1. Maximize Your Profits Reading Statements and IC+ vs. Tiered Pricing

2. TERMINOLOGY INTERCHANGE PLUS .25% + $.10/item .10% + $.10/item
TIERS/BUCKETS/TERMS
2 Tier Tier 4Tier
5Tier? 6Tier? *Tier?
Offline Debit OR Signature Debit
Online debit OR Pin debit
ID&As (INTERCHANGE DUES & ASSESSMENTS)
Visa/NAPF: % + $.0195
Disc/DUF: % + $.0185
MCard/NABU: .11% + $.0195
PIN DEBIT NETWORKS
Interlink Alaska Option Maestro Shazam Pulse Accel NYCE AFFN
NetWorks Star

3. TERMINOLOGY cont. MARKUP/SURCHARGE IC: CPS Retail: 1.51% + .10
Plus: .10% + .10
TIERS/BUCKETS (2, 3, 4 Or More)
Check card: 1.39% Mid Qual: 1.39%
Qual: 1.69% Non Qual: 1.79%
Rewards: .69% Debit MQual: .99%
Debit NQual: 1.29% Standard : 1.59%
Partially Qual: 1.39%
HONORABLE MENTIONS
Capture/Batch Fee Non PCI Compliance Fee
Auth/WATS fee Statement Fee
AVS Auth Fee Visa FANF Fee

4. Competitor Breakdown Full Statement: Feb 2013 Total Amount: $26, 600
Fees Charged: $460
Statement Messages: None
V/MC/Disc Vol: $20, 750
V/MC/Disc Trxn: 376
Avg Tkt: $55
Over 1% CB or excessive refunds: No
Batching: Daily
Fees:
Dues & Assessments: passed thru
V/MC/Disc Auth: .05
V/MC/Disc Credit Discount: .0009
V/MC/Disc Debit Discount: .0009
Fees Continued:
Others….
Batch Settlement Fee: .29
Credit Return Fee: .05
Refund [Card Type]: $.xx
Dissection:
Isolate 8 IC Categories (vol, trns count)
V/MC/Disc Vol: $12,550
V/MC/Disc Trxn: 270
Measure margins against IC+ vs Tiered
IC+:
.25% + .10/item
.50% + .10/item
Tiered:
Qual: 1.59%
Mid: %
Non: %
$.25 auth fee, $.05/debit settlement
Still need to complete tiered competitor

5. Discount Margins: IC+ vs TIERED

6. Profit Breakdown Costs V/MC/Disc Vol: $12,550 V/MC/Disc Trxn: 270
IC+ = $45 Profit
.21% * = $26
.07 * 270 = $19
Tiered = $136.24
Reg Debit:
* = $98
.05 * 148 = $7.40
Non Reg Debit:
DM3:
770 * = $3.03
22 * .12 = $2.64
CPS DBT:
2215 * = $14
44 * .12 = 5.28
SmTkt:
293* -.11 = -.32
27 * .23 = 6.21

7. REGULATED VS. NON-REGULATED DEBIT
Avg tkt $ w/ %60 regulated debit
4 Tier Qualified: 1.39% + .25/item
*Requesting to reducing to .10/item
Non Regulated Debit - Issuers with assets less than $10 billion
Regulated Debit - Issuers with assets are over $10 billion
Our cost: $.25-$.28/Regulated Debit trxn
CPS Retail Debit: 05% + $.22 = IC Cost
D&As: .11% + $.02 = D&As Cost
Our Buyrate: $.03/item
Our cost:
.05% ($9)+ $.22(1) = .23
.11%($9) + $.02(1) = .03
= $ (our buyrate) = $.29
Small Ticket (Tiered)
Our income/Loss:
1.39%($9) = .23 or -$.06/Reg Debit Trxn
Finding the breakeven/profit PI fee?
Missing PI/avg tkt=% breakeven or add % for profit
$.18/$9 = 2% for B/E or add (.XX%) for profit
2.50% * = $.33 - $.28 = +.05/Reg Debit Trxn
Don’t forget to show equation to add bps to discount when not charging per item

8. IC+ Merchant Statement

9. Tiered Merchant Statement

10. IC+ Merchant Residual Report

11. Tiered Merchant Residual Report

12. IC+ Office Residual Report

13. Tiered Office Residual Report

14. CONCLUSION Sell on product, ROI and service
Don’t give away a terminal and pricing
Analyze complete current statements and watch for IC updates.
Be mindful of small ticket mx and their regulated debit percentage.
Look for keys or tells of either pricing model.
Be creative w tiered and IC+ pricing. Use the debit IC discount rate.
Do the math. Remember your cost.
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