Merchant Adoption Manual

8/12/2019 Merchant Adoption Manual

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[INSERT TITLE HERE]

Prepared for

[INSERT TARGET MERCHANTS NAME HERE]

Prepared by [Your Name or Company Name][Insert relevant postnomials and/or your business number here]

[INSERT TARGET MERCHANTS LOGO HERE]


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Executive Summary

[Tailor this introductory paragraph specifically to your target merchant. Some good points to mention

are:

Merchants revenue and profit margin (if you can easily find this data) How fee savings can greatly amplify profit margin (e.g. If a merchants profit margin is 5%,

adding a saving of 1% of fees to this figure increase profit margin by 1/5, or 20%!)]

In addition to reducing costs, accepting Bitcoin as a method of payment opens the door to new revenue

streams and allows your customers to pay you online and in person without needing to have a credit

card or local currency, which expose you and your customers to high international transaction and

foreign exchange fees. You can now capture this large market segment of people who cant get access

to credit cards, or who dont want to use them online. Furthermore, as part of this service offering,

[insert merchant name here]will receive free publicity in local and international Bitcoin publications,

which have readership in the hundreds of thousands of people on a daily basis.

Best of all, there are zero up-front costs, monthly fees, equipment fees, or account closure fees. The

most [INSERT MERCHANT NAME HERE]will ever pay is a flat 1% feefor processing transactions. You

dont need to know anything about Bitcoin, nor hold on to any the payment processor will take care

of everything for you. Your money, in your local currency, is in the bank the next day.

I look forward to forming a healthy and prosperous long-term business relationship with [INSERT

MERCHANT NAME HERE], and I look forward to assisting you implement Bitcoin as an additional

method of payment for your business.

Sincerely,

[Your name][Relevant postnomials]


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[INSERT MERCHANT NAME HERE] COMMERCIAL-IN-CONFIDENCE June 2014

Table of Contents

Introduction ....................................................................................................................................................... 1Free Service Offering ..................................................................................................................................... 1

About Me ....................................................................................................................................................... 1

What is Bitcoin? ................................................................................................................................................. 2

A Brief History ................................................................................................................................................ 2

Bitcoin is a Payment System .......................................................................................................................... 3

Bitcoin is Digital Gold ..................................................................................................................................... 3

Bitcoin is Digital Cash ..................................................................................................................................... 3

Bitcoin vs. Gold vs. Cash ................................................................................................................................ 4

How and where can I accept Bitcoin? ............................................................................................................... 5

At Point of Sale .............................................................................................................................................. 5

Online ............................................................................................................................................................ 5

Why do Merchants Love Bitcoin? ...................................................................................................................... 6

0% risk for a maximum 1% fee ...................................................................................................................... 6

Quick & free to set up, quick & free to shut down........................................................................................ 6

Protection from Fraud and Chargebacks ....................................................................................................... 6

Keep Up With, and Stay Ahead of, Your Peers and Competitors .................................................................. 7Improve Cash Flow ........................................................................................................................................ 7

Its the Most Environmentally Sustainable Payment System ........................................................................ 7

Lower Fees ..................................................................................................................................................... 8

Increases Local & International Marketing Exposure .................................................................................. 11

Offering Customers another Way to Pay is Always Good for Sales ............................................................ 11

Increases Your Product & Service Offerings ................................................................................................ 11

Why do Customers Love Bitcoin? .................................................................................................................... 12

Banking for the Unbanked ........................................................................................................................... 12

Security & Fraud Protection 12


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Introduction

Free Service Offering

The freeservices being offered to [INSERT MERCHANT NAME HERE]are as follows:

Provide a technical and commercial Bitcoin presentation and report to [INSERT MERCHANT NAMEHERE]management

Assist [INSERT MERCHANT NAME HERE]in implementation of Bitcoin as a method of payment atphysical locations and online

Promotion of [INSERT MERCHANT NAME HERE]on social and news media, includingo Promotion on Reddit.coms Bitcoin site (120,000 subscribers)o Promotion on Coindesk.com (275,000 daily visitors) (Stat, 2014)o Listing on global Bitcoin directory, Coinmap.org

About Me

[A small paragraph here about who you are, and why a merchant should trust you to help them with this

Bitcoin implementation. This could include your professional background, academic background, extra-

curricular background, or anything relevant to your target merchant]

Academic Qualifications

[Insert relevant qualifications here]Professional Memberships, Qualifications & Licences

[Insert relevant memberships, qualifications and licences here]


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What is Bitcoin?

A Brief History

Bitcoin is an economic technology and digital currency that was invented in November 2008 (Nakamoto,

2008) as a response to the crisis that crippled the international financial and credit markets earlier that year.

As Bitcoin continues to grow and be accepted as a method of payment and global digital currency, the

impacts of future financial crashes can be reduced, or even eliminated altogether.

With the invention of Bitcoin, merchants now have the option of increasing their profits, reducing their costs

and risks, and reaching new local and international markets all with the click of a few buttons. Several

Bitcoin investors and visionaries have also become very wealthy, after witnessing the value of one Bitcoin

rise from less than 5 cents in July 2010 to over $660 in June 2014 an astronomical rise of over 13,000 times

over 4 years. Its increase in value from June 2013 to June 2014 is an impressive increase of over 8 times from

about $80 per coin to over $660.

