t void anon-line debittransaction oncecomplete

On-line Debit supportsits ownauthorization

networks

Includes: – ACCEL – CASH

STATION – EBT – INTERLINK – MAC – MAGICLINE – NYCE – PULSE – STAR/Explore – Maestro – Cirrus



IOPMS Offers State-of-The-ArtProducts and Services

To Save Merchants Both Time and Money

Credit/Debit/

EBT/

T&E Card Processing

Internet Processing with

Secure PaymentGateways

Latest POS Terminals,

Software and EquipmentLeasing

High Risk MerchantPrograms

Cash Advance

Financing Solutions – Upto $150K

Business Building Giftand Loyalty Cards

Touch Screen Point of Sale Computer Systems

Wireless Solutions

Mobile Merchant

Pocket POS

Remote Deposit CheckServices, Check

Guarantee, Verification,and Collection Services

Payroll Processing

Cost Effective

Cash Dispensing ATMMachine Deployment &

Service

On-line Web BasedReporting



Excellent Customer Service

• All IOPMS Customers have

access to Customer Service

24X7 365/Yr

• Technical Support for POS

Equipment through 3

separate Help Desks

• Redundancy = Reliability



On-Line Web Based Reporting

• Each Merchant has access to on-line web based Reporting:

– Batch Detail including the number of transactions andthe total dollar amount

– Transaction Detail for any date range you select

• Transaction detail includes the transaction type (purchase,credit) amount, truncated card number, card type, howtransmitted (keyed vs swiped, date and time of transactionand Auth code

– Daily Deposits for each location

– Complete Merchant Statements for all locations foreach processing month

– Complete Chargeback and Retrieval Detail

– Contains a Library Section so that you can quicklydownload pertinent information such as QuickReference Guides and Forms

All the information you need at your finger tips!



VISA MasterCard

IOPMS

Alliances with

World Class Member Banks

Other Independent

Sales Org

$$$

Can IOPMS Save YOU Money?

Is IOPMS Competitive?

YES!!!



As A Result Of Our

Wholesale Interchange Rates

Many times IOPMS SAVEScustomers

10%

15%

20% or more!!!

In Fact, the Savings you can expectwith NBOCMS is Guaranteed!!!

In fact, the SAVINGS you can expectwith IPOMS is Guaranteed!!!



We Guarantee

You Will Receive the Lowest Price Possible!

IOPMS Low Price Guarantee

International Online Payments Merchant Solutions is veryexcited about the prospect of working with you and your

business. In order to safeguard your trust in us IOPMS takesgreat pleasure in offering you our low price guarantee.

We believe in preserving the integrity of our businessrelations with our valued merchants. International OnlinePayments Merchant Solutions guarantees we will be able to saveyour business a minimum of Ten to Twenty Percent (10% - 20%)per month of your current merchant services fees from your

current merchant card services provider.

We believe in FULL DISCLOSURE. If we are not able tosave you at least (10% - 20%), we will not establish a merchantaccount for your business but a pricing expert from ourAccounting Department will call you personally and explainEXACTLY why we are unable to provide your business with theanticipated savings.

Sincerely

IOPMS

Making A Difference



What Does it Take to Determine the

SAVINGS to Your Business?

• Simple! Just provide us a copy of your most recent

Merchant Statement from Your Current Merchant

Card Provider.

Provide us with your most recen

Merchant Statement and allow

us to perform a detailed analysis

Determine exactly WHAT you ar

being charged and WHY.

Most processors today make it

extremely difficult to decipher

your Merchant Statement.

Other processors include hidden

charges you may not be aware o

We can help! Our analysis will

reveal exactly what your current

fees and charges are and even

better, what your expected

savings would be with IPOMS!



Merchants Refer to Their Pricing as

“Rates”

The Primary Rate is the Discount Rate• The Discount Rate is based on costs (Interchange) plus

a mark-up

• It is expressed as a percentage and applied to themerchant’s processing volume

• The mark-up is determined by sales agents.

• Other fees the Merchant will mention are:

» Transaction Fees

• Credit & Debit

• AMEX and Discover

» Batch Fees

» Statement Fees

» Monthly Minimum Fees

» Customer Service Fees

» PCI Compliance Fees

» Annual Fees

» Early Termination Fees

» On-Line Debit Fees

• Network Fees

• Transaction Fees

IOPMS will assess the Merchant’s current Processing

Statement & determine the Merchant’s Rates and proposepossible savings.



How is Merchant Pricing Determined?

