On The Spot Setting the table for increased sales and profits at restaurants March 9, 2007 Steve McRae Sr. Dir. Managed Services What's “On The Spot?” • Payment where your customers want it: – TablePay • Every table throughout the restaurant (inside and outside) the payment solution comes to the customer Market Focus – Speed of Service, Security, Convenience and Cost Savings Market Leadership – CurbsidePay Selling into • Speed pickup service by brining payment to the car with the food new verticals – DeliveryPay • Same great features and functions in the restaurant are available now at the customers door • Total integration at the point of service Agenda • First Course: Market Opportunity Report – What’s driving the demand for the solution – Where to get the cream (market focus) • Second Course: The Right Market Fit Solution – What’s on the table and what’s in the background • Desert: Selling and Making Money – How to order prix fix meal or al la carte – What tools do we have to help you sell First Course: The Market Drivers for On The Spot Market size Type of restaurants to target Customer driving factors Hospitality Market Opportunity 900,000 Number of restaurant locations in the U.S. 47% Share of typical consumer food dollar spent in restaurants 75% Percentage of QSRs that franchised (versus corporate) 17% Share of family-and-casual dining restaurants that offer delivery 6% Share of fine-dining restaurants that offer delivery 64% Percentage of adults said they would use a delivery option if offered by their favorite restaurant ~30% Portion of restaurant owners planning on an increased technology budget in the next year *Source: NRA Restaurant Industry 2005 Forecast Target Market Example – US TablePAY TIER I 50,000 Locations Top 200 350,000+ Devices (7 per location) Chains (60+ Locations) Top 201 - 1000 140,000+ Devices II 20,000 Locations Chains (7 per location) (10 – 59 Locations) ~300,000 +/- Small Chains 1,500,000 + III Locations And Independents Devices (5 per location) (Fewer than 10 Locations) Sources: 2005 NRA, Chain store Age Merchants and Consumers Need: Advanced Card Security What's the threat What consumers say they want What merchants need to supply The Threat “Credit card fraud (28%) was the most common form of reported identity theft….” 2004 Federal Trade Commission “It’s safer to transmit your credit card over the Internet than to Identity Theft give it to a waiter at a restaurant or read it aloud over the phone.” Washington Post Unfortunately, stories like this are becoming more common. Consumers want to keep their cards in-sight at all times. Server Entrepreneurship Skimming is common knowledge among larger chains, and many independent restaurants Tip Adjustment with existing systems is inconvenient and ripe for fraud. Consumer Perceptions 60% of Consumers are concerned about card security in Table Service Restaurants* Concerns about Security of Transaction 5. Very Concerned 25% 58.4% 34% 25% 1. Not At All 9% Concerned 8% Current Process * A Study of Acceptance and Perceptions of a New Concept in Tableside Payment Technology at Casual Restaurants Moore & Symons, Inc. - 2006 Merchants and Consumers Want: Speed of Service Less trips to the till More table turns Saving time = saving money Core Benefits Consumers are conditioned to use quick payment solutions • QSR followed payment advances at: – Grocery / Drug / Wholesale clubs – Specialty Retail – Gas Stations / Convenience Stores • Enjoying faster and better service! • Control pace of payment - Full Service Restaurants - Advanced Payments Systems Benefit Operators and Guests Current Model – Efficiency? POS Station 1. Customer 2. Server walks to requests check POS Station, prints check 3. Server walks to table to drop check 4. Server walks to table 5. Server walks to to pick up card POS to process transaction 6. Server walks to the table with check 8. Server or manager adjusts 7. Customer calculates tips, ticket for tip adds up new total and amount leaves receipts for server to pick up Payments Evolution – The New Model Bringing payment to the point of With Wireless: service simplifies table service payment from 8 steps to… 1. Server prints the receipt as 3 it’s requested and provides payment device to the steps consumer 2. Customer performs