Bitcoin has sometimes been referred to as Magic Internet Money due to its technical complexity and

difficult-to-understand nature. The following sections of this proposal provide a more complete picture of

the breadth, power and robustness of Bitcoin as a technology and payment network.


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Bitcoin is a Payment System

First and foremost, Bitcoin is an open-source online international payment system that is not controlled by

any central authorities. It is powered by an international network of volunteers called miners, who are

rewarded with Bitcoin for processing transactions. Transactions are processed by solving highly complicated

algorithms based on military-grade security and encryption using either standard home and office PCs, or

highly specialised computer equipment with much more processing power. Due to the distributed digital

nature of the network as well as the level of security that the Bitcoin network affords to its participants, it is

impossible to counterfeit or destroy Bitcoins, and transactions to and from anywhere on the planet are

effectively instant. All you need is an internet connected device to transact on the network.

Bitcoin is Digital Gold

As well as being a payment technology and network, each Bitcoin, which is currently divisible into 100 million

smaller parts, has value based on its scarce and indestructible nature, and obvious utility to merchants and

their customers. Just like gold, Bitcoins are mined, and over time they become increasingly difficult to mine

as scarcity and competition increase, eventually running out. There have been about 13 million Bitcoins

mined to date, and there will only ever be 21 million of them mined. Mining supply is perfectly predictable

thanks to Bitcoins protocol, with mining output halving every 4 years, eventually reaching zero. Bitcoins will

be mined until the year 2140, however, over 95% of all Bitcoins will have been mined during the next two

decades.

Bitcoin is Digital Cash

In additional to being similar to gold, Bitcoin is also very similar to cash in several ways, but electronically

superior to it. Several customers and merchants love cash because of the speed and anonymity it provides

over electronic payments Bitcoin is identical in anonymity to cash in that even though every single cash note


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Bitcoin vs. Gold vs. Cash

The below table serves as a great summary of Bitcoins superiority over gold and other international

currencies.

Bitcoin Gold Cash

Counterfeit-Proof Yes No No

Easy to carry around Yes No Notes Yes (to anextent)

Coins - No

Instantly internationally

transferrable &

spendable

Yes No No

Increases in value over

timeYes Yes No

Easily divisibleYes divisible to 100

million parts

Somewhat can be

physically split into

ounces and grams

Yes divisible into 100

cents

Accepted as payment

by merchantsYes No Yes

Can be used as an

investment

Yes Yes No

Subject to control by

centralised authoritiesNo Yes Yes

Subject to high fees No Yes Yes

Can be created out of

thin airNo No Yes

Can be accepted online

without an

intermediary

Yes No No

Can be stolen from you

if you arent careful

Yes but becoming

more difficult as the Yes Yes


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How and where can I accept Bitcoin?You can accept Bitcoin anywhere you have an internet connection, and on any website.

At Point of Sale

Accepting Bitcoin at a physical point of sale is a very simple two-step process. A typical Bitcoin POS system

is shown below.

Step 1

Log in to your merchant account on any internetconnected device (PC, Mac, Tablet or Smart

Phone), enter the sale amount in Australian

Dollars, and click Pay.

Each merchant account can have an unlimited

amount of users assigned to it, so additional POS

terminals can be rolled out free and instantly to

any other internet connected device.

Step 2

Once you click Pay, a unique QR code is

generated, which your customer then scans withtheir phone. Once scanned, they payment is

complete, and payments are confirmed within a

few seconds.

Once payment is confirmed, the Bitcoins are

instantly converted to Australian Dollars for a flat

fee, and put into your nominated bank account

the next day.

Its that easy!

Online


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Why do Merchants Love Bitcoin?There are several reasons why merchants love Bitcoin, but the main reason they love it is because it increases

their profitability and revenue, and reduces their costs and risks. Details on how Bitcoin achieves all this are

provided below.

0% risk for a maximum 1% fee

At the current stage of Bitcoins technological life, the day-to-day price of Bitcoin can be more volatile than

a merchant is willing to accept. Thankfully, there are several local Bitcoin payment processors who are able

to instantly exchange your Bitcoins into Australian dollars at the moment of sale for a small fee of 1%, or as

low as 0.5% depending on your monthly transaction volumes. The money is deposited in your bank account

the next day. I have strong connections with several local payment processors, and will be able to get you set

up quickly and at no cost.

If a merchant decides to settle in Bitcoin, the fee is 0%, however, a merchant will be subject to the short-

term price volatility of Bitcoin in that situation.

Quick & free to set up, quick & free to shut down

Once the decision to accept Bitcoin has been made by a merchant, set-up time is about as quick as opening

up a bank account, and all you need is an internet connected device like a PC, laptop, tablet or smartphone

to start accepting Bitcoin. There are no establishment fees, equipment fees, monthly fees, or transaction

minimums. All you need is an internet connect device, and the payment processor will take care of the rest

for a maximum of a 1% fee.

