International

Online Payments
Merchant Solutions
IOPMS

Cost Effective
Global Payment Solutions
Making A Difference

International Online Payment Merchant Solutions,

A Subsidiary of Quantum Strategic Solutions, LLC
 For centuries, America
was an agrarian
society.

Family Farms produced most of the goods and services consumed.

Farmers Markets allowed for trade/barter.

Real and Personal Property, Tools, and Durable Goods were handed
down among family members.

There was little opportunity outside the family.

Thus, there was little or no need for credit.

 Credit Card History

The Early Markets

for Credit Were
Both
Small & Localized

The typical American family didn’t require much credit.

The Need for Credit was small.

Credit was accommodated at the local level usually at the General

Stores.

General Stores created & maintained their own accounts.

Credit accounts were usually settled at the end of the growing

seasons.

America was primarily a Cash Based Economy

There was no need for revolving credit.

The Industrial Revolution Changed
Everything…

•Economy was no longer

Agrarian based
•Mass Transportation
systems were created
•Mass Migration from the
country to the cities took
place
•Jobs moved to urban
centers
•People needed to set up
homes in new areas
•A way to purchase goods
and services became
needed.
Catalog Sales Companies Saw An
Emerging Market

• Fixed Retail Locations Sprung

up in Major Cities
• First Revolving Credit
Accounts Were Created
• “Credit Card” Type Charge
Plates Were Issued To
Customers
• A Charge Plate Could Be
Used In Any In-chain Store In
The U.S.
 In 1958, The First Successful
“True” National Credit Card
Was Released

• Merchants could look up card numbers

in Warning Bulletins.
• Merchants began using “Knuckle Buster”
Imprint Machines and deposited paper sales drafts
• A first time Cardholder could use their card anywhere
the card was accepted.
• The Cardholder was billed for purchases at the end of the
month.
• Cardholders could carry over a balance up to the credit
limit.
• Card could be used for reoccurring payments.
• Bank of America set up the first interchange system for clearing
transactions between merchants.
 Immediately
All Major U.S. Banks Saw
The Advantages Of Having Their
Own Credit Card

• BofA agreed to share its issuing/acquiring with other Major

Banks.
• A separate company was set up – VISA- and Major US Banks
were allowed to buy shares.
 Other Small and Regional Banks
All Over The Country
Saw The Advantages of
Issuing Credit Cards

• MasterCharge, Inc.
was established and
competed with VISA.

• Small Regional Banks

were allowed to
purchase stock.

• MasterCharge became
MasterCard

Having the perfect card for

All your purchases…Priceless
Credit Card Authorization
Process Overview
The Authorization Process
Visa and MasterCard Works with Direct Members

• Allows Card Holder Banks

to Issue Credit Cards
• Allows Merchant
Visa (Acquiring) Banks to work
with merchants to accept
Credit Card Transactions

• Allows Card Holder Banks

to Issue Credit Cards
• Allows Merchant
MasterCard (Acquiring) Banks to work
with merchants to accept
Credit Card Transactions
Distinction Between
Acquiring Banks & Card Holder Banks
Card Holder Banks Issue Credit Cards To
Consumers
• Tracks purchases and send out statements to
customers at the end of the billing cycle
• Bills Customer interest for amounts not fully paid
within the billing cycle
• Charges other related fees

Acquiring Banks Establish Merchant Accounts So

Merchants Can Charge A Fee For Service Called
the Discount Rate.
• Automatically deposits merchant's funds into their
accounts
• Processes VISA and MasterCard Transactions
• Provides the merchant with full accounting for all
transaction amounts

A Bank can be BOTH

a Cardholder and a Merchant Bank.
 • A Card
Issuing
Bank Issues
Credit Cards
to
Consumers

• Consumer use credit

When a cards to purchase
goods or services
Consumer
• The merchant swipes
shops at the card through an
merchant Authorization Terminal
locations

