Merchant Application Guide

Transcription

1 Document Includes: Merchant Application Guide MOTO & Internet Merchant Addendum Guide Northern Leasing Application Guide Platinum Pricing Guide Merchant Application Guide Welcome to AmericaOne's training guide on filling out merchant applications. This document will walk you through the process of filling out all the necessary paperwork to bring a new merchant client aboard with AmericaOne. First, you ll learn where to find all the forms you'll need, then how to fill them out, and finally how to submit them to us. You will be guided on how to sign up a typical retail or restaurant business as well as mail order, telephone order, or Internet businesses. We will identify a few circumstances where you will use a secondary merchant application, and at the conclusion of this document, you will find instructions on completing a Northern Leasing (NL) application. Northern Leasing is used instead of the First Data Global Lease (FDGL) when a merchant wants a 12- or 24-month lease (36- and 48-month leases are only available from FDGL). You will also use NL when the merchant does not qualify for a lease from FDGL. We strongly recommend that you print out this document and keep it handy for reference. It contains the most up-to-date information on paperwork procedures. (A copy is include in your Relationship Manager Training Workbook as well.) While you are learning and whenever you need help, you can count on plenty of support from your District Manager and AmericaOne s Sales Support Team. Locating Forms Let's first look at where you can find new merchant applications and the other documents that you ll be using. When you log-on to AOrep.com, you ll select the Documents and Information icon. At the top of the list you will find the Merchant Application Forms and Agreements link. The first link takes you to the most up-to-date Platinum Pricing Guide. You will find a copy of the guide in Part 9 of your Relationship Manager Training Workbook and in this document as well. You must always use the most up-to-date guide when filling out merchant applications. Under Retail Forms and Agreements, you ll see an Important note, which explains that AmericaOne is currently using two banks to underwrite our merchant clients. In nearly all cases you will be using the Harris Bank / Paymentech Application, however, there are two circumstances where you will use our Wells Fargo / FDR / Buy Pass application. The first is when signing up a petroleum account, and the second is when First Data s proprietary terminals (such as LinkPoint) are being used by the merchant. The Wells Fargo application is nearly identical to the Harris Bank / Paymentech application, so you should have no problem completing it. Please contact Sales Support if you plan to use the Wells Fargo application. Copyright AmericaOne Merchant Services Inc. V

2 Next, you see a link to the Virtual Training on filling out applications, followed by a list of downloadable forms and agreements. The list includes: The New Merchant Checklist and a sample checklist. An auto-fill Merchant Application and Agreement, and below it some great learning tools, Copyright AmericaOne Merchant Services Inc. V

3 including this Application Guide, a completed Sample Application, and Underwriting Guidelines, which we encourage you to review. The underwriting document shows how merchants are categorized as well as the conditions and/or paperwork that are needed to underwrite or bring them on as clients. You will also find Guidelines for Existing Cynergy Data Customers, which you should read if you discover a merchant prospect is an existing client of our processing partner. A Voided Check Form. A Mail Order, Telephone Order & Internet Merchant Addendum that appears under the Card Not Present heading. New Merchant Checklist The New Merchant Checklist is the form that we use internally for you to communicate key information about a new account and to set up payment for our products and services. Here are instructions for completing this form: At the top of the form, you ll put your Name and your Representative Number, which was provided to you when you joined AmericaOne. Next, write-in the Merchant DBA. This is the actual name of the store, restaurant, or business. Equipment /Services Purchase Order and ACH Agreement Under Equipment/Services Purchase Order and ACH Agreement, you ll first identify all the equipment to be used by the merchant and how it is to be provided. You will include any costs associated with the purchase of equipment and any AmericaOne s program or service, for example a gift card order or setup fee for POSnet online ordering. In the sample, we show that the merchant is going to be purchasing new equipment and using old equipment as well. The Vx570 is going to be purchased as is the PIN pad. The Nurit 2085 Plus terminal, that the merchant already owns, is going to be reprogrammed and a new Magtek check imager is Copyright AmericaOne Merchant Services Inc. V