Although it costs you nothing to set up and make Bitcoin payment available to your customers, if you ever

want to stop accepting Bitcoin for some reason, all you have to do is stop accepting it there is no need to

call anyone to cancel any plans, or pay service cancellation fees of any sort.

Protection from Fraud and Chargebacks


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Leading international research firm LexisNexis estimates that merchants lose 0.51% of their revenue to online

fraud each year (LexisNexis, 2013). CyberSource, a unit of Visa Inc. and one of the largest international

providers of payment processing and risk management services, estimates the yearly loss to be 0.9%

(CyberSource, 2013). Although these figures appear quite small, when added to your bottom line, they result

in a significant increase to your profit margin.

Keep Up With, and Stay Ahead of, Your Peers and Competitors

Due to the obvious advantages Bitcoin brings to customers, several of your industry peers and competitors

have begun to accept Bitcoin as a method of payment. A few examples are listed below.

Example Peer/Competitor 1




Improve Cash Flow

It is frequently said that Cash Flow is More Important than Your Mother, and speeding up your days-

receivable ratio goes a long way to reducing your credit risk and increasing profitability. By accepting Bitcoin,

i ll i b k t ithi 24 h (d di th il bilit f th l b ki


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Bitcoin vs. Online Credit Card Payments

The below table shows a comparison of typical fees paid to an online credit card payment processor

(Commonwealth Bank of Australia, 2014) compared with Bitcoin, for a monthly transaction volume of over

$150,000. [If your target merchant has a lower monthly transaction volume, use the fee rates found in the

accompanying spreadsheet]

Online Payments Processing - via BankMonthly Transaction

Volume

Over

$150,000

Transaction

Size

Per

Transaction

% Fee

Per

Transaction

Fixed Fee

Monthly

Fixed

Fee

Avg.

Chargeback/

Fraud Rate

(%)

Total Fees

(%)

Bitcoin

Comparison

Rate (%)

Savings Per

Transaction

($)

Savings Per

Transaction

(%)

$1 1.40% $0.29 $10 0.90% 31.30% 0.50% $0.31 30.80%

$2 1.40% $0.29 $10 0.90% 16.80% 0.50% $0.33 16.30%

$5 1.40% $0.29 $10 0.90% 8.10% 0.50% $0.38 7.60%

$10 1.40% $0.29 $10 0.90% 5.20% 0.50% $0.47 4.70%

$25 1.40% $0.29 $10 0.90% 3.46% 0.50% $0.74 2.96%

$50 1.40% $0.29 $10 0.90% 2.88% 0.50% $1.19 2.38%

$100 1.40% $0.29 $10 0.90% 2.59% 0.50% $2.09 2.09%

$500 1.40% $0.29 $10 0.90% 2.36% 0.50% $9.29 1.86%

$1,000 1.40% $0.29 $10 0.90% 2.33% 0.50% $18.29 1.83%

Other Fees

In addition to the above fees, merchants are liable to a $30 fee for every chargeback, as well as a $110 service


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Bitcoin vs. PayPal

The below two tables show a comparison of typical fees paid to PayPal (PayPal, 2014) compared with Bitcoin,

for a monthly transaction volume of over $150,000. Fees are substantially higher for lower monthly

transaction volumes. As can be seen from the tables, payments from international customers are subject to

higher fees for merchants, and customers also typically have to pay a 2.5% foreign currency exchange fee if

making international purchases. There are no foreign exchange fees in the world of Bitcoin.

Local Customers

Online Payments Processing - via PayPal (Local Customers) Monthly TransactionVolume

Over$150,000

Transaction

Size

Per

Transaction %

Fee

Per

Transaction

Fixed Fee

Avg.

Chargeback/

Fraud Rate

(%)

Total Fees

(%)

Bitcoin

Comparison

Rate (%)

Savings Per

Transaction

($)

Savings Per

Transaction

(%)

$1 1.10% $0.30 0.90% 32.00% 0.50% $0.32 31.50%

$2 1.10% $0.30 0.90% 17.00% 0.50% $0.33 16.50%

$5 1.10% $0.30 0.90% 8.00% 0.50% $0.38 7.50%

$10 1.10% $0.30 0.90% 5.00% 0.50% $0.45 4.50%

$25 1.10% $0.30 0.90% 3.20% 0.50% $0.68 2.70%

$50 1.10% $0.30 0.90% 2.60% 0.50% $1.05 2.10%

$100 1.10% $0.30 0.90% 2.30% 0.50% $1.80 1.80%

$500 1.10% $0.30 0.90% 2.06% 0.50% $7.80 1.56%

$1,000 1.10% $0.300.90%

2.03% 0.50% $15.30 1.53%

International Customers

Online Payments Processing - via PayPal (International Customers)Monthly Transaction

Volume

Over

$150,000

Transaction

Size

Per

Transaction %

Fee

Per

Transaction

Fixed Fee

Avg.

