Britannia/NET1 Web Seminar 2007

1. Britannia/NET1 Web Seminar 2007 Presented By: NET1 Payment Solutions Presenter: Brian Morabito

2. Introduction to the NET1 Family • Karen Schlotterbeck - Support and Marketing - karen@net1creditcard.com - 301-223-1856 phone - 432-225-5948 fax • Brian Morabito - Sales and Support - brian@net1creditcard.com - 800-718-8005 phone - 571-262-2276 fax

3. Today’s Presentation • Britannia Program & Pricing Incentives • Level II and Level III Processing Options • Examine the Processing Options Terminals –vs.– Software • NET1 Services • Tidbits on Fraud • Questions & Answers

4. Interchange Fees • Referred to Discount Fee Percentage • Most Expensive Component of Total Merchant Processing Cost for a Transaction • Priced on Actuarial Risk Models • Fall and Spring - these are the 2 times a year the fees can be increased by MasterCard and Visa.

5. What does Level II and Level III mean? • Level II and Level III is the enhanced data that is sent with the transaction at settlement • The following cards can process Level II and Level III data - Business Cards -Corporate Cards -Purchase Cards • If Level II/III data is passed you could qualify for a lower rate on the sale

6. What is Level II Data? • Level II Data Requirements - Tax Amount (must be between .01% and 22% of the transaction amount) - Customer Code for Purchase Cards only

7. What is Level III Data? • Level III Data Minimum Requirements - Discount Amount - Freight/Shipping Amount - Duty Amount - Item Commodity Code - Item Descriptor - Product Code - Quantity - Unit of Measure - Unit Cost - Discount per Line Item and Line Item Total

8. Most Advantageous Business Incentives • Large Ticket Transaction Defined as Over $8,750 for VISA & $3,500 for MasterCard • Enhanced Level II Data including: -Customer Number -Invoice Number -Tax Amount • Enhanced Level III -Addition of Line Item Detail

9. Options Available • Payment Terminals: - VeriFone, HyperCom, Nurit • Necessary at the Point of Sale • Many Limitations - Manual Entries “Downgrade” -Not Integrated with Skipjack and Britannia -Difficult to Enter Enhanced Data

10. Solutions Available • Payment Software Services - 3rd party software – Auth.net and Quick Books • Skipjack/Britannia Integrated Credit Card Module - process over the internet opposed to a phone line which is less time consuming - Information is transmitted back to accounting software to eliminate the need to re-key - Credit card information is stored on the Britannia server and not on the internet. - Integrated to Provide Enhanced Data that Allows for Special Program Pricing with a Preferred Payment Vendor NET1 Payment Solutions

11. What you need to know about Fraud • Know your client base and how they order.  In 2005, the ecommerce industry's Fraud Loss was $2.8 Billion.  Keeping the tips we suggest does not guarantee a sale is not fraudulent, but it will deter fraudsters from targeting your business.

12. Potential Signs of Card Not Present Fraud • First-time shopper • Larger than normal orders • Shipping to an international address • Transactions with similar account numbers • Shipping to a single address but multiple cards are used • For online transactions - multiple cards used from a single IP address

13. Fraud Prevention Tools • AVS • VbV - Verified by Visa http://usa.visa.com/merchants/risk_management/vbv.html?it=c|/merchants/risk_management/card_not_present.html|%u201CVerified%20by%20Visa%u201D • MasterCard Secure Code http://www.mastercard.com/us/merchant/security/what_can_do/SecureCode/index.html

14. Questions & Answers

15. Program Highlights

16. Bankcard Processing 60 “Commitment Free” Review • Free comparison (analysis) of your current cost vs. the “preferred” program rates • Special Pricing for Business Transactions • Large Ticket Incentives • Level III Capability • And best of all….No hassles! *** UNTIL October 15th 2007 – ANY NEW ACCOUNT SIGNED AND APPROVED WILL RECEIVE 6 MONTHS OF STATEMENT FEES FREE*** Please Contact Brian Morabito for Further Information 571-262-2239 phone brian@net1creditcard.com