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Free Merchant Account Services Report

“Critical Payment Processing Guide for Canadian Merchants”
Written by: Matthew Hunt Company: Canadian Merchant Account Services URL: http://www.Canadian-Merchant-Account-Services.com E-mail: matthew@Canadian-Merchant-Account-Services.com Toll-free Phone Number: 800 262 3033 Toll-free Fax Number: 888 284 3761

Copyright 2007

This report was written to empower Canadian Small & Medium Sized Business Owners with how to negotiate low Debit and Credit Card Payment Processing rates & fees. We know at ‘Canadian Merchant Account Services’ that if we provide high quality information to owners that they will recognized the value in our services and contact us when they are ready for such services.

What’s in this report? 1. Choose the ‘Right’ Merchant Account Service Provider by Avoiding these 3 Common Mistakes Made by Small Business Owners. 2. 17 Essential Questions Every Canadian Small Business Owner Must Ask Before Choosing A Payment Processing Provider 3. Understanding Debit Card Merchant Accounts "Rates/Fees" In Canada 4. Understanding How Credit Card Merchant Accounts Fees Work 5. Example savings Canadian-Merchant-Account-Services has provided 6. Testimonials

Choose the ‘Right’ Merchant Account Service Provider by Avoiding these 3 Common Mistakes Made by Small Business Owners.
Why repeat the same mistakes other small business owners have made in the past when hiring a Merchant Account Service Provider?! MISTAKE # 1: PLAYING THE 'RATE GAME' Most small business owners lose the "rate game", calling all the merchant account service providers in the yellow pages and choosing the one that states the lowest discount rate will not necessary secure you low rates. Would you play a high stakes one-on-one basketball game with Shaquille O'Neal? Of course not! You wouldn't because he is a 'pro' and knows all the tricks in the book to win at basketball. Small business owners who attempt to negotiate debit/credit card processing fees with a merchant account sales 'pro' is like trying to beat Shaquille O'Neal at a one-on-one basketball game. You can guess who the winner will be...? The small business owner almost always loses because they do not understand the intricacies of rate structures and how to look at the over-all payment processing service program. MISTAKE # 2: COMPARING 'APPLES' TO 'ORANGES' Not all merchant account providers are created equal. Price is not everything. Small business owners must also consider: • • • • • • Service 24/7 Tech support Equipment Software Warranties Training on proper protocols for using services

For example, one company I know offers a very competitive discount rate program, but has major flaws with the program. At first glance it seems like a good choice to make, but if the business owner had the skills to dig a little deeper they would notice that this program would probably not be for them. Let's look at this example:

This company (I can't say the name, because I am not looking for a law suit) offers every business these rates: • • • • 1.66% on Visa and MasterCard 10 cents per transaction $26/month POS Terminals $899 to purchase

Looks like a good program, right…? WRONG. If you look a little closer you will see in the fine print that this is an introductory rate, at which point after 6 months of processing they will give your business the "real" rate. • • • • • There are a few hidden fees, statement fee, admin fee, and an annual recurring membership fee. That rate is only on "qualified" transactions, which means 'card present transactions'. There service hours are 9am - 5pm. They offer no lifetime warranty on the POS terminal (just the standard 1 year manufacturers warranty, which is standard by law in Canada) If it the Hardware does break down and has to be fixed, it needs to be shipped to Texas to be repaired - probably taking 2 weeks before you have a working Pointof-Sale Terminal in your business.

How well would your business perform without a working Point-of-Sale Terminal in your business? How many sales would you lose? * NOT ALL PAYMENT PROCESSING PROVIDERS SERVICES ARE CREATED EQUAL. This above example is just one of many, many, many sneaky marketing ploys I have seen to set-up to win merchants business.

