SALES AGENT ORIENTATION - Welcome to Canmor Merchant Services - SALES AGENT ORIENTATION

SALES AGENT ORIENTATION

   SALES AGENT

   ORIENTATION

       Welcome
          to
Canmor Merchant Services

SALES AGENT ORIENTATION

 GENERAL

INFORMATION

SALES AGENT ORIENTATION

COMPANY BACKGOUND

   Canmor Merchant Services, a division of Canmor Inc.,
   began operation in 2002.

   Sell in all regions of the country.

   Canadian owned & operated company.

   24 plus sales agents operating either full or part time.

   Registered MSP (Merchant Service Provider) of Elavon
   Inc. subsidiary of U.S. Bancorp.

   Registered with VISA and MasterCard as resellers of
   VISA and MasterCard services.

                    COMPANY MOTTO:

   Delivering Quality While Lowering Your Costs

               We take our motto seriously.

SALES AGENT ORIENTATION

WHAT IS YOUR ROLE?

    Your role is to sell Debit and Credit Card
             transaction processing
        to small and mid-size business.

      THIS INCLUDES:
      •     Identify businesses with uncompetitive rates
      •     Determine the best solution for merchant
      •     Negotiate prices and rates, make the Sale
      •     Complete Paperwork

      IDENTIFY PROSPECTIVE MERCHANTS:
          • Cold Calling (Door to door)
          • Referrals (Key to your success)
          • City/Town business directory
          • Chamber of Commerce
          • Yellow Pages.ca
          • Friends and Family
          • Flyers, mail drops
          • E-mail
          • Kijiji, Craig’s List
          • Etc.

SALES AGENT ORIENTATION

WHAT IS YOUR ROLE (Con’d)

                 Sell Sell         Sell

 You will not be asked to:

    Install any hardware or software.

    Train merchants on use of hardware or software.

     Provide technical support.

     Provide after sale support.

SALES AGENT ORIENTATION

YOU HAVE FLEXIBILITY

    Our program allows you great flexibility;
            you effectively operate
              Your Own Business.

   You determine your commission on a sale.

   You influence your monthly residual earnings.

   You determine where you sell.

   You decide how you sell.

   You determine if you want to establish a sales team selling
   for you.

SALES AGENT ORIENTATION

REWARDING OPPORUNITY

 You are in control of your financial destiny, depending on
 what your aspirations are and the level of your commitment,
 your earning potential can resemble those of existing sales
 agents.

 The following are actual examples (numbers are rounded) of
 some agents’ incomes for 2019.

 Top Earner (10th year agent; 7 person sales team)
      $214,000 (including $7,000 monthly residual)

 Top Earner (8th year agent, no sales team)
      $142,000 (including $5,500 monthly residual)

 1st Year Top Earner (no sales team)
      $68,000 (including $1,200 monthly residual)

 Top Residual Earner (11th year agent, no sales team)
      $10,500 monthly residual, $0 sales)

 Top Part-Time Earner (3rd year agent, no sales team)
      $48,000 (including $2,200)

SALES AGENT ORIENTATION

POINT OF SALE

 INDUSTRY

INFORMATION

SALES AGENT ORIENTATION

GENERAL

  Merchants Love and Hate Relationship with the POS Industry.

  They love;
      · Ease of using POS
      · Every customer has card to use.
      · Guaranteed (almost) payment
      · Reduce cash and coin handling
      · Staff theft prevention

  They hate the cost of POS

  POS can be expensive for merchants, due to:
      · Their requirements, complicated merchant systems;
      · Multiple pay points, multiple stores
      · Complex reporting requirements.
      · Security requirements – merchant and industry
      · Connected with very expensive service provider.

  THE GOOD NEWS
 The industry is continually upgrading their systems, product
  offerings, ease of use programs, etc. designed to allow
  merchants to accept payments as their customers want and
  demand:
       · ApplePay using a smartphone or a watch, etc.

 And to introduce products that help the merchant manage the
 business:
       · Smart terminals capable of performing non payment
          activities such as Time & Attendance, etc.

SALES AGENT ORIENTATION

GENERAL (Continued)
To understand the POS Industry, it is important to know who are
Influencers and who are Participants

  INFLUENCERS

  CARD & PAYMENT INDUSTRY – consists of financial
  institutions and payments processors. This global
  organization sets security and safe practise rules and
  regulations.

  VISA, MASTERCARD, DISCOVER, AMERICAN EXPRESS,
  INTERAC – card companies providing cards customers can
  use for purchasing products. The credit card is a short term
  loan that is free if repaid quickly or it can be a longer term
  loan with interest costs.

 PARTICIPANTS

  CARD ISSUERS – financial institutions that issue credit and
  debit cards who have established a franchise relationship
  with one or more credit card companies.

