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01 TRA n .00 1,52 0.00
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877.517.4678 phone 250 Corporate Blvd. Suite L www.hostmerchantservices.com

888.535.7463 fax Newark, DE 19702
 TABLE OF CONTENTS
The Importance Of Analyzing Your Statement 3

The Anatomy Of Your Statement 4

Part 1 5
- Processor and Merchant Information

Part 2 6
- Transaction and Deposit Summary

Part 3 7
- Fee Breakdown

Part 4 10
- Summary and Announcements

Glossary 11
 WHY IT’S IMPORTANT
Reading and understanding your monthly merchant processing statements can be difficult or
confusing. The industry itself is filled with complicated figures and fees, strung together through
each transaction. There are buzzwords and specific language chosen by both federal laws and
the credit card associations themselves that don’t make it apparent what the statement contains.
Add to that morass a layout or design to the statement that is overbearing or text-heavy, and
many merchants find themselves lost or puzzled by what is presented to them each month.

Host Merchant Services is about bringing trust to the payment industry. We deliver personal
service with clarity. We believe that when you get your statement every month you should un-
derstand every item and it should match what you were promised in the sales process.
Being able to read and understand your merchant account processing statement is crucial to
maintaining the best merchant account for your business -- and Host Merchant Services is here
to provide that insight.

This special report explains how to correctly read and understand your merchant
processing statements.

HMS Statement Generic Statement

Page 1 of 2

Processing Month: 09-12 3195

MERCHANT PROCESSING CENTER
SUITE 100 Association Number: 095523
12202 AIRPORT WAY
BROOMFIELD CO 80021 Merchant Number: 5436-8455-5564-0969
MERCHANT SUPPORT (800) 254-7171
Routing Number: xxxxx0089
Deposit Account Number: xxxxxx9787

302 PROPERTIES LLC

Amount Deducted:
STE L
$ 39.21
250 CORPORATE BLVD
NEWARK DE 19702-3329

Plan Summary
Plan Number of Amount of Number of Amount of Net Average Disc Disc Discount
Code Sales Sales Credits Credits Sales Ticket P/I % Due
VS 10 5,392.97 00 .00 5,392.97 539.30 .000 .050 2.70
MC 01 212.97 00 .00 212.97 212.97 .000 .050 .11
DS 00 .00 00 .00 .00 .00 .000 .000 .00
** 11 5,605.94 00 .00 5,605.94 509.63 2.81

Deposits
Reference Tran Plan Number of Amount of Amount of Discount Net
Day Number Code Code Sales Sales Credits Paid Deposit
05 01210051017 D T 02 900.00 .00 .00 900.00
06 01210061017 D T 01 1,050.00 .00 .00 1,050.00
07 01210071020 D T 03 1,521.43 .00 .00 1,521.43
10 01210081016 D T 01 1,200.00 .00 .00 1,200.00
13 01210131016 D T 01 121.54 .00 .00 121.54
19 01210191016 D T 01 400.00 .00 .00 400.00
24 01210221016 D T 01 212.97 .00 .00 212.97
25 01210251016 D T 01 200.00 .00 .00 200.00
Deposit Totals 11 5,605.94 .00 .00 5,605.94

Fees
Number Amount Description Total
TRANSACTION CENTRAL PLUS MONTHLY FEE 10.00
ACCOUNT ON FILE FEE 5.00
VISA ACQUIRER NETWORK FEE (FANF)-AUG 2.00
13 VISA ASSOC APF FEE .25
01 121.54 VISA CPS REWARDS 2 @ 1.95% + $.10 2.47
09 5,271.43 VISA US REG @ .05% + $.22 4.62
02 771.43 VISA DEBIT INTEGRITY FEE .20
01 212.97 MC ASSOC NABU/LICENSE FEE .02
01 212.97 MC MERIT I DB @ 1.64% + $.16 3.65
14 TRANSACTION/NETWORK ACCESS FEE .70
01 212.97 MC ASSESSMENTS .23
5,392.97 VISA ASSESSMENTS 5.93
11 5,605.94 V/MC/DS KILOBYTE/BASEII FEES 1.33
Total Fees Due 36.40

