A study that provides U.S. acquirers with a credible benchmark tool for comparing the

costs of merchant acquiring processing services and products at various volume bands.

The information in this report is based upon information we consider reliable, but its accuracy and completeness cannot be guaranteed. Confidential. For discussion purposes only. This Report, and all information, analysis and conclusions hereunder, is in all respects subject to and governed by the terms and provisions of the Engagement Agreement between The Strawhecker Group and the Client. © Copyright 2013. The Strawhecker Group. All Rights Reserved. TheStrawGroup.com / Info@TheStrawGroup.com / 402-964-2617

This industry leading study analyzes 64 front-end authorization portfolios and 54 back-end settlement contracts from both financial institutions and independent sales organizations.

Confidential. For discussion purposes only.

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Project Team & About TSG

The Strawhecker Group (TSG) is a management consulting company focused on the global electronic payments industry. TSG clients include merchant acquirers/ISOs, issuers, the card brands, technology and mobile companies, processors, major merchants, bank specialty lenders and private equity firms, as well as banks and financial institutions. The TSG team consists of proven industry leaders with extensive experience leading companies through explosive growth periods, mergers and acquisitions, technology-driven strategies, and data-driven decision making within the Payments Industry. TSG’s Service Groups Payments Strategy Payments Strategy encompasses the full spectrum of advisory services within the Payments Industry. The depth of these services is built on deep industry knowledge - the Partners and Associates of the firm have an average of over 20 years of industry experience. With clients from card issuers to merchant acquirers, TSG has the experience and expertise to provide real-time strategies. Transaction Advisory Whether buying or selling, seeking investment funding, or planning your company’s exit strategy, TSG’s experience can be critical to achieving success. TSG has performed more than 100 Payments Company Valuation and/or Business Assessments in the past three years - ranging in value from $1 million to $1 billion. TSG Metrics TSG Metrics, the strategic research and analysis division of TSG, provides the Payments Industry with highly focused research and industry-wide studies. TSG Metrics takes data, boils it down to information, transforms it to knowledge and presents it to provide wisdom to its client partners.

Report Author:

Mike Goding, Senior Associate

MGoding@TheStrawGroup.com/402-676-7617 (C)

Goding, a finance and management professional, advises clients of TSG on business and negotiation strategy, with a focus on processing agreement terms and pricing issues. Goding served in several senior management roles during his more than 20 years at First Data Corporation. Most recently he was the Vice President and General Manager of the Full Service Processing business unit within First Data Merchant Services. In his previous role at FDMS Goding provided financial support – including business case analytics, strategic planning, contract analysis and negotiation, and portfolio analysis – to a $400 million business unit.

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In early 2013, The Strawhecker Group surveyed the merchant acquiring industry to determine the prevailing line

item pricing rates for merchant processing. The objective of this unique Benchmark Study was to explore the cost

of key pricing elements throughout the U.S. merchant acquiring industry. The study included merchant acquirers

who use third-party providers for front-end authorization and back-end settlement services. The intent of this

study was to provide clients a credible reference source that would allow them to compare their costs for

processing products and services with those of other merchant acquirers.

Transaction volume data for each participant was collected to allow segregation of results into four broad volume

bands. In total, information was gathered from 64 front-end authorization portfolios and 54 back-end settlement

relationships, providing each volume band with ample data points. Participants included financial institutions and

independent sales organizations.

Each data contributor is being issued a mini-report that compares their own key line item costs for front-end

authorization and back-end settlement processing to those of their respective volume peers. With this

personalized information, study contributors will have an excellent benchmark tool to compare the

competitiveness of their current processing expenses versus those of their peers.

Study Objective The objective of the study is to provide acquirers with a credible benchmark tool for comparing the costs of

merchant acquiring processing services and products at various volume bands.

Study Methodology Acquirers were invited to participate in the study in February and March 2013; these responses were combined

with other recent processing cost data collected by TSG. This data was then compiled and analyzed by The

Strawhecker Group. Every attempt was made to ensure a comparative study. Given that multiple processors are

used by some participants, the data was reviewed qualitatively and for consistency.