transaction • User Interface is designed for intuitive operation by guests 3. Server returns to table to pick up signed receipt and payment device Finally, Solution for Car Side Payment “1 of 3 consumers have used curbside takeout.” – NRA, 2006 2 steps 1. Server brings food, check and terminal to car 2. Consumer swipes card and waits for receipt A Faster and Better Solution 76% feel a pay-at-the-table solution would be faster* Time Savings of the New Process 5. Great Time Savings Mean: 4.07 37% 39% 1. No Time 3% Savings 21% 1% * A Study of Acceptance and Perceptions of a New Concept in Tableside Payment Technology at Casual Restaurants Moore & Symons, Inc. - 2006 Merchants and Consumers Want: Convenience & Cost Savings DeliveryPAY means convenience You already know the ROI on debit DeliveryPAY: Makes Sense • 78% of US households use some form of food takeout or delivery* • Consumers tend to spend more if they can use their card • 64% of adults said they would use a delivery option if offered by their favorite restaurant* • Merchants take more orders instead of credit cards over the phone *Source: NRA PIN Debit is a visible ROI contributor Debit has become preferred worldwide, now including families in the U.S. Processor Transaction Fee MasterCard Credit $.90-.91 Visa Credit $.87-.88 MC/Visa Signature Debit $.68-.69 Interlink PIN Debit $.50 Pulse/NYCE/Star PIN Debit $.41-.43 Debit outpaced credit in number of transactions - 2.9 billion to 1.7 billion - Visa: Q1 2006 Results - 152.9B v. $152.4B, up 40% - Visa: Q2 2006 Results - MC Debit volume up 37% - MasterCard Q2 2006 Results PIN debit preferred by consumers, and growing faster than Signature debit - 38% to 18% - Mercator: 2005 figures PIN Debit benefit can be as great as $.25-.50 per transaction! Federal Reserve of Kansas City, Nov. 2005 U.S. Interchange Fee for a $50 transaction Demand for Using Debit Card 67% expect to be able to use their debit card at the table* Importance of Accepting Debit Cards 5. Very Important 44% 23% 22% 1. Not at All 8% Important 4% * A Study of Acceptance and Perceptions of a New Concept in Tableside Payment Technology at Casual Restaurants Moore & Symons, Inc. - 2006 Second Course: The Solution What’s on the table and what’s in the background On The Table: The Vx670 Hardware has exclusive features appropriate for the restaurant environment Moisture-resistant Bottom loading display & keypad printer Ergonomic handgrip Moisture-resistant design magnetic stripe enclosure (Patent Pending) Flexible Charging Base Station Drop and go Spare battery simplicity charging • Charging base station offers drop-and-go charging; no cords to attach or buttons to push • Deluxe base station charges the device and a spare battery, plus USB ports for connection to supported USB peripherals, and dial back up – Modular design accepts optional communication modules • Both base options offer desk or wall mount options On The Vx670 The ServPOS payment application is purposed-designed for consumer interactive environments enabling fast and secure payments at the point of purchase. VeriFone ServPOSTM software Server Welcom e Screen Configurable for Server restaurant Login workflow and user Enter experience Table/Ticket Customer preferences Enter Ticket(s ) / Confirm Amt Payment Split Pmt Add Tip Receipt Print End Of Txn ServPOS Functionality ServPOS App Admin / Reports App • Merchant Interface • Comms setup • Login • Terminal reports • Table / Ticket Input • Management Tools • Customer User Interface • Suggested Tip Option • Payment Confirmation What’s in the background Managed Services Bundles: Managed Services Portal VeriFone CONNECT Wireless Services VeriFone CONNECT Broadband Services Managed Services Bundles Standard GPRS GPRS Bundle GPRS SUPPORT PORTAL SERVICE SERVICES Standard WiFi WiFi Bundle WiFi Site Survey WiFi SUPPORT PORTAL A/P Installation HotSpot SERVICES Enterprise WiFi WiFi Bundle PORTAL WiFi Site Survey WiFi DSL SUPPORT A/P Installation HotSpot Broadband SERVICES Solution Bundle: Enterprise WiFi Professional in Store WiFi Site Survey and Network WiFi Site Survey Installation and Testing Installation WiFi WiFi A/P HotSpot Business Grade and Highly Secured WiFi Access Point and Router with Hot-Spot Option DSL Broadband PORTAL VeriFone Help Desk SUPPORT