Discount Due 2.81

Fees Due 36.40
Amount Deducted 39.21

PLAN CODES TRANSACTION CODES

VS -VISA MC -MASTERCARD DS -DISCOVER JC -JCB T -ALL PLANS D -DEPOSIT
VL -VISA LARGE TICKET ML -MASTERCARD LARGE TICKET DD -DISCOVER DEBIT AM -AMERICAN EXPRESS 1 -PLAN ONE C -CHARGEBACK
VD -VISA DEBIT MD -MASTERCARD DEBIT DZ -DISCOVER BUSINESS DB -DEBIT 2 -PLAN TW O A -ADJUSTMENT
VB -VISA BUSINESS MB -MASTERCARD BUSINESS DJ -DISCOVER JCB EC -ELECTRONIC CHECK 3 -PLAN THREE B -CHARGEBACK REVERSAL
V$ -VISA CASH ADVANCE M$ -MASTERCARD CASH ADVANCE D$ -DISCOVER CASH ADV EB -EBT

Please Note: While this information specifically illustrates the Host Merchant Services
statement, keep in mind that much of what is shown here will clarify the statements of other
processors as well. Each provider may have a slightly different layout to their statements, but all
statements follow the same general guidelines. Some providers offer more detailed statements
than others. The more detailed a statement is, the easier it will be to read and decipher.
 THE ANATOMY OF YOUR STATEMENT
To get a clear understanding of the individual elements on your Host Merchant Services
Monthly Merchant Statement, we are going to break it down into four separate parts:

PART ONE
Page 1 of 2

Processing Month: 09-12 3195

MERCHANT PROCESSING CENTER
SUITE 100 Association Number: 095523 This is the top section of your
12202 AIRPORT WAY
BROOMFIELD CO 80021
MERCHANT SUPPORT (800) 254-7171
Merchant Number: 5436-8455-5574-0041 statement, containing contact
Routing Number: xxxxx0102 information, account numbers and
Deposit Account Number: xxxxx2942
the time period reflected in the
statement’s transaction data.
SPATULA CITY
Amount Deducted:
1313 MOCKINGBIRD LN
$ 512.07
TWIN OAKS NY 10304-5106

Plan Summary
Plan Number of Amount of Number of Amount of Net Average Disc Disc Discount
Code Sales Sales Credits Credits Sales Ticket P/I % Due

PART TWO
VS 600 16,529.65 00 .00 16,529.65 27.55 .000 .250 41.38
MC 109 2,640.94 00 .00 2,640.94 24.23 .000 .250 6.62
DS 11 2,186.95 00 .00 2,186.95 198.81 .000 .250 5.47
** 720 21,357.54 00 .00 21,357.54 29.66 53.47
This part of your statement
Deposits summarizes the transactions
processed on your account and
Reference Tran Plan Number of Amount of Amount of Discount Net
Day Number Code Code Sales Sales Credits Paid Deposit
03 90001357015 D T 42 1,267.80 .00 .00 1,267.80
03
03
90001367082
90001377129
D
D
T
T
21
22
651.40
652.35
.00
.00
.00
.00
651.40
652.35
details exactly what the deposits
05
06
90001387169
90001397210
D
D
T
T
14
23
332.25
661.50
.00
.00
.00
.00
332.25
661.50 were to that account.
07 90001407261 D T 24 596.95 .00 .00 596.95
10 90001417330 D T 40 1,046.20 .00 .00 1,046.20
28 90001060255 D T 29 749.40 .00 .00 749.40
Deposit Totals 720 21,357.54 .00 .00 21,357.54