The Authorization • The Authorization Center

Terminal • Determines if the Card has
Automatically been reported Stolen
Dials VISA or • Determines if there is
enough Open to Buy
MasterCard (Credit) left on the card to
Authorization Complete the purchase
Centers
 • The Credit Card has not
been reported lost or
stolen,
• And…There is enough open
to buy left on the card,
• Then the Authorization
Terminal prints a receipt.
• The Customer Signs and is
If the given a copy.
Authorization • The merchant keeps the
Center original Sales Draft.
• At the end of the day the
Reports… merchant settles the batch
of transactions.
• 48 hours later the
merchant’s funds are
automatically deposited
into their account.
 Mail Order/Phone Order
Internet Merchants
Assumes More Risk

Mail/Phone and Internet merchants do not

have an opportunity to check the ID of their
customers. This introduces an element of Risk.

Thus, they contend with higher credit criteria

and documentation.

More documentation is required to get the

higher risk merchant account approved.
As a result these merchant typically have
increased losses due to cardholder disputes or
fraudulent transaction and will have increased
incidents of retrievable and charge-backs.

Therefore, they have Higher Rates due to the

increased risk factors.

Different tools have been created to help overcome the problems.

•AVS (Address Verification System) VISA,
Verified by VISA
•CVV2, CVC Verification
•Secure Internet Gateways - Some provide transaction scrubbing.
•Transaction Monitoring Software
The Network Processor
Provides Conductivity

The Network
Processor
The Front End
National Processor -
Provides the
Authorization Network
(i.e. local area nodes,
connections, data
centers and software
which enables the
authorizations to be
routed correctly.)
•Provides all accounting
functions for the
merchants, customers,
acquiring banks and
card issuing banks
•Provides Software for
the Authorization Point
of Sale Terminals
•Provide Customer
Service for Merchants
 Consumer

Consumer
Consumer

Card Issuing
Banks Consumer
Merchants

MasterCard

IOPMS Merchants

Merchant
Banks
Dial Up
Network
Network
Internet
Processor
 Credit & Debit Networks
Maestro

Consumer
Consumer Consumer

Card Issuing Star

Banks Consumer
Merchants

MasterCard

IPOMS Merchants

Merchant
Banks
Dial Up
Network Network
Internet
Processor
Honor

NYCE

Explore Interlink Pulse Cyrus

 There Are Two Kinds of Debit
Cards

Off-Line, or Signature Debit On-Line Debit

Most common type of Always require a PIN
debit transaction Number
Does not require a PIN Transactions are in real
Number (Personal time – can’t void an
Identity Number) on-line debit
transaction once
Card always carries a complete
VISA or MasterCard
Logo On-line Debit supports
its own
Also known as check authorization
cards networks
Transactions are Includes:
processed over – ACCEL
existing credit card
networks – CASH
STATION
– EBT
Transactions are – INTERLINK
processed in batch – MAC
– MAGICLINE
Settlement time is 24-48 – NYCE
hours – PULSE
– STAR/Explore
– Maestro
– Cirrus
 IOPMS Offers State-of-The-Art
Products and Services
To Save Merchants Both Time and Money

Credit/Debit/ Internet Processing with Latest POS Terminals,

Secure Payment Software and Equipment
EBT/ Gateways Leasing
T&E Card Processing

Cash Advance
High Risk Merchant Business Building Gift
Programs Financing Solutions – Up and Loyalty Cards
to $150K

Remote Deposit Check

Wireless Solutions Services, Check
Touch Screen Point of Guarantee, Verification,
Mobile Merchant
Sale Computer Systems and Collection Services
Pocket POS

Payroll Processing Cash Dispensing ATM

On-line Web Based
Machine Deployment &
Cost Effective Reporting
Service
 Excellent Customer Service

• All IOPMS Customers have

access to Customer Service
24X7 365/Yr

• Technical Support for POS

Equipment through 3
separate Help Desks

• Redundancy = Reliability
 On-Line Web Based Reporting

• Each Merchant has access to on-line web based Reporting:

– Batch Detail including the number of transactions and

the total dollar amount

– Transaction Detail for any date range you select

• Transaction detail includes the transaction type (purchase,
credit) amount, truncated card number, card type, how
transmitted (keyed vs swiped, date and time of transaction
and Auth code

– Daily Deposits for each location

– Complete Merchant Statements for all locations for

each processing month

– Complete Chargeback and Retrieval Detail

– Contains a Library Section so that you can quickly

download pertinent information such as Quick
Reference Guides and Forms

All the information you need at your finger tips!