Responses were distributed into representative “Volume Bands”. This was done in order to provide the most useful

data for all participants given that most processors price key elements of their services differently depending on

volume. The volume bands for both the front-end and back-end analyses are as follows:

Benchmark Objective

Volume Band Aggregate Monthly Trans (millions)

Small 4

Medium 12

Large 16

Jumbo 70

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Participant Demographics

Data from more than 50 acquiring organizations was used in the survey. These organizations had 64 different front-

end agreements and 54 back-end settlement agreements. (Some organizations provided front-end or back-end

information only.) Portfolio sizes ranged from more than 17 million to fewer than 100 thousand authorization or

settlement transactions per month. In total more than 100 million monthly authorization transactions were

represented in the study.

A varied group of processing solutions was represented in the survey including eleven different processors. The

chart that follows shows the distribution of data across the volume bands along with the aggregate monthly

transactions for each category.

Benchmark Objective

Notable Change to the 2013 Edition of the Benchmark Study

We have expanded the survey category ‘Annual “Per Merchant” Fees’ to include another sub-item to capture the

evolving trend of processors to charge an annual or monthly ‘Government Compliance Fee’. This fee is being

charged by some processors in response to system enhancements they have been forced to make to comply with

federal merchant-level reporting requirements.

For simplicity, we have annualized any processor fee charged on a monthly basis for Government Compliance, PCI

or similar new services. This fee category does not include the monthly fee traditionally charged by processors for

‘Merchant on File’.

Volume Band (monthly transactions)

Small 0 – 250,000

Medium 250,001 – 1,000,000

Large 1,000,001 – 3,000,000

Jumbo 3,000,001 +

Front-end Relationships 20 21 12 11

Back-end Relationships 18 18 11 7

Aggregate Monthly Trans

(in millions) 4 12 16 70

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1. Table headings are color-coded.

Front-end vs. Back-end Report Color Key

2. All prices are in U.S. dollars.

3. Line items with ‘Average’ cost only

• In those instances where we have only one data point for a line item within a volume band, we have

reported that data point as the ‘2013 Average’ with no data reported in the ‘2013 Low’ or the ‘2013

High’ fields. We did this on the premise that one data point, while not necessarily representative,

would still be of value as a reference point.

Benchmark Objective

Front-end Data Reports

Back-end Data Reports

Key to using the following tables:

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Executive Summary

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Competition for acquirer business leaves new players with lower costs than established ones

Conclusion

Executive Summary

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Front-end Authorization and Capture Services 2013

Average

2013

High

2013

Low

2011

Average

Front End Authorization and Capture (Cost per Unit)

Dial - Traditional Telecom

Dial - SSL

Non-dial (direct connection via IP, frame, VPN)

Debit Auth Fee (if separate from auth fees above)

Non-Bankcard Auths (e.g. Amex, Disc, etc.)

VAR Surcharge (e.g. Micros) per Auth and Capture

Address Service Verification - Electronic

Debit Gateway Fee per Transaction

Terminal Help Desk Support 24x7 ('per call' fee only)

Per call

Terminal Help Desk Support 24x7 ('per call' and 'monthly' fee combination)

Per call fee

Monthly Residency or per Merchant Fee

Terminal Help Desk Support-After Hours Only ('per call' fee only)

Per call

Terminal Help Desk Support-After Hours Only ('per call' and 'monthly' fee combination)

Per call fee

Monthly Residency or per Merchant Fee

Terminal Residency Fee (Monthly)

Internet Payment Gateway Services

Set up

Monthly

Transaction

Wireless

Set up

Monthly Access

Transaction

Closed Loop Gift Card Costs (cost per item)

Activation Fee

Transaction Fee

SECTION 1: Front-End Comparative Pricing Analysis

Table 1a: Front-end Line Item Costs – Small (fewer than 250,000 trans. per month)

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SECTION 1: Front-End Comparative Pricing Analysis

Table 1b: Front-end Line Item Costs – Medium (250,001 to 1,000,000 trans. per month)

Front-end Authorization and Capture Services

2013

Average

2013

High

2013

Low

2011

Average

Front End Authorization and Capture (Cost per Unit)

Dial - Traditional Telecom

Dial - SSL

Non-dial (direct connection via IP, frame, VPN)

Debit Auth Fee (if separate from auth fees above)

Non-Bankcard Auths (e.g. Amex, Disc, etc.)

