From VeriFone Training Webinar June 3, 2005

From VeriFone
Training Webinar
June 3, 2005
Innovation & Leadership
VeriFone
! We ARE the Payment People
• 23 years. Over 100 countries. Over 30 patents granted.
• Unsurpassed reputation of quality and depth of knowledge.
• Customer trust.
! Corporate Viability – We’re in the business for the
long haul. We invest in our products, our people and
our channels
• R&D Investment
• Strong VIP relationships allow us to think globally and act locally
! Market Leadership – VeriFone is a GLOBAL
company
• VeriFone’s primary market, financial retail, serves the needs of
acquirers, processors, and ISO’s
• Lead in every vertical market: large retail, petroleum, government,
medical and now QSR
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1981
1984
1987
1988
1991
1992
1997
1999
2000
2001
2002
Omni 7000 MPD, Omni 3200SE,
PINpad 1000SE
10 Million Shipments
Omni 3600 portable terminal
Omni 3750
Verix multi-application
architecture
Omni 3300/3350
VeriCentre Appliance Management
Omni 3200
1995
OmniPak with SoftPay software
SC 55x
Everest
Omni 490 and Ruby SuperSystem
1 million shipments
Printer 250
VeriFone VIP Program begins
PINpad 101 introduced
TRANZ 330\TRANZ 380\380x2
ZON Jr
VeriFone incorporated in Hawaii
Over Twenty Years of Leadership
2003
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The Merchant Environment
What are their Needs?
1. I don’t have a
lot of space on my
counter and I
hate clutter.”
3. “I have a lot of
clerk turnover. It
has to be easy to
learn and
operate.”
5. “I run a busy
operation. My
customers don’t
like waiting in
line.”
2. “I want a reliable
terminal that is built
to last and doesn’t
cost a lot to maintain.”
4. “I may want to add
debit or check or gift
cards soon. Do I have
to buy
it all up front?
6. “I don’t want a
terminal that
needs to be
replaced next
year.”
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The Verix Family Philosophy
! Consistent User Interface across all Terminals
! Consistent Software Base across all Terminals
! Consistent Support Needs for all Terminals
! Providing the Acquirer/ISO with
• Lower Cost of Sales, Ownership and Support
• An Easy to Understand “Up-Sell” Strategy to any Verix terminal
• Ways to Open Up New Markets with Little or No Additional
Investment in your Training and Support Infrastructure
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Multi-application Requirements
! Application separation
• Prevent corruption in existing code
• Protect application data from other applications
! Application communication
• Securely share application data, e.g. payment
amount used to calculate loyalty points
! Ease of growth, change in a secure manner
! No re-certification of existing applications when
changing other applications
! Leverage application development across appliances
and across borders
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Verix Multi-application Architecture
! Application separation at the hardware & software level
! Supports multiple independent applications on a single
appliance
! Add & update new applications without the need
to re-certify existing applications
VALUE-ADDED
APPLICATIONS
HOST
MODULE(s)
EMV
MODULE
SOFTPAY
CORE
LIBRARIES
OS
CHIP
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A Growing Portfolio of Solutions
…For Every Situation
New Low-End Offerings
Verix Family of Solutions
Supports Full Softpay Payment Features
Drop-in Paper Loading
Consistent ATM Style User Interface
Integrated PINpad
Processes Debit Payments
Processes Credit Payments
Processes Check Payments
Processes EBT Payments
Offers Multi-Merchant Capabilities
Supports Value Added Applications
"Future-Proof" Upgradeable Communications
SSL Secured IP Communications
Ethernet Port Option
"Wi-Fi" 802.11b Wireless Lan Option
Verizon Wireless CDMA Cellular IP Option
Sprint Wireless CDMA Celluar IP Option
AT&T Wireless GPRS Celluar IP Option
EMV 4.0 Smart Card Option
Omni 3750
Omni 3740
Omni 3730
Omni 3730LE
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Baseline
Industry Leading
VeriFone
Quality
Value Add
Services &
Communications
Over 600,000 Shipped
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This week: FEATURING
#1 SMALL MERCHANT SOLUTION
About Valutec
Valutec ranks #1 in the
industry for total number
of small merchant gift &
loyalty card accounts.
