1. Discover® Opportunities 2014
Today I’d like to spend a few minutes describing what we call the Discover Difference – and highlight a few opportunities where you might be able to put this Difference to work for you to grow your business and grow your residual income.
Discover has always been different – since our founding in 1986 as the upstart payments brand, we have always had to be different in order to compete and thrive in payments. We took a different approach – we were the first credit card to offer 24 x7 customer service, and the first to offer a cash back bonus.
Recently we’ve taken a different approach to partnering with Acquirers, ISOs, ISVs and VARs and together we’ve achieved fantastic results.
Sandy Neddoff General Manager
US Acquirer Relations

2. Discover’s Continued Growth
Largest global network1
$311B in network volume
47% increase in 30 day active merchants since 20062
Operating in 185 countries
25MM merchants accepting across the globe
Access to more than one million ATMS globally
Retail Banking and Research, The Global Payments Cards Market, August 2013
Switched to open acquirer model in 2006 2

3. Discover Financial Services Global Acceptance Footprint
EMEA
2,600,000
North America
9,600,000
Asia Pacific
9,600,000
Latin America
3,700,000
Accepted at over 1 million ATMs
Operates in over 185 countries / territories(1)
Through our international partnerships, Discover is now the third largest global card acceptance network.
Total Merchant Locations
25,500,000(2)
Notes:
(1) The map denotes countries or territories with transactional activity in the last year for Diners Club and/or Discover.
(2) Total reflects the number of merchant outlets that accept one or more card brands through December 2013.

4. Maximize Sales by Enabling all of Discover’s Global Brands
Help your merchants increase incremental spend.
Encourage them to accept our partners
$126 billion was spent in the US by International travelers 1
the
When your merchants accept Discover, they are opening the door to incremental spend through our reciprocal network agreements. Accepting Discover also means accepting brands like Diners Club International, China Union Pay, JCB, and BCcard. As you can see, this allows your merchants to tap into the billions of tourism expenditures the US sees every year.
Average spend is approx. $1,900 and stay an average of 17 days.1
U.S. Department of Commerce 2013

5. Discover Delivers - Millions of Loyal, High-Spending Cardholders
Large & Loyal Customer Base2
>40MM+ cardmembers3
Longest cardmember retention
1 in 4 households
What some of you might not know – is that there are a lot of Discover cards out there and the typical cardholder has a great demographic profile. Discover cards are owned by 1 in 4 households in the US.
Also Discover cardholders are incredibly loyal.
Each year brand keys, an independent 3rd party, measures loyalty in several financial and non-financial categories. Discover has been the #1 leader in customer loyalty in consumer financials for the last 17 consecutive years.
The bottom line is – when people try Discover, they like us and stick with us – AND they prefer to use their card as their #1 payment option.
#1 in Customer Loyalty Award for 18 Years in a row1
Discover is the leading brand in their category for customer satisfaction and commitment.
Sources:
2013 Brand Engagement Index Report
Cardmember Information: Internal Data, MRI/Simmons/TNS 2013 State of the Card Market
Nilson, January 2014
2013 Brand Keys Customer Loyalty Engagement Index Report

6. Discover in the News
“This reinforces our desire to work with Discover as it shows that you guys are thinking big, taking no prisoners, and doing what’s needed to win. Now that’s a partner I want to work with!”
– Large U.S. Acquirer
“The first mobile payments network that spans both millions of users and millions of locations”
– Wall Street Journal
“I think it will pay big time to discover Discover”
– Fox Business
“Another pretty clever example of Discover Network in action and further evidence of Discover’s commitment to using its network as a catalyst to innovative payments.”
– PYMNTS.com
“This sets a new paradigm for payments: B2B finance
– Aite Group
“Given the size of the network, the opportunity that is in from of Ariba and Discover is tremendous.”
– Payables Place
“Discover’s Direct Mail Campaign Brings Fresh Positioning to Credit Card, Connects with Prospects in New Ways”
– Yahoo
“An established payments powerhouse reengineer a popular platform by listening to the consumer.”
– PYMNTS.com
“Discover IT is the talk of the town.“
– NerdWallet 6

7. Overcoming Merchant Objections
Myth
Fact
Fees
Discover fees are too high.
Discover is a rewards card and too expensive to accept.
Discover partners with us now and is priced equivalent to V/MC
67% of consumers carry at least one rewards card1
On average, rewards cardholders have more than one rewards card2
91% of consumers with a rewards card use it as their primary card2
Monthly spend on rewards cards is more than double than that of non-rewards cards2
Demand/Customer Experience
Not accepting Discover doesn’t hurt my business.
1 in 4 households has a Discover Card2
33% of Discover primary cardmembers have a lower opinion of a merchant3
Accepting Discover means you can also accept Diners Club International, JCB, UnionPay, BCcard, Dina Card and RuPay, serving more customers
Implementation
Too complicated to update terminals and use separate statements.
Thanks to Discover’s partnership with us, your terminal is already enabled to accept Discover
You receive one combined monthly statement, and one point of contact for Discover and V/MC
As a reference for you, we’ve outlined the most common myths believed by merchants and the facts about the benefits of Discover acceptance.
Sources: 1) The Consumer Payment Strategies Research Program, 2013; 2) TNS’ Consumer Payment Strategies Program Rewards Card Report, 2013; 3) C&R Research, 2013

8. On Us Pricing Program Overview
Offer Details
No fees on Discover volume
For a full 12 months
Eligible Merchants
Inactive with Discover for more than 6 months
Non-registered
Never active
Offer Timeframe
Now through December 31, 2014!