MISTAKE # 3: BEING FOOLED BY 'LOW BALL DEALS, HIDDEN FEES, AND FREE EQUIPMENT' We touched on some of this in the above example, but let's dissect this in a little more detail. Low Ball Deals - Ask yourself is it too good to be true? Is one company offering much lower discount rates then any other company - then it is probably not cheaper. Remember don't compare 'apples' to 'oranges'. Some companies will offer low introductory rates to capture business only to raise rates once they have secured your business into a contract. It really isn't that hard to figure out, a merchant account specialist knows the wholesale buy rates that credit card processors pay (it's called interchange) and if a credit card processor is offering lower rates then what it costs them, then they would not be profitable. How long do you think a business will last losing money...? They are either going to raise your rates or they are off-setting the lower rates with back-end hidden fees. Hidden Fees - What you do not know can hurt you. Many Debit/Credit Card Payment Processing Providers are very good at providing an illusion of being competitive, but make up for it many times over by sneaking in tons of 'nickel & dime' fees on the back end. These could compile of: monthly warranty fees, administration fees, monthly/yearly membership fees, added value fees, system access fees, monthly maintenance fees, etc. Companies can be very creative when it comes to naming ‘bogus’ monthly fees. Free Equipment - Let's keep this one short. Nobody gives anything for free. I believe that is enough said. Choosing a Payment Processing Provider is a serious decision that you want to make sure you have crossed all your "t's" and dotted all your "i's" before committing to an agreement. Most Companies volume runs through Debit/Credit Card Payment Processing and most payment processing costs are 2-5% of that volume (when all said and done), so making a good decision is important. Therefore, in order to evaluate the cost effectiveness of any Debit/Credit Card Payment Processing Provider, you need to consider ALL the fees and charges, not just the discount rates. It is a benefit to have a professional merchant account specialist to assist you with making the correct decision for hiring your payment processing vendors.

17 Essential Questions Every Canadian Small Business Owner Must Ask Before Choosing A Payment Processing Provider
Most Canadian small business owners don't know what questions to ask Credit Card Processing Companies, resulting in many owners being shocked by the true costs when bills begin to arrive. Fees and costs associated with debit card and credit card processing are somewhat negotiable. The best way to avoid being surprised is to ask the right questions. This section identifies 17 essential questions that every business owner will want to ask each merchant account provider. Before you sign on the dotted line consider this:

1. What are the Credit Card Discount Rates? Every Credit Card Processor will have this fee. Discount rates can vary on from as low as 1.59% right up to as high as 5.0%. The discount rate is really not a discount. “Discount Rates” are a percentage of your sales that the Payment Processing Service Company charges the business owner to be able to offer their customers ability to pay with credit cards. For example: If you sold $10,000 in Visa sales in one month and your discount rate was 2.5% then you would pay $250 in fees to your Credit Card Processor that month. Merchant Account "Rates" vary and are dependent on: • • • • • business model business volume (annual sales) average sale per customer type of product & service your business offers the way you process orders “card present” transactions or “card not present” transactions how soon your customer receives a product/service after payment

All these factors above can all have an affect on what Discount Rates you and your business will qualify for.

Usually high-risk business will have higher discount rates (2.5%-5%). High risk businesses are ones that have: • • • Higher ticket prices ($1000 plus per sale) Businesses that process 40% or more of their sales through Internet/E-commerce or MO/TO Businesses that take payment before delivering the product or providing the service

WARNING: Most payment processing companies agreements are for 3 years. Do not forget to ask: What would the termination costs be if you were to terminate your agreement early? Most companies charge a $300 early termination fee that is retro-active from the time the agreement started. Also most agreements state that if you do not write them within a certain date of time at the end of your agreement the agreement will automatically renew itself for another 3 years. 2. Are "keyed in" Credit Card Discount Rates at a different rate then “Swiped” Credit Card Discount Rates? The two questions you want to ask: • • What will the “Qualified Rate” be? – Means card is present for the transaction [Swiped] What will the “Non- Qualified Rate” be? – Means card is not present for the transaction – [Keyed in]

Also, many Owners are not aware that Corporate Cards also are usually charge a higher rate then the “Qualified Rate”, usually 0.25% higher, but can be as high as a full 1%. Fortunately, most businesses have less then 5% of their credit card sales be made with Corporate Credit Cards. 3. What are the Transaction Rates? Transactions fees are sometimes called IDP transactions. Every payment processing company has at least a transaction fee for debit and usually also for credit card transactions too. It is become more common that any transaction that is made on your point-of-sale terminal will be considered a transaction and a fee will apply, whether is it is a void, debit, credit card, refund, batch close, etc. Transaction fees can range from 0.05 cents up to 0.50 cents and can be different for each type of transaction, although typical Point-of-Sale Terminal transactions fees are between 0.08 cents to 0.15 cents.

