Transcription

Merchant PrepaidSystem

1. Merchant Prepaid Card SystemCashier CardDirect internetconnectionCard HolderMerchant POS forPayment & ReloadingInternetTCP/IPPrepaid HostCashier CardCard HolderTransaction uploadMerchant PCwww.acs.com.hk2

1.1 System Participants (example) Merchant’s Cashier Sells prepaid cardsAccepts prepaid card for paymentAccepts cash for top-upUpload transactions (automatically or manually)Card holder Buy prepaid card Top-up card using cash ACS Sells prepaid cards Sells Cashier Cards Provides backend host for audit and reports

1.2 System Components Prepaid Cards to sell to cardholdersCashier Card to control reloadingPoint-Of-Sales Terminals ACR88 eH880 Backend Host (hosted by ACS)

1.3 Operation - Enquiry Tap card POS terminal displays card balance and last transaction Up key displays previous transaction Down key displays next transcation

1.4 Operation - Payment Enter amount to be debitedTap card POS terminal displays balance before debit, debit amountand new balance after debit Display remains for 30 seconds or if a key is pressed or acard tapped

1.5 Operation - Reloading Cashier card must be inserted and PIN presentedEnter reloading amountTap card POS terminal displays balance before reloading, reloadingamount and new balance after reloading

1.5 Operation – Transaction Upload Done automatically if using eH880 POS terminalwith internet connectionDone manually if using ACR88 by connecting to a PCwith internet connectionTransaction upload is only required if the merchantwants the host to perform audit, generate reportsand perform card enquiry

1.6 Operation – Management PC with internet connectionGenerate reports on Cumulative value of prepaid card issued versus periodLiability versus periodExpired cards and expired amountCard transaction records

2. Business Case Merchant must be in a business whereby Customers required the goods or services quite often e.g. a leastonce per months upwards (otherwise customers may not beinterested in the prepaid card) The profit margin is reasonably good e.g. 25% upwards. Merchant is willing to give a discount as an incentive to useprepaid card (5% to 20% depending on profit margin) Prepaid / top-up amount must be at least 2 times(depending on the profit margin) the averagetransaction amount or around US 20 and above Money in advance Guaranteed business Un-used money

2. Business Case - Examples Food & beverage businessConvenience shopSuper-market or provision shopsTransport operatorIf you are a consumer and you need good or service atleast once a week, say average amount is 5, would likepay 50 in advance and enjoy a 10% discount ?If you are the merchant, would you pay 1.50 for the cardand collect 50 in advance of guaranteed business butgive a 10% discount as the incentive ?

2.1 Business Case - System Cost US 1.50 per card for customer card, minimum orderquantity 1,000.2% face-value of Cashier Card as transaction feeFree POS terminal, 1 per 1,000 cards ordered

Questions?

Merchant must be in a business whereby Customers required the goods or services quite often e.g. a least once per months upwards (otherwise customers may not be interested in the prepaid card) The profit margin is reasonably good e.g. 25% upwards. Merchant