Number Amount Description

ACCOUNT ON FILE FEE
Fees
Total
10.00
PART THREE
VISA ACQUIRER NETWORK FEE (FANF)-AUG 2.00
613
09
VISA ASSOC APF FEE
VISA MISUSE OF AUTHORIZATION SYSTEM FEE
11.95
.41
This part of your statement,
33
07
352.26
257.45
VISA CPS/SML TKT DB @ 1.55% + $.04
VISA CPS/RESTRNT CR @ 1.54% + $.10
6.78
4.66
which tends to be the largest,
153 4,988.50 VISA CPS/RESTRNT DB @ 1.19% + $.10 74.66
details the fees charged for
Fees - continued
Number Amount Description Total processing transactions. Because
10 227.15 VISA CPS REWARDS 2 @ 1.95% + $.10 5.43
08
01
142.50
14.50
VISA SIG PREF ELEC TRVL @ 2.40% + $.10
VISA BUS ENH ELTRVL @ 2.75% + $.15
4.22
.55
Host Merchant Services uses
01
109
8.00
2,640.94
VISA SML TKT PP @ 1.60% + $.05
MC ASSESSMENTS
.18
2.91 Interchange “Plus” pricing, the
720
16,529.65
21,357.54
VISA ASSESSMENTS
V/MC/DS KILOBYTE/BASEII FEES
18.18
18.66 majority of the fees here are
Total Fees Due 458.60
Interchange pass-through fees
charged by the card associations.
Discount Due 53.47
Fees Due 458.60
Amount Deducted 512.07

VISA, MASTERCARD, AND DISCOVER ASSOCIATIONS HAVE ANNOUNCED MODIFICATIONS

TO THEIR CURRENT INTERCHANGE RATES AND HAVE INTRODUCED SEVERAL NEW
INTERCHANGE PROGRAMS. WE ARE VERY PLEASED TO ANNOUNCE NO INCREASE TO
PART FOUR
BASE DISCOUNT RATES. ASSOCIATION CARD PROGRAM CHANGES WILL BE INCLUDED
IN YOUR CURRENT RATES OR ADDED TO NON-QUALIFIED CATEGORIES AS APPLICABLE
EFFECTIVE OCTOBER 1ST, 2012. WE THANK YOU FOR YOUR BUSINESS AND WE WILL
The final part of your statement
CONTINUE TO WORK HARD TO MINIMIZE THE IMPACT OF THESE CHANGES TO YOUR
MERCHANT ACCOUNT.
summarizes the above parts’
VS -VISA MC -MASTERCARD
PLAN CODES
DS -DISCOVER JC -JCB T -ALL PLANS
TRANSACTION CODES
D -DEPOSIT
calculations, and also provides
the area for announcements
VL -VISA LARGE TICKET ML -MASTERCARD LARGE TICKET DD -DISCOVER DEBIT AM -AMERICAN EXPRESS 1 -PLAN ONE C -CHARGEBACK
VD -VISA DEBIT MD -MASTERCARD DEBIT DZ -DISCOVER BUSINESS DB -DEBIT 2 -PLAN TW O A -ADJUSTMENT
VB -VISA BUSINESS MB -MASTERCARD BUSINESS DJ -DISCOVER JCB EC -ELECTRONIC CHECK 3 -PLAN THREE B -CHARGEBACK REVERSAL

related to your account.

V$ -VISA CASH ADVANCE M$ -MASTERCARD CASH ADVANCE D$ -DISCOVER CASH ADV EB -EBT
 PART ONE OF YOUR STATEMENT
To get a clear understanding of the individual elements on your Host Merchant Services
Monthly Merchant Statement, we are going to break it down into four separate parts:

Page 1 of 2

1 Processing Month: 09-12 3195

MERCHANT PROCESSING CENTER
SUITE 100 Association Number: 095523
12202 AIRPORT WAY
BROOMFIELD CO 80021 2 Merchant Number: 5436-8455-5574-0041
MERCHANT SUPPORT (800) 254-7171
3 Routing Number: xxxxx0102
4 Deposit Account Number: xxxxx2942

6 SPATULA CITY Amount Deducted:

1313 MOCKINGBIRD LN 5
$ 512.07
TWIN OAKS NY 10304-5106

1 The month reflected in the statement.

2 Your Merchant Identification Number or MID. This is a unique number we use to identify your account.
Having this number handy when calling support can assist us in helping you quickly. It is also printed on a
sticker on the side of your terminal if you use a physical point of sale device.

3 The routing number associated with the bank account where we deposit your funds and deduct our fees.

4 The bank account number where we deposit your funds and deduct our fees.

5 The total amount of fees we charged for this billing statement. You can find out your Effective Rate by
dividing this number by your gross sales (which are found below in Part 2, Number 10).