4 being leased. A one-time setup fee of $499 for a TenderCard Classic gift card program (1-color custom 250 cards) is shown and the purchase box is selected. Equipment costs can be found on AOrep under Equipment and Vendor Information where you will see our Preferred Equipment Cost and New and Refurbished Equipment Cost documents plus our combination packages. The standard mark up from these costs is anywhere from 100% to 200%. In this example, we sold the merchant a Vx570 for $1,200 and the cost on the unit is $433 and a Verifone 1000SE PIN pad for $310 with a cost of $155. Please note that refurbished equipment is to subject to availability at the time of the sale. You will then Subtotal the charges ($2,009), add Sales Tax if the merchant is in California, then write the Purchase Total ($2,009). You will then indicate the Payment Method: Check or ACH. We prefer ACH as it speeds up the transaction. If the merchant will allow us to ACH, you will need the merchant's: Bank Name Account Number Transit/Routing Number Acknowledgement Signature and Date The merchant s signature authorizes us to draft funds for payment from the merchant s account. Special Instructions In the Special Instructions section, you will indicate if the merchant would like to begin taking American Express by checking the New box. If the merchant is already taking this form of payment, check the Existing box and fill in the merchant s account number. If the merchant is already accepting EBT (Electronic Benefits Transfers), check the box and provide the account number. When we discuss the account pricing in the Merchant Application training to follow, you will learn that the mid-qualified and non-qualified rates are specified on the application, however, if a special request to adjust these rates is made or negotiated, the Mid Qual (Mid-Qualified Discount Rate) and Non Qual (Non-Qualified Discount Rate) boxes will contain the adjusted rates. Theses Special Request rates will be applied to both Credit and Non-Pin Debit also known as Offline Debit. The rates will not be adjusted in this example, so we left the boxes blank. Next, you will indicate if the merchant wishes to have discount fees billed on a Monthly basis. If No is selected, the discount fee will be set up on a Daily basis. Next you see PIN Debit and will indicate if the merchant will process PIN-based debit. If Yes, the merchant has the option to charge a debit Surcharge and you must indicate the amount. This surcharge Copyright AmericaOne Merchant Services Inc. V

5 will appear on the terminal screen when the customer attempts to use a debit card and he or she will need to approve it before continuing with the transaction. The merchant also has the option to offer customers Cash back. If he or she would like to do so, indicate the amount. On the next line you will indicate who equipment is to be shipped to. It could be Relationship Manager, the Merchant Location or another location, that must be specified. You will also indicate who will be the Reprogram Contact. In almost all cases, it will be Coordinate with Relationship Manager, and you should put your cell number with the area code in the space provided. You ll be learning more about this process in additional training material. In the Additional Instructions section, you'll communicate any additional information needed to process the application. POS Equipment Setup Specifications In the next section, POS Equipment Setup Specifications, you will indicate the POS application. It could be: Retail, if the business is a typical store that delivers goods and/or services at the time of the sale. Restaurant MOTO with AVS, which stands for Mail Order Telephone order with Address Verification Service. MOTO with AVS and CVV2 or CVC2, which is the addition of security code verification. Seasonal, which is a seasonal business like a ski resort. Lodging, which might be a Hotel or Retail Lodging. AFD/CAT, which stand for Automated Fuel Dispenser and Cardholder Activated Terminal. This is typically for a petroleum account. You will need to specify which kind of system is being used Verifone s Ruby or Gilbarco for example. Software Gateway, which would indicate the gateway service being used to process over the Internet. POS system, which is the typically industry-specific point of sale system being used to run the business and process cards, plus the software version. In the General Parameters section, you will indicate the connectivity, in other words how transactions are going to be transmitted for authorization, approval and settlement. The choices are: - Dial up - using a typical phone connection. - IP is Internet. Copyright AmericaOne Merchant Services Inc. V

6 - WiFi. - GPRS is cellular for ATT and T-mobile. - CDMA is Verizone and Sprint. - Bluetooth, or if the merchant is using another method, indicate it here. Next, you ll indicate if there is a Dial Access Code that precedes the phone number that will provide processing access. For Truncation, you ll indicate if the credit card number is to be x d out on both the merchant and customer card receipts or just the customer s. The Manager Password indicates if the merchant would like password protected functions on the POS device. You will indicate which functions, if any, the merchant wants to password protect so only authorized people can perform them. For Batch Close, you will check either Auto Close, so the merchant s terminal will automatically batch out, or Manual, which will require the merchant to initiate the batching out process. Manual is the default for restaurants to prevent the terminal from automatically batching before tip adjustment. The next section is for Restaurants only. Here you will first indicate if the receipt will have a Tip line and if so, if it is to be Prompted. For Server IDs, you ll indicate if the server is to be Prompted to enter an ID before using the terminal and if they must Log in/log out when using the terminal. Server Amount indicates the number of servers 1, 5, or any number. Copyright AmericaOne Merchant Services Inc. V

7 Quick Serve Off always prints a signature line on the receipt. No (on) does not print a signature for Transactions under $25. Verifone OTS Yes indicates that the merchant will use Verifone s On the Spot Internet gateway for wireless and/or Internet processing. Cash Receipts Yes captures tips before processing. In the Legacy Equipment section you will be providing information on existing equipment so that equipment and processing systems are configured correctly. If the merchant has a Verifone Trans 330 with PIN based debit, you will need to call Sales Support for instructions on determining if the terminal is a Track 1 or 2 version. Next, you ll Indicate the amount of Memory for any of the Hypercom terminal models listed. To do this, you press Function, then 3, then press Enter. If 8 or more digits appear on the screen, the memory is 512K. If 7 or less digits appear, the memory is 256K. Next, indicate the Printer being used. Most late model printers are 1-ply Thermal and do not use ink. The Friction models have a ribbon and typically produce a two-ply receipt. If the merchant has a T7 Plus terminal, you will indicate if there are a total of 19 Keys or 35 Keys on its face. For Omni 3750/3740 terminals you ll need to indicate if the terminal has 2 MB or 4+ Megabytes of memory. If the merchant is using a Nurit Terminal (except the 8000), you will indicate which NOS (Nurit operating system) is running on the terminal. You will need to go to AOrep.com, choose the Documents and Information icon, then go to the Equipment & Vendor information link where you will find the Nurit NOS Level Check and Compatibility Table. If the merchant will be processing over an Internet connection (DSL or cable) or cellular networks, you ll complete the Wireless Terminals section. You ll enter the terminal Serial Number and if the merchant is processing over the GPRS cellular network, a SIM Card number. Next, you ll indicate the processing Gateway; NetConnect, Apriva, or Verifone s On the Spot. Copyright AmericaOne Merchant Services Inc. V