Chargeback/

Fraud Rate

(%)

Total Fees

(%)

Bitcoin

Comparison

Rate (%)

Savings Per

Transaction

($)

Savings Per

Transaction

(%)

$1 2.10% $0.30 0.90% 33.00% 0.50% $0.33 32.50%

$2 2.10% $0.30 0.90% 18.00% 0.50% $0.35 17.50%

$5 2.10% $0.30 0.90% 9.00% 0.50% $0.43 8.50%

$10 2 10% $0 30 0 90% 6 00% 0 50% $0 55 5 50%


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Increases Local & International Marketing Exposure

The Bitcoin community is a vibrant, eclectic and rapidly growing one. To date, several million people have

opened Bitcoin accounts locally and internationally. Coinbase, the USAs leading Bitcoin provider, witnessed

growth from 13,000 users in 2013, to 1.3 million users in June 2014 a yearly growth rate of 10,000%!

(Coinbase, 2014). Blockchain.info has seen 1.6 million users create accounts since their founding in early

2012, with 1.3 million of those accounts coming online in the past year (Blockchain.info, 2014). Due to

Bitcoins popularity means that there is a thriving ecosystem underpinning it, with the most popular Bitcoin

news sites receiving monthly website hits in the tens of millions. As a merchant who accepts Bitcoin, you will

be embraced by the community, and receive free exposure through press releases, tweets, and blog posts.

Further to the above, when you become a Bitcoin merchant, simply adding Bitcoin to your websites Search

Engine Optimisation (SEO) will increase your exposure through search engines, especially if you are one of

the early movers in your industry. Try it yourself just Google Bitcoin [Insert business / product / service

type here] and take a look.

Offering Customers another Way to Pay is Always Good for Sales

In the early days of credit cards, businesses who didnt offer the customers a means of paying by card lost

lots of potential business. The benefits of accepting credit cards back then were (Burke, 2005):

Makes it more convenient foryour customers to pay you

Generally increases sales

Increases credibility Increases Impulse purchases

Increases average salesorder

Accepting Bitcoin provides merchants with all of the above benefits, but without the high fees, and fraud and

chargeback risks. Also, if your customers dont have access to a credit card or PayPal address (or, simply dont

want to use their credit card), theyll be able to pay you!

Increases Your Product & Service Offerings


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Why do Customers Love Bitcoin?

Banking for the Unbanked

While credit cards are quite common in Australia and other rich countries, credit cards, or even bank

accounts, are simply not very common at all for a huge chunk of the human population. A study undertaken

by leading research institute Gallup, shown below, shows the extent of problem (Gallup, 2012).

Credit Card Ownership, by Region (Geographical regions include developing economies only)

Region % who have a credit card

High-income Economies 50%

Latin America & the Caribbean 18%

Europe & Central Asia 16%

East Asia and Pacific 7%

Sub-Saharan Africa 3%

Middle East & North Africa 2%

South Asia 2%

Many of these people would love to participate in the online economy, but until Bitcoin was invented, had

very limited options. The minimum that is required is the most primitive of 2G or GPRS internet connections

and a $10 dumb-phone, and Bitcoins can be transmitted from one person to another (37coins, 2014).

Security & Fraud Protection

The internet can be a scary place, and not all consumers feel comfortable with handing over their credit card

information to merchants they dont know. With that said, even the most trusted of sellers and the largest

of online merchants are not safe from hackers breaking into their customer databases and stealing customer

credit card information. Six of the biggest-ever credit card hacks are shown below (CNN Money, 2013):

Merchant Number of Credit Card Details Obtained by Hackers

Adobe Systems 150 Million


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Fee % for a Remittance of USD$200

5 Most Costly Corridors ($USD) Average Cost 5 Least Costly Corridors ($USD) Average Cost

South Africa > Zambia 21.06% Saudi Arabic > Pakistan 1.73%

South Africa > Botswana 20.18% Singapore > Thailand 2.05%

South Africa > Mozambique 19.81% UAE > India 2.68%

South Africa > Zimbabwe 19.55% UAE > Sri Lanka 2.87%

South Africa > Malawi 19.51% Singapore > Bangladesh 3.03%

Fee % for a Remittance of USD$500

5 Most Costly Corridors ($USD) Average Cost 5 Least Costly Corridors ($USD) Average Cost

South Africa > Malawi 13.44% Saudi Arabic > Pakistan 1.20%

South Africa > Zambia 13.36% UAE > India 1.46%

South Africa > Botswana 12.69% UAE > Sri Lanka 1.48%

South Africa > Mozambique 12.27% UAE > Philippines 1.65%

South Africa > Zimbabwe 11.23% USA > India 1.71%

Investment Potential

While Bitcoin is sometimes unfairly panned in the media for being too volatile and causing damaging losses

to investors, the statistics and numbers speak for themselves. The below two tables shows performance of

Bitcoin as an asset class for the 2014 year to date, the past month, 3 months, year, and 3 years (Bitcoin Charts,

2014) in comparison with the ASX200 (Reuters, 2014). As can be seen in the table, Bitcoin has consistently

outperformed the Australian Stock Market significantly over the past 3 years. Volatility has meant that Year-

to-date performance has been weaker than the stock market, however, over longer investment periods,

Bitcoin has always proven to be a superior asset. Returns are based on a closing Bitcoin Price of USD$661.22

on June 1, 2014.


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Sample Press Release Coindesk.com

[INSERT MERCHANT NAME HERE]Becomes First [insert business type here]To Accept Bitcoin!

