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? 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

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

Authorization Process Takes 3-15 Seconds Card Payment Process Customer Pays by Credit Card Joe’s Auto Service Transaction Server Acquiring Bank Issuing Bank  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

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

Trusted Technology Partner Development Level Support 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

How PPI Helps You Get the Lowest Rates Avoid Duplicate Transactions 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

Pioneer and Leader in PC-Based Transaction Processing 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

The Company We Keep

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