1. MATTHEW PARKER Payment s

2. AGENDA Brief History Facts and Figures Key Players of Payments Process Ugly Side of Payments Resources

3. HISTORY OF PAYMENTS Bartering An exchange of resources/services that are mutually beneficial Livestock Animals as currency Currency First paper money in China circa 806 Gold becomes standard in England in 1815 Credit/Charge Cards Originated in US in 1920s First Online purchase was allegedly a pepperoni pizza from Pizza Hut in 1994*

4. INTERESTING FACTS AND FIGURES Average cards held – 3.7 per person In 2012, there were 26.2 Billion Card Transactions Visa (48%) and MasterCard (31%) account for majority of transactions In 2012, only 27% of point of sale transactions were done with cash

5. KEY PLAYERS Merchants Walmart, Kroger, Costco, Target, Home Depot Acquirers/Processors First Data, Chase Paymentech Networks Visa, MC, Discover, AMEX Card Issuers (Card Company) BofA, CitiBank, Capital One

6. SIMPLE PROCESS? …SICK ANIMATIONS COMING IN HOT! Cardholder Acquirer/Process or Merchant Card Network Card Issuing Bank

7. HOW DO MERCHANTS GET PAID? Cardholder Merchant Acquirer/Process or Card Network Card Issuing Bank

8. UGLY SIDE OF PAYMENTS …MORE SICK ANIMATIONS! YOU THOUGHT IT WAS OVER??? Almost every step in the process creates a fee to be incurred by merchants and/or cardholders Acquirers and Card Networks have upwards of 300 fee types they can charge on a given transaction Typically range from 2-3% per transaction 40 States have allowed merchants to charge a surcharge on card purchases Massachusetts is one of the 10 that does not, NC is not (Live free or Die and pay up to 4% in additional fees!...pfft, New Hampshire) Visa and MC ordered to pay $5.7B to merchants as a result of a class action lawsuit for their consistent rate changes and inflated fees Why aren’t my Discover/AMEX accepted everywhere? Why can gas stations charge extra for cards without issues?

9. RESOURCES Mastercard Process CardFellow www.nerdwallet.com

10. Get it?