Dear Insert Contact Name Here

Date

Merchant Name

Address Line 1

City, State, Zip

Dear [insert contact name here],

Thank you for considering Nationwide Payments as a business partner for your electronic payment processing needs. I appreciate the opportunity to present you a proposal of the services Nationwide Payments is able to offer.

After meeting with you last week I contacted Bob Williams for a few more clarifications. [insert merchant DBA name]’s present provider is Transfirst via Bangor Savings Bank. [Insert merchant DBA name here] currently utilizes the VerifoneJcharge software as an interface that sends your raw data to (Rita) now Payware Transact. Payware Transact transmits the data through the network TSYS and on to be processed at Transfirst. Bangor Savings Bank has contracted with Transfirst to handle their payment processing.

Nationwide Payments is a payment processing company that is privately owned and is not responsible to stock holders. Transfirst is a publicly traded company on Dow Jones.

Processing directly through Nationwide Payments will afford [insert merchant DBA name here] several advantages.

1. A significant cost reduction of approximately [insert annual savings here] per year.
2. As important changes occur in the payment processing industry [insert merchant DBA name here] will be positioned to take advantage of new information immediately instead of waiting for information to be filtered from processor to bank and finally to [insert merchant DBA name here].
3. Nationwide Payments is a Level 1 PCI/DSS Certified Direct Payment Processor and a registered Merchant Service Provider (MSP) and Third Party Processor (TPP) of Visa, MasterCard, Discover, and American Express.
4. Nationwide Payments handles all aspects of electronic payment processing from our corporate office in Scarborough, Maine. We do not outsource our customer support.
5. Nationwide Payments has developed our own in house customer management system, and has full control over all transaction and deposit data.

Industry Update______

The merchant services industry is experiencing unprecedented growth and sweeping changes. Visa and MasterCard have changed the rules on how to process Business-to-Business transactions. Commercial and Small Business Purchasing Cards have been introduced.Costs have risen excessively. Visa and MasterCard’s revenue has doubled in the last five years.

American Express has successfully won a $2.25 billion settlement against Visa and $1.8 billion settlement against MasterCard. The basis of the suit was collusion to fend off and restrain competition. American Express stands to receive the largest combined antitrust settlement in U.S. history.

Visa and MasterCard have changed their structure from associations to public corporations.

Costs______

The Card Associations (Visa, MasterCard, and Discover) impose a set of fees referred to as “Interchange Fees” that all merchants who accept credit cards must pay. Interchange is the fee charged for passing financial transactions back and forth between the parties involved (merchant, payment processor, bankcard companies, and issuing banks). Interchange fees vary based on a number of factors. Card type, the way the card information is provided, and the type of transaction all play a part in determining the interchange rate. All payment processors incur the exact same Interchange costs.

A cost plus pricing structure passes through exact interchange charges with a consistent markup for all card types. Your current pricing model with Transfirst is Cost Plus 49 basis points, or 0.49% above interchange costs. Nationwide Payments is prepared to offer [insert merchant DBA name here] a Cost Plus pricing structure that would result in a savings of approximately [insert monthly savings here] per month and [insert yearly savings here] per year. Quoted savings are based on activity from your April merchant statement.

[insert merchant DBA name here] is also paying a transaction network fee of 8 cents per transaction. This will remain the same. There will be no monthly service or annual fees.

Industry Changes______

An example of industry changes that would affect [insert merchant DBA name here] is Level II processing. You will notice specific Interchange descriptions on your merchant statement such as: Visa Bus CNP, Visa Corp CNP, Visa Purchasing CNP, and MC Commercial Data Rate 1. These categories are considered downgrades caused by missing data in the transaction. The missing data is a tax amount and invoice number. If this information were sent with the transaction all of the above listed card types would have processed at 2.14% and saved you an additional $1,409per month, and $16,000 + per year.

Nationwide Payments is working with Visa and MasterCard on a solution for tax exempt companies such as [insert merchant name here].

Company Data______

Nationwide Payments is a Maine based Merchant Service Provider (MSP) and authorized Third Party Processor (TPP) currently processing electronic payment transactions for merchants across the country. Nationwide Payments has also partnered with over 200 regional and national associations, banks, and business organizations offering co-branded services and solutions.

Our mission is to treat our merchants, Industry Sales Professionals, municipalities, and employees as true partners in our quest to become the standard of ethics in the processing industry. We are dedicated to building long-term relationships while providing cost-effective, efficient processing solutions customized to fit our business partners’ individual needs.

Nationwide Payments was recently written up in Maine’s Profiles of Success “Stories of Entrepreneurship & Ingenuity” (copy on page 27 of the attached Journal).

Thank you for considering Nationwide Payments as your electronic payment processing partner. I look forward to a long and productive relationship with [insert merchant DBA name here].

Sincerely,

Nationwide Payments

The quoted savings are not exact; they are based on a certain month’s activity and will vary depending on volume, qualifying charge types, etc.

Enterprise Business Park | 400 Technology Way | Scarborough, Maine 04074 | 877-290-1975 | getnationwide.com