8 Merchant Application Now let's take a look at how to fill out the Merchant Application. Unless indicated in this Application Guide, the completion of all data fields is mandatory. Use N/A or not applicable rather than leaving a field blank. You will need to provide accurate and legible information. PAGE ONE On the top you ll see a place for a Merchant number. Leave this blank, as this number will be assigned when the application is approved. Next, if this client is the result of a referral partnership, you will enter a Referral Partner number. You will then check New Location, if the merchant is a new customer for AmericaOne, or Additional Location if the merchant is already an AmericaOne client. Business Information In the first section, you will need to provide as much information as possible about the business. On the left, you add the client s Legal Name, which could be different from the DBA or Doing business as name that you ll add on the right side of the application. Next, add the Legal Address, which could be different from the physical address of the business. This is often the case in a multi-store operation. Next, you ll indicate the Phone number for the legal address and the Contact name, which is the primary contact for you and AmericaOne. If the legal and physical locations are the same, you simply write same on the right side of the application. If not, you ll need to add the additional information about the physical location. Copyright AmericaOne Merchant Services Inc. V

9 Next, check the box that will indicate where the merchant wants statements and correspondence sent:: DBA address or legal address. Then. you ll add the Address and Website, if the merchant has one. The Federal Tax number is next. This could be the owner s Social Security Number, if he or she does not have a Federal Tax Number or ID. Next comes the Number of Locations and the Years in Business. The Years in Business indicates when the business was started. You will enter the number of years the current owner has had the business under Years Owned Business. These numbers could be the same, if the owner started the business. Next, you ll fill in the Place of Legal Formation for corporations and LLCs, which is the city and state where the business was registered, for example Miami, Florida, followed by the Country of Primary Business Operations, which will be the United States unless the business is owned by a foreign company. The next line is where you will put the Bank Reference, which is the name of the merchant s bank and a Contact person at the bank (if the merchant has one). You ll need to include the bank s Phone number as well. Owners or Officers In Owners or Officers section, as the title implies, you will need to provide ownership information that represents 50% or more of the business. This may require information on two or, in some cases more individuals. You will need to provide the owner s Name, Title, Date of Birth, Applicant s SS# (Social Security Number), and Percentage of Equity Ownership. Next, you ll add the owner s Residence Address and Number of Years living at that location. Below, where it asks for US Government Issued ID number, you ll enter a driver s license number in most cases (or perhaps a passport number), then enter the Type of ID, Expiration Date and Country of Citizenship, if other than the United States. Complete this section by entering the owner s Home Phone. If needed, you ll add information on another partner or owner to reach the 50% ownership requirement. Copyright AmericaOne Merchant Services Inc. V

10 Business Profile In this section you will indicate the Type of Ownership. Chances are very good merchants will know how their businesses are structured, so don t feel you need to guide them in this section. The choices are: Sole Proprietorship Association/Estates/Trusts Joint Venture Government Corporation (Privately Traded) Corporation (Publicly Traded) Medical or Legal Corporation Partnership Tax Exempt Organization Single Member LLC Multi Member LLC Civic Association Limited Partnership Political Organization Other Next, you ll indicate the Type of Goods or Services Sold and the SIC Code (Standard Industrial Classification code). The merchant should know the SIC number because it is typically the same number used on tax returns, but if not, leave it blank. If the merchant is not currently accepting Discover or Visa/MasterCard, check the No box, which will identify a new business or a business that has never had a processor. If Yes, ask the merchant for one or more past merchant statements and indicate the Name of Current Processor. At least one statement is required. Below you will indicate if the merchant or any principals in the company have filed bankruptcy or have been subjected to involuntary bankruptcy. If yes, supply the date of the discharge. Open bankruptcies are not eligible for service. Copyright AmericaOne Merchant Services Inc. V