Can IOPMS Save YOU Money?
Is IOPMS Competitive?
YES!!!

VISA MasterCard
IOPMS
Alliances with
World Class Member Banks

Other Independent
Sales Org

$$$
 As A Result Of Our
Wholesale Interchange Rates

Many times IOPMS SAVES

customers

10%

15%

20% or more!!!

In
In fact,
Fact,the
theSAVINGS
Savings you
you can
can expect
expect
withNBOCMS
with IPOMS isisGuaranteed!!!
Guaranteed!!!
 We Guarantee
You Will Receive the Lowest Price Possible!

IOPMS Low Price Guarantee

International Online Payments Merchant Solutions is very

excited about the prospect of working with you and your
business. In order to safeguard your trust in us IOPMS takes
great pleasure in offering you our low price guarantee.

We believe in preserving the integrity of our business

relations with our valued merchants. International Online
Payments Merchant Solutions guarantees we will be able to save
your business a minimum of Ten to Twenty Percent (10% - 20%)
per month of your current merchant services fees from your
current merchant card services provider.

We believe in FULL DISCLOSURE. If we are not able to

save you at least (10% - 20%), we will not establish a merchant
account for your business but a pricing expert from our
Accounting Department will call you personally and explain
EXACTLY why we are unable to provide your business with the
anticipated savings.

Sincerely
IOPMS
Making A Difference
What Does it Take to Determine the
SAVINGS to Your Business?

• Simple! Just provide us a copy of your most recent

Merchant Statement from Your Current Merchant
Card Provider.

Provide us with your most recent

Merchant Statement and allow
us to perform a detailed analysis!

Determine exactly WHAT you are

being charged and WHY.

Most processors today make it

extremely difficult to decipher
your Merchant Statement.

Other processors include hidden

charges you may not be aware of.

We can help! Our analysis will

reveal exactly what your current
fees and charges are and even
better, what your expected
savings would be with IPOMS!
 Merchants Refer to Their Pricing as
“Rates”

The Primary Rate is the Discount Rate

• The Discount Rate is based on costs (Interchange) plus
a mark-up
• It is expressed as a percentage and applied to the
merchant’s processing volume
• The mark-up is determined by sales agents.
• Other fees the Merchant will mention are:
» Transaction Fees
• Credit & Debit
• AMEX and Discover
» Batch Fees
» Statement Fees
» Monthly Minimum Fees
» Customer Service Fees
» PCI Compliance Fees
» Annual Fees
» Early Termination Fees
» On-Line Debit Fees
• Network Fees
• Transaction Fees

IOPMS will assess the Merchant’s current Processing

Statement & determine the Merchant’s Rates and propose
possible savings.
 How is Merchant Pricing Determined?
What is Interchange?

• Interchange, charged by VISA and MasterCard is the major

cost components of a credit card transaction
• How is interchange determined?
• What type of Credit Card accepted affects the rate?
• “Regular” VISA and MasterCard Cards
• Rewards Cards
• Corporate/Business/Commercial Cards
– The amount of information transmitted – data rates 1- 3
• Consumer Cards
• International Cards
• How the Merchant Accepts cards affects the rate:
• Card Swiped (face to face retail)
• Key Entered (non face to face – mail order phone order, internet)
• What Type of Merchant affects the rate:
• Retail, Restaurant, Utility, School, Gas Station, Internet Merchant,
Hotel/Motel/Car Rental, Warehouse Stores
• Settlement times and Amounts Affect the rates
• Most Merchants must settle transactions within 48 hours
• Authorization amounts must match Settlement amounts
• Provisions for very large and very small transactions for selected
merchants.
Currently there are over 200 different and unique
interchange categories!
How we simplify this overly complex
Pricing System