VAR Surcharge (e.g. Micros) per Auth and Capture

Address Service Verification - Electronic

Debit Gateway Fee per Transaction

Terminal Help Desk Support 24x7 ('per call' fee only)

Per call

Terminal Help Desk Support 24x7 ('per call' and 'monthly' fee combination)

Per call fee

Monthly Residency or per Merchant Fee

Terminal Help Desk Support-After Hours Only ('per call' fee only)

Per call

Terminal Help Desk Support-After Hours Only ('per call' and 'monthly' fee combination)

Per call fee

Monthly Residency or per Merchant Fee

Terminal Residency Fee (Monthly)

Internet Payment Gateway Services

Set up

Monthly

Transaction

Wireless

Set up

Monthly Access

Transaction

Closed Loop Gift Card Costs (cost per item)

Activation Fee

Transaction Fee 0.065

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SECTION 1: Front-End Comparative Pricing Analysis

Table 1c: Front-end Line Item Costs – Large (1,000,001 to 3,000,000 trans. per month)

Front-end Authorization and Capture Services 2013

Average

2013

High

2013

Low

2011

Average

Front End Authorization and Capture (Cost per Unit)

Dial - Traditional Telecom

Dial - SSL

Non-dial (direct connection via IP, frame, VPN)

Debit Auth Fee (if separate from auth fees above)

Non-Bankcard Auths (e.g. Amex, Disc, etc.)

VAR Surcharge (e.g. Micros) per Auth and Capture

Address Service Verification - Electronic

Debit Gateway Fee per Transaction

Terminal Help Desk Support 24x7 ('per call' fee only)

Per call

Terminal Help Desk Support 24x7 ('per call' and 'monthly' fee combination)

Per call fee

Monthly Residency or per Merchant Fee

Terminal Help Desk Support-After Hours Only ('per call' fee only)

Per call

Terminal Help Desk Support-After Hours Only ('per call' and 'monthly' fee combination)

Per call fee

Monthly Residency or per Merchant Fee

Terminal Residency Fee (Monthly)

Internet Payment Gateway Services

Set up

Monthly

Transaction

Wireless

Set up

Monthly Access

Transaction

Closed Loop Gift Card Costs (cost per item)

Activation Fee

Transaction Fee

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SECTION 1: Front-End Comparative Pricing Analysis

Table 1d: Front-end Line Item Costs – Jumbo (3,000,001+ trans. per month)

Front-end Authorization and Capture Services 2013

Average

2013

High

2013

Low

2011

Average

Front End Authorization and Capture (Cost per Unit)

Dial - Traditional Telecom

Dial - SSL

Non-dial (direct connection via IP, frame, VPN)

Debit Auth Fee (if separate from auth fees above)

Non-Bankcard Auths (e.g. Amex, Disc, etc.)

VAR Surcharge (e.g. Micros) per Auth and Capture

Address Service Verification - Electronic

Debit Gateway Fee per Transaction

Terminal Help Desk Support 24x7 ('per call' fee only)

Per call

Terminal Help Desk Support 24x7 ('per call' and 'monthly' fee combination)

Per call fee

Monthly Residency or per Merchant Fee

Terminal Help Desk Support-After Hours Only ('per call' fee only)

Per call

Terminal Help Desk Support-After Hours Only ('per call' and 'monthly' fee combination)

Per call fee

Monthly Residency or per Merchant Fee

Terminal Residency Fee (Monthly)

Internet Payment Gateway Services

Set up

Monthly

Transaction

Wireless

Set up

Monthly Access

Transaction

Closed Loop Gift Card Costs (cost per item)

Activation Fee

Transaction Fee

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SECTION 1: Front-End Comparative Pricing Analysis

Front-end Line Item Cost Detail – Notes

Definitions

Authorization and capture:

Band Average Price Price Advantage

(vs. Small)