11 Sales Profile Here you will check a box to identify the Merchant Type, which should not require further explanation. In the Visa/MasterCard Sales Profile, indicate the percentage breakout for how cards are processed by the merchant. The profile could include one or more of the following and the total must add up to 100%. Card Swipe (Through a processing terminal) Manual Key Entry with Imprint, Card Present Mail Order/Telephone Internet (website shopping cart) Business Trade Suppliers Here you will list two trade references. They might be suppliers of inventory for the business or companies that supply equipment to run the business (office supplies, etc.). You will indicate the Name, Address, Contact (if available) and Phone number for two references. Merchant Site Survey The next section should be completed by you. First you ll check a box indicating that the Merchant Location is one of the following: Retail Location with Store Front Office Building Internet (website) Residence Other Next, you will need to indicate how the business location is Zoned. If you are not sure, the merchant should know. You ll check one of the following: Commercial (which is most retail settings) Industrial Residential You ll then indicate the business Square Footage by checking one of the following: ,000 2,001+ Copyright AmericaOne Merchant Services Inc. V

12 You will also need to assess the business and indicate if the inventory and merchandise on the shelves and floor appear consistent with the business type and If No, explain. Finally, you will check a box to indicate if The Merchant Owns or Leases the Business Premises. If the owner is leasing, provide the Landlord Name and Phone number. In the Further Comments by Inspector, you must add any details or clarifications for anything on the application. To complete this page of the application, print your name under Verified and Inspected by, put your Office number and Representative number, then sign below Representative Signature and add the Date. This section confirms that to the best of your knowledge and belief, the information on the application is true and correct. Do not sign the application if you have not inspected the site; instead write Not Inspected. PAGE TWO Discover Network, Visa/MasterCard Standard Retail / High-Risk Retail Rates or Mail / Phone / Internet / Touchtone On the top of page two, you will first choose to either fill out the left column, which is for a retail business, or the right column, which is for a mail order telephone order, Internet business or non-retail type business. You do not fill out both sides. In fact, it would be helpful if you draw a line through the side you are not using. Next, under the Merchant chooses to accept the following, you will enter the rates from our Platinum Pricing. By entering a rate, the merchant is agreeing to accept this form of payment and the rate. You will use the Qualified Preferred Rates for Visa and MasterCard credit and Non-PIN debit from your Platinum Pricing Guide, if possible. If needed, these rates can be lowered within the limits shown in the Pricing Guide. For Discover Card and American Express, you will also refer to the Platinum Pricing Guide. The Discover rates are based on average ticket and the American Express rates are based on the type of business. Note that for a Mail Order, Telephone Order, or Internet business, there are some differences in rates and fees that will be discussed below. The pricing in our Platinum Pricing Guide was developed to be both competitive and profitable. The fees charged in markets throughout the United States will vary depending on the level of competition. If further rate adjustment is needed to win the business, please call your District Manager or Corporate, however, you will want to seriously consider charging higher rates than what we have published in the Platinum Pricing Guide when the market conditions are favorable. Copyright AmericaOne Merchant Services Inc. V

13 Fees Under the Fees heading you will see that all fees have been hard-coded. By checking the Platinum Pricing Guide, you will see that some of these fees are flexible. If you ve done a great job of selling value and increasing the merchant s sales through gift cards and checks, for example, you should not need to adjust anything. If you need to adjust something, the easiest adjustment is the Annual Fee or Monthly Minimum Fee. You can waive or lower one of these fees, but not both. If you do need to adjust a fee, please draw a line through the hard-coded fee and write in the new fee next to it. You will need to have the merchant initial the change as well. Here are explanations of each fee. VS/MC Transaction Fee. This includes the VISA/ MasterCard authorization fee and our per-item transaction fee. Non-Bank Card Transaction Fee. The authorization fee we charge for American Express, Discover Card, and JCB cards. Statement Fee. The monthly fee for rendering a statement for the merchant. VIMAS Online Service. This fee allows merchants to logon and review their processing transactions, deposits, and statements online. Monthly Minimum. This is the minimum monthly processing fee. If the merchant doesn t process enough transactions to generate $25 in discount fees, we will charge the difference. Here s an example. If a merchant processes 10 sales in a given month for a total of $1,000 in MasterCard and Visa, it would generate $18.50 in discount fees. The merchant did not fulfill our minimum monthly fee of $25, so we would bill him or her an additional $6.50 Annual Fee. The yearly fee charged to keep an account active. Copyright AmericaOne Merchant Services Inc. V

14 Debit Transaction Fee Plus Debit Network Fees. This is the per-transaction cost for processing PIN- Based (online debit). The Debit Network Fees are passed through and are billed separately. EBT Transaction Fee. This per-item fee is charged for Electronic Benefit Transfer transactions for merchants who accept this government program. Debit/EBT Statement Fee. The monthly statement fee is for a business that accepts Debit or EBT transactions. Batch Fee. This fee is charged each time the merchant batches out transactions for settlement. Monthly Service Fee. The monthly fee for processing. Chargeback Fee. Chargebacks result when a customer disputes a charge on his or her card. This fee covers the handling of this type of dispute and its resolution. ACH Rejection Fee. This fee is charged if the merchant s account has insufficient funds and therefore AmericaOne is unable to deposit or withdraw the appropriate fees or processing charges that are owed to us. It s like a bounced check fee or reprocessing fee. Retrieval Fee. A retrieval is when a customer does not recognize a charge on his or her card. The customer s bank will request a copy of the sales receipt from the merchant. A retrieval request sometimes results in a chargeback. Our retrieval fee covers the handling of this request. Voice Authorization Fee. This fee is assessed if the merchant calls in to receive authorization (an approval) to accept a customer s card. A merchant might do this when his or her processing terminal is down. NetConnect Fee. This one-time fee is charged when a merchant will be processing with an Internet connection. It will not be charged if the merchant is not processing over the Internet. AVS Surcharge. This address verification service fee is charged when card processing for a Mail Order / Telephone Order or Internet customer with address information. Application Fee. This fee is charged when a new account is set up. Others (please specify). This is where to indicate any special fees associated with products or services AmericaOne offers that are not covered with the above fees or on separate forms or agreements. Copyright AmericaOne Merchant Services Inc. V