What is Interchange?

• Interchange, charged by VISA and MasterCard is the majorcost components of a credit card transaction

• How is interchange determined?

• What type of Credit Card accepted affects the rate?

• “Regular” VISA and MasterCard Cards

• Rewards Cards

• Corporate/Business/Commercial Cards

– The amount of information transmitted – data rates 1- 3

• Consumer Cards

• International Cards

• How the Merchant Accepts cards affects the rate:

• Card Swiped (face to face retail)

•

Key Entered (non face to face – mail order phone order, internet)• What Type of Merchant affects the rate:

• Retail, Restaurant, Utility, School, Gas Station, Internet Merchant,

Hotel/Motel/Car Rental, Warehouse Stores

• Settlement times and Amounts Affect the rates

• Most Merchants must settle transactions within 48 hours

• Authorization amounts must match Settlement amounts

• Provisions for very large and very small transactions for selected

merchants.

Currently there are over 200 different and unique

interchange categories!



How we simplify this overly complex

Pricing System

Most Merchants have their processing broken downinto three main pricing categories. – Qualified Rates

– Mid Qualified Rates

– Non Qualified Rates

In addition there are other fees and charges appliedto the merchant account. – Transaction Fees

– Credit & Debit

– AMEX, Discover, Carte Blanche, JCB (T&E)

– Monthly Minimum

– Statement Fee

– PCI Compliance fee



For Retail Merchants• Qualified Rates

» Are “usually” retail card swiped rates

• Mid Qualify Rates» Are “usually” Rewards Cards

• Non Qualified Rates» Are “usually” key entered rates, Corporate

Cards, World/International Cards, all otherdowngraded transactions

For Mail/Phone Order – Internet Merchants• Mid Qualify Rates

» Are “usually” Key Entered Rewards Cards

• Non Qualified Rates» Are “usually” key entered rates, Corporate

Cards, World/International Cards, all other

downgraded transactions

Some examples of typical rates:» Retail

• Qualified Rates = 1.79%

• Mid Qualify Rates = 2.59%

• Non Qualified Rates = 3.59%

» Mail/Phone Order, Internet• Qualified Rates = 2.29%

• Mid Qualify Rates = 3.29%

• Non Qualified Rates = 4.29%

Three Tiered Pricing



What is Interchange Pricing?

Interchange Pricing is based on Interchange

plus a mark-up

– For example Interchange plus 25 basis points

Pricing applies to ALL transactions

• Eliminates the mid qualified and non qualified

surcharges

• Is generally less profitable than three tiered pricing

Can only be used:

– For merchant with $100K Processing Volume/Mo.

– By Managers Approvals

– Only if accompanied by merchant statements



Suggested Pricing

• Retail Merchants» Retail

• Qualified Rates = 1.69% - 1.79%

• Mid Qualify Rates = 2.39% - 2.79%

• Non Qualified Rates = 3.0% - 4.0%

• 25 cents per Authorization

• 20 cents T&E

• 20 cents Batch Fee

• $10/Mo Statement Fee

• $3/Mo On-Line Reporting

• MOTO/Internet Merchants• Mid Qualify Rates = 3.39% - 3.79%


• 25 cents per Authorization

• 20 cents T&E


• $10/Mo Statement Fee• $3/Mo On-Line Reporting

High Risk Merchants may be solicited however the Discount Rates need to be higher .

• High Risk Merchants• Qualified Rates = 3.29% - 3.99%

• Mid Qualify Rates = 4.50% - 4.99%


• 30 cents per Authorization• 30 cents T&E


• $25/Mo Statement Fee

• $20/Mo On-Line Reporting



What types of business are

High Risk Merchants?

• Advance Delivery

• Adult XX

• Travel

• Telemarketing

• Credit Repair

• Diet Products

• Bail Bonds

• Gaming• Multilevel Marketing

• On-Line Pharmacies

• Subscriptions

•

Tobacco• Warranties

• Money Transfer





Application Specific Software for All

Merchants

Retail Applications

•Retail with Tip

•IP Web Based Terminals with High Speed Internet

Connection

•Wireless Solutions

•

CVV2 Verification Prompts•Password enabled voids & credits

Restaurant Applications

Reporting by Server or Table

Waiter Banking and Tip Reporting

Restaurant Management System Integration

Debit at the Table Solutions

Hospitality/Car Rental Applications

Check in Check out Folio Management

PC Based Hub Processing

Guaranteed Reservation ServiceNight Manager Settlement

Travel and Entertainment, Split Dial AMEX

Mail/Phone Order/Internet Applications

AVS Interchange Qualification

CVV2 Qualification

MOTO Software and Virtual TerminalFraud Detection and Prevention Products



Services Designed to Grow Your

Business…

Loyalty Cards

Loyalty CardsEXPANDS the business

you are doing withyour current

customers addingmore PROFITS to your

company!