[Write a few paragraphs about the merchant there are several great examples on Coindesk.com. A good

estimate of article length is 1 page in MS Word at 1.5 spacing]


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Conclusion & Recommendations

There are no disadvantages, costs or risks involved accepting Bitcoin as a method of payment, and there are

significant upsides in the way of marketing exposure and cost and risk reduction. You can be up and running

in a matter of days in partnership with a fully licenced, regulated and trustworthy payment processing

provider. Once you are set up, marketing can commence immediately, all at a cost to you of $0.

It is also recommended that you use this as an opportunity to reach out to your existing customers, and

demonstrate your commitment to giving your customers more options and services, as well as yourleadership in the digital age.

If you would like more information, or would like to immediately start accepting Bitcoin, please do not

hesitate to get in touch with me for a hassle and fee free implementation.

Sincerely,

[Your name here][Relevant postnomials]

E: [your e-mail address]

T: [your contact number]


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References37coins, 2014. 37coins corporate website. [Online]

Available at: https://www.37coins.com/[Accessed 11 June 2014].

Bitcoin Charts, 2014. Bitcoin Price Performance. [Online]

Available at: http://bitcoincharts.com/charts/bitstampUSD#rg60ztgSzm1g10zm2g25zv

[Accessed 2 June 2014].

Blockchain.info, 2014. Number Of Users. [Online]

Available at: https://blockchain.info/charts/my-wallet-n-

users?timespan=1year&showDataPoints=false&daysAverageString=1&show_header=true&scale=1&addres

s=


Burke, S., 2005.Accepting Credit Cards - Positives vs. Negatives. [Online]

Available at: http://www.smallbusinessbrief.com/articles/merchant_accounts/003644.html


CNN Money, 2013. 5 of the biggest-ever credit card hacks. [Online]

Available at: http://money.cnn.com/gallery/technology/security/2013/12/19/biggest-credit-card-hacks/

[Accessed 20 May 2014].

Coinbase, 2014.About Coinbase. [Online]

Available at: https://coinbase.com/about[Accessed 1 June 2014].

Commonwealth Bank of Australia, 2014. CommWeb Online Merchant Service & Fees. [Online]

Available at: https://www.commbank.com.au/business/merchant-services/help-me-choose-

tool.html##slide_3

[Accessed 2 May 2014].

CyberSource, 2013. 2013 Online Fraud Report, s.l.: CyberSource.

Gallup, 2012. Credit Cards and Formal Loans Rare in Developing Countries. [Online]

Available at: http://www.gallup.com/poll/154340/credit-cards-formal-loans-rare-developing-countries.aspx



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Reuters, 2014.ASX 200 Performance Data. [Online]

Available at: http://www.reuters.com/finance/stocks/chart?symbol=STW.AX


World Bank, 2014.An Analysis of Trends in the Average Total Cost of Migrant Remittance Services. [Online]

Available at: https://remittanceprices.worldbank.org/sites/default/files/RPW_Report_Mar2014.pdf


World Bank, 2014. Remittance Prices Worldwide. [Online]

Available at: https://remittanceprices.worldbank.org/en


Stat, 2014. Coindesk.com Website Analytics. [Online]

Available at: http://www.mustat.com/coindesk.com



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APPENDIX TABLES AND

FIGURES

(PRICE DATA CHART, FEE RATES FOR

VARYING MONTHLY VOLUMES & PRICE

PERFORMANCE TABLES - SEE


23/29

DataSource: http://bitcoincharts.com/charts/bitstampUSD#rg10zigDailyztgSzm1g10zm2g25zv

Date BitcoinPrice

6/06/2014 $ 659.125/06/2014 $ 661.484/06/2014 $ 640.593/06/2014 $ 670.142/06/2014 661.22$1/06/2014 630.99$

31/05/2014 627.00$30/05/2014 621.00$29/05/2014 568.87$28/05/2014 573.82$27/05/2014 574.02$26/05/2014 581.99$25/05/2014 565.30$24/05/2014 521.93$23/05/2014 531.75$22/05/2014 514.23$21/05/2014 495.17$20/05/2014 475.49$19/05/2014 446.31$18/05/2014 447.43$17/05/2014 448.39$16/05/2014 448.78$15/05/2014 449.11$14/05/2014 444.30$13/05/2014 437.20$

Thenclickon"Loadrawdata"atthebottomleftofthechartThetimeperiodyoushoulduseis"Daily",andthepriceyourecordshouldbetheclosingprice.Don'tforgettoupdatethedataseriesinthechartwithyourupdateddata,ortoadd/removedatalabels

$661.22$1,132.29$214.86

$29.58

$0.05$0

$0

$1

$10

$100

$1,000

$10,000

Jan10 Jul10 Jan11 Jul11 Jan12 Jul12 Jan13 Jul13 Jan14 Jun14 Dec14

Price

(LogS

cale)

Date

BitcoinPriceHistory(USDollars)


24/29

Monthly

Volume YearlyVolume

FixedMonthly

Fee

BankFeeRate

(%)

Avg.