Although, I have seen Payment Processing Companies charge as high as 0.17 cents to 0.25 cents, in which case, you may want to ask for a rate review or search for a new Payment Processing Provider. Non Point-of-Sale card processing services like IVR, PC, & E-commerce processing transaction fees are usually much higher ranging from 0.35 cents to 0.50 cents. 4. What is the monthly cost for the Point-of-Sale Terminal? Point-of-Sale Terminals are known as: Interac Terminals or Debit Card Machines or Credit Card Machines, but in the industry they are known as a Point-of-Sale Terminals and will be referred to from this point forward as “POS Terminals”. Traditional Retail POS Terminals can hook up via a regular phone line (Dial-up POS Terminal) or a DSL High-speed Internet connection (IP POS Terminal) , and more recently to the Wireless Data Network making some POS Terminals wireless and mobile (Cellular POS Terminal). Most Traditional Retail type business’s only need a regular Dial-up POS Terminal or an IP POS Terminal. Dial-up will work for the Merchant who does under 25 transactions a day. A Merchant who does a high volume of transactions and needs to move customers through a check-out line quickly should consider using an IP POS Terminal. Most Bank related card processing companies offer a ‘rental ONLY program’ for POS Terminals. Rental costs can range from $20 right up to as high as $100 a month depending on the type of Point-of-Sale Terminal your business requires. Private label card processing companies usually only offer a ‘Lease-to-own or Buy option’ program on their POS Terminals. Lease-to-own usually run on 48 month leases with a 10% buy-out option at the end. Lease-to-own POS Terminal prices range from $30 - $80 dependent on type of POS terminal. Buy-out POS Terminal prices, typically run from $999 - $1800 (without taxes) dependent on type of POS Terminals. Two very important questions to ask before buying a POS Terminal: • • What are the warranty conditions? Is the POS Terminal smart-card ready?

When renting a POS Terminal if you require a new POS Terminal is usually will be fixed or replaced at no cost to you. However, you pay rent forever. If you have been renting a POS Terminal for $40 a month for 5 years, then you just paid $2400. If you have been renting a POS Terminal for 10 years at $40/month then you just spent $4800 & no asset in your business. You can own a basic POS terminal for as little as $1000 and now have another asset in your business.

In terms of warranties, most private label companies will offer some type of warranty on the POS Terminal, sometimes at no extra cost, sometimes for an additional fee. There are even a few payment processing companies that offer a life-time warranty all inclusive in the original retail purchase price. Sometimes it is better to pay more for an all inclusive warranty on hardware with free software upgrades then to pay less with a limited warranty. 5. What are the Set-up Costs? Every debit and credit card processing company will have set-up fees, some more then others. Set-up fees can range from $50 - $300. Usually the set-up fees are one-time only set-up fees for Visa, MasterCard, Amex, & Interac cards usually around $25 per card. Some companies also charge an initial set-up fee for programming the POS Terminal or a fee for initial training. Set-up fees can greatly vary from company to company. 6. Are there any Application fees? Not all payment processing companies have an application fee, however, some companies do. This is usually a non-refundable fee, whether your business is approved or not. Applications fees can vary from non-existent to $300. 7. Is there a Statement Fee? Not all payment processing providers have a statement fee, however, some do. The average statement fee is usually around $5 or free if you are willing to receive your statement coming to you via e-mail. (I am not sure if this is a nickel and dime fee or if it is companies trying to go green? I let you decide!) 8. Is there a Settlement Fee? All merchant account providers have a settlement fee. Settlement fees can range from 0.05 cents 5 dollars. The settlement is what sends your funds to your bank account.

9. Is there any Minimum Processing Fees? All payment processing providers have minimum processing fees, ranging from $5 - $25. Often there are minimum processing fees for each type of card you intend to have processed. Basically, what this means is if you do not do enough business sales to have high enough fees you will still pay a minimum every month. For example: Let say your discount rate 1.85% on Visa and your do a $1000 worth of sales on Visa that month and your minimum processing fee is $10. Well, 1.85% X 1000 = $18.50 in fees that month on Visa. Therefore, you have cleared your minimum of $10 and you have nothing to worry about. Now if you take the same rate and minimum, but you only made sales $250 that month on Visa. Well, 1.85% X 250 = $4.62 in fees that month on Visa. Therefore, you did not make you minimum and would be required to make the difference up of $5.38. 10. Is there a Gateway Fee? Most card processing providers usually have a gateway fee, but usually only for IP POS terminals, PC and E-commerce payment solutions. Gateway fees can range from $5 to $75 a month. 11. Is there a Monthly Maintenance Fee? Some card processing service providers have a monthly maintenance fee others do not. If they have it, it is usually a fee that is associated with IVR, PC, & E-commerce payment processing solutions, however, some companies have it on POS Terminal solutions too. 12. Is there an Added Value Fee? Some payment processing service providers have a monthly added value fee and some do not. This fee usually ranges from $5 - $10 a month. 13. Is there a Low Achievers Fee? Most payment processing providers have a monthly low achiever fee. Low achiever fees can range from $5 - $20. This is why it is important to get your monthly/annual estimate of total business volume correct on your Visa, MasterCard, & American Express applications. Most merchant account providers have 25%-35% error lenience. If you are not sure it is always better to under estimate your monthly/annual sale amounts when applying for credit card merchant accounts.

