Payment Gateway & Merchant Account 1.Sagedirect (merchant) submits card transaction on behalf of customer to payment gateway. 2.Payment gateway passes the transaction to the Sagedirect (merchant) account 3.Sagedirect (merchant) bank processor submits the transaction to the credit card interchange. 4.The credit card interchange routes the transaction to the customer’s credit card issuer. 5.The credit card issuer approves or declines the transaction. If approved, the funds are sent back through the credit card interchange. 6.The credit card interchange relays the transaction results to the Sagedirect (merchant) bank’s processor. 7.Sagedirect (merchant) bank’s processor relays the transaction results to payment gateway. 8.Payment gateway stores the transaction results and sends them to the customer and/or Sagedirect (merchant). 9.The credit card interchange passes the appropriate funds to the Sagedirect’s (merchant) bank. Payment Gateway & Merchant Account

Merchant Accounts:  Chase Paymentech (  Authorize.net (  E-online Data (  Website Payment Pro (  Merchant One ( Payment Gateways:  Authorize.net (  Verisign Payflow Pro (  LinkPoint (  Plug ‘n Play ( On average a gateway charges $100 set-up, $0.10 authorization fee and a $20.00 monthly fee. On average a merchant account charges a per transaction fee of $ $0.30, a general percentage rate of 2.19% % plus an additional percentage (0.70%) for all rewards cards. A Monthly statement fee of $10.00 and monthly processing fee of $25.00

Payment Gateway & Merchant Account Recommendation: Payment Gateway: Authorize.net  Industry Standard  Recommended by all top Merchant Accounts Merchant Account: Chase Paymentech  Authorize.net partner  Set-up fees waived  Authorization fees eliminated  Reduced monthly fee  Individual rates based on credit card type  Lower transaction fees

Payment Gateway & Merchant Account Recommendation (Fees): Payment Gateway: Authorize.net  Monthly fee $10.00  Waived - $99.00 set-up and $0.10 per authorization Merchant Account: Chase Paymentech  Authorization fee - $0.05 each  Credit card transaction fees = $0.10 each  Credit card rates  Visa % (rewards 1.90%)  Master Card %  Discover %  AmX %  Monthly statement fee - $7.50  Minimum monthly processing fee - $25.00 Transaction example: Purchase = $ Authorization fee = $0.05 Transaction fee =$0.10 Rate (Visa) =$1.85 Total =$98.00 (minus portion of monthly fees)

E-commerce Platforms IBM WebSphere ASP Dot Net Store Front Nexternal Volusion GoE Cart AmeriCommerce Home Depot Lowes Sears McDonalds Crocs Z gallerie Kodak PGA Tour Virgin Mobile Chicago tribune Obama ’08 Crutchfield Pez USA Today Hanes IRiver Uniden Alcoa Electrolux ShopSite

IBM WebSphere ASP Dot Net Store Front Nexternal Volusion Platform starts at $100k Requires their accounting, inventory and CRM software Software cost - $ Needs to be hosted, SSL Certificate Dedicated programmer Monthly Cost Not fully integrated with UPS Set-up fee - $1, % of monthly sales GoE Cart Software cost - $11,000.00/YR. Set-up Cost - $1, Intergrated with UPS but costs extra Shop Site Set-up fee - $ Monthly Cost - $ Small Business Orientated No Marketing capabilities AmeriCommerce Cost - $3,000/YR. Small Business Orientated No Marketing capabilities Extra cost for customer service E-commerce Platforms

Recommendation: Nexternal  Most Comprehensive offering  Software is easy and quick to get up and running NOW  Dedicated Customer Support  No contract  Built in marketing and promotional tools  Live stats and reporting  Builds customer database  marketing campaigns (opt-in)  Optimizing dynamic data for search engines (Google and yahoo)  Google analytics integration  Efficient order processing  Fully integrated with UPS/USPS  Built in shipping cost calculator  Calculates tax by price, tax status and state  Full tracking tools  Product and inventory management  Able to handle eaches, innercartons and cases  Inventory tracking  Business to Business (B2B) Module  Password protected entry  Product pricing by customer type  Product allocation by customer type  Captures PO numbers  Exempt sales tax  Free upgrades and seamless updates

E-commerce Platforms Nexternal Fees:  Set-up fee - $  Monthly fee based on monthly sales: Monthly Online SalesMonthly Cost $0 - $8,333$250 $8,333 - $50,0003% of sales * $50,000 - $100,0002% of sales * $100,000 - $500,0001% of sales * above $500,0000.5% of sales *

$322, $309, (thru 10 months) – projected $370, Currently sells 40 Sage products Sage CS rep 1-2 referrals each per day to HDIS Usually refer for Oral Care / Bath / Shield to Walgreens According to HDIS 42% of business comes from Sage CS referrals $370, x2 (markup) $740, /42% $310, HDIS

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