6 The address where we mail your statements. With Host Merchant Services, this can be your legal address,
DBA address, or another address of your choosing.
 PART TWO OF YOUR STATEMENT
7 Plan Summary
Plan Number of Amount of Number of Amount of Net Average Disc Disc Discount
Code Sales Sales Credits Credits Sales Ticket P/I % Due
VS 600 16,529.65 00 .00 16,529.65 27.55 .000 .250 41.38
8 MC 109 2,640.94 00 .00 2,640.94 24.23 .000 .250 6.62
DS 11 2,186.95 00 .00 2,186.95 198.81 .000 .250 5.47
** 720 21,357.54 00 .00 21,357.54 29.66 15 53.47
9 10 11 12 13 14 16

Deposits
Reference Tran Plan Number of Amount of Amount of Discount Net
Day Number Code Code Sales Sales Credits Paid Deposit
03 90001357015 D T 42 1,267.80 .00 .00 1,267.80
03 90001367082 D T 21 651.40 .00 .00 651.40
03 90001377129 D T 22 652.35 .00 .00 652.35
05 90001387169 D T 14 332.25 .00 .00 332.25
17 06 90001397210 D T 23 661.50 .00 .00 661.50
07 90001407261 D T 24 596.95 .00 .00 596.95
10 90001417330 D T 40 1,046.20 .00 .00 1,046.20
28 90001060255 D T 29 749.40 .00 .00 749.40
Deposit Totals 720 21,357.54 .00 .00 21,357.54

7 This section summarizes the transactions processed on your account.

8 Plan code – break down of transaction volume by Visa (VS), MasterCard (MC), Discover (DS), pin-based
debit (DB), or EBT (EB). NOTE: American Express transactions are sent via separate statement.
9 Total number of transactions processed on your account, excluding American Express.
10 Gross sales volume for your account for this statement month, excluding American Express.
11 Total number of credits -- or refunds -- issued for this statement month.
12 Total credit -- or refund -- volume for this statement month.

