Groupon Training June 2011

VeriFone as a redemption method Discussion Topics Groupon Description VeriFone as a redemption method Groupon Redemption only Payments plus Groupon

Groupon Description Groupon lets merchants start a campaign asking people to give money or do something as a group — but only once a "tipping point" of people agree to participate. Groupon provides a collective buying point for consumers to pre-pay for these discounts. Some of the redemptions are redeemed prior to the consumer showing up to the merchant, but many are not. It is for these face to face redemptions Groupon has looked to VeriFone to provide solutions. VeriFone systems will be used both as a stand alone redemption method as well as redemption in line with card payments.

Couponing System Drives Store Traffic Coupons purchased online are exclusively delivered by Brick and Mortar Retailers 4

The purchase process Select Buy for a specific deal

Confirmation and link After purchasing the deal you will receive a confirmation email with a link

Groupon Delivery You will be brought to your Groupon page so you can print your Groupon or optionally have it delivered to your smartphone.

Redemption Printout Then you will have the option to print it out to carry it to the retailer. This is the number entered for Groupon Barcode

VeriFone Redemption Solution

Current Payments Vx520 is first out Processor Innovation Platform Processor Full suite or VeriFone terminals supported via the PAYware Connect gateway Same platform to deploy PAYware Mobile solution 10

Tier I helpdesk, automated downloads, and other management services Total Managed Service Tier I helpdesk, automated downloads, and other management services Processor Services Key Injection Deployment Services Help Desk Repair Training On-Site Installation Project Management Terminal Downloads Client Services 11

Industry leading security to protect transactional data end-to-end Complete Security Industry leading security to protect transactional data end-to-end Processor PCI Security Remove POS from Scope End-to-End Encryption No In-Store Batches Tokenization Security 12

Full Suite of Online Management Tools Robust reporting and asset management tools for merchants and resellers Processor 13

With the addition of Groupon inline with Payments Mobile Commerce Platforms $5.00 coupon (routed back to PWC) $20.00 total sale $15.00 payment for authorization Processor Credit / Debit Payment 14

Groupon Redemption Only Mobile Commerce Platforms $5.00 coupon (routed back to PWC) $20.00 total Cash sale 15

VeriFone Redemptions Tokenization – PAYware Connect has the ability to provide tokenization for PAYmedia partners to allow PWC to store tokens that represent credit cards registered with the partner. These tokens allow a credit card to be swiped at the point of sale and to see if that card has been registered with the partner for redemption purposes. This allows a consumer to present their card instead of having to present the Groupon with the barcode or barcode number. There are two basic implementations of Groupon, but the existence of tokenization will change the flow so that will be pointed out as well. 1) Groupon Redemption Only 2) Payments with Groupon Redemption

User Interface VMAC Menu Main Menu Sub Menu 1 SoftPay Sale1, 2 Groupon   Groupon Cash Credit Phone Order1, 2 Void2 Refund2 Settlement2 Force2 Batch Review Store/Forward1 Send Store/Fwd Store/Fwd Mode Help 1 = item not shown if terminal has been loaded with ECVs for Menu Show have been set to “2 -Don’t display on menu” (recommended). 2 = item will be removed from the menu if flagged as ‘disabled’ from SoftPay Connect via the ADMIN message.

Normal Sale from SoftPay Menu Sale transaction will happen like a standard SoftPay transaction. From the main SoftPay menu you will select SALE. If Tokenization is enabled, PWC will check to see if the card has been registered and if there is a Groupon available for the transaction. If not, the sale will take place as normal. If there is, the receipt will reflect Groupon information. Receipt examples are on the next slide.

Sale - Receipt Samples – Differences circled Sale with Groupon Redemption Sale with no Groupon

Groupon Redemption Flow From SoftPay main menu select GROUPON They will be prompted to enter the 8 digit Groupon Barcode ID. Enter the total transaction amount (not the reward amount) If configured as Credit plus Groupon, or there is tokenization enabled, the next prompt will be to select Cash or Credit If Credit is selected: Swipe or enter credit Card If debit is enabled it will ask Credit or Debit If Debit, it will ask follow prompting for PIN It will display the truncated card, cardholder name, and amount during submission If Cash It will display the amount of sale during submission. Receipts will display as shown on next slide and optionally prompt for customer copy.

Groupon Key receipts – Differences circled Groupon with Credit sale Cash only Groupon redemption Charge to Card To be collected

Reports – Differences circled Detail By Card Type By Transaction Type

QRG SoftPay Connect QRG will be included as a reference for all traditional transaction types Groupon QRG will also be delivered for Groupon specific steps

Other information Terminal components VMAC Comm Server EMA SoftPay Connect Terminal configuration controlled by Payware Connect Enabled transactions drive SoftPay Menu ISO partner for pilot US Merchant Services Freemont CA Pilot Merchant Kickback Café – Santa Cruz CA “Local” TSA support – Ron Cooper Groupon Client Profile in process