Payment Gateway & Merchant Account

1. Sagedirect (merchant) submits card transaction on behalf of customer to payment gateway.

2. Payment gateway passes the transaction to the Sagedirect (merchant) account

3. Sagedirect (merchant) bank processor submits the transaction to the credit card interchange.

4. The credit card interchange routes the transaction to the customer’s credit card issuer.

5. The credit card issuer approves or declines the transaction. If approved, the funds are sent back through the credit card interchange.

6. The credit card interchange relays the transaction results to the Sagedirect (merchant) bank’s processor.

7. Sagedirect (merchant) bank’s processor relays the transaction results to payment gateway.

8. Payment gateway stores the transaction results and sends them to the customer and/or Sagedirect (merchant).

9. The credit card interchange passes the appropriate funds to the Sagedirect’s (merchant) bank.

Payment Gateway&

Merchant Account

Payment Gateway & Merchant Account

Merchant Accounts:

Chase Paymentech (http://www.chasepaymentech.com/)

Authorize.net (http://www.authorize.net/)

E-online Data (http://www.e-onlinedata.com/)

Website Payment Pro (http://www.paypal.com/cgi-bin/webscr?cmd=_merchant-outside)

Merchant One (http://www.merchantone.com/index.php)

Payment Gateways:

Authorize.net (http://www.authorize.net/)

Verisign Payflow Pro (http://www.verisign.com/)

LinkPoint (http://www.firstdata.com/linkpoint/)

Plug ‘n Play (http://www.plugnpay.com/)

On average a gateway charges $100 set-up, $0.10 authorization fee and a $20.00 monthly fee.

On average a merchant account charges a per transaction fee of $0.25 - $0.30, a general percentage rate of 2.19% - 2.29% plus an additional percentage (0.70%) for all rewards cards. A Monthly statement fee of $10.00 and monthly processing fee of $25.00

Payment Gateway & Merchant Account

Recommendation:

Payment Gateway: Authorize.netIndustry StandardRecommended by all top Merchant Accounts

Merchant Account: Chase PaymentechAuthorize.net partner

Set-up fees waivedAuthorization fees eliminatedReduced monthly fee

Individual rates based on credit card typeLower transaction fees

Payment Gateway & Merchant Account

Recommendation (Fees):

Payment Gateway: Authorize.netMonthly fee $10.00Waived - $99.00 set-up and $0.10 per authorization

Merchant Account: Chase PaymentechAuthorization fee - $0.05 eachCredit card transaction fees = $0.10 eachCredit card rates

Visa - 1.85% (rewards 1.90%)Master Card - 1.89%Discover - 1.92%AmX - 3.25%

Monthly statement fee - $7.50Minimum monthly processing fee - $25.00

Transaction example:

Purchase = $100.00

Authorization fee = $0.05

Transaction fee = $0.10

Rate (Visa) = $1.85

Total = $98.00 (minus portion of monthly fees)

E-commerce Platforms

IBM WebSphere

ASP Dot Net Store Front

Nexternal

Volusion

GoE Cart

AmeriCommerce

Home Depot

Lowes

Sears

McDonalds

Crocs

Z gallerie

Kodak

PGA Tour

Virgin Mobile

Chicago tribune

Obama ’08

Crutchfield

Pez

USA Today

Hanes

IRiver

Uniden

Alcoa

Electrolux

ShopSite

IBM WebSphere

ASP Dot Net Store Front

Nexternal

Volusion

Platform starts at $100k

Requires their accounting, inventory and CRM software

Software cost - $2500.00

Needs to be hosted, SSL Certificate

Dedicated programmer

Monthly Cost

Not fully integrated with UPS

Set-up fee - $1,000.00

% of monthly sales

GoE CartSoftware cost - $11,000.00/YR.

Set-up Cost - $1,000.00

Intergrated with UPS but costs extra

Shop SiteSet-up fee - $1295.00

Monthly Cost - $125.00

Small Business Orientated

No Marketing capabilities

AmeriCommerceCost - $3,000/YR.

Small Business Orientated

No Marketing capabilities

Extra cost for customer service

E-commerce Platforms

E-commerce Platforms

Recommendation: Nexternal

Most Comprehensive offeringSoftware is easy and quick to get up and running NOWDedicated Customer SupportNo contractBuilt in marketing and promotional tools

Live stats and reportingBuilds customer databaseEmail marketing campaigns (opt-in)Optimizing dynamic data for search engines (Google and yahoo)Google analytics integration

Efficient order processingFully integrated with UPS/USPSBuilt in shipping cost calculatorCalculates tax by price, tax status and stateFull tracking tools

Product and inventory managementAble to handle eaches, innercartons and casesInventory tracking

Business to Business (B2B) ModulePassword protected entryProduct pricing by customer typeProduct allocation by customer typeCaptures PO numbersExempt sales tax

Free upgrades and seamless updates

E-commerce Platforms

Nexternal Fees:

Set-up fee - $1000.00Monthly fee based on monthly sales:

Monthly Online Sales Monthly Cost

$0 - $8,333 $250

$8,333 - $50,000 3% of sales*

$50,000 - $100,000 2% of sales *

$100,000 - $500,000 1% of sales*

above $500,000 0.5% of sales*

2007 - $322,503.00

2008 - $309,000.00 (thru 10 months) – projected $370,000.00

Currently sells 40 Sage products

Sage CS rep 1-2 referrals each per day to HDIS

Usually refer for Oral Care / Bath / Shield to Walgreens

According to HDIS 42% of business comes from Sage CS referrals

$370,000.00

x2 (markup)

$740,000.00

/42%

$310,800.00

HDIS

E-commerce Platforms

Demo

E-commerce Platforms

Questions?