Chargeback/

FraudRate(%)

Bitcoin

Comparison

Rate(%)

Yearly

Savings

Additionto

ProfitMargin

(%)

$1,000 $12,000 $60 6.00% 0.90% 1.00% $708 5.90%

$2,000 $24,000 $60 3.00% 0.90% 1.00% $696 2.90%

$3,000 $36,000 $60 2.00% 0.90% 1.00% $684 1.90%

$6,000 $72,000 $90 1.50% 0.90% 1.00% $1,008 1.40%

$9,000 $108,000 $120 1.33% 0.90% 1.00% $1,332 1.23%

$12,000 $144,000 $150 1.25% 0.90% 1.00% $1,656 1.15%

$15,000 $180,000 $180 1.20% 0.90% 1.00% $1,980 1.10%

$30,000 $360,000 $330 1.10% 0.90% 1.00% $3,600 1.00%

$60,000 $720,000 $630 1.05% 0.90% 1.00% $6,840 0.95%

$100,000 $1,200,000 $1,000 1.00% 0.90% 1.00% $10,800 0.90%

Upto$5000

Transaction

Size

PerTransaction

%Fee

Per

Transaction

FixedFee

MonthlyFixed

Fee

Avg.

Chargeback/

FraudRate(%)Total

Fees

(%)

Bitcoin

Comparison

Rate(%)

SavingsPer

Transaction($)

SavingsPer

Transaction(%)

$1 1.40% $0.29 $10 0.90% 31.30% 1.00% $0.30 30.30%

$2 1.40% $0.29 $10 0.90% 16.80% 1.00% $0.32 15.80%

$5 1.40% $0.29 $10 0.90% 8.10% 1.00% $0.36 7.10%

$10 1.40% $0.29 $10 0.90% 5.20% 1.00% $0.42 4.20%

$25 1.40% $0.29 $10 0.90% 3.46% 1.00% $0.62 2.46%

$50 1.40% $0.29 $10 0.90% 2.88% 1.00% $0.94 1.88%

$100 1.40% $0.29 $10 0.90% 2.59% 1.00% $1.59 1.59%

$500 1.40% $0.29 $10 0.90% 2.36% 1.00% $6.79 1.36%

$1,000 1.40% $0.29 $10 0.90% 2.33% 1.00% $13.29 1.33%

Upto$5000

Transaction

Size

PerTransaction

%Fee

Per

Transaction

FixedFee

Avg.

Chargeback/

FraudRate(%)

TotalFees(%)

Bitcoin

Comparison

Rate(%)

SavingsPer

Transaction

($)

SavingsPer

Transaction(%)

$1 2.40% $0.30 0.90% 33.30% 1.00% $0.32 32.30%

$2 2.40% $0.30 0.90% 18.30% 1.00% $0.35 17.30%

$5 2.40% $0.30 0.90% 9.30% 1.00% $0.42 8.30%

$10 2.40% $0.30 0.90% 6.30% 1.00% $0.53 5.30%

$25 2.40% $0.30 0.90% 4.50% 1.00% $0.88 3.50%

$50 2.40% $0.30 0.90% 3.90% 1.00% $1.45 2.90%

$100 2.40% $0.30 0.90% 3.60% 1.00% $2.60 2.60%

$500 2 40% $0 30 0 90% 3 36% 1 00% $11 80 2 36%

OnlinePaymentsProcessing viaPayPal(LocalCustomers) MonthlyTransactionVolume

OnlinePaymentsProcessing viaBank MonthlyTransactionVolume

Upto$5000FeeComparisonforMonthlyTransactionVolumesof:

PhyiscalMobileEFTPOS&EFTPOSTransactions


25/29

Monthly

Volume YearlyVolume

FixedMonthly

Fee

BankFeeRate

(%)

Avg.

Chargeback/

FraudRate(%)

Bitcoin

Comparison

Rate(%)

Yearly

Savings

Additionto

ProfitMargin

(%)

$1,000 $12,000 $60 6.00% 0.90% 1.00% $708 5.90%

$2,000 $24,000 $60 3.00% 0.90% 1.00% $696 2.90%

$3,000 $36,000 $60 2.00% 0.90% 1.00% $684 1.90%

$6,000 $72,000 $90 1.50% 0.90% 1.00% $1,008 1.40%

$9,000 $108,000 $120 1.33% 0.90% 1.00% $1,332 1.23%

$12,000 $144,000 $150 1.25% 0.90% 1.00% $1,656 1.15%

$15,000 $180,000 $180 1.20% 0.90% 1.00% $1,980 1.10%

$30,000 $360,000 $330 1.10% 0.90% 1.00% $3,600 1.00%

$60,000 $720,000 $630 1.05% 0.90% 1.00% $6,840 0.95%

$100,000 $1,200,000 $1,000 1.00% 0.90% 1.00% $10,800 0.90%

$5000 $15000

Transaction

Size

PerTransaction

%Fee

Per

TransactionFixedFee

MonthlyFixed

Fee

Avg.