!
!
!
!
!
!
!
Founded 1998
Corporate HQ Franklin, Tennessee
Data Center Bentonville, Arkansas
Merchant locations 20,000+
Active terminals 22,000+
Cards shipped 14.7 million
Portfolio growth 52% annually
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YOUR PLACE IN
THE
MARKET
Why Sell Gift & Loyalty Card Programs?
• Opens doors to acquire new merchants
• Hot, in-demand product retailers want
• Increases your income per merchant
• Boosts retention of existing customers to 97%
• Essential to stay competitive in the bankcard
services marketplace
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THE MARKET IS OPEN FOR BUSINESS
$95
Sales Potential
The small-merchant marketplace is just getting started
Gift Card Trends
How big is the opportunity?
!
3.5 million target small merchants
!
250,000 to 350,000 new merchants
enter the market every year
Over the past few years, Gift Card sales
have swept past paper gift certificates to
a projected $95 billion in 2007.
$45
Paper Certificates
Gift Cards
!
Accelerating merchant/consumer
demand
!
Only 1% small-merchant market
penetration to date
In billions of $
$10 $10
2000
$6
2003
$5
2007
Projected
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WHERE IS THE LOW-HANGING FRUIT?
Target Market Sectors
Merchants of many sizes and types are launching successful programs every day.
10.1%
23.8%
Auto,
Auto,
Motorcycle,
Motorcycle,
Carwash
Carwash
Specialty
Specialty Retail
Retail
Stores
Stores
Spas/Salons
Spas/Salons
5.4%
28.1%
Restaurants,
Restaurants,
Coffee
Coffee Houses
Houses
1.9%
Hotels
Hotels
2.8%
Clothing
Clothing
Stores
Stores
Target
Target the
the
merchants
merchants
who
who are
are most
most
likely
likely to
to
succeed.
succeed.
Golf
Golf
Courses
Courses
CD/Video
CD/Video
Stores
Stores
8.7%
3.4%
Sporting
Sporting Goods
Goods
Stores
Stores
2.5%
Garden,
Garden,
Nursery
Nursery
Hardware
Hardware
3.4%
6.8%
Misc.
3.1%
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Gift Card Program
Why have 9 out of 10 top national retailers switched to plastic?
MERCHANT BENEFITS
! Increases prepaid gift sales 200% to 1,000%
! Builds merchant brand awareness
! Customers spend more than card value
! Declining balance keeps cash in store
! Cards may be reloaded
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LOYALTY PROGRAMS
Loyalty Card Programs
Helping merchants insulate their customers from competitors
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Boosts shopping frequency
System calculates points earned & dollar value rewards
Places merchant’s brand in customer’s wallet
Increases store traffic and sales
Identifies merchant’s best customers
NEW: Auto Rewards Program
Simple and highly effective. Points are automatically
converted to spend-able dollar value on the card.
Example: when 50 points are accrued, the system will redeem the
points and add $5 of value to the card.
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WHAT TO SELL
Valutec Products:
Three sizes fit all
Free 100-card Gift or Loyalty card
startup package you can sell for $99
Complete 500-card small merchant Gift or Loyalty card package
Unbundled card and program options
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THE KEY TO SALES VOLUME
Gift & Loyalty Card
Sell for $99 or Free, you decide
PACKAGE INCLUDES:
Complete
transaction
processing
& reporting
$
39
per month
per location
Suggested retail
FREE - 100 Gift or Loyalty Cards
• Personalized with merchant name
• Choose from 10 Standard gift card designs
& 4 loyalty card designs
FREE - Merchandising Display
• Acrylic display with signage
• 100 Card Holders & adhesive
FREE - Account Setup & Training
• Terminal programming & account coding
• Web access setup for program reporting
• Live training & Quick Reference Guide
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THE KEY TO SMALL MERCHANT PROFIT
A complete small merchant solution.
