Interchange Plus Pricing Program Are you a merchant who is currently processing over $100,000 a month in credit card charges and would like to lower your costs? Back to the Basics (a clearer understanding) Visa & MasterCard have several dozen prices known as Interchange, which determines the rate a merchant must pay for a particular transaction. The applicable rate is determined by various circumstances, such as was the card swiped, keyed-in with(out) AVS, is a business, corporate or reward cards. The standard method of pricing 99% of all merchants pay is what they call 3-tier pricing. This consists of three separate prices called Qualified, Mid-Qualified & Non-Qualified. The Qualified discount rate is the base price you pay on all transactions and only covers a few Interchange rates. When a merchant processes a transaction that goes through one of the more expensive Interchange rates, providers add the Mid-Qualified or Non-Qualified rate to the merchant's Qualified rate. There is no industry standard pricing, but 1% for the Mid and 1.60% for the Non is quite common. To elaborate, when a merchant is setup under a 3-tier pricing schedule, they will pay one of the following three rates on each transaction: Qualified Discount Rate Qualified + Mid-qualified Qualified + Non-Qualified For retail merchants, the mid-qualified will apply to any keyed-in transaction. For Internet/Mail/Phone order merchants, the mid-qualified generally doesn't apply, but it all depends on the provider. Internet & Mail / Phone Order Merchants The Interchange rates listed in the chart below are organized into the two applicable pricing categories mentioned above (qualified & non-qualified). This is to demonstrate to you what rate would normally apply if you were setup under the standard 3-tier pricing schedule. The rates include dues & assessments (D&A), which is what V/MC receives out of all of this. Visa抯 is 0.0925% and MC's is 0.095%. What's Gotmerchant.com's Offer? The pricing program we are offering is what they call Interchange Plus. You will receive the actual Interchange cost listed below plus a set markup of only 0.35% for our services and the liability we assume for giving you the unsecured line of credit. The transaction fee you will incur is $0.15, which includes the processor's fee. The following examples are in reference to the chart below: For example, if a transaction went through CPS/Card Not Present (7A) and your qualified discount rate is 2.29%, then 2.29% is what you would have paid instead of 1.64% under our program. If the transaction went through a rate listed in the non-qualified group (such as 15A) and your non-qualified rate is 1.60%, then you would have paid 3.89% (2.29% + 1.60%) instead of 1.84% under our program. A distinctive advantage with Interchange plus is it is most cost effective. Under the standard 3-tier pricing, you are paying one of three rates which covers a number of different prices. In other words, it would be as if you used a nickel to purchase something that cost anywhere from 1 to 5 cents and pennies no longer existed. Note: You can not accurately compare Interchange plus with any other pricing program for there is no common ground amongst the two. It would be like trying to compare apples to oranges. A B C D E Interchange Rate Category Categories in BOLD are debit cards with the V/MC logo (processed as a credit card). QUALIFIED GROUP 1A CPS Card Not Present (Internet/moto) V 1.94% $0.10 2A CPS/Electronic Commerce - Basic V 1.94% $0.10 3A CPS/Electronic Commerce - Preferred V 1.89% $0.10 4A CPS/Rewards 2 - Reward Cards V 1.64% $0.10 5A CPS/Card Not Present V 1.69% $0.15 6A CPS/Electronic Commerce - Basic V 1.69% $0.15 7A CPS/Electronic Commerce - Preferred V 1.64% $0.15 8A Key-Entered (Internet/moto) MC 1.05% $0.10 9A World MC Key Entered - Reward Cards MC 1.15% $0.10 10A Key-Entered (Internet/moto) MC 1.74% $0.16 NON-QUALIFIED GROUP 11A EIRF V 2.39% $0.10 12A Standard V 2.79% $0.10 13A Commercial Electronic V 2.29% $0.10 14A Commercial Standard V 2.79% $0.10 15A EIRF V 1.84% $0.20 16A Standard V 1.64% $0.25 17A Corporate Standard MC 2.80% $0.10 18A World MC Standard - Reward Cards MC 3.00% $0.10 19A Standard MC 2.00% $0.25

Retail Merchants

The Interchange rates listed in the chart below are organized into the three applicable pricing categories mentioned above (qualified, mid-qualified & non-qualified). This is to demonstrate to you what rate would normally apply if you were setup under the standard 3-tier pricing schedule. The rates include dues & assessments (D&A), which is what V/MC receives out of all of this. Visa抯 is 0.0925% and MC's is 0.095%.

What's Gotmerchant.com's Offer?

The pricing program we are offering is what they call Interchange Plus. You will receive the actual Interchange cost listed below plus a set markup of only 0.35% for our services and the liability we assume for giving you the unsecured line of credit. The transaction fee you will incur is $0.15, which includes the processor's fee.

The following examples are in reference to the chart below:

For example, if a transaction went through CPS Retail Check Card (2A) and your qualified discount rate is 1.79%, then 1.79% is what you would have paid instead of 1.12% under our program. If the transaction went through a rate listed in the non-qualified group (such as 17A) and your non-qualified rate is 1.60%, then you would have paid 3.39% (1.79% + 1.60%) instead of 1.84% under our program.

A distinctive advantage with Interchange plus is it is most cost effective. Under the standard 3-tier pricing, you are paying one of three rates which covers a number of different prices. In other words, it would be as if you used a nickel to purchase something that cost anywhere from 1 to 5 cents and pennies no longer existed.

Note: You can not accurately compare Interchange plus with any other pricing program for there is no common ground amongst the two. It would be like trying to compare apples to oranges.

A B C D E Interchange Rate Category Categories in BOLD are debit cards with the V/MC logo (processed as a credit card). QUALIFIED GROUP 1A CPS Retail V 1.63% $0.10 2A CPS/Retail Check Card V 1.12% $0.15 3A Merit III MC 1.73% $0.10 4A Merit III MC 1.15% $0.15 MID-QUALIFIED GROUP 5A CPS Retail Key Entered V 1.94% $0.10 6A CPS/Rewards 1 - Retail Reward Cards V 1.74% $0.10 7A CPS/Retail Key Entry V 1.69% $0.15 8A Merit I (retail - keyed in) MC 1.05% $0.10 9A World MC Merit I (swipe) - Reward Cards MC 1.15% $0.10 10A World MC Key Entered - Reward Cards MC 1.15% $0.10 11A World MC Merit III - Reward Cards MC 1.82% $0.10 12A Merit I (swipe) MC 1.74% $0.16 NON-QUALIFIED GROUP 13A EIRF V 2.39% $0.10 14A Standard V 2.79% $0.10 15A Commercial Electronic V 2.29% $0.10 16A Commercial Standard V 2.79% $0.10 17A EIRF V 1.84% $0.20 18A Standard V 1.64% $0.25 19A Corporate Standard MC 2.80% $0.10 20A World MC Standard - Reward Cards MC 3.00% $0.10 21A Standard MC 2.00% $0.25