PAYMERICA. by JEANNIE TACKETT AND LEO KALIPS

Transcription

1 PAYMERICA by JEANNIE TACKETT AND LEO KALIPS

2 Utility Credit Card & E-Check Processing 2 Interchange Program for NISC Members Only

3 Why The NISC Sponsored Gateway? Why use NISC s gateway? One stop shop for support flow of transaction. No need to call many places for answers. NISC signed a master contract for Visa & MasterCard for rates for all members. Lower rates offering options for all members. Support Calls on issues that needed solutions. Integrated with E-Bill and PhoneMaster Pro 3

4 Introducing PAYMERICA Registered Merchant Service Provider for JP Morgan Chase Bank and Alliance Payment Technologies. JP MORGAN CHASE BANK Settlement Bank for the Paymerica Credit Card solution. ALLIANCE PAYMENT TECHONOLIGIES E- Check processor for ACH transactions. PLUG N PAY Gateway and Reporting solution for transactions processed for both E-checks and credit cards through the internet. 4

5 Funds Disbursement Settlement Between Acquirer and Merchant: Merchant sends settlement file to Acquirer Merchant Acquirer Acquirer debits Interchange, MCI Assessments and Acquirer related fees from settlement Net funds from settlement are passed back to Merchant within Net Funds from Settlement Settlement File from Merchant Interchange, Assessments & Processing Fees 48 hrs for credit cards 72 hrs for E-checks 5

6 Opportunities for ALL E-BILL RECURRING OVER THE COUNTER IVR PAY BY PHONE (ivue Only) 6

7 Webex on Paymerica September 19 & 20 9:00 AM Meeting # Teleconference #

8 Interchange What is Interchange? This is the fee paid to the issuing bank. Who is the issuing bank? It is the bank that issued the card your customer presented for payment. 8

9 Assessments What are assessments? Assessments are the fees paid to Visa and or MasterCard on each transaction. 9 Visa Assessments = % MasterCard Assessments = %

10 Processing Fees All transactions are subject to a transaction fee to cover the associated cost for processing payments/credit. BIN and ICA Fee paid to the Settlement Bank (JP Morgan Chase) Authorization, Capture and Settlement Internet Gateway Each processing fee is $0.30 per transaction. Batch Header Fee = $0.30 cents per batch for credit card 10 deposits.

11 Monthly Fees Paymerica Statement Statement Fee = $10.00 per month. Credit Card Statement from Paymerica mailed. Month end billing for all fees 11

12 Compliance based on Card Type EXAMPLES Qualified CPS Retail 2 SIIP Data Rate II & III Non-Qualified Standard Data Rate I Commercial Cards Why are Corporate/Commercial cards are Non-qualified? Due to other promotions (i.e., frequent flyer, stock back and rebates options) offered on corporate and business card cards, these rates 12 cannot consider those transaction for processing.

13 Option1 VISA EXCLUSIVE QUALIFIED CONSUMER CARDS ONLY Special Visa Exclusive offering for Only NISC Members on Qualified Consumer Cards. Flat rate offering of $0.65 per transaction Visa Assessments =.0925% Per transaction fee = $0.30 May be swiped, keyed or internet Statistic s show 67% of households have a Visa credit card. Rebate done on quarterly basis for $0.10 exclusive rate per transaction for this option. 13

14 Option1 VISA EXCLUSIVE (Cont.) Non-qualified Visa Cards Corporate, Business, and Foreign cards accepted but will be processed at the corresponding interchange rate, assessments and transaction fee. Most common non qualified Visa interchange rates: Visa EIRF debit = 1.75% + $ $0.30 Visa EIRF = 2.14% + $ $0.30 Standard = 2.63% + $ $0.30 Commercial Card Electronic = 2.14% + $ $

15 Option 2 MasterCard Marketing Agreement Acceptance of any card in addition to MasterCard. Cooperative must enroll in the MasterCard SIIP program. Rate applies to only qualified consumer credit and debit cards. All Credit Card transactions subject to interchange rate, assessments, transaction fees and batch header fees. 15