PACKAGE INCLUDES:
Complete
transaction
processing
& reporting
$
35
per month
per location
Suggested retail
500 Standard or Custom Gift or Loyalty Cards
• Standard cards personalized with merchant name
• Choice of 8 gift card designs & 4 loyalty card designs
• Graphic design is included in custom package price
Merchandising Tools
• 2-pocket acrylic display with signage
• 500 gift or loyalty program card hangers
• 2 posters, 3 table tents, 5 buttons
Account Setup & Training
• Terminal programming & account coding
• Web access setup for program reporting
• Live terminal training & complete Welcome Kit
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LARGER MERCHANTS WANT CHOICE
The Choice Program
For marketing-savvy merchants who want to get the
most out of their stored value system.
WHY SELL CHOICE?
1. Make the greatest possible commission on each sale
• You set the selling price for all products, transactions, setup fees, and future product reorders.
2. It’s the program that offers per-transaction pricing
3. Merchants may require custom merchandising materials or will be
producing their own merchandising displays
4. Meeting the needs of larger merchants may require more program
flexibility than Jumpstart and LaunchBox provide
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HELPING MERCHANTS SUCCEED
Merchandising
The key to successful gift & loyalty card programs
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Countertop Displays
Posters
Card Carriers / Envelopes
Card Hangers
Table Tents
Buttons
Change mats
Acrylic holders
Merchants use in-store displays, posters, and other
promotional products to merchandise Gift Cards much like
they would any small impulse-buy product.
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LAUNCHING A NEW MERCHANT PROGRAM
Merchant Setup
NEW: ValuNet
system will provide
web access to key
order status details.
Coming Aug, 2004
Turning contracts into successful, happy customers
Card
Card graphics
graphics
created
created
MIDs/TIDs
MIDs/TIDs sent
sent
to
Reseller
to Reseller
Contract
Contract QC’d
QC’d
&
& Keyed
Keyed
Custom
Custom Card
Card
proof
proof emailed
emailed
Standard
Standard Cards
Cards
produced
produced within
within
48
hours
48 hours
Phone
Phone follow
follow
up
up on
on proof
proof
Custom
Custom Cards
Cards
produced
produced within
within
15
15 business
business days
days
Contract
Contract sent
sent
to
to billing
billing
All
All product
product
shipped
shipped
Valutec
Valutec calls
calls merchant
merchant
for
training
for training &
&
confirmation
confirmation that
that
setup
setup is
is complete
complete
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Valutec toll free sales support.
1-800-509-0625
9 AM to 5 PM Central time
Call us. Make the sale.
Never hold back on a gift card opportunity again.
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Introducing the Newest Members of the
Verix Family…
The Omni 3730 and 3730LE
Extending A Tradition of Excellence
Omni 3730LE
! The Single-App Terminal That’s Easy on Your
Budget
• Performance.
– Fast processing and high speed printer speed
customers thru check out
• Practicality.
– Small and easy to use
– Offers Credit, Debit and EBT for merchants that
need just that
– Economical and cost effective
• Provides the Best Value in the industry
for core payment types.
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Omni 3730
! Big on what matters - Small where it counts
• Performance.
– Fast processing and high speed printer speed
customers thru check out
• Practicality.
– Small and easy to use
– Offers Credit, Debit and EBT for merchants that
need just that
– Economical and cost effective
• Proven Family Name.
– VeriFone unsurpassed quality and reliability
– Industry-leading SoftPay software provides a flexible
and familiar environment
• Flexibility.
– 3730 offers enough memory to support up to two value-added
applications
! Omni 3730LE Version available provides the best Value in
industry for core payment types
NOW Fu
lly
Supporte
d Class
B+ by FD
MS
the Omaha!
