Secretariat CSG GM Frankfurt 28 August 2014 www.cardscsg.eu Pres CSG 017-14 CSG Funding Secretariat CSG GM Frankfurt 28 August 2014

CSG costs and contributions CSG funding proposals 1 2 Pres CSG 017-14

CSG costs and contributions CSG funding proposals 1 2 Pres CSG 017-14

Meetings Cost typology CSG GM Other CSG bodies Balance between sectors Costs to be shared amongst sectors Hiring rooms Catering Phone/WebEx costs Experts attendance (flat 1.000 EUR / day) Secretariat Cards Administration Legal Websites management Communication Accounting/invoicing Pres CSG 017-14

Total per year per sector: 75.000 Cost figures: Secretariat and logistics per year (EUR) Hiring rooms 11.448 (internal or Securex) Catering 25.504 Phone/WebEx costs 4.954 (including VAT) Secretariat EPC Sec. Gen overview CSG Cards 283.809 CSG Administration CSG Legal CSG Office renting 10.782 CSG Dedicated costs (trips, hotels…) 30.000 CSG Websites management 2.904 (including VAT) CSG - Secr. IT support 5.600 (including VAT) CSG Communication 10.000 (including VAT) as from 2015 CSG Accounting/invoicing (soft) 10.000 (including VAT) as from 2015 % allocation on CSG varies Total per year: 375.000 Total per year per sector: 75.000 Pres CSG 017-14

Average amongst the sectors 118.000 EUR/Y (590.000/5) Cost figures: Contributions by attendance Providing expertise by meeting attendance Meetings Q1 & Q2 2014 Extrapolation to 1 year F2F WebEx Total 27 14 41 54 28 82 Participation (man/days) Full days Half days Full Days Half Days EUR (1.000/day) EPC 44 11 55 88 22 110 110.000 Processors 19 9,5 28,5 38 57 57.000 Retailers 30 10,5 40,5 60 21 80 80.000 Schemes 102 176 204 204.000 Vendors 8,5 63,5 17 127 127.000 Others 6 12 12.000 TOTAL 242 53,5 295,5 484 107 591 590.000 Pres CSG 017-14 Average amongst the sectors 118.000 EUR/Y (590.000/5)

Cost figures: Contributions via SG/ET attendance contributing more than the average in terms of providing experts active in SG/ETs (CSG GM excluded) average contribution expected by sector (118.000 EUR) Pres CSG 017-14

Yearly Budget: Overview by sector (EUR) 1/2 EPC Processors Retailers Schemes Vendors TOTAL Contribution (Red figures represent a deficit in experts attending and thus a financial imbalance) Effective Contributions Man/date Average contribution 110.000 115.600 57.000 80.000 204.000 127.000 578.000 578.600 NB: Average per sector Legend S V E P R Pres CSG 017-14

Yearly Budget: Overview by sector (EUR) 2/2 EPC Processors Retailers Schemes Vendors TOTAL CSG Sec . Cost (Secr. + av. participation) Net Yearly budget over 5 years 375.000 75.000 300.000 To be received To be paid Pres CSG 017-14

CSG costs and contributions CSG funding proposals 1 2 Pres CSG 017-14

Funding: proposed principles CSG GM: Each sector contributes at its turn for the logistics Contribution via experts: Each sector is to contribute at least at the average level of the others Cost sharing principle (that is implemented at the end of 2014 even if the CSG is not yet transformed into a legal entity) Same yearly amount till 2018 invoiced by sector and due as from 1 Jan of each year starting 1 Jan. 2015 Each Sector pays the total amount due by the Sector to the CSG regardless of its Members individual contributions Each Sector manages its Members’ and Associate Members’ financial contributions Remarks A sector contribution is paid as from when credited on the CSG account During the upcoming years till 2018 included, any new sector joining the CSG will pay the same average amount The current costs do not include the ones related to the CSG legal setup as well as the SCCMB setup costs Pres CSG 017-14

Funding: proposed principles What are these costs covering? What can Members expect? Administrative, logistical, legal and financial structure for team work around SEPA for cards Time and programme management Legal - Individual responsibility shielding/risk mitigation SEPA - Common effort - Participation: fair representation, fair decision making process, fair cost sharing Both future and past oriented - Dealing with the real members’ interests regarding cards and their related cost reduction opportunities via standardisation Commonly agreed strategy objectives in line with ERPB, as well as work plans either based on the Volume and books maintenance cycles and yearly updates Combination of influences and consideration for cultural differences within an overall payment market integration/harmonisation project Continuous and structured dialogue across the card value chain, adapting eventually to the market and technology developments (potential integration of other sectors and academics) - networking Delivered card related standards/requirements acknowledged and praised by the Regulators as well as widely supported by the market Research, analysis, interpretation and mediation facilities Documents access Knowledge Enrichment by benefitting from mutual expertise Better anticipation of investments related to either newly appearing business opportunities or regulatory compliance or conformance constraints Credibility and commercial brand impact e.g. via usage of CSG logo Pres CSG 017-14

Thank You ! Questions ?