16 Option 2 MasterCard Marketing Agreement MASTERCARD Qualified Rate Interchange Rate = 1.15% + $0.05 MasterCard Assessments =.0950% Per transaction fee = $0.30 Requirements Sign SIIP Marketing agreement promoting recurring billing with MasterCard which includes:» 1 mailer within 1st 6 months AND» 3 informational messages on your bills promoting MasterCard recurring billing within a 12 month period after contract date. 16

17 Option 2 MasterCard Marketing Agreement Non-qualified MasterCard Cards Corporate, Business, and Foreign cards accepted but will be processed at the corresponding interchange rate, assessments and transaction fee. Most common MasterCard non qualified card rates: Merit 1 = 1.90% + $ $0.30 Data Rate 1 = 2.65% + $ $0.30 Data Rate 2 = 1.95% + $ $0.30 MC Assessments =.0950% Visa Rates are the same as option 3. 17

18 Option 3 - No Marketing Standard Rate Applies to all qualified consumer credit and debit cards. Visa Rate Utility Interchange Rate = $0.75 Visa Assessments =.0925% Per transaction fee = $0.30 MasterCard Rate Interchange Rate = 1.95% + $0.10 MC Assessments =.0950% Per transaction fee = $0.30 Note: This option can be compared to your current statement of charges. 18

19 Option 3 - No Marketing (Cont.) Most common non qualified card rates: Visa non qualified EIRF = 2.14% + $ $0.30 EIRF debit = 1.75% + $ $0.30 Commercial electronic = 2.14% + $ $0.30 Visa Assessments =.0925% MasterCard non qualified Data Rate 1 = 2.65% + $ $0.30 Data Rate 2 = 1.90% + $ $0.30 MC Assessments =.0950% 19

20 TWO Convenience Fee Models Regulations: Fee must be a fixed and flat fee (not a percentage or varied rate by card type.) Fee must be same for all payment types and on all transactions. Checks included. Fee must be included on the original credit card bill as a single charge. Fee must not be advertised as an offsetting cost of acceptance. Cannot charge a convenience fee on face to face transactions or recurring transactions. Many state PUC s require convenience fees be charged by a third-party, and NISC offers an option for this. 20

21 Option 4 Coop Billed Convenience Fee Model Convenience Fee Rate effective till 9/30/05 Applies to all qualified consumer credit and debit cards. Visa Rate Utility Interchange Rate = 1.43% + $0.05 Visa Assessments =.0925% Per transaction fee = $0.30 MasterCard Rate Interchange Rate = 1.95% + $0.10 MC Assessments =.0950% Per transaction fee = $

22 Option 5 NISC Billed Convenience Fee Model Requirements ivue version or greater NISC s ivue CSS (Customer Self Serve/E-Bill) with Convenience Fee Option. NISC has the capability to handle fees as a third party. Only Visa and/or MasterCard credit card plus e-check acceptance with this model. Customer pays $3.95 flat convenience fee for credit card or e-check payments. Rules require the convenience fee be the same for all payment forms taken through same payment method. 22

23 Option 5 NISC Billed Convenience Fee Model No cost to Utility for payments up to $500. If payments above $500 are allowed then the actual interchange fee and assessments are billed to utility only for amount of payment above $ Most common non qualified card rates: Visa non qualified EIRF = 2.30 % + $ $0.30 EIRF debit = 1.75 % + $ $0.30 Commercial electronic = 2.20 % + $ $0.30 Visa Assessments =.0925% MasterCard non qualified Data Rate 1 = 2.65% + $ $0.30 Data Rate 2 = 1.95% + $0.30 MC Assessments =.0950%

24 E Check Debits and Credits - $0.30 cents per transaction, unless convenience fee option 5 is used which has a $3.95 fee to customer and no cost to utility Monthly Service Fee = $10.00 Monthly Statement on line. statement confirmation sent at no charge. Hard copy of statement from Alliance Payment Technologies. Fee = $9.95 per paper statement. Month end billing for all fees. 24

25 Cost $ Ticket Option 1 Visa Exclusive Visa Card ONLY Interchange = $0.65 Assessments =.0925% Transaction fee = $0.30 Total Cost = $1.02 Option 2 Marketing Requirements MasterCard Interchange = 1.15% + $0.05 Assessments =.0950% Transaction fee = $0.30 Total Cost MC = $1.28 Visa Interchange = $0.75 Assessments =.0925% Transaction fee = $0.30 Total Cost Visa = $1.12