Chargeback/FraudRate(%)

TotalFees

(%)

Bitcoin

ComparisonRate(%)

SavingsPer

Transaction($)

SavingsPer

Transaction(%)

$1 1.40% $0.29 $10 0.90% 31.30% 1.00% $0.30 30.30%

$2 1.40% $0.29 $10 0.90% 16.80% 1.00% $0.32 15.80%

$5 1.40% $0.29 $10 0.90% 8.10% 1.00% $0.36 7.10%

$10 1.40% $0.29 $10 0.90% 5.20% 1.00% $0.42 4.20%

$25 1.40% $0.29 $10 0.90% 3.46% 1.00% $0.62 2.46%

$50 1.40% $0.29 $10 0.90% 2.88% 1.00% $0.94 1.88%

$100 1.40% $0.29 $10 0.90% 2.59% 1.00% $1.59 1.59%

$500 1.40% $0.29 $10 0.90% 2.36% 1.00% $6.79 1.36%

$1,000 1.40% $0.29 $10 0.90% 2.33% 1.00% $13.29 1.33%

$5000 $15000

Transaction

Size

PerTransaction

%Fee

Per

Transaction

FixedFee

Avg.

Chargeback/

FraudRate(%)

TotalFees(%)

Bitcoin

Comparison

Rate(%)

SavingsPer

Transaction

($)

SavingsPer

Transaction(%)

$1 2.00% $0.30 0.90% 32.90% 1.00% $0.32 31.90%

$2 2.00% $0.30 0.90% 17.90% 1.00% $0.34 16.90%

$5 2.00% $0.30 0.90% 8.90% 1.00% $0.40 7.90%

$10 2.00% $0.30 0.90% 5.90% 1.00% $0.49 4.90%

$25 2.00% $0.30 0.90% 4.10% 1.00% $0.78 3.10%

$50 2.00% $0.30 0.90% 3.50% 1.00% $1.25 2.50%

$100 2.00% $0.30 0.90% 3.20% 1.00% $2.20 2.20%

$ 00 2 00% $0 30 0 90% 2 96% 1 00% $9 80 1 96%



$5000 $15000FeeComparisonforMonthlyTransactionVolumesof:



26/29

Monthly

Volume YearlyVolume

FixedMonthly

Fee

BankFeeRate

(%)

Avg.

Chargeback/

FraudRate(%)

Bitcoin

Comparison

Rate(%)

Yearly

Savings

Additionto

ProfitMargin

(%)

$1,000 $12,000 $60 6.00% 0.90% 1.00% $708 5.90%

$2,000 $24,000 $60 3.00% 0.90% 1.00% $696 2.90%

$3,000 $36,000 $60 2.00% 0.90% 1.00% $684 1.90%

$6,000 $72,000 $90 1.50% 0.90% 1.00% $1,008 1.40%

$9,000 $108,000 $120 1.33% 0.90% 1.00% $1,332 1.23%

$12,000 $144,000 $150 1.25% 0.90% 1.00% $1,656 1.15%

$15,000 $180,000 $180 1.20% 0.90% 1.00% $1,980 1.10%

$30,000 $360,000 $330 1.10% 0.90% 1.00% $3,600 1.00%

$60,000 $720,000 $630 1.05% 0.90% 1.00% $6,840 0.95%

$100,000 $1,200,000 $1,000 1.00% 0.90% 1.00% $10,800 0.90%

$15000

$150000

Transaction

Size

PerTransaction

%Fee

Per

TransactionFixedFee

MonthlyFixed

Fee

Avg.


TotalFees

(%)

Bitcoin

ComparisonRate(%)

SavingsPer

Transaction($)

SavingsPer

Transaction(%)

$1 1.40% $0.29 $10 0.90% 31.30% 1.00% $0.30 30.30%

$2 1.40% $0.29 $10 0.90% 16.80% 1.00% $0.32 15.80%

$5 1.40% $0.29 $10 0.90% 8.10% 1.00% $0.36 7.10%

$10 1.40% $0.29 $10 0.90% 5.20% 1.00% $0.42 4.20%

$25 1.40% $0.29 $10 0.90% 3.46% 1.00% $0.62 2.46%

$50 1.40% $0.29 $10 0.90% 2.88% 1.00% $0.94 1.88%

$100 1.40% $0.29 $10 0.90% 2.59% 1.00% $1.59 1.59%

$500 1.40% $0.29 $10 0.90% 2.36% 1.00% $6.79 1.36%

$1,000 1.40% $0.29 $10 0.90% 2.33% 1.00% $13.29 1.33%

$15000

$150000

Transaction

Size

PerTransaction

%Fee

Per

Transaction

FixedFee

Avg.

Chargeback/

FraudRate(%)

TotalFees(%)

Bitcoin

Comparison

Rate(%)

SavingsPer

Transaction

($)

SavingsPer

Transaction(%)

$1 1.50% $0.30 0.90% 32.40% 1.00% $0.31 31.40%

$2 1.50% $0.30 0.90% 17.40% 1.00% $0.33 16.40%

$5 1.50% $0.30 0.90% 8.40% 1.00% $0.37 7.40%

$10 1.50% $0.30 0.90% 5.40% 1.00% $0.44 4.40%

$25 1.50% $0.30 0.90% 3.60% 1.00% $0.65 2.60%

$50 1.50% $0.30 0.90% 3.00% 1.00% $1.00 2.00%

$100 1.50% $0.30 0.90% 2.70% 1.00% $1.70 1.70%

$ 00 1 0% $0 30 0 90% 2 6% 1 00% $ 30 1 6%



$15000 $150000FeeComparisonforMonthlyTransactionVolumesof:



27/29

Monthly

Volume YearlyVolume

FixedMonthly

Fee

BankFeeRate

(%)

Avg.