  PROCESSORS – companies that have developed the
  infrastructure to accept electronic payments.

  MERCHANTS

  CARDHOLDERS (or Customers)

SALES AGENT ORIENTATION

CARD ISSUERS

 Card Issuers are:

  · Banks

  · Trust Companies:

  · Credit Unions

SALES AGENT ORIENTATION

PROCESSORS

 Moneris Solutions
  · Largest market share in Canada
  · Owned by RBC & BMO

 Elavon
  · Our main Processor
  · Operates in multiple countries.

 Chase Paymentech
  · Bought Scotiabank portfolio.

 Global Payments
  · Bought CIBC portfolio

 TD Merchant Services
  · Only Bank still operating in POS

 First Data
  · World’s largest Processor.
  · Small market share in Canada.

SALES AGENT ORIENTATION

GENERAL (Continued)

  Credit Card industry is dominated by 4 major companies, in
  order of size:
       · VISA
       · Mastercard
       · Discover
       · American Express

  VISA and Mastercard’s customers are Financial Institutions
  (Banks, Trust Companies, Credit Unions), NOT Processors or
  merchants.

  Processors have a direct relationship with merchants; they
  assume the risk of any financial loss created by merchants.

  Merchants must apply for and be approved by a Processor
  before they can accept VISA and Mastercard. Approval is
  based upon:
   · Acceptable credit rating of the business and the owner.
   · An acceptable level of Risk (as defined by the Processor).

  Security has become a huge issue in the industry, resulting in
  Processors and the Credit Card companies introducing new
  security measures on a regular basis. Merchants will be
  required to continually comply with changes.

SALES AGENT ORIENTATION

VISA & MASTERCARD

  INTERCHANGE
      and
 DISCOUNT RATES

SALES AGENT ORIENTATION

CREDIT CARD - Interchange & Discount Rates

 INTERCHANGE RATE (or Fee)

    · Artificial rate established by VISA & Mastercard, paid by
      Processor (Elavon) to Card Issuer (Bank)

    · Purpose, to assist in the cost of running credit card
      programs.

 DISCOUNT RATE (or Fee)

    · The actual fee charged to merchants, Processors add a
      mark-up or profit margin to the Interchange rate.

    · Discount Rate and fees vary from one Processor to another
      and are priced at the discretion of the Processor.

    · The Discount Fee (or the Discount Rate used to calculate the
      fee) is not well understood by merchants.

    · Allows for very confusing price quotes and deceptive sales
      practices.

SALES AGENT ORIENTATION

INTERCHANGE & DISCOUNT RATE (Con’d)

EXAMPLE         Merchants makes a sale of $100;
                Interchange Rate is 1.54%;
                Discount Rate Merchant Pays is 2.0%

   MERCHANT                     PROCESSOR                  CARD ISSUER

                  $100.00                     $100.00

                      $98.00                      $98.46
 Merchant Receives          Processor Receives              Cardholder is
 $98.00, Pays $2.00         $98.46, Earns $0.46            Charged $100.00

    Terminal sends a sale request to Processor for $100.

    Processor sends a request for the Card Issuer to check if the
    cardholders account can accept a charge of $100.

    The Sale is approved; Card Holders account is charged $100.

    Processor receives from the Card Issuer the Sale amount less
    the Interchange Fee ($100.00 – $1.54 = $98.46)

    Processor credits the Merchant’s account with the Sale Amount
    less the Discount Fee ($100.00 - $2.00 = $98.00).

SALES AGENT ORIENTATION

COMPLEXITY OF DISCOUNT RATES

   VISA and Mastercard have created a complex pricing method
   based on card types and Processing Methods.

   Discount Rates are directly influenced by how transactions
   are processed, the greater the risk of a fraudulent transaction
   the higher the Discount Rate.

CARD TYPES

   Number of card types has exploded over the past 10 years,
   Infinite cards, Points and Rewards cards, Premium cards, High
   Spend cards, Premium High Spend cards, etc.

   The more expensive a card type is to operate (for the Bank),
   the higher the Interchange Rate (and Discount Rate).

PROCESSING METHOD

   How cards are processed has a bearing on Discount Rates:

   · Transactions using the Chip on the card are very secure and
     low risk which allows for a lower rate.

   · Transaction manually entered (or key entered) are less
     secure and higher risk leading to higher rates.

   · Internet transactions are much less secure and much higher
     risk resulting in higher Discount Rates.

SALES AGENT ORIENTATION

EXAMPLES OF CARD TYPES

    POINTS or REWARDS CARD – Cards that earn points, rewards
         or cash back.