Toll Free 24x7 SERVICES Processing Hosts Turnkey package or ala carte Solution Bundle: Standard GPRS GPRS Multi-Carrier Wireless Service - Seamless roaming between multiple carriers including AT&T (Cingular), T- Mobile, Alltel, suntel, other regional carriers - One Single Account / One SIM chip GPRS SERVICE PORTAL VeriFone Help Desk SUPPORT Toll Free 24x7 SERVICES Processing Hosts The Managed Services Portal for OTS Management Features Search Txns PORTAL Open Tickets Tip Adjust Settlement • Search full transactionTickets Presents all for batch, or Quick report open tickets unadjusted for tip. Manually settle Open database • Various search filters Provides Invoice, Ticket, interface for tip Pre-configure auto-settle time Virtual terminal provides and Account • Information Email updates for settlement completion adjustment ON THE SPOT Managed Architecture • Payment consolidation & reporting aggregates PORTAL payment transactions from multiple devices for historical reporting purposes and ease of management. • Terminal mgmt features allow merchants/resellers to disable enable terminals and modify terminal receipts via portal interface • Automated settlement via the portal eliminates need to batch out each device at end of day. • PCI DSS Compliant portal extends security compliance to merchant since no transaction data is stored on the terminal. • Multi-processor support allows resellers to funnel transactions through most cost effective route without impact to solution. Details: Professional Site Survey and Installation Site Survey • Professional Site Survey and Network Installation Installation – Determine the best location for WiFi access point(s) for optimal coverage of area where Payment solution is going to be used. – Includes 100ft of inside wiring – Complete solution installation and testing – Customer acceptance required before installation can be marked completed • We are where you are – Over 2500 localized, professional installers – Primarily focus in Retail and Enterprise – Networking infrastructure and WiFi specialty • Bonded and insured Details: Payment Terminals WiFi • The Value of Worldwide Certifications – One of the most certified and adopted payment solutions worldwide • Certified by every major bank and processor in more than 100 countries – The VeriFone systems are the first card acceptance devices to achieve Interac chip card certification in Canada – Rolled out to many of the major US processors with Class A certifications – Over 500,000 shipped during first year of availability Details: Payment Terminals Compatibility Broadens Your Offering WiFi • Consistency across form factors offers complete line of solutions for all market segments and customer needs – Single function multi-application – Fixed transportable portable – Customer facing clerk facing • Platform-wide compatibility of devices, software and programs make selling, installing, supporting, and expanding simpler – Application porting done in hours, not months “Compatibility with the existing Omni 3700 family ensures a smooth migration path for merchants eager to take advantage of higher performance.” Thomas Konz, RBS Lynk Senior Vice President of Marketing Details: Payment Terminals Modular Connectivity and Mobility WiFi For Maximum Flexibility • Secure Enhanced Communications deliver a breadth of connectivity and mobility options for high-speed, IP-based authorizations • Modularity protects investments and makes upgrading and adopting new technology easier – Configure solutions to meet today’s needs and add additional capabilities at any time “We have a lot of small business merchants in very rural areas where wireless technology is not always a priority to the larger companies in charge of developing it. We have better coverage with the terminal than we do with our cell phones.” Nick Wood, Northeast Merchant Services Details: Payment Terminals Designed for Usage & Security WiFi • New usage scenarios and vertical markets require a new design approach • Innovative architecture for top performance – Industry leading ARM9 micro-processor – Advanced memory architecture – Proven multi-application – Dial, Ethernet, GPRS, CDMA, USB options • Security – PED/PCI PED approval – VeriShield file authentication – Advanced hardware tamper evidence, active detection and response – VeriFone Secure Scripts (VSS) – 128-bit SSL encryption Details: Access Point WiFi The Netopia Wi-Fi Access Point is the secure choice for A/P POS Key Access Point benefits include: Secure business-class router and Access Point proven in the Retail and Hospitality environments. 