9. iPayment Enrollment Process
Standard new account boarding
iPayment submits ALL new enrollments to Discover for 6 month transaction history*
If you mention the On Us Program with merchants during the sales process, please make sure they are aware of the eligibility requirement: No Discover transactions in the past 6 months.

10. iPayment Enrollment Process: Eligibility
NO transactions in past 6 months
Transaction history in past 6 months
Qualified
Ineligible
Merchant notified via special insert in iPayment welcome kit
BAU iPayment experience
Merchants are none the wiser

11. iPayment Enrollment Process: Welcome Kit Insert

12. Discover Marketing Welcome Kit Marketing
Discover sends each enrolled merchant a Welcome Kit
Includes program information, signage, pens
Marketing
Inactive merchants receive targeted marketing through their 12 months in the program to encourage activation

13. Common Merchant Questions & Answers
What will my rate be after the first 12 months?
Your rates will be comparable to Visa/MC with the same per transaction fee I’m offering for other card types.
How long am I under contract with Discover?
You are not under contract with Discover, only iPayment. To receive the free Discover processing for 12 months, however, you must stay with iPayment during this period.
This seems too good to be true. What am I missing?
This is a great offer and there’s no catch. Discover wants to ensure their card holders can use their cards at more places. This introductory offer helps promote that goal.

14. Program Resources

15. Great job! On Us Program WINS! Program To Date Results
Enrolled: 11,227
Active: 1,845
Great job!

16. Discover Has Powerful Promotions to Grow Merchant Sales
Leverage promotions to assist in securing acceptance and drive incremental volume in key spend categories.
We can work with you to take advantage of our quarterly cash back bonus categories to drive spend for your merchants.

17. Free Signage and Supplies for Your Merchants
Discover offers free signage and supplies; easy online ordering. For quick access establish
a free link on your customer service site
Window Decals
Discover offers a large variety of free signage and supplies. This is a great resource for you before and after the point of merchant acquisition. This can be used to help close a deal or as a simple thank you. Visit DiscoverSignage.com and register as an Acquirer or ISO.
Web Banners
Check Presenters
Store Hours Decal

18. Promote – So You Can Offer More Opportunities for Merchants
Cashier Signage
Cardholder Signage
Window Signage
An all-in-one decal kit; kit includes decals for your merchants cashiers, cardholder display and door/window

19. Robust Sales Rep Incentive Program to Encourage Enablement and Merchant Awareness
Point-based system will reward sales representatives for successfully selling and testing Discover at the Merchant level
Reps encouraged to have Discover awareness conversation and run Discover test transactions to earn points
Points can be redeemed for hundreds of valuable items such as gift cards, electronics, housewares, jewelry and sporting event tickets
Discover would like to reward you for the good work you already do. Once your Acquirer or ISO has completed a marketing review with Discover, sales reps can participate in our rewards program. Registering in the Discover Rewards Program allows you to earn points for testing Discover at your new merchants. The points can be redeemed for Discover gift cards or valuable merchandise. Contact your Acquirer or Discover rep to learn more.

20. Partnering at a Local Level Provides Additional Assistance
Develop partnerships with Discover Local Market Reps:
Access to additional marketing opportunities and special events
Tools for sales reps to increase sales, merchant awareness and Discover transaction volume
Personal, relevant industry consultation and free signage and supplies
Hawaii
Salt Lake City
Los Angeles
San Diego
Austin
St. Louis
Cincinnati
Atlanta
Manhattan
Philadelphia
Alexandria
Miami
Baltimore
Las Vegas
San Francisco
Chicago
Detroit
Long Island
Denver
Cleveland
Columbus
Another valuable resource to take advantage of is your Discover representative. Regional reps are available in the cities noted here to provide you with access to special events, free signage and supplies and marketing support.

21. What Merchants are Saying About Discover
FOR CONTRIBUTING TO OUR SUCCESS
DISCOVER THANKS YOU
“We have the opportunity to impact folks directly and give them something that improves their quality of life. People come here for that one-on-one treatment that we’re known for. There’s that loyalty component with Discover customers, so it’s very important for Dunwoody Wellness to be aligned with Discover and have that loyalty as part of our concept. Think about what percentage of your revenue comes from Discover payments. Our business is built on clients having a good experience and coming back over and over.”
Vlad - Owner of Dunwoody Wellness Center
41%
41% of Discover primary
Card members consider Discover their primary
card 1
33%
33% of Discover primary cardmembers whose card was rejected have a lower opinion of a merchant2
NEW MERCHANT REGISTRATIONS UP
Your continued efforts to enable Discover with all of your merchants is also appreciated by the merchants themselves – who want to ensure they can take all forms of payment in difficult economic times. As you can see here, our card members have a lower opinion of merchants who don’t take Discover – and 51% of them will not return to a merchant who does not accept their card.
It just makes sense to allow customers to pay with their preferred form of payment. Think of it as better customer service.
“There was a big demand for it. We cater to a lot of travelers who prefer to pay with Discover. They’re always grateful when they hear we accept it. I think Discover is different because their members get something in return. As a small business owner, it’s nice to see that Discover cardmembers often spend more than other customers do.”
Carolyn – Owner of Sciandrone’s Classic Touch

22. Thank you!
Stop by our booth, drop off your business card to qualify for our drawing!
BOSE® QuietComfort® 15
Noise Cancelling® Headphones
Samsung Galaxy Tab ®

23. Let’s Put the Discover Difference to Work For You! – Thanks!
I hope today’s session has successfully highlighted some of the ways we feel we are taking a ‘different’ approach to working with our customers – and outlined how you can put this Discover Difference to work for you!
Thanks again – for all of your continued support!
Ask the audience what are you taking away to add to your conversation with merchants?