Most Merchants have their processing broken down

into three main pricing categories.
– Qualified Rates
– Mid Qualified Rates
– Non Qualified Rates

In addition there are other fees and charges applied

to the merchant account.
– Transaction Fees
– Credit & Debit
– AMEX, Discover, Carte Blanche, JCB (T&E)
– Monthly Minimum
– Statement Fee
– PCI Compliance fee
 Three Tiered Pricing
For Retail Merchants
• Qualified Rates
» Are “usually” retail card swiped rates
• Mid Qualify Rates
» Are “usually” Rewards Cards
• Non Qualified Rates
» Are “usually” key entered rates, Corporate
Cards, World/International Cards, all other
downgraded transactions

For Mail/Phone Order – Internet Merchants

• Mid Qualify Rates
» Are “usually” Key Entered Rewards Cards
• Non Qualified Rates
» Are “usually” key entered rates, Corporate
Cards, World/International Cards, all other
downgraded transactions

Some examples of typical rates:

» Retail
• Qualified Rates = 1.79%
• Mid Qualify Rates = 2.59%
• Non Qualified Rates = 3.59%

» Mail/Phone Order, Internet

• Qualified Rates = 2.29%
• Mid Qualify Rates = 3.29%
• Non Qualified Rates = 4.29%
 What is Interchange Pricing?

Interchange Pricing is based on Interchange

plus a mark-up
– For example Interchange plus 25 basis points

Pricing applies to ALL transactions

• Eliminates the mid qualified and non qualified
surcharges
• Is generally less profitable than three tiered pricing

Can only be used:

– For merchant with $100K Processing Volume/Mo.
– By Managers Approvals
– Only if accompanied by merchant statements
 Suggested Pricing

• Retail Merchants
» Retail
• Qualified Rates = 1.69% - 1.79%
• Mid Qualify Rates = 2.39% - 2.79%
• Non Qualified Rates = 3.0% - 4.0%
• 25 cents per Authorization
• 20 cents T&E
• 20 cents Batch Fee
• $10/Mo Statement Fee
• $3/Mo On-Line Reporting

• MOTO/Internet Merchants
• Mid Qualify Rates = 3.39% - 3.79%
• Non Qualified Rates = 3.59% - 4.59%
• 25 cents per Authorization
• 20 cents T&E
• 20 cents Batch Fee
• $10/Mo Statement Fee
• $3/Mo On-Line Reporting

High Risk Merchants may be solicited however the Discount Rates need to be higher.

• High Risk Merchants

• Qualified Rates = 3.29% - 3.99%
• Mid Qualify Rates = 4.50% - 4.99%
• Non Qualified Rates = 5.59% - 6.59%
• 30 cents per Authorization
• 30 cents T&E
• 25 cents Batch Fee
• $25/Mo Statement Fee
• $20/Mo On-Line Reporting
 What types of business are
High Risk Merchants?

• Advance Delivery
• Adult XX
• Travel
• Telemarketing
• Credit Repair
• Diet Products
• Bail Bonds
• Gaming
• Multilevel Marketing
• On-Line Pharmacies
• Subscriptions
• Tobacco
• Warranties
• Money Transfer
Application Specific Software for All
Merchants

Retail Applications
•Retail with Tip
•IP Web Based Terminals with High Speed Internet
Connection
•Wireless Solutions
•CVV2 Verification Prompts
•Password enabled voids & credits

Restaurant Applications
Reporting by Server or Table
Waiter Banking and Tip Reporting
Restaurant Management System Integration
Debit at the Table Solutions

Hospitality/Car Rental Applications

Check in Check out Folio Management
PC Based Hub Processing
Guaranteed Reservation Service
Night Manager Settlement
Travel and Entertainment, Split Dial AMEX

Mail/Phone Order/Internet Applications

AVS Interchange Qualification
CVV2 Qualification
MOTO Software and Virtual Terminal
Fraud Detection and Prevention Products
 Services Designed to Grow Your
Business…
Loyalty Cards

Loyalty Card
Reporting allows you
to SEE exactly where
your business is
coming from so you
can MAXIMIZE your
advertising budget!

