ELECTRONIC PAYMENT PROCESSING
SOLUTIONS PROPOSAL
Terence Ward Meramak Bankcard Phone: 732.431.4447 ext. 101 Fax: 609.689.2912 [email protected]Company Overview
Meramak Bankcard is a full service merchant services company to provide businesses throughout the United States with credit card processing and electronic payment solutions. Meramak provides its clients with the best of all worlds – merchant account funding from Wells Fargo Bank, one of the nation’s top financial institutions, cutting edge payment technology from a leader in the field and an intimate, relationship based customer service atmosphere.
Mission: Our mission is “to reinvent the electronic payment processing industry by providing education, transparency and superior customer service at the most competitive price.” Our partnership is constructed to respond to what we believe is a failure by other merchant services providers to provide customers with the solutions and high-quality customer care they deserve.
Time is important: If you have an issue, you don’t have time to work through a maze of voice prompts or leave messages for agents who never call you back. You need solutions right away. You need to know that you can get in touch with a live human being. Meramak understands. As a client of ours, you’ll be able to reach us 24-hours a day. One phone call and you’ll be connected to support you can count on.
An Organization that Supports Long-term Relationships: At Meramak we approach each customer relationship from a long-term perspective. We believe true customer excellence is supported by culture and is the result of a total organizational philosophy – not by technology and training alone. We place great emphasis on hiring employees that demonstrate in their personalities a true understanding and desire to provide exceptional customer service. This ideology acts as the foundation for our business and serves as the basis for our value proposition.
A Community-based Approach: To develop strong, intimate relationships with our customers and to build a greater understanding of the distinct aspects of each customer’s business, their needs and the type of support required in each individual case, Meramak has adopted a “community-based” approach. We treat our clients like family, providing friendly service and developing strong, lasting relationships. We’re not your ordinary credit card processing company.
Adding Value with Education: At Meramak our customers’ bottom lines are our top priority. By taking a proactive approach to educating our customers on advancements in electronic payments, we are able to strengthen their businesses not only by reducing expenses, but also by suggesting ways to improve their top-line performance. We approach each customer relationship as a true partnership. Since the success of our business is directly related and closely tied to the success of our customers’ businesses, we strive to make sure that we act in a manner that will facilitate the growth of our customers and strengthen the health of their businesses.
Providing Solutions for a Diverse Range of Needs: Meramak offers a wide range of products and
services to meet the diverse and often unique needs of our clients. Whether it’s a simple merchant account, adding signature debit and recurring billing to a point of sale system or bringing a chain of 300 outlets into compliance with the Payment Card Industry Data Security Standards (PCI DSS), Meramak provides a one stop solution for our client’s payment processing needs.
The Advantages of “True” Interchange Pass-through Pricing
Interchange is every bank or processor’s base cost. This is the largest portion of a processor’s expense and it is the portion that is paid to the Card Issuing Banks. In order for a credit card processing company to earn income from a merchant account, they need to charge more than the Interchange Rates. There are literally hundreds of different interchange categories and rates for different types of transactions.
Besides Interchange Rates, there are other basic expenses every processor incurs. One such expense is Dues & Assessments. Dues & Assessments are set by the card associations and they are the same for every processor. This is the portion of the processing expense that goes directly to VISA, MasterCard and Discover. Currently Visa dues and assessments are 0.11%, MasterCard dues and assessments are 0.11% and Discover dues and assessments are 0.10%
A third common expense is the cost associated with physically routing a credit card through one or more of the major processing networks. This entails electronically authorizing a credit card (“Authorization”) and capturing authorized funds (“Ticket Capture”) which are then deposited to the merchant’s bank account. The major processing networks house huge data centers and regularly update and maintain connectivity to the various card associations (Visa, MasterCard and Discover) and self-contained card brands (American Express, JCB, etc). Most credit card processing companies have similar Authorization and Ticket Capturing expenses ranging from $0.05-$0.10 per transaction.
In summary, the base cost structure for a credit card processing company can be simplified into three basic components which are:
1. Interchange Rates (270+ categories/rates for different types of transactions) 2. Dues and Assessments (Visa = 0.11%, MC = 0.11% and DV= 0.105%) 3. Authorization & Ticket Capture Fee ($0.05-$0.10 per transaction)
The greatest benefit of True Interchange Pass-through pricing and its advantage over any other pricing convention is TRANSPARENCY. Despite the tremendous cost savings that can be realized using this convention, transparency will provide you with a better understanding of the drivers behind your processing expenses and ultimately, improved account management.
Proposed True Interchange Pricing
In addition to the “above and beyond” atmosphere of support you’ll come to know, we are confident the transparency provided by Meramak will be unmatched by any other bank or processor in the
industry. Meramak would like to provide Ocean Beach Marina with True Interchange Pass-through,
$0.25 per authorization and a small processor charge of 90 basis points (0.90%). The below Rate Sheet illustrates all of the rates you can expect from us – presented with true transparency in mind.
Item # Item Description % Rate Per
Item Rate
Fixed Monthly Fee
1 Interchange Rates True Pass-through True Pass-through
2 Processor Charges 0.90%
3 Visa / MasterCard / Discover Dues & Assessments True Pass-through
4 Other Association Charges True Pass-through True Pass-through
5 Visa / MasterCard / Discover / American Express Authorization $0.25
6 Ticket Capture Included in #5
7 Electronic AVS $0.02
8 Pin Debit Transaction $0.10
9 Return Fee $0.25
10 Batch Header Fee WAIVED
11 Retrieval Request $5.00
12 Chargeback $25.00
13 Voice AVS $1.75
14 Voice Authorization $1.75
15 Statement Fee $5.00
16 Online Account Access (Optional) $5.00
17 Monthly Minimum Fee (Not likely to be charged) WAIVED
18 24-hour Technical Support WAIVED
19 24-hour Customer Support WAIVED
Rate Comparison
The following table demonstrates the anticipated merchant account savings Ocean Beach Marina can obtain with Meramak.