Small

Medium

Large

Jumbo

$0.000$0.010$0.020$0.030$0.040$0.050$0.060$0.070$0.080$0.090$0.100$0.110$0.120$0.130$0.140$0.150$0.160$0.170$0.180$0.190$0.200$0.210$0.220$0.230$0.240$0.250$0.260$0.270$0.280$0.290$0.300$0.310$0.320$0.330$0.340$0.350$0.360$0.370$0.380$0.390$0.400$0.410$0.420$0.430$0.440$0.450$0.460$0.470$0.480$0.490$0.500$0.510$0.520$0.530$0.540$0.550$0.560$0.570$0.580$0.590$0.600$0.610$0.620$0.630$0.640$0.650$0.660$0.670$0.680$0.690$0.700$0.710$0.720$0.730$0.740$0.750$0.760$0.770$0.780$0.790$0.800$0.810$0.820$0.830$0.840$0.850$0.860$0.870$0.880$0.890$0.900$0.910$0.920$0.930$0.940$0.950$0.960$0.970$0.980$0.990$1.000$1.010$1.020$1.030$1.040$1.050$1.060$1.070$1.080$1.090$1.100$1.110

Small Medium Large Jumbo

Traditional Dial Cost per Unit

2007 2009 2011 2013

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SECTION 1: Front-End Comparative Pricing Analysis

Band Average Price Price Advantage

(vs. Small)

Small

Medium

Large

Jumbo

AVS - Electronic – Terminal Help Desk Support –

Dial - SSL –

$0.000$0.010$0.020$0.030$0.040$0.050$0.060$0.070$0.080$0.090$0.100$0.110$0.120$0.130$0.140$0.150$0.160$0.170$0.180$0.190$0.200$0.210$0.220$0.230$0.240$0.250$0.260$0.270$0.280$0.290$0.300$0.310$0.320$0.330$0.340$0.350$0.360$0.370$0.380$0.390$0.400$0.410$0.420$0.430$0.440$0.450$0.460$0.470$0.480$0.490$0.500$0.510$0.520$0.530$0.540$0.550$0.560$0.570$0.580$0.590$0.600$0.610$0.620$0.630$0.640$0.650$0.660$0.670$0.680$0.690$0.700$0.710$0.720$0.730$0.740$0.750$0.760$0.770$0.780$0.790$0.800$0.810$0.820$0.830$0.840$0.850$0.860$0.870$0.880$0.890$0.900$0.910$0.920$0.930$0.940$0.950$0.960$0.970$0.980$0.990$1.000$1.010$1.020$1.030$1.040$1.050$1.060$1.070$1.080$1.090$1.100$1.110

Small Medium Large Jumbo

Dial – SSL Cost per Unit

2007 2009 2011 2013

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SECTION 1: Front-End Comparative Pricing Analysis

Internet Payment Gateway Services –

Wireless –

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SECTION 2: Authorization Cost Comparison by Volume Band

00.010.020.030.040.050.060.070.080.090.10.110.120.130.140.150.160.170.180.190.20.210.220.230.240.250.260.270.280.290.30.310.320.330.340.350.360.370.380.390.40.410.420.430.440.450.460.470.480.490.50.510.520.530.540.550.560.570.580.590.60.610.620.630.640.650.660.670.680.690.70.710.720.730.740.750.760.770.780.790.80.810.820.830.840.850.860.870.880.890.90.910.920.930.940.950.960.970.980.9911.011.021.031.041.051.061.071.081.091.11.11

Small Medium Large Jumbo

Authorization Costs

Dial - Traditional Telecom Dial - SSL

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SECTION 3: Back-End Settlement Comparative Pricing Analysis

Back-end/Settlement Line Item Cost by Volume Band

Table 3a: Back-end Line Item Costs – Small (fewer than 250,000 trans. per month)

Back-end Settlement Services

2013

Average

2013

High

2013

Low

2011

Average

Transaction Processing/Settlement Fee

Merchant On-File Fee (per merchant/month)

Merchant Statement (excluding postage)

Chargeback Processing

Full service

Auto debit (automated debit of C/B to merchant)

Retrieval Processing

Merchant Customer Services/Account Support ('per call' fee only)

Per Call Fee

Merchant Customer Services/Account Support ('per call' and 'monthly' fee combination)

Per Call Fee

Monthly Fee

Merchant Customer Services/Account Support ('monthly fee' only)

