8 VIRTUAL REALITIES FOR YOUR PAYMENTS.

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1 For those using cash, cheque or Electronic Funds Transfer (EFT), switching to a different method of payment may sound daunting, especially when you re already comfortable with the way you make supplier payments. So why bother changing payment methods? In this guide, we feature the eight most frequently asked questions from our customers since we launched enett Virtual Account Numbers (VANs), to give you insights into how virtual card payments work. Written for agencies new to the concept of VANs, this guide is designed to help you answer some tough questions: Are your payments efficient and secure? Do they allow you to access new and emerging travel content? If not, then what is it costing your business to continue to have such inefficiencies, risks and exclusions? Cash payments have limitations that can restrict growth and expose your business to significant risk, while traditional credit cards incur significant processing costs and lack transparency. No wonder virtual cards are growing in popularity globally. But not all virtual cards are created equal. There are basic features that most virtual cards share, and there are unique features which provide additional benefits. 1. What s the difference between virtual credit card and traditional credit card payments? Traditional credit card payments require a physical card with the same 16-digit number used for every payment. A virtual card, or VAN, eliminates the need for a physical card altogether. Instead of a fixed card number, a new 16-digit number is generated at the time of each booking or payment, making it a highly secure method of payment. Because a different number is used for each payment, booking data is attached to each transaction, improving reconciliation and reducing the possibility of misuse from unauthorised payments. However, not all virtual card providers generate completely new or unique numbers. You need to ask whether their provider recycles card numbers. enett VANs are never recycled, so there will never be any confusion during reconciliation. Using credit cards require manual input, slowing down the booking process and increasing the chances of human error. And if you use your customer s card, you forgo the opportunity to mark-up prices to earn a commission. Embedded into Travelport s Travel Commerce Platform, the enett Payments Platform also seamlessly integrates with Amadeus, Sabre and Abacus desktops as well as third party booking platforms including Mr Orange, Pyton, Conferma, Gateway and VIBE. You can also generate VANs seamlessly from within your own booking system using a simple one-off API, allowing you to spend more time with your customers and less on accounts. EI17_8VR 23/1/2017 PAGE 1 OF 5

2 2. How do virtual cards reduce risk? Virtual cards are backed by card schemes and have chargeback capabilities under the card scheme rules. As such, payments are protected under those rules. Additionally, virtual cards give you a second level of protection by allowing you to set payment parameters such as date. Cash payments such as EFT leave you vulnerable to substantial risk from supplier default. In 2012, enett was able to recover more than 1 million for a European Online Travel Agency after Wind Jet collapsed, which would otherwise not have been possible if a cash payment was made. Backed by the MasterCard guarantee and generating unique card numbers against defined booking and payment parameters such as value, currency, and/or merchant, VANs minimise the risk of fraud and maximise protection against supplier default. An automated non-authorised transaction feature makes processing chargebacks more efficient for our customers. And because enett VANs facilitate airline payments, customers are further protected against supplier default. 3. Are virtual payments faster than EFT? As we see more dynamic content available in the travel market place and closer relationships being forged between agencies and suppliers, those still using cash payments are being left out from accessing best-rate content. EFT payments lack immediacy and don t allow for international payments. For agencies looking to secure best-rate bookings such as for cruise lines, low cost carriers and pre-paid hotel bookings, the need to pay at the time of booking is crucial, otherwise exposing them and their customers to potential booking losses. To enable international payments, some agencies may turn to local wholesalers to consolidate such payments. But this solution may come at a high cost. Virtual cards open more doors for agencies. Our unique fund-as-you-go model means that we can provide VANs to companies that do not have access to sufficient levels of credit in order to support their booking of dynamic content. With enett VANs, as soon as your account has been set up and funds are available, you can start to pay your suppliers directly and immediately. Our partners provide competitive foreign exchange rates in over 30 currencies 1 that suit agencies of all sizes, from low cost settlement across MasterCard s global foreign exchange network to local settlement in 18 currencies and growing. THOSE USING CASH PAYMENTS ARE BEING LEFT OUT FROM ACCESSING BEST-RATE CONTENT 1 enett analysis of PhoCusWright Payments Unsettled Report 2013 and IATA. PAGE 2 OF 5

3 4. How do virtual cards reduce handling time? Automation and integration are the top reasons for agents switching to virtual card payments, not surprising when research shows that US$1.5 billion each year is spent on manual processing and reconciliation 2. Virtual cards can drastically reduce handling times, particularly when payment integration eliminates the need to cut and paste between systems. But some virtual payment solutions may be more integrated than others. enett VANs are seamlessly integrated with all Travelport Points of Sale, as part of the booking flow. With a simple VAN command, enett returns card number, expiry and CVV details to the PNR, which means you never need to leave your desktop. The enett API also allows integration from your own booking system. 5. How do virtual cards improve reconciliation? An agency turning over US$1 million to US$5 million typically needs one part-time staff member to manage and reconcile payments manually. For the largest agencies, the cost can exceed US$6000 a week 3. Virtual cards automate reconciliation, saving you precious resources better allocated elsewhere in your business. As each enett VAN is unique to the individual transaction, it provides visibility on the history of each payment, automatically reconciling booking data and minimising the risks of human error associated with manual reconciliation. Another special feature of enett VANs is the ability to capture customer data which might not be available with other payment methods. In generating a VAN, you can set up a series of reference fields to capture a variety of information to track booking patterns, allowing you USD $1.5B IS SPENT ON MANUAL PROCESSING AND RECONCILIATION to customise your marketing activities to your customers. There are numerous data fields which can be selected to suit your needs. 2 PhoCusWright Payments Unsettled Report enett review of bank charges. PAGE 3 OF 5