               VISA                VISA          MASTERCARD
           RBC Avion Infinite   RBC Cash Back    MBNA Rewards

                     MASTERCARD           MASTERCARD
                    BMO World Elite      WestJet Premium

  CORPORATE CARD - Cards issued in a Company’s name to an
    Employee to make business / expense purchases.

 PURCHASING CARD - Cards issued to Companies to make Business
   only purchases.

SALES AGENT ORIENTATION

PROCESSING METHODS

CHIP transactions are the least
expensive for merchants.
High security, less chance of fraud.

Classified as “CARD PRESENT”

 KEYED or “Standard” transaction, is the
 most expensive transaction.

 Classified as “CARD NOT PRESENT”

 Often a Keyed transaction is a Telephone,
 Mail or Internet transaction. The card is not
 available for the merchant to view or “not
 present”.

SALES AGENT ORIENTATION

EXAMPLES OF INTERCHANGE RATES

Sample of Card Type and Processing Type Interchange rates

                     Card Type               Proc Method   % Rate
        Chip Electronic - Consumer              Chip        1.42
        Chip Standard - Consumer               Keyed        1.52

        Chip Electronic - Infinite              Chip        1.61
        Chip Standard - Infinite               Keyed        1.71

        Consumer Premium Electronic             Chip        1.71
        Consumer Premium Standard              Keyed        1.74

        Infinite High-Net Worth - Chip          Chip        2.08
        Infinite High-Net Worth - Standard     Keyed        2.45

SALES AGENT ORIENTATION

 CREDIT CARD - Additional Fees

Merchants are charged more then just the Discount Fee.

     Assessment or (Infrastructure) Fee.
        Ø Fee paid VISA and MasterCard to maintain their network.

     International Cross Border Fee.
        Ø Fee is applied to international sales processed on cards outside
          of Canada and not in Canadian funds.

OTHER FEES

     Application Fee
       Ø Fee to perform Credit Check and Risk Assessment on the
           Business and on the Business Owner.

     Minimum Monthly Fee
        Ø Minimum fee collected if merchant does not process any or
          only a few transactions during the month.

     PCI Data Security Fee
       Ø Fee to manage Data Security of the network and to ensure
          merchants are tested and certified annually.

SALES AGENT ORIENTATION

  INTERAC DEBIT CARD PRICING

Debit Card or Interac fees are fairly simple compared to Credit Cards.
Interac Debit has become a loss leader in the industry as the pricing
is very low with little room for meaningful profit.

   Transaction Fee - Merchant is charged a flat “Transaction Fee”,
      regardless of the card type or sale amount, the fee is always
      the same amount. Debit is a much more cost effective
      solution versus Credit Cards.

   Interac Flash – Interac’s contactless (Tap N’ Go) transaction. An
       extra $0.035 is added the normal debit transaction fee. This
       fee goes directly to Interac.

   Surcharge – Merchant charges a fee to their customers to use
      Debit Card.

SALES AGENT ORIENTATION

  PRODUCTS

TARGET MARKETS

    and

  PRODUCTS

SALES AGENT ORIENTATION

OUR TARGET MARKETS

               WE SELL TO ALL BUSINESSES
                     THAT ACCEPT
                 ELECTRONIC PAYMENT

 All Retail businesses – Clothing Stores, Hairdressers, Shoes,
 Hardware, Florists, Jewelry Stores, etc
 Automotive – Car Dealers, Rental, Repair Shops, Auto Body Shops
 Professionals – Accountants, Doctors, Chiropractors, Dentists,
 Massage Therapists, Homeopathic, etc.
 Fast Food, Restaurants, Bars, Lounges
 Grocery Stores, Convenience Stores, Mini Marts
 Transportation – Limousine, Taxi
 Mobile Vendors – Pizza, Home Inspectors, Home Repair
 And More

SALES AGENT ORIENTATION

OUR TARGET MARKETS (Con’d)

 Very few merchants exist that accept only Cash

 Very few Industry Sectors are able to accept only Interac Debit
 cards.
    o Convenience stores

 Cardholders are inclined to use Interac Debit for purchases less
 than $60.

 Cardholders will use Credit Cards for purchases of $100 or more
    o Collect points or rewards
    o Finance the purchase (retain a balance)
    o Take advantage of 25 days free use of funds.

SALES AGENT ORIENTATION

WHAT DO WE SELL?

  HARDWARE - Terminals
    · Dial and IP (Internet)
    · Bluetooth (Short Range Wireless)
    · Long Range (Rogers, Bell & Telus)

  SOFTWARE
     · Converge (Virtual Terminal)
         Gateway application - process
         transactions on a computer.

     · SmartPhone Application
         Process credit card transactions on a
         SmartPhone (iPhone, Android)

     · E-Commerce
          Process transactions on Merchants’
          company Web Site.

