Merchant statement guide. Understanding your transaction and service fees. Contents Welcome to your merchant statement guide.

Welcome to your merchant statement guide. 3 Thanks for choosing CommBank as your merchant services provider. We’ve created this guide to help you understand your merchant statement. An overview of your statement. 3 The guide explains: Interchange statement – an overview. 4 • where to find key information on your statement – and what it means Your transaction summary – page 2. 6 • how to use the information on your statement to calculate your Annual Cost of Acceptance Card surcharges – what you need to know. 12 • other frequently asked questions about surcharges. Calculating your surcharge. 12

Case study 1: Applying a single surcharge rate. 12

Other questions about surcharging. 14

We’re here to help. 15 An overview of your statement.

For every month that you pay fees for your CommBank merchant facilities, we’ll send you a statement outlining: • your details • any transaction and service fees you’ve paid.

2 3 Interchange Plus statement – an overview.

If you’re on an Interchange Plus pricing arrangement, you’ll be charged certain fees whenever a customer uses a card to pay you.

Key Description 1 Here’s where you’ll find your merchant details – yourmerchant 2 1 number, account name, address and BSB. If you need to call us about your merchant facility, please quote your merchant number. If you have multiple stores and have opted in to a headquarter 2 arrangement, your headquarter ID will show here. Your statement will show a breakdown of fees from each store or business location. Your transaction fee breakdown 3 The pie chart shows you all the fees you’ve been charged during the month, and may include: • Merchant service fees • Interchange fees • Scheme fees • Ancillary fees 3 • Credit transaction fees See Fees and Charges – what they mean on page 8 to find out more.

4 5 Your transaction summary - page 2.

Terminal base for charging and cable connection Key Description Your transaction summary 4 this section shows the number of purchase and refund transactions you’ve processed by card type (eg MasterCard, Visa, 4 EFTPOS). The net total equals the total sales, less total returns transactions. Total transactions: number of transaction or sales, broken down by card type. Total sales: value of those sales by card type. Total returns: Number of sales that were refunded or returned. Surcharging information 5 If you choose to charge your customer for using a card, 5 you’ll need this information to calculate your surcharge. See Card surcharges – what you need to know on page 12.

6 7 Fees - in detail.

Key Description Merchant service fees 6 Here’s where you’ll find the fees that cover the costs you incur when your customers pay with a card e.g. Visa, MasterCard, EFTPOS. The amount you pay in merchant service fees depends on your transaction volume, types of cards used and average ticket size. We calculate ‘average ticket size’ by dividing your total turnover by the number of transactions. Credit interchange fees 7 This section itemises your transaction fees for each These fees, set by VISA and Mastercard, help cover the cost of 6 services provided by the cards, such as preventing fraud, enabling and canceling lost or stolen cards. Here’s how these fees are charged: • MasterCard and Visa: as a percentage or dollar value of turnover on that card

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8 9 Key Description Scheme fees 8 These are the fees that CommBank pays to Visa or MasterCard 7 whenever a transaction is processed. Ancillary fees 9 This section provides a detailed breakdown of any extra fees you’re charged for your merchant facility – such as costs for additional terminal rentals, authorisation fees, fees or stationery fees. Please note a summary of these ancillary fees is displayed earlier in your statement. 8

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10 11 Page 3 of 4 Headquarter ID 5353123456789013 Sally checks the surcharge information section in her merchant statementStatement Month Sep 2017 Date of Issue 09 Mar 2017 Card surcharges – Surcharge information what you need to know. Information to assist with calculating Cost of Acceptance

Calculated timeframe Net Sales Cost of Acceptance As a merchant, you’re entitled to charge an extra fee (a surcharge) to customers Annual This information can be used to for using a card to pay you. However, since 1 September 2017, new rules mean you 01 Jun 2017 - 30 Jun 2017 (%) ($) calculate your own cost of can only charge the amount that it costs you to accept a card transaction after of net sales acceptance in good faith. More

your fees are taken into account. We call this your cost of acceptance. (6OD022) information about calculating the /Prepaid 99999 $999,999.99 99% cost of acceptance and applying To stay compliant with these new rules, you need to know how to calculate your surcharges is available at MasterCard Debit/Pre-paid 99999 $999,999.99 99% www.commbank.com.au/merc surcharge correctly. Here’s how to do that. hantsupport

EFTPOS 99999 $999,999.99 99% You should review your cost of acceptance at least once in each Visa Credit 99999 $999,999.99 99% financial year. Calculating your surcharge. MasterCard Credit 99% 99999 999%

Calculated timeframe To calculate your surcharge: Net Sales Cost of Acceptance Monthly

• Find your cost of acceptance on your merchant statement in the surcharge and sees01 Jun that 2017 her- 30 Junlowest 2017 surcharge is 1.16%. She then (%)applies this surcharge to every ($) information section, listed as a dollar amount and as a percentage. transaction that her customers make using a card.of net sales

Visa Debit/Prepaid 99999 $999,999.99 99% • You can calculate your surcharge as: V01.00.18 If Sally’s cost of acceptance was listed as N/A on her merchant statement, she would not .L

233 add a surcharge.

1. One surcharge or rate for all card purchases, which is the lowest rate across all .D MasterCard Debit/Pre-paid 99999 $999,999.99 99% 1 card categories. EFTPOS 99999 $999,999.99 99%

2. A different surcharge or rate for each scheme (e.g. one for MasterCard and CH.MS.S12 one for Visa). Visa Credit 99999 $999,999.99 99% 3. One surcharge for credit card transactions and another for transactions. ZZ396.1102. 2 . 2

. MasterCard Credit 99% 99999 999% 6 .

Here are some practical examples of managing card surcharges: 2

This statement contains both your monthly and annual Cost of Acceptance. Case study 1: Applying a single surcharge rate (example only). Sally Brown’s Bagels is a small business based in Hurstville, Sydney. Sally has been running Ancillary fees her business for over one year. She decides to review the amount she surcharges her Itemised ancillary costs relating to your merchant facility customers for paying by card. Number Rate Net totals

Sally’s monthly turnover is fairly stable, so she decides to use a monthly average to Authorisation fees calculate her cost of acceptance. Because she accepts a lot of different card transactions, Line 1 999,999 999% $999,999.00 Sally decides that charging one surcharge for all card transactions is the most suitable method for her business. Line 2 999,999 999% $999,999.00

12 13 Other questions about surcharging. We’re here to help. How often should I review my cost of acceptance?

Most businesses should review it once a year. But if your business is seasonal, or your If you have any further questions about your statement or charges, transactions fluctuate substantially each month, you can choose to change your limit each we’d be happy to help you. month, based on your merchant statements. I have stores at different locations – what can I surcharge? If you own multiple stores under the same legal entity, you can average the surcharge rate Call 1800 230 177 24 hours a day, 365 days a year. across your stores for each card type. Are there any other costs that I can include in my surcharge calculations? Yes, you can include other costs that you can verify with contracts, statements or invoices that you incur for using cards, including: Visit commbank.com.au/merchantsupport • gateway fees • fraud prevention services • insurance costs against forward delivery risk.

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