4 6. How quickly can you get me up and running? Most virtual card providers will ask you to go through laborious and time consuming credit vetting procedures. Because we are the cardholder and have devised an innovative fundas-you-go model, you can get on board with enett VANs within days. Even smaller enterprises who otherwise miss out on access to credit cards and dynamic content can take advantage of the latest in payments technology. To register for a VAN account, simply visit and enter your address, company name and country, then click on Set up your VAN account to get started. ENETT VANS MAY BE A SHIFT CHANGE FOR YOUR PAYMENT PROCESSES Do virtual cards reduce the cost in international fees? One of the top concerns for agencies is the cost of making payments 2, particularly with foreign exchange fees, which is driving the uptake of alternative payment methods such as virtual cards. Standard credit card fees for processing international payments can be expensive. Many virtual card providers mark-up cross border fees and foreign exchange rates, which can leave agencies up to 3% poorer 3 just from making a supplier payment. With already low agency margins and the international nature of the travel industry, such high costs are simply not sustainable over the long term. We understand that international payments are fundamental to your industry, which is why we have partners to provide payments in over 30 currencies. Our MasterCard FX option provides lower cost international payments and the choice of real-time conversion provides certainty in pricing. While many providers charge 2%-3% for MasterCard FX, we can save you between 1%-2% 4. And for the bigger agencies wanting to manage their own foreign exchange, we offer 18 local pay-in accounts with more to come in the pipeline. 4 Terms and Conditions apply. PAGE 4 OF 5

5 8. How do I earn an income from virtual cards? It is not unusual for virtual card providers to offer an incentive for agencies to switch to them for supplier payments. The higher the rebate, the more attractive it becomes. However, it is important to consider the costs involved in the other aspects of using virtual cards so they do not negate the benefit of your rebate. For example, how much is it costing you in foreign exchange and cross-border fees? Are domestic payments truly settled as domestic payments without any fees attached? Or are you still being charged for such fees depending on what your card provider defines as a domestic transaction? In terms of implementation costs, does your provider charge you a fee to help you integrate with your virtual solution? Are there transaction costs? And do you earn a rebate from day one or do you have to wait until you hit a threshold? enett makes rebates 1 accessible to customers, regardless of size. Because we re unhindered by credit losses or collection and financial carrying outlays, lower operating costs for us translate into more cost savings for our customers. We also facilitate better rates by enabling dynamic travel content through the immediate and secure nature of VANs. Given the international nature of the travel industry, we are committed to creating low cost solutions. Our MasterCard FX and real real-time conversion options saves you money and gives you pricing certainty. A final thought Payments are a core function of any travel business large or small, yet many do not put enough consideration into how an improved method of payment can enhance the growth of their business. By simply making a change in how you pay your suppliers, enett VANs can transform your business by reducing risk, improving reconciliation and delivering financial, data and efficiency rewards. But for all the benefits that are raised in this article, the key first step is for you to understand how virtual cards can support your unique business needs. We hope the eight virtual realities above help you to get started with this. If you want to know more on how enett VANs could work for you, us on service@enett.com. About enett International: enett International simplifies the complexities of payments by connecting travel industry specialism with payments expertise. We pioneer innovative B2B payment solutions that reduce risk and facilitate even more travel content, at a lower cost. Easily integrated into existing travel booking workflows, our payment solutions deliver financial, data and efficiency rewards for travel agents and industry suppliers. Our secure Virtual Account Numbers (VANs) enable travel agencies of all sizes to automatically generate a unique MasterCard number and pay their suppliers from directly within their booking flow. And our exclusive, long-term partnership with MasterCard provides access to the world s fastest payments processing network and 35.9 million payment locations worldwide, wherever a supplier accepts MasterCard online. We are majority owned by Travelport, which is listed on the New York Stock Exchange, and our VANs are seamlessly integrated into its Travel Commerce Platform. Further strengthened by our global banking services partner and shareholder Optal, enett is building a reputation for trusted and practical B2B payment solutions for the travel industry and beyond. Contact: service@enett.com Website: enett VANsTerms and Conditions apply. In Australia, enett International (Singapore) Pte. Ltd. ARBN , AFSL (enett) is not authorised to provide financial product advice other than general advice in relation to its own products. This document does not take into account your objectives, financial situation or needs. You should consider the appropriateness of the information in light of your own circumstances and the relevant Product Disclosure Statement before acting. Travelport may receive a benefit if you use an enett VAN. PAGE 5 OF 5