Net VS / MC / DC Monthly Sales # of Items Average Sales Ticket
103,341.90
$ 421 $ 245.47
True VS / MC / DC Category True % Rate True Item Rate % of Items Items Volume Estimated Cost
VS REG DB 0.05% $0.22 7.13% 30 $ 14,049.45 $ 13.62 VS CPS RETAIL DB 0.80% $0.15 4.75% 20 $ 9,366.30 $ 77.93 VS CPS RETAIL 1.51% $0.10 2.61% 11 $ 5,268.54 $ 80.65 VS CPS REWARDS 1 1.65% $0.10 10.69% 45 $ 21,074.17 $ 352.22 VS SIG PREF RETAIL 2.10% $0.10 4.28% 18 $ 8,780.91 $ 186.20 VS CONS REFUND 1.76% $0.00 2.85% 12 $ (3,779.57)$ (66.52) MC REG DB 0.05% $0.22 3.80% 16 $ 10,412.57 $ 8.73 MC MERIT III DB 1.05% $0.15 2.38% 10 $ 6,941.71 $ 74.39 MC MERIT III 1.58% $0.10 1.43% 6 $ 3,904.71 $ 62.29 MC WC MERIT III 1.77% $0.10 5.46% 23 $ 15,618.85 $ 278.75 MC WC ELITE MERIT III 2.20% $0.10 2.38% 10 $ 6,507.85 $ 144.17 MC CONS REFUND 1.73% $0.00 0.95% 4 $ (252.83)$ (4.37) DISC PSL RETAIL CORE 1.56% $0.10 2.85% 12 $ 5,958.87 $ 94.16 DISC CONS REFUND 1.73% $0.00 0.48% 2 $ (509.63)$ (8.82) Visa / MasterCard Kilobyte Fee - - - 202 $ 0.0035 $ 0.71 Visa Transaction Integrity Fee - - - $ 0.60 Visa FAN Fee - - - $ 2.00
Visa Dues and Assessments 0.11% - - - $ 58,539.37 $ 64.39
MasterCard Dues and Assessments 0.11% - - - $ 43,385.69 $ 47.72
Discover Dues and Assessments 0.105% - - - $ 5,958.87 $ 6.26
Visa Credit APF Association Per Item Fee - $0.0195 - 86 - $ 1.68
Visa Debit APF Association Per Item Fee - $0.0155 - 50 - $ 0.78
MasterCard NABU Association Per Item Fee - $0.0195 - 69 - $ 1.35
Discover Transactions - $0.0185 - 14 - $ 0.26
Total Pass Through Fees 52% 421 $ 103,341.90 $ 1,419.15
Volume Rate Items Per Item
Processor Charge - $107,883.93 0.90% - - $ 970.96 Visa / MasterCard / Discover Authorization Fee - - - 202 $0.25 $ 50.50
Total Visa / MasterCard / Discover Fees $ 2,440.61
Amex Authorization Fee - - - 72 $0.25 $ 18.00 PCI Compliance Fee - - - $ 6.00 Statement Fee - - - $ 5.00
Total Fees $ 2,469.61
Category Category Rate Volume % of Volume # of Transactions Per Item Fee Fees
Visa / MasterCard / Discover Rate 1 0.8720% $5,142.84 4.77% - - $ 44.85 Visa / MasterCard / Discover Rate 2 1.3920% $118.71 0.11% - - $ 1.65 Visa / MasterCard / Discover Rate 3 1.6620% $855.64 0.79% - - $ 14.22 Visa / MasterCard / Discover Rate 4 1.8420% $3,395.72 3.15% - - $ 62.55 Visa / MasterCard / Discover Rate 5 2.3719% $10,206.18 9.46% - - $ 242.08 Visa / MasterCard / Discover Rate 6 2.5520% $36,956.48 34.26% - - $ 943.12 Visa / MasterCard / Discover Rate 7 2.7220% $20,821.46 19.30% - - $ 566.76 Visa / MasterCard / Discover Rate 8 2.9020% $30,386.90 28.17% - - $ 881.83 Visa Dues and Assessments - - - $ 64.43 MasterCard Dues and Assessments - - - $ 47.72 Discover Dues and Assessments - - - $ 6.25 Visa Transaction Integrity Fee - - - $ 0.60 Visa Fixed Acquirer Network Fee - - - $ 2.00 MasterCard Acquirers License Fee - - - $ 1.52
Total Visa / MasterCard / Discover Fees $ 2,879.58
Amex Authorization Fee - - - 72 $0.10 $ 7.20 # of Retrieval Requests - - - 1 $5.00 $ 5.00 Last Month's Excessive Visa Authorizations - - - $ 1.50 Card Compromise Assist Plan - - - - - $ 34.95 Regulatory & Compliance Fee - - - $ 5.00
Total Fees $ 2,933.23
Preferred Meramak Pricing
Savings Analysis
The following table summarizes the anticipated merchant account savings Ocean Beach Marina can
obtain with Meramak.