14. Is there a Chargeback Fee? Most payment processing providers have a chargeback fee. Chargeback fees can range from $10 - $50. A chargeback is when a card holder holds a dispute on a Visa or MasterCard or Amex transaction that came from your business. If the card holder wins the dispute, they will be refunded their money and you will be charged a chargeback fee, a similar fee to bouncing a cheque. It is always the merchant burden of proof to prove that the card holder had used or bought the product or services from your business. This is why is so important to check that on credit card purchases that the signature matches the back of the card holders credit card and if it does not to ask for photo ID. 15. What are the Technical Support Service Hours? Most card processing companies have a help desk/technical support. However, not all are 24/7 and some are better then others. The best thing to do is to get the help desk number and give it a call a few times through out a day to see what kind of service you would get. 16. How soon can you have a new POS Terminal in my Business if my POS Terminal is not working & can be fixed via the phone? Payment processing providers can vary on this from company to company. Some can have one to you within 24 hours others can take 2-4 weeks before they have a new POS terminal to you. The question you have to ask yourself is how long can your business run without one in your business? Sometimes it is better to pay more for better services. 17. How long does it take to initially get set-up with full services? Most card processing companies usually take at least 2 weeks (sometimes as long as 4-6 weeks) to have your application processed, merchant accounts set-up, point-of-sale terminal programmed and shipped to your business ready to use. However, there are a few payment processing companies that can have one ready in your business in as little as five business days. These are usually private label payment processing companies. The solution is to use the services of a merchant account specialist who will help you make the best possible decision for your businesses payment processing needs.

Understanding Debit Card Merchant Accounts "Rates/Fees" In Canada
Each Payment Processing Provider has different rates and fees associated with Debit Card Merchant Accounts. Typically Debit transactions are just a flat rate. An example Debit Transaction rate would be: 12 cents per Debit Transaction. It does not matter whether the Transaction processed was for $5 or $5000 the fee would be 0.12cents for the transaction to take place. Now some Payment Processing Companies will charge you a Low Transaction rate on your Debit Transactions (like 0.05cents) and a % of your sales (like 0.0025%) that is a quarter of 1 percent. This may seem like a good deal, but rarely is. Example 1: • • • • • Debit Transaction at 0.12 cents 576 Debit Transaction that month Total Monthly Debit Business Volume $13,876.00 Average Ticket: $23.56 0.12 cents X 576 = $69.12 in you monthly Debit Fees

Example 2: • • • • • • • Debit Transaction at 0.05 cents + 0.0025% 576 Debit Transactions that month Total Monthly Debit Business Volume $13,876.00 Average Ticket: 23.56 0.05 cents X 576 = $28.80 $13,876.00 X 0.0025% = $46.94 $28.80 + 46.94 = $75.74 in your monthly Debit Fees

You can see that Example 1 is cheaper by $6.62 even though it may initially look like Example 2 would have been less expensive. Typically, it is always better to have a flat Debit Fee only on your Debit Merchant Account. The only time the lower Debit Fee + % works in your favor on Debit Merchant Accounts is if you have a very high Debit transactions on with a very low average Debit ticket price.

Understanding How Credit Card Merchant Accounts ‘Rates/Fees’ Work In Canada
Credit Card Merchant Accounts "Fees/Rates" usually are called "Discount Rates" in the Payment Processing Industry. These "Discount Rates" are not really a discount. They are the percentage that the Payment Processing Company charges to allow you to be able to accept Visa, Master Card, and American Express Cards in your business. Each Payment Processing Provider has different fees associated with credit card processing. Typically, it is a percentage of your monthly sales amount + a flat transaction fee. However, some Payment Processing Companies do not charge a flat transaction fee, just the percentage on the monthly sales volume. When is comes to Credit Card Merchant Accounts it usually the percentage (Discount Rate) that you want to keep as low as possible and it is not usually as much an issue with the flat transaction fee. Let's look at a couple of examples below to better understand how credit card merchant accounts work. Example 1: • • • • • • Credit Card Discount Rate: 2.65% No Transaction Fee: 0.00 327 Transactions $18,267.00 in Credit Card Sales that month Average Ticket Price: $55.86 2.65% X $18,267.00 = $484.07 in Credit Card Processing Fees that month