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Omni 3730
Efficient processing with
a high speed thermal
printer move customers
quickly through the line
Small footprint saves
valuable counter space
Familiar ATM -style
interface and function
keys simplify training
VeriCentre file
compression and
high-speed dial
modem streamline
downloads
Hand-over design with
integrated PINpad
Large backlit display
and large keys are easy
to use in any lighting
conditions
Supports Credit,
Debit, EBT and up
to two Value-Added
Applications at an
economical price
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The Omni 3730 allows you to…
! Bundle Credit, Debit, EBT, SoftPay up to two of the following:
• Easy ID: Age Verification
– Perfect for liquor and convenient stores
• ECHO: Check Authorization and Conversion
– Perfect for independent grocers, liquor stores and beauty salons
• Valutec: Gift and Loyalty
– Perfect for beauty salons, restaurants and any small merchant
• AVS: Employment Pre-Screening
– Perfect for the QSR market and anywhere there is high employee turnover
• PRE Solutions: Prepaid
– Perfect for liquor and convenient stores
• Global eTelecom: Check Authorization and Conversion
– Perfect for independent grocers, liquor stores and beauty salons
• EZCheck: Check Authorization and Conversion
– Perfect for independent grocers, liquor stores and beauty salons
• E-Chex: Check Authorization and Conversion
– Perfect for independent grocers, liquor stores and beauty salons
Sell and Bundle, Make a Bundle!
*Value-added applications are not available on the Omni 3730LE
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The Omni 3740 and 3750
The flexibility you need…
the performance merchants want
The VeriFone Advantage: Omni 3750
! Omni 3750 offers the flexibility you need and
the performance merchants want
• Smart.
– Easy to use and easy to sell
– Easy to support
• Powerful.
– Protects your merchants’ investment
– Supports current and future payment needs
• Versatile.
– New markets, more revenue opportunities
• Reliable.
– A proven payment performer gives you peace of mind
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Omni 3750: Smart
Drop in paper loading for ease of use;
virtually eliminates paper jams
Familiar ATM style
interface and function
keys simplify training
Handover design with
integrated PINpad and
smart card reader meets
merchants needs today
and in the future
Hinged paper cover
won’t get lost;
prevents paper jams
Large backlit display
and large keys are easy
to use in any lighting
conditions
Small footprint and unique
design sells itself
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Omni 3750: Powerful
Fastest Dial Transactions–
end-to-end transactions in less
than 16 seconds – 20% faster
than closest competitor
Fast Downloading –
Full SoftPay application in
8 to 10 minutes
Fast Processor –
Powerful 32-bit processor for
the most demanding
applications
Smart Card Reader
For Future Proof Needs
Fast Printer –
Prints 12.5 lps
Fastest Ethernet
Transactions– end-to-end
transactions in 2-4 seconds
Plenty of memory for multiple
value added applications
(gift, loyalty, etc.) 4 meg
Triple Track Card Reader
For reading drivers licenses
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Omni 3750: Versatile
! Modules & peripheral support increased hardware
revenue per merchant
• Field upgradeable communication modules
• Custom faceplates for branding
• Peripherals: Check imagers, external PINpads,
check readers, bar code readers, etc.
! New value added applications brings new revenue
streams
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Check Processing
Gift/loyalty Cards
Prepaid Cards
Age Identification
Gift Card Solutions
! New verticals and new markets bring new revenue
opportunities
• Quick Service Restaurant
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Omni 3750: Reliable
! Most reliable product in VeriFone history
• Less than 1% failure rate
• Industry standard 3-5% failure
! Proven performance
• Over 1,000,000 Omni 3750’s installed in
52 countries
! Security and reliability
• The FIRST terminal manufacturer to have PED &
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3DES
VeriFone standard and extended warranties for
added piece of mind
One year warranty on printer mechanism
Optional 5 year Gold Warranty covers “out of
scope” repairs
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The Omni 3740
! Omni 3740 provides all the same functionality and
flexibility as the Omni 3750, but without a smart
card reader
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Powered by Verix
Verix is the Operating System in the 37xx terminal family using
Software and Hardware firewalls between the currently 30 Value Added
Applications that have been written for the 37xx terminals.