15 Mail/ Phone / Internet / Touchtone Rates & Fees If you have a mail order, telephone order or Internet business, you will use your Platinum Pricing Guide to fill in the right side of the application with the MOTO/Internet discount rate, the NON-Pin Debit MOTO Internet rate, and the MOTO Internet rates for Discover card. For American Express we have hardcoded a monthly fee of $5.95, which is mandatory for these types of businesses. There are several differences in the fee section between a retail account and a mail, telephone, or Internet business that should be noted: MOTO/Internet Surcharge. This per-item fee is charged on each transaction in addition to the VS/MC Transaction Fee. EBT Transaction and Statement Fees. Not applicable to MOTO. Online Debit Transaction Fee. Not applicable to MOTO. Note: Be sure to include the Mail, Telephone Order and Internet Merchant Addendum with the application. Downgrades and Special Pricing The rates shown on page two of the application are Qualified Discount Rates. The charges for Mid- Qualified and Non-Qualified rates (downgrades) are explained in the statement that appears below the Fees section. It states to the merchant that the rates shown above in the rates section (Qualified Rates) will be honored when transactions meet the requirements of being electronically authorized and batched out daily. It also states that transactions that do not meet these requirements will be charged up to 2.19% above the Qualified Rate plus an additional $.10 per transaction. AmericaOne will default the Mid-Qualified to +1.50% and Non-Qualified at +1.98%. Any adjustments to this rate will need to be requested using the New Merchant Checklist Special Request Section. This statement also alerts the merchant to an Early Termination fee of $599. This fee is charged when a merchant closes his or her agreement with AmericaOne before the agreement has expired. The next line asks about third-party storage of data, which is related to PCI Compliance. Please leave this blank as Sales Support will fill in the necessary information based on the new equipment (if any) that will be leased or purchased from AmericaOne and any other software or third party that will be used to process transactions. Copyright AmericaOne Merchant Services Inc. V

16 Merchant Benefits Club The Merchant Benefits Club is next. By checking the box and having the merchant initial in this section, the merchant will take advantage of a program that covers all terminals with the exception of wireless terminals. It covers equipment repair and replacement, and provides the merchant with supplies such as power cords, paper, ribbon, etc. See the Merchant Maintenance Form on AOrep for details. Lease Order In the Lease Order section you will fill in information if the merchant will be leasing equipment through First Data Global Leasing (FDGL). We also offer leasing through Northern Leasing, if for any reason the First Data Global Leasing is not approved or the merchant prefers a 12- or 24-month lease, which are not offered by FDGL. You first check the box to order the lease, then enter the lease term in the space provided (36 or 48 months). Next, enter the monthly lease cost in the space provided. The merchant must initial in the upper right-hand corner, then sign and date where indicated. American Express The American Express section is for merchants who would like to begin accepting American Express. Have the merchant read the statement, which essentially allows American Express to access and use the information on the application to approve the card acceptance request. The merchant must then check a box if he or she has a Retail business or Services, Wholesale & All Other, if they have any other type of business. Next, the merchant must sign and date this section. Debit/Credit Authorization Staple Voided Check Here. In Debit/Credit Authorization section you will obtain the merchant s business bank account information. You will supply the DDA or Direct Deposit Account number where customer payments will be deposited and processing fees and other processing expenses will be debited. You will also supply the ABA Routing number. You can find the ABA routing number on any check by first looking for the ninedigit number that is inside the smiling faces or in other words the numbers that are in between the two slash and colon symbols. The other two numbers that appear are the check number, which you don t need, which leaves you with the DDA number. Copyright AmericaOne Merchant Services Inc. V

17 Next you fill in the merchant s Average Ticket Size or sale and the Average Monthly Volume of MasterCard and Visa credit card processing. IMPORTANT NOTICE The IMPORTANT NOTICE alerts the merchant that he or she must review the terms of the application/agreement and agree to its terms. Individual Guaranty No Titles The owner(s) who appears on page one of the application must read, sign and date this section. For all Businesses Business Resolution In the For All Businesses on the right, regardless of whether the business is a corporation or not, you should Print the Legal Name of the Merchant Business, then have the corporate officer or owner whose name appear on the left under Individual guarantee sign and date this section, too. Leave the Accepted by Processor and Accepted by Harris Bank blank. Copyright AmericaOne Merchant Services Inc. V

