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SALES AGENT
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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)
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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.
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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)
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CARD ISSUERS
Card Issuers are:
· Banks
· Trust Companies:
· Credit Unions
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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.
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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.
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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
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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
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SMART TERMINALS
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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
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Talech - ELO PayPoint
Talech for Boutiques
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IMPORTANT
TAKE AWAYS
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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