Creating the Merchant Value Proposition for Electronic Payments October 17, 2012

2012 Ceridian Corporation. All rights reserved. Agenda  Market Background  Electronic Payments Overview  Case Studies  Merchant Value Proposition Defined  Enrollment Best Practices 2

2012 Ceridian Corporation. All rights reserved. Market Background 3 Source: Aberdeen Group, E-Payables Solution Selection Guide “Manual, paper-based accounts payable departments are eroding the bottom line of large and mid-market enterprises by an order of millions of dollars each year….and the stage is set for a major financial makeover.” Today’s Payment Landscape

2012 Ceridian Corporation. All rights reserved. Market Background 4 74% B2B payments made with paper checks $38B Total transaction cost savings Source: 2010 Purchasing Card Benchmark Survey, RPMG; Association of Financial Professionals

2012 Ceridian Corporation. All rights reserved. Payment choices have continued to emerge, giving organizations more choices that deliver process efficiency improvements, revenue benefits and greater overall control T&E Purchasing Card Check/Wire/ACH Single-Use Accounts Advanced Technology Drives Evolution of Payments Existing Expanded Market Background

2012 Ceridian Corporation. All rights reserved. Market Background Payment Method Current Volume% Respondents Changed over Past Two Years % Respondents Expecting Change over Next Two Years Check50%- 41%- 71% EFT/ACH32%+ 58%+ 77% P-Card9%+ 27%+ 38% Wire Transfer9%+ 7%+ 2% 6 Source: Aberdeen Group, August 2011 Payment Methods – Past, Present and Future Payment Types by Volume, Recent and Planned Changes

2012 Ceridian Corporation. All rights reserved. Electronic Payments Overview Payment optimization is a framework for extracting permanent benefits from corporate accounts payable and procurement functions. 7 “Transforming the payment process has moved from a long-range goal to a short-term priority.” --Treasury executive The Goal: Streamline business processes, lower overall costs and contribute to incremental margin improvement

2012 Ceridian Corporation. All rights reserved. Electronic Payments Overview 8 Source: Aberdeen Group, May 2010

2012 Ceridian Corporation. All rights reserved. Electronic Payments Overview Percent of Respondents Lack of integration between electronic payments and account systems 38% Inability to send or receive automated remittance information with electronic payments 31% Shortage of IT resources for implementation27% Difficult to convince suppliers to accept electronic payments27% Check system works well26% No executive sponsorship20% 9 Source: Aberdeen Group, May 2010 Top Challenges that Impede Payments Optimization

2012 Ceridian Corporation. All rights reserved. 10 Electronic Payments Overview

2012 Ceridian Corporation. All rights reserved. Payment Optimization Framework 11

2012 Ceridian Corporation. All rights reserved. Electronic Card Payments Overview Alternative to check or ACH Unique, one-time use account number Specific payment and dollar amount 12

2012 Ceridian Corporation. All rights reserved. Simplified Remittance for Supplier Convenient, easy to accept and process Detailed information delivered via mail or Settlement instructions communicated Flexible network options Access to Comdata Business Network 13

2012 Ceridian Corporation. All rights reserved. Company AP Financial System 2. Response file Vendor 5. Transaction data 3. Payment information 4. Authorize and settle 6. Matched reconciliation Campaign Management 1. Payables disbursement file Processing Network 14 Electronic Card Process Overview

2012 Ceridian Corporation. All rights reserved. Case Study:  NYSE: CAB  2011 revenue $2.8B  34 retail stores 15 Leading specialty retailer and the world’s largest direct marketer of hunting, fishing, camping and related outdoor merchandise

2012 Ceridian Corporation. All rights reserved. Case Study: Process Transition from check to electronic payments Leverage another payment type to achieve savings Contribute to incremental margin improvement Utilize a variety of tools Executive sponsorship Employee orientation Systems integration Supplier strategy – direct and indirect 16 Overview > Virtual card payments for AP > Daily reconciliation > Suppliers enrolled > Implementation challenges > Payment improvements > $10M monthly program goal Results: $1.3M Annually

2012 Ceridian Corporation. All rights reserved. Case Study:  Migrate to virtual card  Reduce manual checks  Reconcile daily  Build supplier participation  Contribute monthly revenue 17 Average Cost Per Check$5.14 Number of Virtual Cards19,400 Average Transaction Size$4,600 Transaction Volume$90,478,044 Rebate$1,266,692 Check Elimination Savings$99,716 Total Annual Return$1,366,408 *Example only – rebate based upon billing and payment terms.

2012 Ceridian Corporation. All rights reserved. Value Proposition Buyer’s Perspective/ Supplier’s Perspective Moving to Electronic Payments Check to card, ACH, wire Payment terms (30, 45, 60, 90 days) Discounts (payment incentive) Remittance detail (information delivered) Systems integration (information reconciled) Considerations Treasury management strategy Supplier leverage Value equation 18

2012 Ceridian Corporation. All rights reserved. Overcoming Objections Listen to your suppliers Discuss payment options Leverage payment terms Include in contract negotiation Provide acquiring partners 19

2012 Ceridian Corporation. All rights reserved. Supplier Considerations Value of accelerated cash flow Card acceptance 1.5% to 3.0% Discount offered 2% net Simplified process AR reconciliation and internal processes Average receivable amount, ticket size, DSO Lower collection cost or bad debt reduction Pricing strategy 20

2012 Ceridian Corporation. All rights reserved. Enrollment Best Practices Secure executive sponsorship Communicate internally Target 100% of vendors Segment and profile vendor base Be consistent with your message Campaign continuously 21

2012 Ceridian Corporation. All rights reserved. Organizational Commitment 22 Moderate ~ to Full Engagement

2012 Ceridian Corporation. All rights reserved.Summary Focused efforts yield cost savings, margin improvement and streamlined processes Transition to electronic settlements and lower overall processing costs Maintain a balanced approach Continuous improvement requires effective change management 23

2012 Ceridian Corporation. All rights reserved. Questions? For more information, contact Bob Sneed at Comdata Corporation p