Chargeback/

FraudRate(%)

Bitcoin

Comparison

Rate(%)

Yearly

Savings

Additionto

ProfitMargin

(%)

$1,000 $12,000 $60 6.00% 0.90% 1.00% $708 5.90%

$2,000 $24,000 $60 3.00% 0.90% 1.00% $696 2.90%

$3,000 $36,000 $60 2.00% 0.90% 1.00% $684 1.90%

$6,000 $72,000 $90 1.50% 0.90% 1.00% $1,008 1.40%

$9,000 $108,000 $120 1.33% 0.90% 1.00% $1,332 1.23%

$12,000 $144,000 $150 1.25% 0.90% 1.00% $1,656 1.15%

$15,000 $180,000 $180 1.20% 0.90% 1.00% $1,980 1.10%

$30,000 $360,000 $330 1.10% 0.90% 1.00% $3,600 1.00%

$60,000 $720,000 $630 1.05% 0.90% 1.00% $6,840 0.95%

$100,000 $1,200,000 $1,000 1.00% 0.90% 1.00% $10,800 0.90%

>$150000

Transaction

Size

PerTransaction

%Fee

Per

TransactionFixedFee

MonthlyFixed

Fee

Avg.


TotalFees

(%)

Bitcoin

ComparisonRate(%)

SavingsPer

Transaction($)

SavingsPer

Transaction(%)

$1 1.40% $0.29 $10 0.90% 31.30% 1.00% $0.30 30.30%

$2 1.40% $0.29 $10 0.90% 16.80% 1.00% $0.32 15.80%

$5 1.40% $0.29 $10 0.90% 8.10% 1.00% $0.36 7.10%

$10 1.40% $0.29 $10 0.90% 5.20% 1.00% $0.42 4.20%

$25 1.40% $0.29 $10 0.90% 3.46% 1.00% $0.62 2.46%

$50 1.40% $0.29 $10 0.90% 2.88% 1.00% $0.94 1.88%

$100 1.40% $0.29 $10 0.90% 2.59% 1.00% $1.59 1.59%

$500 1.40% $0.29 $10 0.90% 2.36% 1.00% $6.79 1.36%

$1,000 1.40% $0.29 $10 0.90% 2.33% 1.00% $13.29 1.33%

>$150000

Transaction

Size

PerTransaction

%Fee

Per

Transaction

FixedFee

Avg.

Chargeback/

FraudRate(%)

TotalFees(%)

Bitcoin

Comparison

Rate(%)

SavingsPer

Transaction

($)

SavingsPer

Transaction(%)

$1 1.10% $0.30 0.90% 32.00% 1.00% $0.31 31.00%

$2 1.10% $0.30 0.90% 17.00% 1.00% $0.32 16.00%

$5 1.10% $0.30 0.90% 8.00% 1.00% $0.35 7.00%

$10 1.10% $0.30 0.90% 5.00% 1.00% $0.40 4.00%

$25 1.10% $0.30 0.90% 3.20% 1.00% $0.55 2.20%

$50 1.10% $0.30 0.90% 2.60% 1.00% $0.80 1.60%

$100 1.10% $0.30 0.90% 2.30% 1.00% $1.30 1.30%

$ 00 1 10% $0 30 0 90% 2 06% 1 00% $ 30 1 06%



>$150000FeeComparisonforMonthlyTransactionVolumesof:



28/29

6/06/2014

659.12$

PriceGrowth %Growth

215.31$ 48.5%

21.74$ 3.4%

546.15$ 483.4%

631.87$ 2318.8%

Since Jan114 86.33

$

11.6%

Note:Thisworksheetis100%automated.Justcopypastethetableintoyourproposal(Justupdatethedatainthe"PriceData"worksheetfirst!)

Note: The"Since"datecanbechangedtowhateveryouwant,butItypicallyusea"YeartoDate"Valuei.e.SinceJanuary1st.Ifyouwanttoseepricegrowthsinceyourlastbirthdayoranniversary,justchangethedataincellB12

1month

3month

1year

3year

Today'sPrice

Today'sDate


29/29

YearStarting

BitcoinSupply

%mined2009 0.00%

2013 10,500,000 50.00%

2017 15,750,000 75.00%

2021 18,375,000 87.50%

2025 19,687,500 93.75%

2029 20,343,750 96.88%

2033 20,671,875 98.44%

2037 20,835,938 99.22%

2041 20,917,969 99.61%

2045 20,958,984

99.80%

2049 20,979,492 99.90%

2053 20,989,746 99.95%

2057 20,994,873 99.98%

2061 20,997,437 99.99%

2140 21,000,000 100.00%

3

6

9

12

15

18

21

24

2009 2014 2019 2024 2029 2034 2039 2044 2049 2054 2059

NumberofBit

coinsinCirculation

Millio

ns

Year

BitcoinSupply

Merchant Adoption Manual

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Transcript of Merchant Adoption Manual