Example 2: • • • • • • • • Credit Card Discount Rate: 1.89% Transaction Fee: 0.10 cents 327 Transactions $18,267.00 in Credit Card Sales that month Average Ticket Price: $55.86 327 Transactions X 0.10 cents = $32.70 1.89% X $18,267.00 = $345.24 $32.70 + $345.24 = $377.94 in Credit Card Processing Fees that month

* It is obvious in this Example that example 2 is the better Merchant Account to go with, even though you are paying a transaction fee on top of your Discount Rate for credit card transactions.

EXAMPLE SAVINGS A MOTEL BUSINESS WE SAVED OVER $1300/YEAR Previous Provider
Visa % MasterCard % Credit Tran. Rate Debit Tran. Rate Hidden Fees Terminal Cost Total Month Cost DISCOUNT RATE% 0.017 0.0193 0 0.08 MNTH BUS. VOL/TRAN 12000 9000 420 900

MONTH COST 204 173.7 0 72 5 35 489.7 Total Year Cost:

YEAR COST 2448 2084.4 0 864 60 420

A

5876.4

Our Services
Visa % MasterCard % Credit Tran. Rate Debit Tran. Rate Hidden Fees Terminal Cost

DISCOUNT RATE% 0.0162 0.0162 0.1 0.08 0

MNTH BUS. VOL/TRAN 12000 9000 40 35 0 Total Month Cost

MONTH COST 194.4 145.8 4 2.8 0 27.5 374.5 Total Year Cost:

YEAR COST 2332.8 1749.6 48 33.6 0

B

4494

Years in Business

3

YR. SAVINGS 5 YR. SAVINGS 10 YR. SAVINGS Lost Revenues

1382.4 6912 13824 4147.2

A Pet Grooming Business we saved over $3200/year: Previous Provider
Visa % MasterCard % Credit Tran. Rate Debit Tran. Rate Hidden Fees Terminal Cost Total Month Cost DISCOUNT RATE% 0.0292 0.0267 0 0.15 MNTH BUS. VOL/TRAN 20000 5000 200 375

MONTH COST 584 133.5 0 56.25 9 42.5 825.25 Total Year Cost:

YEAR COST 7008 1602 0 675 108 510

A

9903

Our Services
Visa % MasterCard % Credit Tran. Rate Debit Tran. Rate Hidden Fees Terminal Cost

DISCOUNT RATE% 0.0185 0.0185 0.1 0.1 0

MNTH BUS. VOL/TRAN 20000 5000 200 375 0 Total Month Cost

MONTH COST 370 92.5 20 37.5 0 32.5 552.5 Total Year Cost:

YEAR COST 4440 1110 240 450 0

B

6630

Years in Business

10

YR. SAVINGS 5 YR. SAVINGS 10 YR. SAVINGS Lost Revenues

3273 16365 32730 32730

A Beauty Salon Business we saved over $3000/year Previous Provider
Visa % MasterCard % Credit Tran. Rate Debit Tran. Rate Hidden Fees Terminal Cost Total Month Cost DISCOUNT RATE% 0.0264 0.0325 0.12 0.15 MNTH BUS. VOL/TRAN 20000 4500 150 200 YEAR COST 6336 1755 216 360 60 462

MONTH COST 528 146.25 18 30 5 38.5 765.75 Total Year Cost:

A
YEAR COST

9189

Our Services
Visa % MasterCard % Credit Tran. Rate Debit Tran. Rate Hidden Fees Terminal Cost

DISCOUNT RATE% 0.0185 0.0185 0.1 0.1 0

MNTH BUS. VOL/TRAN 20000 4500 40 35 0

MONTH COST 370 83.25 4 3.5 0 27.5

4440 999 48 42 0

Total Month Cost

488.25 Total Year Cost:

B

5859

Years in Business

3

YR. SAVINGS 5 YR. SAVINGS 10 YR. SAVINGS Lost Revenues

3330 16650 33300 9990

A B2B Office Supply Store we saved over $6000/year: Previous Provider
Visa % MasterCard % Credit Tran. Rate Debit Tran. Rate Hidden Fees Terminal Cost Total Month Cost DISCOUNT RATE% 0.024 0.025 0 0.1 MNTH BUS. VOL/TRAN 100000 30000 65 0 MONTH COST 2400 750 0 0 5 6.35 3161.35 Total Year Cost:

YEAR COST 28800 9000 0 0 60 76.2

A

37936.2

Our Services
Visa % MasterCard % Credit Tran. Rate Debit Tran. Rate Hidden Fees Terminal Cost

DISCOUNT RATE% 0.02 0.02 0.1 0.1 0

MNTH BUS. VOL/TRAN 100000 30000 65 0 0

MONTH COST 2000 600 6.5 0 0 27.5

YEAR COST 24000 7200 78 0 0

Total Month Cost

2634 Total Year Cost:

B

31608

Years in Business

3

YR. SAVINGS 5 YR. SAVINGS 10 YR. SAVINGS Lost Revenues

6328.2 31641 63282 18984.6

A Chiropractic Office we saved over $400/year:

CURRENT PROVIDER
Visa MasterCard Transaction Rate (IDP) # Trans Hidden Fees Terminal Cost

DISCOUNT RATE% 0.0177 0.021 0.12

MONTH BUS. VOL. 5000 2500 100

MONTH COST 88.5 52.5 12

YEAR COST 1062 630 144 0 26 312

Total Month Cost Total Year Cost:

179

A

2148

Our Services
Visa MasterCard Transaction Rate (IDP) # Trans Terminal Cost

DISCOUNT RATE% 0.0175 0.0175 0.1

MONTH BUS. VOL. 5000 2500 100

MONTH COST 87.5 43.75 10 N/A

YEAR COST 1050 525 120 N/A

Total Month Cost

141.25 Total Year Cost:

B

1695

Years in Business

5

Yearly Savings (A - B) Five Year Savings Ten Year Savings Lost Revenues

453 2265 4530 2265

A Specialty Wine Store we saved over $2500/year:

Moneris
Visa % MasterCard % Credit Tran. Rate Debit Tran. Rate Hidden Fees Terminal Cost

DISCOUNT RATE% 0.026 0.026 0 0.15

MNTH BUS. VOL/TRAN 20000 5000 0 830

MONTH COST 520 130 0 124.5 5 30

YEAR COST 6240 1560 0 1494 60 360

Total Month Cost

809.5 Total Year Cost:

A

9714

Our Services
Visa % MasterCard % Credit Tran. Rate Debit Tran. Rate Hidden Fees Terminal Cost

DISCOUNT RATE% 0.0163 0.0163 0.1 0.1 0

MNTH BUS. VOL/TRAN 20000 5000 800 830 0 Total Month Cost

MONTH COST 326 81.5 80 83 0 27.5 598 Total Year Cost:

YEAR COST 3912 978 960 996 0

B

7176

Years in Business

3

YR. SAVINGS 5 YR. SAVINGS 10 YR. SAVINGS Lost Revenues

2538 12690 25380 7614

A Contact Lens Store we saved over $600/year.

CURRENT PROVIDER
Visa MasterCard Transaction Rate (IDP) Hidden Fees Terminal Cost

DISCOUNT RATE% 0.0185 0.0201 0.11

MONTH BUS. VOL. 24000 6000 22

MONTH COST 444 120.6 2.42 10 32

YEAR COST 5328 1447.2 29.04 120 384

Total Month Cost

609.02 Total Year Cost:

A

7308.24

Our Services
Visa MasterCard Transaction Rate (IDP) Terminal Cost

DISCOUNT RATE% 0.0185 0.0185 0.1

MONTH BUS. VOL. 24000 6000 22

MONTH COST 444 111 2.2 N/A

YEAR COST 5328 1332 26.4 N/A

Total Month Cost

557.2 Total Year Cost:

B

6686.4

Years in Business

4

Yearly Savings (A B) Five Year Savings Ten Year Savings Lost Revenues

621.84 3109.2 6218.4 2487.36

A Restaurant Business we saved over $1600/year: Previous Provider
Visa % MasterCard % Credit Tran. Rate Debit Tran. Rate Hidden Fees Terminal Cost Total Month Cost DISCOUNT RATE% 0.017 0.017 0 0.11 MNTH BUS. VOL/TRAN 18000 12000 420 900 MONTH COST 306 204 0 99 5 35 649 Total Year Cost: YEAR COST 3672 2448 0 1188 60 420

A
YEAR COST

7788

Our Services
Visa % MasterCard % Credit Tran. Rate Debit Tran. Rate Hidden Fees Terminal Cost