26 Option 3 No Marketing MasterCard Interchange = 1.90% + $0.10 Assessments =.0950% Transaction fee = $0.30 Total Cost MC = $1.89 Visa Cost $ Ticket Interchange = $0.75 Assessments =.0925% Transaction fee = $0.30 Total Cost Visa = $

27 Cost $ Ticket Option 4 Coop Billed Convenience Fee Model MasterCard Interchange = 1.90% + $0.10 Assessments =.0950% Transaction fee =.$030 Total Cost MC = $1.89 Visa Interchange = 1.43% + $0.05 Assessments =.0925% Transaction fee = $0.30 Total Cost Visa = $1.49 Visa rates subject to increase after 10/1/05 for the convenience fee model. 27

28 Cost $ Ticket Option 5 NISC Billed Convenience Fee Model Utility Cost = $0.00 Customer Cost = $

29 29 Cost $ Ticket Option 1 Visa Exclusive Visa Card ONLY Interchange = $0.65 Assessments =.0925% Transaction fee = $0.30 Total Cost = $1.07 Option 2 Marketing Requirements MasterCard Interchange = 1.15% + $0.05 Assessments =.0950% Transaction fee = $0.30 Total Cost MC = $1.91 Visa Interchange = $0.75 Assessments =.0925% Transaction fee = $0.30 Total Cost Visa = $1.17

30 Cost $ Ticket Option 3 No Marketing MasterCard Interchange = 1.90% + $0.10 Assessments =.0950% Transaction fee =.$030 Total Cost MC = $2.90 Visa Interchange = $0.75 Assessments =.0925% Transaction fee = $0.30 Total Cost Visa = $

31 Cost $ Ticket Option 4 Coop Billed Convenience Fee Model MasterCard Interchange = 1.90% + $0.10 Assessments =.0950% Transaction fee = $0.30 Total Cost MC = $2.90 Visa Interchange = $0.05 Assessments =.0925% Transaction fee = $0.30 Total Cost Visa = $ Visa rates subject to increase after 10/1/05 for the convenience fee model.

32 Cost $ Ticket Option 5 NISC Billed Convenience Fee Model Utility Cost = $0.00 Customer Cost = $

33 33 Cost $ Ticket Option 1 Visa Exclusive Visa Card ONLY Interchange = $0.65 Assessments =.0925% Transaction fee = $0.30 Total Cost = $1.23 Option 2 Marketing Requirements MasterCard Interchange = 1.15% + $0.05 Assessments =.0950% Transaction fee = $0.30 Total Cost MC = $4.09 Visa Interchange = $0.75 Assessments =.0925% Transaction fee = $0.30 Total Cost Visa = $1.33

34 Cost $ Ticket Option 3 No Marketing MasterCard Interchange = 1.90% + $0.10 Assessments =.0950% Transaction fee = $0.30 Total Cost MC = $6.39 Visa Interchange = $0.75 Assessments =.0925% Transaction fee = $0.30 Total Cost Visa = $

35 Cost $ Ticket Option 4 Convenience Fee Model MasterCard Interchange = 1.90% + $0.10 Assessments =.0950% Transaction fee = $0.30 Total Cost MC = $6.39 Visa Interchange = 1.43% + $0.05 Assessments =.0925% Transaction fee = $0.30 Total Cost Visa = $4.92 Visa rates subject to increase after 10/1/05 for the convenience fee model. 35

36 Cost $ Ticket Option 5 NISC Billed Convenience Fee Model Utility Cost = $0.00 Customer Cost = $

37 Cost $ Ticket Option 5 NISC Billed Convenience Fee Model Customer Cost = $3.95 Utility cost (due to $500 payment limit) = Visa Card = $1.87 MasterCard = $2.40 $ Payment - $ Limit on Convenience Fee Model $ Subject to interchange and assessments 37

38 Cost Comparison We would be happy to prepare a custom comparison for the NISC gateway. Simply fax your current credit card statement to with a cover sheet and we will be very happy to generate a comparison for your review. Send to attention: Leo Kalips Or Jeannie Tackett 38

39 Questions? Please or call Ext or

40 Partner Sponsors Partner Exhibitors 40