18 Mail, Telephone Order & Internet Merchant Addendum Here is a guide to filling out the Mail, Telephone Order & Internet Merchant Addendum that covers transactions when the credit or debit card is not present. At the top of the form, merchants are reminded of the minimum standards that Visa and MasterCard have for Internet businesses. The seven requirements that must appear on a merchant s website are: 1. Refund / Cancellation Policy 2. Privacy Policy 3. Terms & Conditions 4. Products & the Corresponding Pricing listed bit SSL page where personal and credit card information is obtained 6. Telephone Customer Service contact number 7. Shipping and handling method and deliver time after the sale. Once these requirements are met (if the merchant is selling on the Internet), this form can be completed. The merchant first must indicate how the products will be advertised or promoted and submit samples of brochures, promotional materials, catalogs, etc. If advertising on the Internet, the website address must be provided next. A DBA name or identifier is then supplied in the boxes provided. It should not exceed 23 letters. Copyright AmericaOne Merchant Services Inc. V

19 In a resale situation, the merchant should supply the name or names of the vendors from which the product is purchased. Next, you ll indicate the names and addresses of the third party or fulfillment organizations, aside from the merchant s staff, who will participate in sales, marketing, processing orders, or the shipping of merchandise. In the next space, the merchant should provide the geographical area where the products are to be marketed and sold. Next indicate the delivery service (UPS or FED Ex, for example), followed by the return or refund policy. Then describe how the customer orders the product or service, followed by the shipping schedule once a sale is authorized. Next indicate if the merchant has recurring monthly billing, and if yes, indicate how often. The final questions ask if the merchant s database is collecting entire credit card numbers and if yes, if the merchant is PCI Compliant. You may wish to provide the merchant with a copy of the VISA PCI Compliance Overview document from AOrep. Finally, the merchant must read the terms at the bottom of the addendum and sign and date the lefthand side of the document. Leave the right-hand side of the addendum blank, as it will be signed by Cynergy. Harris Bank Copyright AmericaOne Merchant Services Inc. V

20 Concluding Notes That's all there is to it! Once you've completed a few of the applications, it will become very easy. Some key points to remember: Make sure your applications are accurate, legible, and complete. Use the most current Platinum Pricing Guide from AORep when you fill in rates and fees. Make sure you have all necessary signatures. Once the application and associated paperwork are ready, fax them to us at We will review them before sending them to underwriting for approval. The bottom line is that clean applications mean fast approvals, which is good for everyone. AmericaOne Sales Support Monday through Friday 8 a.m. to 5 p.m. Pacific Time ext If you need assistance, please call us from the merchant location or wherever you are and let us help. You can reach AmericaOne Sales Support Monday through Friday, 8 a.m. to 5 p.m. Pacific Time at ext We look forward to working with you! Copyright AmericaOne Merchant Services Inc. V

21 Northern Leasing is AmericaOne s primary lease company. If, for some reason, a lease is not approved by Northern, we have additional resources for lease underwriting as well. The following information will introduce you to Northern Leasing and guide you on completing lease applications. Background Founded in 1991, Northern Leasing Systems, Inc. (NLS) is a New York-based micro-ticket (under $10K) lease finance company. Northern Leasing Systems is focused on providing micro-ticket leasing through a system of nationwide equipment venders for defined niche markets not served by traditional lessors. Credit card processing equipment is the primary market served by Northern Leasing Systems. It offers competitive lease funding factors, fast approvals, dedicated account managers, and superior quality customer service. Northern Leasing Systems differentiates itself in the marketplace by demonstrating the following attributes: A team of experienced and tenured management professionals. Comprehensive credit expertise. Access to capital markets. Superior quality and highly responsive customer service. Enhanced asset management expertise. Integrated use of advanced technologies. Northern Leasing Systems is structured to meet the needs of the market, its suppliers, vendors and end-user customers (lessees). In some cases customers require unique arrangements. NLSI continually evaluates new requirements and can structure a leasing arrangement to satisfy customers at any level. Over the past decade, NLSI has achieved unparalleled client satisfaction. The company has originated thousands of equipment leases and has become a major financial partner with sales representatives nationwide. AmericaOne and Northern are excited to offer you a lease program that is competitive and will allow you to maximize your profits. Together we offer: Same-day notifications of lease approvals. Leasing for startup and new companies. Leasing for New and Refurb equipment (if new not in production). One payment up front (last) automatically ACH d from Lessee s bank account. No application fee. Simple paperwork no copies of driver s license, photos, etc. The NLSI Lease Program NLSI specializes in vendor leasing programs, which provide structured sales financing for all types of equipment. Their Application-Only lease eliminates the need for audited statements, tax returns or other financial documents. The NLSI team finances startup and existing companies, with both new and used equipment. Copyright AmericaOne Merchant Services Inc. v

