IMS Brilliant Payment Solutions INTUIT PAYMENT SOLUTIONS HOME FASHION U February 18, 2011 1
AGENDA HISTORY OF CREDIT CARDS TERMINOLOGY TEN BENEFITS TO ACCEPTING CC PROS AND CONS SELECTION OF MERCHANT SERVICE PROVIDER QUICKBOOKS RELATED PRODUCTS DISCOUNTED RATES FOR MEMBERS APPLICATION CUSTOMER SERVICE QUESTIONS 2
HISTORY OF CREDIT CARDS Today, credit cards are ubiquitous. Everyone from department stores to savvy street vendors accept plastic. While definitions vary, the first true general purpose credit card with multi-state acceptance was most likely issued by Bank of America in 1966. There were many predecessor cards issued starting from the late 1800s. Milestones included the proliferation of store specific cards during the 1920s, cross acceptance of store cards in the late 1930s, the first bank issued debit card, "Charg-It" by Flatbush National Bank of Brooklyn in 1946, and the first widely used cardboard Charge Card by Diner's Club in 1950--though it required payment in full at the end of each month. The concept, and even the name "credit card," was used as early as 1887, when the socialist writer Edward Bellamy included credit cards in his Utopian novel, Looking Backward. It was not until the 1920s, however, that merchants established a system by which their frequent customers could purchase goods and services on credit. These early credit pioneers primarily used the system to sell fuel, but telegraph company Western Union also got in on the game as early as 1921. Initially, businesses would only accept their own cards--a far cry from the use-it-anywhere convenience that today's shoppers enjoy. By 1938 some companies had started to recognize one another's cards, accepting them as payment, but these were "charge cards," extremely different from today's plastic. As anyone who has had a credit card knows, balances can be carried over from month to month (along with interest of course), but that wasn t the case with early charge cards. These payment methods, including the Charga-Plate, Diners Club card and even the first American Express cards, required that users pay off their entire balance each month, severely limiting the use of the cards as well as the profit that could be made from them. The consolidation of existing cards allowed the remaining ones to become accepted in a wider variety of locations and soon, card companies began attempting to offer revolving credit, which could be carried over indefinitely with the accrual of regular interest. The first lender to succeed in offering a true credit card was Bank of America with the BankAmericard in 1958. Though this was the first "revolving credit" card, it was accepted only in California due to federal banking regulations. In 1966, Bank of America set out to address the problem by forming licensing agreements with banks in other states and overseas, an effort which eventually led to the creation of Visa. In 1967, four banks in California set out to compete with Visa by establishing Master Charge. The groundwork was laid for what would become MasterCard, as the Master Charge merged with Citibank's Everything Card. While there have been significant advancements in the realms of credit card production, security, and applications, the basic structure has remained the same since the very first Bank Americard. After applying for and receiving a card, consumers may use it at any affiliated merchant, purchasing goods and services up to their personal spending limit. Anything not paid off at the end of a period (usually a month) accrues interest, which must eventually be paid to the card-issuing bank. 3
SELECTION OF PROVIDER Here are some questions to ask a potential provider of merchant account services: Are these introductory or fixed rates? Make sure your rates are fixed. Do not accept the rates of introduction. Some merchant account providers will try to lure you with super low price on the front, then slowly raise your rates as the months go by. These rate and fee increases can get to extremely high levels. Can I get ALL your rates and fees in writing? If the provider does not agree to put 100% of all prices and costs in writing, remove them from consideration. What are the hidden costs? 4