DISCOUNT RATE% 0.0159 0.0159 0.1 0.08 0

MNTH BUS. VOL/TRAN 18000 12000 40 35 0 Total Month Cost

MONTH COST 286.2 190.8 4 2.8 0 27.5 511.3 Total Year Cost:

3434.4 2289.6 48 33.6 0

B

6135.6

Years in Business

3

YR. SAVINGS 5 YR. SAVINGS 10 YR. SAVINGS Lost Revenues

1652.4 8262 16524 4957.2

TESTIMONIALS
“I have had the pleasure of working with Matthew Hunt. I am a Registered Massage Therapist, operating a Registered Massage Therapy Clinic in Barrie, Ontario. I belong to an association called, the Ontario Massage Therapists Association (OMTA), which put my clinic on the map with Matthew. Matthew offers clients of this association, along with other associations competitive rates that I couldn't say no to. Matthew presented the material and information in a concise, easy to understand format. When Matthew told me that I could save monthly charges, along with the ability to buy out the machine at the end of my lease with this particular Payment Processing Company, I was listening. There is nothing more exciting than money back in your pocket, and Matthew showed me how. I now have a brand new machine that is a third of the size of what I was using, not an old refurbished one. Matthew came into my office and showed me how to use the new machine in person, vs. the other competitor who sets up an appointment and guides you through it over the phone. As the owner of the clinic, there are a lot of other duties that need my attention, and I really enjoy the fact that company Matthew recommended deposits nightly vs. the other company that didn't offer that feature. Before, I had to enter the batch in manually, in person. This can be troublesome at times when you are out of town and you need this job done. You don't just want to have anyone enter this sensitive information. Now, I never have to worry. There were also times when I needed to speak to someone about how to do a process, and I love how you always get a real person on the opposite end of the phone with the credit card processing company Matthew recommended. It is really refreshing to get a hold of someone right away, and not some automated voice that walks you through steps before you get a hold of a person. I'm not sorry I switched companies.”- Erika Copping - Owner @ Hands On Performance Massage Therapy & Wellness Clinic “I was contacted by Matthew while I was in the process of getting a Visa/Master Card/Debit Terminal from another company. The process was painfully slow with the company I was trying to get a terminal from and the client service I received from that company was terrible. I dropped the company I was originally working with to have Matthew take care of my payment processing needs. The service I received from Matthew was exceptional and in no time I had my terminal up and running. I would gladly recommend Matthew to any new/existing business owner looking for a Merchant Account Services, as the rates Matthew finds or you are cheap and the company services he recommended is great.” - Philip Alcock - Owner @ Core Health Spa

"Dear Matthew, Just a quick note of thanks for helping me navigate through the complexities of the POS merchant world. Without your help, I would be in a nightmare situation with other POS vendors and would have been pulling my hair! With your help, I know exactly what I am going into and had a POS System up and running within 5 business days! Not only that I know I am getting really competitive rates - rates that the big banks can not offer. Thank you for the hand-holding and for going above and beyond the call of duty. I will DEFINITELY recommend anyone to your services."- Kim Chung - Director of SHOE THERAPY LTD. “I have been with the company that Matthew recommended to me for a year now and I am extremely happy with them, and the savings compared to other companies. The machines are easy to use, even my customers have thanked me for using an easy to use machine, Mathew is excellent, he took the time to go through everything with me, and explained how it all worked, I was a new owner and has no idea how to work any of it, he made it easy and fun, Thanks Mathew.” - Roxanne Muir - Owner @ Karma Kollective Hair Studio “All I can say is… I don't know what I would have done with my business if you had not called me and told me you would be able to help me to get a debit machine. I was losing money by not been able to get one & the bank would not even look at me, but you and your company gave me a chance. I would and will refer you to any one I know who needs a great Merchant Account Service|Point-of-Sale Terminal specialist.” - Joyce Jones - Owner @ Wavelength Hair “I have been a contented client of Matthew Hunt's for over a year. I decided to cancel my previous payment processing company because of the expense of what they had to offer and the failure of that bank to meet my needs as a small business owner. The other major banks also failed to offer anything better. Within a short space of time, I was approached by three companies offering credit card and debit card transaction processing. They were all offering what seemed like similarly good deals. Who should I chose? Matthew was able to answer all my questions and was able to tailor the system to my own needs. What specifically appealed to me was that I did not feel that I was being pressured by Matthew to sign any agreement. Matthew presented the information in a professional manner and was able to effectively answer my questions. He then left me to make the buying decision. He was there at my place of business for the installation of the system and was able to train me in its use. I am now past the one year anniversary since I installed the system. Indeed, the proof of the pudding is in the eating. As declared by Matthew, there are no hidden fees and everything has functioned to my satisfaction. I am also impressed on the few occasions