Verix Group ID Structure
GID 0 = Verix Operating
System
GID 1 = VMAC/Comm Server
GID 2 = SoftPay (credit cards)
GID 3 = Private Label
GID 4 = Age Verification
GID 5 = Gift Card
GID 6 = Check
GID 8 = Money Transfer
GID 9 = Atrana private label
GID 10 = Emerging Markets
GID 11 = Time and Attendance
GID 12 = Bill Payment
GID 13 = Not yet assigned
GID 14 = Reserved for VeriFone
GID 15 = Shared Libraries
GID 7 = Pre Paid
You can download one application or multiple applications at a time
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Why Sell Multi-App?
! Differentiates YOU and your Company
! Gives you many arms to wrap around your merchant
! Added transaction types (multi apps) mean added revenue and
improved profitability
! Helps you make YOUR numbers and YOUR Profits
Credit, Debit,
EBT, Retail,
Restaurant,
MO/TO
Gift Cards
Prepaid Cards
Merchant
Check guarantee
And ECA
Age Verification
Money Transfer,
Bill Payment
Pre-employment
screening
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Certified Value-add Partners
Check Services
Cross Check
Certegy
EZ-Check
E-Chex
Global E Telecom
SPS-Check
Age Verification
Easy ID
Legal Age
Gift Card
Valutec
SVS Gift
Neos
Tender Card
DataMark
ValuLink
OPT
SPS-Gift
Prepaid
Presolutions
Everything Prepaid
Debisys
Payspot
EWI
Insurance Benefits Verification
Insurance Benefit Spot Check
Money Transfer
Rapid Money
Retail Loss Prevention
The Return Exchange
Pre-Employment Screening
AVS
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Transactions Powered by SoftPay
!
“Softpay”, VeriFone’s credit/debit/EBT
/retail/restaurant/MO/TO application provides the credit
card payment engine for all Omni Verix terminals
! The single application framework that is flexible enough
to meet all merchant credit card payment needs
• Full payment capabilities for total solution
• Select options for merchant-specific differentiation,
• Extensive reporting for better business knowledge
• Standard release updates meet changing industry requirements
& features
• One user-interface across all processors
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The Power of SoftPay for Retailers
! Automatic settlement
•
Ensures merchants get best interchange rate
! Supports all special card types
•
Including purchasing, commercial, and business cards
! RetailTip processing is supported
•
Allows tips to be included in total transaction amount so
there are no interchange downgrades
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Supports account truncation
Supports Multi Merchant (15 to 20 on most hosts)
Allows Invoice # and Clerk # entry and tracking
Lets the merchant add a 3 line Footer of his choice
for couponing or promotions or return policy
! Allows Password Protection for many transaction
types such as Refund, Void, Settlement
*Many of these features can be turned on/off at the terminal level
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The Power of SoftPay for Restaurants
! Tip adjustment function
• Allows servers to enter tip amounts for all transactions consecutively
! Open/close bar tab option for restaurants with separate bars
• Allows tabs to be open and closed with different cards
! IRS tip report
• Tracks and calculates the percentage of tips for each server including
cash tips
! Server detail report
• Lists each transaction by server
! Supports all quick service restaurant requirements
! Supports account truncation
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Configurable Receipt Printing
! Supports two printing sizes
! Receipts optimized for
customer
& merchant
! Disable customer receipt for
telephone orders
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SoftPay Reports
Totals Report
Server Detail
Report
IRS Tip Report
Settlement Report
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More Revenue Opportunities
Debit and 3DES Upgrade
Add an external PINpad for a
customer-facing debit solution
UPDATED! VISA has mandated new regulations
including support of 3DES
And PED compliant POS PIN acceptance devices
(including replacement devices)
…or sell the benefit of a
simple, efficient hand-over
design.
Source: http://international.visa.com/fb/vendors/pin/main.jsp
The PINpad is built in for
maximum flexibility.