  POS STORE SYSTEM
     · Cloud based, iPad store system with
       powerful full store functionality.

  ATM
     ·   Revenue generating ATM.

SALES AGENT ORIENTATION

BUY, LEASE to OWN, RENT

       BUY Option:
       · Merchant Benefits
         o Least Expensive

       LEASE to OWN Option
       · Merchant Benefits
         o Monthly payments (like Rent but will end)
         o At end of lease, merchant owns terminal
       · Lease Term
          o 24, 36 or 48 months
          o Longer the term, smaller the monthly payment
          o More expensive the purchase.

       RENT Option:
       · Merchant Benefits
          o No up-front payment
          o Small monthly payment
          o Most expensive option

SALES AGENT ORIENTATION

SMART TERMINALS

SALES AGENT ORIENTATION

   DESK 5000 - Countertop Terminal
                                                                       Tap & Go TM

        Key Features                                 Target Market
a Connects to Internet by Ethernet & modem.      a   All Retail Merchants
       aand Telephone.                           a   Automobile repair, sales
a Supports Contactless applications              a   Chiropractors, Physiotherapists
   - Tap & Go, Interac Flash, Mastercard         a   Doctor, Dentists
      PayPass, Visa payWave.                     a   Convenience, Dollar stores
a Customer facing card reader for faster         a   Fast Food, Grocery
     transaction flow.                           a   Any businesses taking Plastic Payments
a PCI certified, satisfies latest hardware and
     software security requirements.
a 3rd business applications will be supported.

SALES AGENT ORIENTATION

  MOVE 5000 - Long & Short Range Wireless Terminal

                                                                              Tap & Go TM

           Key Features                                 Target Market
a Long Range Wireless, Take the terminal         a Ideal for merchants who travel to
     to your Customer (Bell, Telus, Rogers)         customers.
a Short Range Wireless, WiFi & Bluetooth         a Restaurants requiring “Pay at the Table”
     take payment at table.                      a Taxi and Limousines.
a Supports Contactless applications;             a Pizza and Fast Food deliveries.
     Tap & Go, Interac Flash, Mastercard         a Real Estate agents.
      PayPass, Visa payWave.                     a Home Inspectors, Home Improvements, etc.
a Customer facing card reader for faster         a Merchants setting up in Fairs, Festivals,
      transaction flow.                               Conferences, etc.
a PCI certified, satisfies latest hardware and   a Ideal for businesses that experience
      software security requirements.                 spotty cellular coverage and have
a 3rd party business applications will be             access to Wi-Fi service.
     supported as they are developed.

SALES AGENT ORIENTATION

POYNT (Smart Terminal)
Wi-Fi Mobile
                                                                         Tap & Go TM

   Key Features                                   Target Market
a Multi-Merchant (up to 10 unique             a   Only product suitable for Hair Salons.
      Merchant numbers)                       a   Ideal for merchants wanting a modern look.
a Store up to 500 products                    a   Retail, Service Industry
a Supports Contactless applications           a   Restaurants, Coffee Shops, Fast Food
   - Tap & Go, ApplePay, Visa payWave, etc.   a   Sidewalk sales, temporary sales venues.
a Dynamic Currency Conversion                 a   Merchants setting up in Fairs, Festivals,
a Sync data with Quickbooks online                 Conferences, etc.
a Detailed reporting via Web or Smartphone
a Future 3rd Party Applications

SALES AGENT ORIENTATION

   GATEWAY

 E-COMMERCE

STORE SYSTEMS

 GIFT CARDS

    ATM

SALES AGENT ORIENTATION

Talech - ELO PayPoint

Talech for Boutiques

SALES AGENT ORIENTATION

IMPORTANT

TAKE AWAYS

SALES AGENT ORIENTATION

IMPORTANT TAKE AWAYS

 Target market is all Businesses that accept or want to accept
 Electronic Payments.

 99% of Retail Merchants accept Credit Cards for payment

 Interac Debit Card is a “loss Leader” very little revenue.

 Merchants can Purchase, Lease to Own or Rent terminals

 All merchants must be approved by Processor, even if merchant is
 switching from another Processor.

 Processors assume risk of any financial loss caused by merchants.

 Credit Card Discount rates are confusing to merchants, only basic
 card rates are quoted to merchants.

 Discount Rate (or Fee), paid by Merchants, is calculated by
 Interchange Rate plus Mark-Up

 VISA and MasterCard set Interchange rates based on Card Types
 and Processing Method.

 Processing Method is based on Card Present or Card Not Present

 Interchange Fees must be paid to Card Issuer by Processor

SALES AGENT ORIENTATION

QUESTIONS