SELECTION CONTINUED Ask your representative about hidden fees! Review the ultra fine print on your written agreement, search for the slightest trace of hidden costs. Hidden costs can include monthly minimum annual fees, supplies, early termination fees, minimum contract terms, connection fees, the cost of PCI compliance, and gift card surcharges. Hidden fees are not necessarily deceptive tactics. However, all costs must and should be explained to you before you enter into any contract. The last thing you want is to find unaccounted for fees showing up on your next bill. So, get all the merchant account provider fees in advance. If I decide to switch to another provider, what is the cancellation fee? This question will help determine whether the processor is interested in helping your business grow, or maximize profit. A good merchant account service that has exceptional service does not need to charge an early termination fee to keep other dealers out. The Provider s Customer Service Top-notch customer service must be provided. It is one of the most important services offered by a few of the best merchant account providers. Here are some key points to check: Available 24 hours a day, 7 days a week Real person answers the phone, not an answering service Hold time is no more than a minute every time 5
TOP 10 BENEFITS TO ACCEPTING CREDIT CARDS 1. Accepting credit cards will often double even triple your current sales. Studies show businesses that accept credit cards can see a huge increase in volume almost overnight. 2. It will legitimize your business. Studies show that when you display credit card logos as forms of payment you accept, these logos create a sense of trust in your customers mind, and if they trust you, your customers will buy from you. 3. A merchant account improves cash flow. Accepting cards has a huge positive effect on business cash flow. Even if sales don t increase (and they almost always do) your business will benefit by having the money from the credit card sale instantly delivered to your bank account. No more waiting for check to clear, or sending out time consuming invoices, waiting for payment. With credit cards you get your money from your customers quickly and easily. 4. Over 90% of web purchases are made using credit cards. If you are selling ANYTHING on the web and you are not accepting credit cards, you are eliminating 90% of your potential buyers. 5. Grabs Impulse buyers. Credit card holders buy more on impulse, are more affluent, and buy 2.5 times more merchandise than non-card holders. 6
6. Convenience. Let your customer decide the most convenient way to buy from you. Many customers want to use credit cards because of reward points or reward miles associated with their credit card. Customers are more likely to buy from a business that accepts credit cards than one who does not. Don t lose a customer to a competitor just because you don t accept credit cards. 7. Larger orders. The average order size of someone paying via credit card tends to be larger than someone paying by cash or check. And larger orders = more profit. In addition, customers paying by credit card tend to place extra orders and order more often. 8. Competition. Your competition is already accepting credit cards. You need to accept cards in order to survive. 9. A merchant account is inexpensive. Gone are the days of high rates and fees. Today s credit card processing rates are so low even the smallest mom and pop outfit can easily accept credit cards. In fact, usually the increase in sales a business receives when they do accept credit cards more than covers the small costs involved. As a result, by accepting credit cards many businesses make more money! 10. Quick and easy setup. Many businesses think getting setup to accept credit cards is a long and tedious process. No more! Most of the time you can be up and running within 24 48 hours. If a provider tells you otherwise, go somewhere else! 7
QUICKBOOKS RELATED PRODUCTS 8
The merchant can chose to swipe a card or key enter the transaction directly inside of QuickBooks. 9
APPROVING TRANSACTION 10
QuickBooks will go online to approve the transaction. 11
PAYMENT APPROVED 12
LINK TO DEMO PC AND RECONCILLIATION http://httpdownload.intuit.com/http.intuit/ CMO/payments/demos/presale_ demo/qbms_demo/qbms_pc.htm l?format=noscript?tb_iframe=tru e&height=510&width=770 13