3D reach – Superior Wi-Fi coverage area offering double the power, 100mW (Miliwatts), over retail products IntraCell Blocking – Closes the security loopholes present in low- end wi-fi equipment VPN – Virtual Private Networks, Keeps sensitive business and POS data secure through use of VPN tunnels Stateful Firewall for added security Details: VeriFone CONNECT Hotspot Leverage the secure Netopia Wi-Fi Access Point to enable your own Hot Spot! WiFi • Complete Turnkey Solution HotSpot • Includes everything you need for your Hot Spot • Meter Hot Spot Access • Open or metered access, charge or issue access for free • Issue access to your Hot Spot through your VeriFone Terminal • Limit Access to 30 Min., 60 Min. or 24 hours • Customized Merchandising • Branding and control for merchants • Custom splash page available to greet your patrons • Advertise your specials • Family Friendly Surfing • Blocks access to non-family friendly websites while in your establishment Yet another way for you and your merchant to make more money! Details: Broadband Service • New Edge Networks is an award winning network DSL Broadband service provider of high speed, always-on networks for carriers and business customers. We design, provision, and manage single site DSL services, Internet access, and complex private networks. Our High Speed services are used for various applications including Internet Wi-Fi, ERP, Point of Sale (POS), payment processing, over voice over IP, video monitoring & training, financial xDSL services applications, and more. • New Edge is our partner in providing business grade national broadband service to your door. • Standard offering is business grade xDSL 1.5mb up and down stream where available. Alternative broadband available as needed. Details: Wireless Services • Greater Coverage GPRS SERVICE – One Subscriber Identity Module (SIM CHIP) using multiple carriers’ network towers for service means seamless roaming between carriers at the price of one networks service. – Take advantage of Cingular, T-Mobile and other (soon to include Suntel, Alltell, and ) native network GPRS coverage with one account and one point of service. – Use over 91% of available GPRS towers in the United States • More Robust Coverage – Where the networks overlap you have a great breadth of service – If one networks tower is busy your device will automatically switch to another networks tower • Best Diagnostic Tools Available – With real time connectivity reporting and session tracking our live, professional help desk staff can provide the best in diagnostics and problem resolution Details: Multi-Carrier Expanded Coverage ONE SIM MULTI-CARRIERS GPRS SERVICE Multi-Network Expanded Coverage 92% POP’s, 277M POP’s Details: Helpdesk and Training Services • Providing professional outsourced customer service for Fortune 100 SUPPORT enterprises SERVICES – Serving clients since 1987 equating to over 15 years specific experience with Point of Sale support – Preferred provider supporting over 10 million VeriFone devices and over 1000 enterprise clients in Financial, Retail, Government Healthcare, and Petroleum markets – Deploy over 200,000 + VeriFone systems annually – Field 700,000 + help desk calls annually – Over 200 employees dedicated to Client Services – Headquartered in Clearwater Florida, with locations in Louisville, KY and Lincoln, CA • Toll Free 24 hours a day by 365 days per year: 800-349-0851 • live professional support from experts trained in total value chain support • Trouble tick tracking with exceptional ticket closure rates. • Self Service Support and Authenticated Account Control - Coming Soon! Solution Bundles • Small – One or Two Vx670 GPRS – IP Charge – Monthly GPRS Services and Support • Standard – Three or More Vx670 WiFi with Buyer Protection – Netopia Access Point Configured with terminals – Professional Site Survey and Installation • Essentials – Three or More Vx670 WiFi with Buyer Protection • The Max – Three or More Vx670 