Monthly Fee

Merchant Online Workstation (per merchant/month) Cost per Unit

Annual 'Per Merchant' Fees

PCI

Government Compliance Fee

Other

BIN Sponsorship (price per transaction in $)

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SECTION 3: Back-End Settlement Comparative Pricing Analysis

Back-end/Settlement Line Item Cost by Volume Band

Table 3b: Back-end Line Item Costs – Medium (250,001 to 1,000,000 trans. per month)

Back-end Settlement Services

2013

Average

2013

High

2013

Low

2011

Average

Transaction Processing/Settlement Fee

Merchant On-File Fee (per merchant/month)

Merchant Statement (excluding postage)

Chargeback Processing

Full service

Auto debit (automated debit of C/B to merchant)

Retrieval Processing

Merchant Customer Services/Account Support ('per call' fee only)

Per Call Fee

Merchant Customer Services/Account Support ('per call' and 'monthly' fee combination)

Per Call Fee

Monthly Fee

Merchant Customer Services/Account Support ('monthly fee' only)

Monthly Fee

Merchant Online Workstation (per merchant/month) Cost per Unit

Annual 'Per Merchant' Fees

PCI

Government Compliance Fee

Other

BIN Sponsorship (price per transaction in $)

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SECTION 3: Back-End Settlement Comparative Pricing Analysis

Back-end/Settlement Line Item Cost by Volume Band

Table 3c: Back-end Line Item Costs – Large (1,000,001 to 3,000,000 trans. per month)

Back-end Settlement Services

2013

Average

2013

High

2013

Low

2011

Average

Transaction Processing/Settlement Fee

Merchant On-File Fee (per merchant/month)

Merchant Statement (excluding postage)

Chargeback Processing

Full service

Auto debit (automated debit of C/B to merchant)

Retrieval Processing

Merchant Customer Services/Account Support ('per call' fee only)

Per Call Fee

Merchant Customer Services/Account Support ('per call' and 'monthly' fee combination)

Per Call Fee

Monthly Fee

Merchant Customer Services/Account Support ('monthly fee' only)

Monthly Fee

Merchant Online Workstation (per merchant/month) Cost per Unit

Annual 'Per Merchant' Fees

PCI

Government Compliance Fee

Other

BIN Sponsorship (price per transaction in $)

18

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SECTION 3: Back-End Settlement Comparative Pricing Analysis

Back-end/Settlement Line Item Cost by Volume Band

Table 3d: Back-end Line Item Costs – Jumbo (3,000,001+ trans. per month)

Back-end Settlement Services

2013

Average

2013

High

2013

Low

2011

Average

Transaction Processing/Settlement Fee

Merchant On-File Fee (per merchant/month)

Merchant Statement (excluding postage)

Chargeback Processing

Full service

Auto debit (automated debit of C/B to merchant)

Retrieval Processing

Merchant Customer Services/Account Support ('per call' fee only)

Per Call Fee

Merchant Customer Services/Account Support ('per call' and 'monthly' fee combination)

Per Call Fee

Monthly Fee

Merchant Customer Services/Account Support ('monthly fee' only)

Monthly Fee

Merchant Online Workstation (per merchant/month) Cost per Unit

Annual 'Per Merchant' Fees

PCI

Government Compliance Fee

Other

BIN Sponsorship (price per transaction in $)

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Back-end Line Item Cost Detail – Notes

Transaction Processing –

Merchant On-File Fee –

Statement Fee –

Chargeback Processing - full service –

Band Average Cost

Small

Medium

Large

Jumbo

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SECTION 3: Back-End Settlement Comparative Pricing Analysis

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SECTION 3: Back-End Settlement Comparative Pricing Analysis

.