22 Document Requirements A complete lease package must include the applicable signed Lease Agreement with a signed Bill of Sale and a voided check from the account to be billed for lease payment. If the voided check submitted with the application is not imprinted with the merchant name and address, a bank verification letter on bank letterhead stating the DDA and Transit Routing Number, signed by a bank official, is required. Please ensure that all fields are properly filled out on the Lease Agreement and that all pages of the Agreement are initialed by the merchant. Advance Payments Only the last month s lease payment is due up front, and this amount is automatically deducted from the Lessee s bank account. Relationship Managers do not accept checks from the merchant for any lease payments. End-of-Lease Term Options NLS 48-month Fair Market Buyout is 10% of the total lease amount. For other buyout terms, review 5. Buyout Option of the Equipment Finance Lease. Loss & Destruction Waiver: Northern provides a waiver at a monthly charge of $4.95 per set of equipment, which is included in the Lease. This fee will be waived if the Lessee provides a valid certificate of insurance to Northern within thirty days of the Lease commencement date. Application Fees No application fee is required for processing a lease. Northern Call-In Verification Program Once equipment is deployed, installed and operating, Relationship Managers must immediately perform a lease verification at the site by calling NLSI at (888) While inbound calls from the merchant will still be accepted to verify the lease, a follow-up outbound quality assurance call to the merchant will always be made. Procedure 1. Equipment is shipped to the RM only. 2. The RM visits the merchant site to install the bankcard equipment and trains the merchant on how to use the equipment. 3. The RM immediately calls NLSI at (888) (8:00 a.m. - 8:00 p.m. ET) from the merchant site. He then performs the following steps to verify the lease (verification must be done with the Personal Guarantor of the lease and to/from the numbers supplied on the lease document). 4. RM identifies himself as an AmericaOne representative and provides AmericaOne s vendor code ( ZAONE ). 5. RM supplies NLSI with the name of the business or the principal s name. 6. RM reports the merchant ID number and serial number(s) for the equipment. 7. NLSI verifies the following with the Principal on the lease: a) The equipment is installed and in working order. b) The terms of the lease. c) The lease is non-cancelable. d) The customer s billing address. e) The address where the equipment is installed. f) The Personal Guarantor s home address. Copyright AmericaOne Merchant Services Inc. v

23 8. The last monthly payment is automatically deducted from the funding. Once the lease has been approved and verified, NLSI will fund the lease. Instructions for Completing Leases Line-by-line instructions for completing a Northern Leasing Systems Equipment Finance Lease appear on the following pages. Here are some key contact numbers to assist you at Northern Leasing: Main Line Operator: (T) (888) Sales Support Representative Issues: (T) (888) AO s Vendor Code is ZAONE Verifications: Verbal Lease Verifications (T) (888) Customer Service Merchant Issues: (T) (888) Northern Leasing Resources: Lease Agreement Cancelable & Non Cancelable (SD, KS, TN, PA, VT) - AOrep. Leasing Charts RM Workbook part 9 and AOrep.com Copyright AmericaOne Merchant Services Inc. v

24 1. Legal Name of Lessee ( Lessee ). Enter the name of the lessee s business. 2. Billing Address. Merchant billing address. 3. Type of Business. What is the type of business? (e.g. retail, grocery, restaurant, etc.) 4. City, State, and Zip Code. Enter city, state, zip code and phone number. 5. Type of Ownership. Select the type of ownership (e.g. corporation, proprietorship, etc.) 6. Lessee Telephone. Enter the phone number. 7. Yrs. in Business. How many years has merchant owned the business? 8. Equipment Manufacturer. Enter the equipment manufacturer (e.g. Magtek, Verifone, Hypercom, etc.). 9. Model Enter. The equipment model (e.g. mini micr, VX510, Nurit 2085, etc.) Schedule of Payments 10. Base Monthly Payment. Enter the monthly payment of the lease. 11. Lease Terms. Enter the lease terms (i.e. 48, 36, and 24.) (Note, wireless 24 months only) 12. Last Monthly Payment. The last monthly payment due at the signing of the lease. Bank Information Enter the bank name, routing number, merchant account number and Lessee initials. 13. Bank. Merchant bank name. 14. Routing #. Merchant bank routing # (9 digits.) 15. Account No. Merchant checking account #. Copyright AmericaOne Merchant Services Inc. v

25 16. Accepted by Lessee. Enter the merchant name and signature. 17. Guarantor Signature. Guarantor signature along with home address, phone # & Social Security #. 18. Lessee Initials. Merchant must initial page 1 and page 2 of the agreement. Copyright AmericaOne Merchant Services Inc. v