that I have needed to contact the merchant account company's help line. Their phone line has been answered promptly and their questions answered. In summary, I am a contented customer who would not hesitate to recommend Matthew Hunt's professional services to anyone looking for an inexpensive but efficient credit card - debit cards processing system.” - Timothy Phillips - Owner @ Healing on the Danforth “Our Payment Processing Company has met all of our point of sale needs without any hassle. Matthew Hunt was an excellent Merchant Account Service Broker. Setting-up all the equipment and showing us everything we needed to know. He made sure we felt confident with the system, and I would recommend him to any business with point of sale needs.” - Kadina Yu & Patrick Whyte - Owners @ Conspiracy Culture "I am a busy professional who has utilized Matthew Hunt's services for all of my merchant card services for the previous 3 years. I have been completely satisfied with both the service and reliability of the companies Matthew Hunt recommended to use for my merchant account services. Matthew took his time to personally arrange and set up my merchant account including the hardware and continues to provide ongoing support when needed in a friendly, professional and expedient manner. It is good to know that Matthew is just a phone call away." - Jeffrey D. Cowen Chiropodist/Foot Specialist - Owner @ THE FOOT GURU "I am a Optometrist in Winnipeg and recently opened ten offices. I contacted Matthew through his internet ad, lured by the promise of low discount rates, savings on the machines and reliable POS processing. It has been four months and everything has been great. Matthew provided me with everything I needed in a timely, professional manner, and was helpful to my staff in the set-up. I would highly recommend Matthew and his services to any new merchant or existing merchant who wants to save money on their debit and credit card processing" Dr. Robert Kashin - Owner @ Kashin Optometric Group "I was referred to Matthew about 6 months ago when searching for a point of sales system that was both cost-effective and reliable. Matthew was very helpful and honest about what options were best suited for my business and offered additional tips as to how I could save money. He was patient in describing every detail of the contract and answered every question I had unbiased. As a result of this, I have obtained a wireless POS system from Matthew and have not had any problems since. I would recommend Matthew to anyone who wants an honest opinion of what would be in their best interest." - Andre DeCairos - Owner @ Onsite Essentials - The Spa Comes To You!

"Matthew called me at my business and introduced me to his program. I have a dog grooming business and I did accept VISA at the time of the call. I was paying a much higher rate than Matthew had offered. He also offered a very good rate on interac, so I decided to go with the terminal and the offer. My clients are very happy that they have a choice of payments with VISA, MASTERCARD, or INTERAC...many of my clients live on their cards and carry little or no cash. Thank-you Matthew for you services!" - Wendy Varga - Owner @ Suds N Scissors Pet Salon "I was using the telephone IVR service which was being discontinued and Matthew had happened to call, offering better rates than my previous provider and the opportunity to buy my own terminal. The service was excellent and efficient. I've been happy ever since." - Dr. Todd Baron D.C. - Owner @ Guildwood Chiropractic Centre "Dear Matthew and potential customers, First of all, thanks Matthew! I must say doing business with you was fast, confidential, and a pleasure. During our first initial phone call, I had decided that there would be NO reason to look elsewhere for my POS terminal. You answered all my questions very confidently without a pressuring sales pitch. You made me feel like I was your only customer. Your efficient dealing had me up and running in a few short days. And for that I appreciate it. Not too mention the discounted rates compared to the local competition. The system is very user friendly. I would highly recommend Matthew. He was very helpful to walk me through the set-up. Thanks again... I have and will continue to mention your name and service to anyone looking for a terminal. - Janice Egger Owner @ Janice Egger RMT

SPECIAL NOTE FROM ME
It is always best to review a Payment Processing Companies entire program and add up all the associated fees they charge times your business volume to see which one comes out the least inexpensive. Many Card Processing Companies structure their rates/fees differently and it is best to know what questions to ask before signing with a payment processing company. I hope you found this free ‘Merchant Account Services Report’ useful and we hope you choose to use our services to help you set-up your payment processing solutions. Regards, Matthew Hunt • • • • Company: Canadian Merchant Account Services URL: http://www.Canadian-Merchant-Account-Services.com E-mail: matthew@Canadian-Merchant-Account-Services.com Toll-free Phone Number: 800 262 3033 Toll-free Fax Number: 888 284 3761

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