Loyalty Cards can be

used to prospect for
NEW Customers.
Hand them out to
browsers, send them in
the mail, offer them
over the internet!
Loyalty Cards
EXPANDS the business
you are doing with
your current
customers adding
more PROFITS to your
company!
 Services Designed to Grow Your Business…

GIFT CARDS

Gift Cards are only

redeemable in
YOUR Store
Re-loadable for use Perfect for issuing
again and again store credit for
returns

Some cards may

not be fully
Provides you with an
redeemed
additional source of
creating
advance income
additional income
for your business

Helps promote your Reduces Shrinkage

Brand Identity and Loss
 Services Designed to
GROW Your Business…
CASH ADVANCES

USE the
Cash Personal money for
Advance is With Cash
or anything
simply a Advance
Business you want NO HAVE the
pre you can
Credit is – expand Personal money in
purchase of qualify for
your future NOT a inventory, Guarantee as little as
up to
VISA and factor remodelin necessary five days
$150,000
MasterCard with Cash g, opening
Cash
receivables Advance a new
location
Payroll Processing

3rd Largest Payroll Company in the U.S.

• Nearly 150,000 Business
• Nearly 2 million employees paid

Payroll Increases Merchant Retention

$79/Month up to 75 employees
• Typically $100-$200 per month less than Paychex or
ADP
– You can mark-up service to merchant
– Or use as a marketing tool to sign the merchant
account

Automatic tax calculation and filing

Vacation and Sick Day Accruals
Benefits Package Accruals
On-line Reporting with VIMAS

Manage payroll and merchant card processing

account from one on-line tool!
 Payroll Processing Selling Points

• Payroll can be a big hassle to small businesses.

• The Internal Revenue Service has reported that 1 out of
every 3 employers has been charged for a payroll
mistake.
• Employees want direct deposit, checks or payroll cards,
CPAs need payroll records, workers comp. reporting also
often comes from payroll records.
Outsourcing payroll is safer, faster & cheaper.
• Ask:
• “How do you currently handle your payroll and taxes?”
• “Would you be open to exploring NBOCMS’s Payroll
alternatives that may save you money and offer a higher level
of service?”
• Financial institutions & CPAs are key drivers in payroll
selection.
• Small business owners often seek combined online
solutions.
• Payroll (i.e., the aggregate salary paid to employees) is
the biggest expense in most small businesses.
 Services Designed to
Grow Your Business…
CASH DISPENSING ATM’s

An ATM Machine
draws in more
walk-in customers!

ATM Machines
produce
ADDITIONAL REVENUE
streams for your
Business!

Provide your
customers with
additional CASH to
spend in your
store!
International Online Payments Merchant Solutions has
strategic partnerships ensuring Six Secure Internet Payment
Gateways to meet all the processing requirements of our
customers.

With the proliferation of shopping carts and internet web site

design requirements, IOPMS provides merchant web sites with
bolt on solutions that work quickly and easily. IOPMS helps
remove problems of maintaining sustained development
efforts while protecting the e-Commerce business with the
highest levels of Internet security.

• USA ePay
• Authorize.Net
• eProcessing.com
• Cynergydata Lucy Gateway
• Red Fin Network
• Plug ‘n Pay
 Touch Screen Retail
Enhanced Point of Sale
Computer System

Robust enough for any retail

environment, the HP System
combines with Microsoft
Software to provide merchants
with Credit and Debit Card
Processing and…

•Inventory Control with Bar Code

Scanning •Fast, Convenient
•Time and Attendance •Saves you time
Management •Saves Money
•Automated Cash Drawer •Complete Retail Solution
•Customers Love It!
•Touch Screen Menu - Easy
•Complete Installation, Training,
and Support
•In-depth Reporting
•Faster Transaction Times
•Track Customer History
•Automate Purchase Orders
•Minimize Inventory Shrinkage
and Loss
•Track all Sales for Accurate
Accounting
•Fast Employee Training