26 Please Note: ALL pages of the Equipment Finance Lease need to be faxed to AmericaOne, and ALL pages require the merchant s initials. Please make sure that all pages are filled out correctly and that the lease is accompanied by an imprinted voided check from the merchant s bank account to be ACH d. If a merchant does not have an imprinted voided check, a bank verification letter may be used, provided that the letter is on bank letterhead, contains both the DDA and Transit Routing numbers, and has a signature from a bank official. No scratch-outs, correction fluid or deviations of any kind are allowed on the Lease Application. If you have any questions, contact AmericaOne Sales Support Northern Leasing directly at (888) When asked for your Vendor Code, reference ZAONE. Frequently Asked Questions Who is Northern Leasing Systems? Northern Leasing Systems leases you equipment as indicated on your lease agreement. How may I obtain a copy of the lease agreement? Go to AOrep.com. How will I pay my lease payments? All payments will be deducted via Automatic Clearing House from your business checking account. When will this ACH take place? On the first of every month. Why is the ACH amount different from the amount on the lease? The ACH includes the basic monthly payment, tax and casualty insurance. I have changed my bank account. What do I do? Please fax a copy of your check with your lease number to the Customer Service Dept. at (212) If the equipment breaks down, who would repair the equipment? Contact AmericaOne Sales Support at (888) Depending on the nature of the problem, Sales Support will direct you to the best solution provider. Can I cancel my lease? In most states, the lease is non-cancelable, but it can be prepaid or transferred at any time. The states where a lease may be canceled are South Dakota, Kansas, Tennessee, Pennsylvania and Vermont. Copyright AmericaOne Merchant Services Inc. v

27 Is the lease transferable? Subject to approval, the lease may be transferred. Please contact Customer Service at (888) for the appropriate documents. What is the amount to prepay for the lease? Please contact Customer Service at (888) Copyright AmericaOne Merchant Services Inc. v

28 Platinum Pricing March 2008 The Platinum Pricing Program is designed to provide a preferred/competitive price to the merchant while insuring a reasonable profit/commission to the Relationship Manager. Credit Cards Preferred/Default Call if Below Qualified Discount Rate 1.85% 1.75% Mid-Qualified Discount Rate (1.85% %)* 3.35% 2.75% Non-Qualified Discount Rate (1.85% %)* 3.83% 3.25% MOTO/Internet Discount Rate 2.40% 2.25% MOTO/Internet Non-Qualified Discount Rate 3.40% 3.10% VS/MC Transaction Fee $0.25 $0.20 Electronic Address Verification Service (AVS) Fee $0.05 $0.03 Non-PIN Debit (Check Cards) Non-Pin Debit Discount Fee 1.59% 1.45% Non-Pin Debit Mid-Qualified Discount Fee (1.59%+1.50%)* 3.09% 2.45% Non-Pin Debit Non-Qualified Discount Fee (1.59%+1.98%)* 3.57% 2.95% MOTO/Internet Non-Pin Debit Discount Rate 1.90% 1.85% MOTO/Internet Non-Pin Debit Non-Qualified Discount Rate 2.90% 2.70% * To lower the Mid-Qualified and Non-Qualified please use the New Merchant Checklist Special Request Section. PIN Debit Pin Debit (Pin-Based) Transaction Fee (Plus Network Fees) $0.25 $0.20 Other Fees Application Fee $ $0.00 Annual Fee*** $ $0.00 Monthly Minimum*** $ $0.00 Statement Fee**** $ 6.50 $2.00 Debit / EBT Statement Fee**** $ 5.00 $4.00 Monthly Service Fee $ $10.00 Batch Settlement Fee $ 0.25 $0.25 Voice Authorization Fee $ 0.95 Non-Negotiable Chargeback Fee $ Non-Negotiable Non Bankcard Authorization Fee $ 0.25 Non-Negotiable ACH Reject Fee $ Non-Negotiable Retrieval Fee $ 7.00 Non-Negotiable VimasPlus $ 6.50 $5.00 Early Termination Fee $ Ask Corporate *** You can waive and/or lower either the Annual Fee or Monthly Minimum, but not both. **** The lowest these fees can be sold at is $6.00 combined. Platinum Pricing_032108

29 Platinum Pricing March 2008 American Express and Discover American Express Industry Lodging 3.50% Mail Order & Internet Default Rate Office-based Healthcare 2.55% Other Merchant Category Codes 2.93% Restaurant 3.50% Retail** 2.93% Services and Wholesale 2.93% Supermarket 2.30% Travel Agency 2.75% Travel & Transportation 3.50% Tuition 2.40% 3.50% ($5K+ in annual charge volume) **0.30% downgrade will be charged for Retail transactions whenever a CNP or Charge Not Present Charge occurs. CNP means a Charge for which the card is not presented at the point of purchase (e.g., Charges by mail, telephone, fax, or the Internet), is used at the unattended Establishments (e.g., customer activated terminals, called CATs, or for which the transaction is key-entered). Discover Average Ticket Retail DMI, Internet Restaurant & Out-of-Home $00.00-$ % 3.64% 2.85% $21.00-$ % 3.07% 2.33% $31.00-$ % 2.69% 1.98% $51.00-$ % 2.48% 1.79% $71.00-$ % 2.38% 1.70% $91.00-$ % 2.32% 1.65% $ $ % 2.26% 1.60% $ and > 1.76% 2.21% 1.56% MCC Rate Quick-serve Restaurants % Government (CP, CNP & Internet)* 9211,9222,9311, % Groceries & Supermarkets % *Local and Government Only Platinum Pricing_032108