OTHER FEATURES Virtual Terminal (FREE) Run a transaction anywhere! All the merchant needs is internet access! This is great for merchants that are out in the field or at a tradeshow! http://merchantaccount.quickbooks.com/virtualter minalplus/ Recurring Billing (FREE) Merchants can bill their customers on recurring basis automatically! https://merchantcenter.intuit.com/wapweblet/imsc ontent-onboarding-flashes/recur_payments.html Billing Solutions (ADDITIONAL COST) Merchants can email invoices and receive payment online! 14
VIRTUAL TERMINAL PLUS LOG INTO THE COMPUTER FROM ANY INTERNET SITE 15
RECONCILIATION Easy to use Reconciliation Tools Get Funding Status Moving funds from Payments to Deposit into Your Bank Account Screen Update QuickBooks with Credit Card Fees and Adjustments 16
GO PAYMENT Requirements 1. GoPayment Merchant Account Intuit Payment Solutions. Process all major credit and signature debit cards on your mobile phone, on the spot 2. A Supported Mobile Phone If using the online GoPayment version any mobile phone that can access the Internet will do If using the downloadable GoPayment application version must use one of the supported GoPayment phones (to see the latest list, go to http://mobilepayment.intuit.com/supportedphone.php) 3. Wireless Service with a Data Plan Regardless if you process with the online GoPayment or the downloadable GoPayment version, you must have wireless data access to make secure transactions. Data access is provided by phone carriers in different tiered plans or the cheapest option is pay as you go access. Rates vary by carrier. 17
It s as easy as 1-2-3! Step 1: From your mobile phone, login to GoPayment. Step 2: Type in payment amount, then key-enter or swipe³ in the credit card information. Step 3: In seconds,4 you will receive electronic confirmation on your mobile phone. 18
GO PAYMENT FEATURES AND BENEFITS Accept any major credit card or signature debit card on the spot Accelerate cash flow get paid right away! Reduce administrative costs associated with processing checks, managing invoices, and chasing payment. Secure the sale/increase sales payment made means no time for the customer to change their mind Use optional Bluetooth hardware to appear more professional and qualify for lower discount rate Uses your mobile phone Convenient no additional hardware required to get started Hassle free no additional hardware to carry into the field No credit card info is stored on the phone You and your customer s sensitive information are secured even if you lose your phone http://httpdownload.intuit.com/http.intuit/cmo/payments/demos/pro ducts/movies/gopayment/gopayment_sales.html 19
Go Payment 20
GO PAYMENT FEES Monthly Fee $14.95 Monthly Fee $9.95 (for existing merchants adding this product) Monthly minimum $20 Setup Fee Waived Per transaction fee $0.27 Qualified Rate 1.64% Mid-Qualified Rate 2.44% Non-Qualified Rate 3.54% 21
GO PAYMENT ACCESSORIES Bluetooth card swiper (Magtek) $144.95 Bluetooth printer with card swiper (Blue Bamboo) $218.95 Look more professional. Still writing down credit card numbers to process later, or calling your back office and reading the number? With GoPayment customers gain peace of mind since payment is processed right in front of them. You can even email your customers an electronic receipt straight from your phone. 22
APPLICATION ON LINE TRACKED IN IRIS LETTER WITH LINK TO MERCHANT INCLUDES WHAT THEY NEED TO HAVE HANDY TAKES LESS THAN 10 MINUTES TO COMPLETE AND 24-48 HOURS TO BE PROCESSED 23
PRICING FOR PC Discount Rate for Visa, MasterCard, and Discover Qualified: 1.63% (swiped) Mid-Qualified: 2.29% (key entered rate) Non-Qualified: 3.45% (corporate cards) Monthly Customer Service Fee $12.95 Transaction/Authorization Fee $0.27/34 Monthly Minimum fee $20.00 No Contract No Termination Fee No Annual Fee 24
ON LINE APPLICATION 25
CUSTOMER SERVICE IMS INTUIT PAYMENT SOLUTIONS 24/7 365 DAYS OF THE YEAR 800-558-9558 IMS BRILLIANT PAYMENT SOLUTIONS 410-363- 6482 866-889- 6482 26
MY CONTACT INFORMATION ROZZIE BRILLIANT IMS BRILLIANT PAYMENT SOLUTIONS LOCAL: 410.363.6482 TOLL FREE: 866 889 6482 EMAIL: ROZZIE@BRILLIANT PAYMENT SOLUTIONS.COM WEBSITE: WWW.BRILLIANTPAYMENTSOLUTIONS.COM 27