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More Revenue Opportunities
! The VeriFone CR1000i Check Reader/Imager
is Class A with Most Check Companies
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Range of Connectivity Options
in addition to
Dial only…
Broadband
Ethernet
Ethernet + Dial
Wi-Fi + Dial
ISDN
Fixed Wireless
CDMA + Dial
GPRS + Dial
Class A with Global and Paymentech
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What is a Broadband Network?
!
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!
!
Broadband is an “always on” high speed connection
One or more IP devices communicating via IP
DSL and Cable are the two most common transports
A Modem is used to interface to the network
A router is used to “Network” 2 or more IP devices
Internet
Router
Modem
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Merchant Value Proposition
! IP Opens New Merchant POS Benefits
• “Cost Saving”
– Lower Cost Communications
– Share Access with Non-POS Devices
– Phone Line Replacement / Reduction
• “Speed of Service”
– 2-4 second transactions
– Eliminate need for offline floor limits
• “Enhanced Portability”
Host
POS
Shared
Access
Internet
Business
Web / Email
– Improved Coverage
– Lower Cost of Service
– Lower Initial Hardware Cost
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More Revenue Opportunities
Upgradeable Components
Field upgradeable Ethernet
module:
- Pay for what you want today,
add Ethernet later
- Public & private networks,
I.e. cable and DSL
Field upgradeable smart card
SAMs:
- Functioning smart card
reader – add SAMs in the field
when needed
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More VeriFone Advantages
More VeriFone Advantages for you
and your merchants
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QSR Market Overview
! Top 7 chains make-up 60%
of all locations
! Top 50 chains have over
117,000 locations
! Of the top 50 chains, 85%
are franchise locations
(these are your customers)
! Estimated only 25% of all
locations accept payments
today
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QSR Value Proposition For Merchant
! Electronic payments impact on speed
• QSR merchants’ number one focus is improving “throughput” due to
the fact that the kitchen is faster than the checkout process
• Taking electronic payments can increase “throughput” for the
merchant
! Increased revenue through higher ticket averages
• Recent Visa study information and merchant pilots supports claim that
card based purchases are 18% higher on average than cash
! Short term competitive advantage will be become a
long term necessity to meet customer needs
• Top QSR chains are all looking at corporate driven
programs to increase card acceptance
• Consumers now expect businesses to take cards
regardless of ticket size
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Quick Service Restaurant Example
Customer Activation
Outside
Phone Line
Cash Registers
High-Speed Dial Router
Phone Line
• Single Phone Line
Phone Line
Saves $190/Month
• 2-4 Second Response!
Customer Activation
Inside
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US Cost-Saving Example
! Wired Ethernet via Router– Example of QSR with 4 POS
With the addition of a DHCP
Router to the merchant’s DSL or
Cable line, the Merchant can add
multiple terminals to one
Ethernet line for even more
savings, And the best part is that
the terminal is Plug and Play!
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“Your Zone for everything VeriFone.”
Get into the Zone…. VeriFoneZone
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VeriFone Academy
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A Growing Portfolio of Solutions
…For Every Situation
New Low-End Offerings
Verix Family of Solutions
Supports Full Softpay Payment Features
Drop-in Paper Loading
Consistent ATM Style User Interface
Integrated PINpad
Processes Debit Payments
Processes Credit Payments
Processes Check Payments
Processes EBT Payments
Offers Multi-Merchant Capabilities
Supports Value Added Applications
"Future-Proof" Upgradeable Communications
SSL Secured IP Communications
Ethernet Port Option
"Wi-Fi" 802.11b Wireless Lan Option
Verizon Wireless CDMA Cellular IP Option
Sprint Wireless CDMA Celluar IP Option
AT&T Wireless GPRS Celluar IP Option
EMV 4.0 Smart Card Option
Omni 3750
Omni 3740
Omni 3730
Omni 3730LE
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Baseline
Industry Leading
VeriFone
Quality
Value Add
Services &
Communications
Over 600,000 Shipped
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Contact Information
Nancy Austin, Mgr of Sales Training
Office: 203-226-1323
Cell: 203-952-8538
Email: Nancy_A3@VeriFone.com
www.verifonezone.com
www.verifone.com
Thank You
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