Retrieval Processing –

Customer Services/Account Support –

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SECTION 4: Transaction Settlement Cost Comparison Analysis

Transaction Settlement Cost Analysis

$0.000$0.010$0.020$0.030$0.040$0.050$0.060$0.070$0.080$0.090$0.100$0.110$0.120$0.130$0.140$0.150$0.160$0.170$0.180$0.190$0.200$0.210$0.220$0.230$0.240$0.250$0.260$0.270$0.280$0.290$0.300$0.310$0.320$0.330$0.340$0.350$0.360$0.370$0.380$0.390$0.400$0.410$0.420$0.430$0.440$0.450$0.460$0.470$0.480$0.490$0.500$0.510$0.520$0.530$0.540$0.550$0.560$0.570$0.580$0.590$0.600$0.610$0.620$0.630$0.640$0.650$0.660$0.670$0.680$0.690$0.700$0.710$0.720$0.730$0.740$0.750$0.760$0.770$0.780$0.790$0.800$0.810$0.820$0.830$0.840$0.850$0.860$0.870$0.880$0.890$0.900$0.910$0.920$0.930$0.940$0.950$0.960$0.970$0.980$0.990$1.000$1.010$1.020$1.030$1.040$1.050$1.060$1.070$1.080$1.090$1.100$1.110

Small Medium Large Jumbo

Transaction Processing Cost Changes

2007 2009 2011 2013

Band Price/Tran % Price Advantage (vs. Small)

Small

Medium

Large

Jumbo

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SECTION 4: Transaction Settlement Cost Comparison Analysis

4b. Range of Transaction Processing Costs by Band

$0.000$0.010$0.020$0.030$0.040$0.050$0.060$0.070$0.080$0.090$0.100$0.110$0.120$0.130$0.140$0.150$0.160$0.170$0.180$0.190$0.200$0.210$0.220$0.230$0.240$0.250$0.260$0.270$0.280$0.290$0.300$0.310$0.320$0.330$0.340$0.350$0.360$0.370$0.380$0.390$0.400$0.410$0.420$0.430$0.440$0.450$0.460$0.470$0.480$0.490$0.500$0.510$0.520$0.530$0.540$0.550$0.560$0.570$0.580$0.590$0.600$0.610$0.620$0.630$0.640$0.650$0.660$0.670$0.680$0.690$0.700$0.710$0.720$0.730$0.740$0.750$0.760$0.770$0.780$0.790$0.800$0.810$0.820$0.830$0.840$0.850$0.860$0.870$0.880$0.890$0.900$0.910$0.920$0.930$0.940$0.950$0.960$0.970$0.980$0.990$1.000$1.010$1.020$1.030$1.040$1.050$1.060$1.070$1.080$1.090$1.100$1.110

Small Medium Large Jumbo

Transaction Processing Cost by Band High Average Low

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SECTION 5: Trend of Avg. Prices – Dial Auth & Trans. Processing

00.010.020.030.040.050.060.070.080.090.10.110.120.130.140.150.160.170.180.190.20.210.220.230.240.250.260.270.280.290.30.310.320.330.340.350.360.370.380.390.40.410.420.430.440.450.460.470.480.490.50.510.520.530.540.550.560.570.580.590.60.610.620.630.640.650.660.670.680.690.70.710.720.730.740.750.760.770.780.790.80.810.820.830.840.850.860.870.880.890.90.910.920.930.940.950.960.970.980.991

2005 2007 2009 2011 2013

Pricing Averages from 2005 - 2013

Dial - Traditional Telecom Dial - SSL Transaction Processing

Average Dec 2005 Oct 2007 Aug 2009 Jul 2011 Mar 2013

Dial – Traditional

Telecom

Dial – SSL

Transaction Processing

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Confidential. For discussion purposes only.

© Copyright 2013. The Strawhecker Group. All Rights Reserved.

SECTION 6: BIN Sponsorship Fee Analysis

$0.000$0.010$0.020$0.030$0.040$0.050$0.060$0.070$0.080$0.090$0.100$0.110$0.120$0.130$0.140$0.150$0.160$0.170$0.180$0.190$0.200$0.210$0.220$0.230$0.240$0.250$0.260$0.270$0.280$0.290$0.300$0.310$0.320$0.330$0.340$0.350$0.360$0.370$0.380$0.390$0.400$0.410$0.420$0.430$0.440$0.450$0.460$0.470$0.480$0.490$0.500$0.510$0.520$0.530$0.540$0.550$0.560$0.570$0.580$0.590$0.600$0.610$0.620$0.630$0.640$0.650$0.660$0.670$0.680$0.690$0.700$0.710$0.720$0.730$0.740$0.750$0.760$0.770$0.780$0.790$0.800$0.810$0.820$0.830$0.840$0.850$0.860$0.870$0.880$0.890$0.900$0.910$0.920$0.930$0.940$0.950$0.960$0.970$0.980$0.990$1.000$1.010$1.020$1.030$1.040$1.050$1.060$1.070$1.080$1.090$1.100$1.110