Loyalty Cards can beused to prospect for

NEW Customers.

Hand them out tobrowsers, send them in

the mail, offer themover the internet!

Loyalty CardReporting allows youto SEE exactly where

your business iscoming from so youcan MAXIMIZE youradvertising budget!



Services Designed to Grow Your Business…

GIFT CARDS

Gift Cards are only

redeemable inYOUR Store

Perfect for issuingstore credit for

returns

Provides you with anadditional source of

advance income

Reduces Shrinkageand Loss

Helps promote yourBrand Identity

Some cards maynot be fullyredeemedcreating

additional incomefor your business

Re-loadable for useagain and again



Services Designed to

GROW Your Business…

CASH ADVANCES

CashAdvance is

simply a

prepurchase of your future

VISA andMasterCardreceivables

With CashAdvance

you canqualify for

up to$150,000

Cash

Personalor

BusinessCredit isNOT afactor

with CashAdvance

USE themoney foranything

you want – expandinventory,remodeling, opening

a newlocation

NOPersonalGuaranteenecessary

HAVE themoney inas little asfive days



Payroll Processing

3rd Largest Payroll Company in the U.S.• Nearly 150,000 Business• Nearly 2 million employees paid

Payroll Increases Merchant Retention

$79/Month up to 75 employees

• Typically $100-$200 per month less than Paychex orADP

– You can mark-up service to merchant

–

Or use as a marketing tool to sign the merchantaccount

Automatic tax calculation and filing

Vacation and Sick Day Accruals

Benefits Package Accruals

On-line Reporting with VIMAS

Manage payroll and merchant card processingaccount from one on-line tool!



Payroll Processing Selling Points

• Payroll can be a big hassle to small businesses.

• The Internal Revenue Service has reported that 1 out of

every 3 employers has been charged for a payroll

mistake.

• Employees want direct deposit, checks or payroll cards,

CPAs need payroll records, workers comp. reporting also

often comes from payroll records.

Outsourcing payroll is safer, faster & cheaper.

• Ask:

• “How do you currently handle your payroll and taxes?”

• “Would you be open to exploring NBOCMS’s Payroll

alternatives that may save you money and offer a higher level

of service?”

• Financial institutions & CPAs are key drivers in payroll

selection.

• Small business owners often seek combined online

solutions.

• Payroll (i.e., the aggregate salary paid to employees) is

the biggest expense in most small businesses.



Services Designed to

Grow Your Business…

CASH DISPENSING ATM’s

An ATM Machine

draws in more

walk-in customers!

Provide your

customers withadditional CASH to

spend in yourstore!

ATM Machinesproduce

ADDITIONAL REVENUE streams for your

Business!



• USA ePay

• Authorize.Net

• eProcessing.com

• Cynergydata Lucy Gateway

• Red Fin Network

• Plug ‘n Pay

International Online Payments Merchant Solutions has

strategic partnerships ensuring Six Secure Internet Payment

Gateways to meet all the processing requirements of our

customers.

With the proliferation of shopping carts and internet web site

design requirements, IOPMS provides merchant web sites with

bolt on solutions that work quickly and easily. IOPMS helps

remove problems of maintaining sustained development

efforts while protecting the e-Commerce business with thehighest levels of Internet security.



Touch Screen RetailEnhanced Point of Sale

Computer System

Robust enough for any retail

environment, the HP System

combines with Microsoft

Software to provide merchants

with Credit and Debit Card

Processing and…

•Inventory Control with Bar Code

Scanning

•Time and Attendance

Management

•Automated Cash Drawer•Touch Screen Menu - Easy

•Complete Installation, Training,

and Support

•In-depth Reporting

•Faster Transaction Times

•Track Customer History•Automate Purchase Orders

•Minimize Inventory Shrinkage

and Loss

•Track all Sales for Accurate

•Fast, Convenient

•Saves you time

•Saves Money

•

Complete Retail Solution•Customers Love It!

Date post:	10-Apr-2018
Category:	Documents
Upload:	iopms77
View:	220 times
Download:	0 times

IOPMS Merchant Services Training I

Documents