WiFi with Buyer Protection – Netopia Access Point Configured with terminals – Professional Site Survey and Installation – Business Grade Broadband (aDSL, where available) Dessert: Selling and Making Money What tools are available to you How to get started today! Complete Restaurant Solutions • Complete solution offerings for all payment areas in a restaurant: Table, Counter, Delivery and Carside OTS Managed Flyer * Customizable with customer logo In-Restaurant Materials • The following tools were created to help customers better understand ON THE SPOT and how to use it Window Decal Folio Inserts Table Tents VMS Portal Co-branding Opportunities https://yourcompanyname.vmsportal.com Your Logo Here Logo and URL co-brand Demo Kits Vx 670 ON THE SPOT Managed Solution Demo Kit to include: – Vx 670 GPRS unit: includes 1 year FREE Wireless VeriFone Connect services – Charging Base – Extra Paper Roll – ON THE SPOT Managed Solution Flyers A $1,200 – VeriFone Connect Brochures Value!! – ON THE SPOT Restaurant Promo Materials Offered for • Window decal • Table tent only $499! • Folio insert – VeriFone Pen – Mag-Stripe Test Card – All in a convenient padded demo bag Business Model How we price it to you What the promotion Solution Pricing for GPRS Standard GPRS GPRS Bundle GPRS SUPPORT PORTAL SERVICE SERVICES $75.00 Setup $685.00 $35.00 Fee For every GPRS device you will have GPRS monthly service but you will only have 1 Managed $13.49 $17.99 services portal fee per merchant Monthly Monthly location Fee Fee (200 Trxns) $0.05 Trans Fee (Over 200 Txns) Solution Pricing for WiFi Enterprise WiFi WiFi Bundle PORTAL WiFi Site Survey WiFi DSL SUPPORT A/P Installation HotSpot Broadband SERVICES $75.00 Setup $585.00 $250.00 $699.00 $99.00 Fee $13.49 $75.00 $40.00 $99.00 $40.00 Monthly Config Monthly Monthly Monthly Fee Fee Fee Fee Fee (200 Trxns) optional optional $0.05 Trans Fee (Over 200 Txns) enterprise Managed Service Portal Pricing Terminal Gateway Bundles Discounts Overage Tier 3 Tier 2 Tier 1 List Per Service Fees Frequency Txns MSRP Price Txn (2-9) (10-99) (100+) Set-up Fee One-time N/A $100.00 $85.00 N/A $75.00 $70.00 $65.00 Bundles Terminal Gateway Bundle 1 Monthly 0 $12.99 $10.99 $0.05 $9.99 $9.34 $8.79 Terminal Gateway Bundle 2 Monthly 200 $17.99 $14.99 $0.05 $13.49 $12.74 $11.99 Terminal Gateway Bundle 3 Monthly 500 $27.99 $22.99 $0.03 $20.69 $19.54 $18.39 Terminal Gateway Bundle 4 Monthly 1000 $36.99 $30.99 $0.02 $27.89 $26.34 $24.79 Terminal Gateway Bundle 5 Monthly 2000 $48.99 $40.99 $0.02 $36.89 $34.84 $32.79 Terminal Gateway Bundle 6 Monthly 5000 $83.99 $70.99 $0.01 $63.89 $60.34 $56.79 Location Promotion • For every terminal sold into the following cities you will get a $50 discount on the price of the Vx670 • New York City • Boston • Miami LIMITED TIME • Los Angeles Good until 5/1/07 • San Francisco • Chicago • South: Atlanta, GA LIMITED QUANTITY • Orlando, FL 3,000 unit limit • Tampa, FL • Kansas City, KS • Maryville, TN Order Process Pre Order / Setup Process • Managed Service Reseller Agreement – Faxed to Portal Support Team – Team to setup reseller – Email sent to reseller contact (Username/Password) • Managed Services Reseller Portal – Setup Pricing – Setup Agents (Email generated) – Training and Admin Support by IP Charge Support Team:Alice and Grace • Additional Technical Solution Training – TSA Support • Additional Sales Support Training – Internal Sales Trainers Order Logistics • Follow IP Charge Merchant Boarding Process at Processor • Managed Service Portal Merchant Setup • VeriFoneCONNECT.COM Order Form – VFI SLS Rep enters order – Email to ISO/Reseller for Authorization – Login and Auth order – Order sent to SSR for entry to Oracle – Order to LCN for shipment – LCN Pick, Load, Test, Ship • Merchants Portal Terminal Setup – Terminal Setup – Receipt Setup Merchant Terminal Setup Logistics • Merchant Portal Setup – Merchant User Logins – License Agreement – Users Management – Terminal Management – Receipt Management – Reports Summary We are ready to support you in tapping this new market potential ! Contact your VeriFone Representative Today! Tell them Steve McRae Sent you for a setup fee waiver of $75.00 Get Signed Up! Get your Demo Kit! Get Selling! Watch your email for Special Promotion from now to ETA!!!!