Small Medium Large Jumbo

Sponsorship Cost by Band High Average Low

Volume

Band

2013 Average

Cost ($)

2013 Low

Cost ($)

2013 High

Cost ($)

2011 Average

Cost ($)

Small

Medium

Large

Jumbo

25

Redacted

Redacted

Redacted

Redacted

Redacted

Confidential. For discussion purposes only.

© Copyright 2013. The Strawhecker Group. All Rights Reserved.

About TSG

26

The Strawhecker Group (TSG) is a management consulting company focused on the electronic payments industry. TSG’s Service Groups Payments Strategy

Payments Strategy encompasses the full spectrum of advisory services within the Payments Industry. The depth of these services is

built on deep industry knowledge - the Partners and Associates of the firm have an average of over 20 years of industry experience.

With clients from card issuers to merchant acquirers, TSG has the experience and expertise to provide real-time strategies.

Transaction Advisory

Whether buying or selling, seeking investment funding, or planning your company’s exit strategy, TSG’s experience can be critical to

achieving success. TSG has performed more than 100 Payments Company Valuation and/or Business Assessments in the past three

years - ranging in value from $1 million to $1 billion.

TSG Metrics

TSG Metrics, the strategic research and analysis division of TSG, provides the Payments Industry with highly focused research and

industry-wide studies. TSG Metrics takes data, boils it down to information, transforms it to knowledge and presents it to provide

wisdom to its client partners.

TSG’s Unparalleled Experience

TSG consists of Industry leaders with extensive experience leading teams through explosive growth periods, mergers and

acquisitions, and international and domestic expansion within the Payments Industry. Both Partners and Associates of the firm have

held key senior management positions at leading industry companies including First Data / First Data International, Visa Inc.,

MasterCard, TSYS, Humboldt Merchant Services, WorldPay, Heartland Payment Systems, Cardservice International, iPayment,

Alliance Data, RapidAdvance, Accenture Consulting, Redwood Merchant Services, Chase Paymentech, as well as other leading

financial institutions and Payments companies. TSG’s Influence Shapes the Payments Industry Over the last three years, TSG has completed over 400 projects for more than 200 different clients including financial institutions, merchant acquirers, card issuers, card associations, technology providers, ISOs, processing companies and the investment community. Additionally, the firm and its Associates sit on several Industry committees whose focuses range from emerging product development to governmental regulation advisement. Other recent TSG reports and analysis include (Click for more information):

For more information, contact TSG at info@thestrawgroup.com Subscribe to TSG's NewsFilter * PaymentsPulse.com * Follow TSG on Twitter * Follow TSG on LinkedIn * TheStrawGroup.com

Should Merchant Acquirers

Beware of Square?

Cielo Acquisition of

Merchant e-Solutions

What Benefits Me By Paying a Credit Card

Swipe Fee

TSG Mobile Payments

Infographic

ETA/TSG Q1 2013 Economic Indicators

Report

Industry Studies Credit Card Order Form

TSG Invoice Payment Form Please Fax completed form to: 402-939-0093

Industry Study Name:_____________________________________________________________________________________

PO # (if applicable): ______________________________________________________________________________

Name (please print): ______________________________________________________________________________________ Company: ______________________________________________________________________________________________ Address: _______________________________________________________________________________________________ City:_____________________________________________ State: _____ Zip Code: __________ E-Mail: ________________________________________________ Phone:___________________ Price: ________________

AUTHORIZATION FOR CREDIT CARD

CARD HOLDER NAME__________________________________________________________________________________________________ VISA_____ MASTER CARD____ AMEX____ DISCOVER____ (CHECK ONE) CARD NUMBER_______________________________________________________________ EXP.________ V. CODE: Please email TSGMetrics@TheStrawGroup.com with V. Code CARD HOLDER ADDRESS ______________________________________________________________________ CITY___________________________________________________STATE_______ZIP CODE________________