13 Net sales volume for this statement month. This is calculated by Gross sales minus refunds.
14 Average ticket – the average size of your transactions for this statement month. This is calculated by
dividing total sales (#10 above) by number of transactions (#9 above).
15 Discount Percentage. This is our Host Merchant Services mark-up on your account. We price everything
as Interchange plus, meaning you pay a fixed rate over our cost. This discount rate is reflected here in basis
points.
16 The fees you pay to us based on our discount rate. We calculate this by multiplying the rate (#15 above) by
the total sales volume (#10 above).
17 This section is a summary of your daily deposits. Important data noted here includes the day of the batch,
number of transactions in that batch, total amount of sales, credits, and net total deposit. You will notice that
the “discount paid” column is always zero because we take your fees out monthly in arrears. We don’t charge
a Daily Discount like some other processors.
 PART THREE OF YOUR STATEMENT
18 Fees
Number Amount Description Total
19 ACCOUNT ON FILE FEE 10.00
20 VISA ACQUIRER NETWORK FEE (FANF)-AUG 2.00
613 21 VISA ASSOC APF FEE 11.95
09 VISA MISUSE OF AUTHORIZATION SYSTEM FEE .41
33 22 352.26 VISA CPS/SML TKT DB @ 1.55% + $.04 6.78
23 07 257.45 VISA CPS/RESTRNT CR @ 1.54% + $.10 4.66
153 4,988.50 VISA CPS/RESTRNT DB @ 1.19% + $.10 74.66
Fees - continued
Number Amount Description Total
10 227.15 VISA CPS REWARDS 2 @ 1.95% + $.10 5.43
08 142.50 VISA SIG PREF ELEC TRVL @ 2.40% + $.10 4.22
18 This section
01 details the 14.50
fees charged for processing
VISA BUS ENH ELTRVLtransactions.
@ 2.75% + $.15The majority of the fees in this section,.55
except as outlined
01 otherwise,
8.00 are Interchange
VISA SML TKT PP pass-through
@ 1.60% + $.05 fees charged by Visa, MasterCard, and Discover.
.18
76 852.30 VISA SMLTKT REG @ .05% + $.22 17.15
263 8,335.29 VISA US REG @ .05% + $.22 62.03
19 Account on 04 File Fee. This
145.00is a Host MerchantPPServices
VISA RESTRNT @ 1.15% fee.
+ $.15It includes your Monthly Statement fee and 2.27PCI
Compliance 05 Fee in a single
132.50lineVISA
item.DEBIT INTEGRITY FEE .50
03 169.75 VISA BUS CP DB @ 1.70% + $.10 3.19
01 22.60 VISA DOMESTIC SALES @ 2.70% + $.10 .71
20 29 Network898.10
Visa Acquirer VISA EIRF
Fee (FANF). [email protected]%
a fee+instituted
$.10 by Visa on April 1, 2012 as a response from23.56
Visa
01 7.50 VISA EIRF-US DB @ 1.75% + $.20 .33
to deal with
10the losses 108.75
the creditVISA
cardCPS/SML
company TKTwas set to+ incur
@ 1.65% $.04 through the Durbin Amendment’s hard2.19 cap
on debit swipe fees. FANF applies to the acceptance of all Visa-branded products and is based on both the
34 647.41 MC WRLD RESTRNT @ 1.73% + $.10 14.60
04 109.25 MC ELITERESTRNT @ 2.20% + $.10 2.80
size and the
23
number of605.75
merchantMC locations. Visa waived the FANF for eligible Charitable and Social Service
ENH MERIT3 @ 1.73% + $.10 12.78
Organizations
01 (MCC 8398). 20.00 To MC
findCOMM
moreTE1 details
MWBabout
@ 2.67%FANF, read the Host Merchant Services Guide to .53
FANF. 04 54.50 MC HV RESTRNT @ 2.20% + $.10 1.60
109 2,640.94 MC ASSOC NABU/LICENSE FEE 2.56
01 18.75 MC REG DB @ .05% + $.21 .22
21 21 583.95 MC REG DB FA @ .05% + $.22
Visa Network Acquirer Processing Fee. Visa introduced the Network Acquirer Processing Fee (APF) in July 4.91
13 329.33 MC MERIT III @ 1.58% + $.10 6.50
of 2009. This
03 fee is considered
158.00 to
MCbe Visa’s
MERIT version
III DB @ 1.05%of +the MasterCard NABU fee. In 2012, The Network
$.15 2.11
Acquirer Processing
05 Fee on Visa-branded
114.00 MC REST DBsignature
@ 1.19% +debit
$.10 was reduced – going from $0.0195 per authoriza- 1.86
08 338.20 DISC RESTAURANT RW @ 1.90% + $.10 7.23
tion to $0.0155
01
per authorization.
36.00
The fee for credit card authorizations however remained at the original
DISC RESTAURANT PR @ 2.20% + $.10 .89
$0.0195 per02 authorization.
1,812.75SinceDISC
revenue
COMMfrom ELECthe APF +fee
@ 2.30% goes directly to Visa, most processors assess
$.10 41.89the
28
fee to businesses at cost. BATCH CLOSE FEE 5.60
777 TRANSACTION/NETWORK ACCESS FEE 77.70
2,186.95 DISC ASSESSMENTS 2.30
22 109 of Authorization
Visa Misuse 2,640.94 System
MC ASSESSMENTS
Fee. On October 1, 2009, Visa introduced its Misused 2.91
16,529.65 VISA ASSESSMENTS 18.18
Authorization
720 Fee to21,357.54
the world. V/MC/DS
This feeKILOBYTE/BASEII
is assessed for FEES authorizations that are not either settled or reversed
18.66
within certain timeframes, and impacts merchants accepting Visa cards for Total theirFees
payment
Due processing.458.60
Visa
refers to these as “ghost authorizations.”

NOT PICTURED: Transaction Integrity Fee (TIF). This is a new fee instituted by Visa in April 2012. The
credit card giant introduced this new fee at the same time it introduced the Fixed Acquirer Network Fee
(FANF). The Transaction Integrity Fee is $0.10 and applies to U.S. domestic regulated and non-regulated
purchase transactions made with a Visa Debit card or Visa Prepaid card that fail or do not request Custom
Payment Service (CPS) qualification. The CPS rates are Visa’s best rates and apply to both regulated and
non-regulated transactions. The TIF is charged in addition to the applicable interchange fee and discount rate
– meaning that regulated debit transactions still receive the regulated interchange rate (0.05% + $0.22), but
are also subject to the TIF if they fail to qualify for a CPS program.
 Fees
Number Amount Description Total
ACCOUNT ON FILE FEE 10.00
VISA ACQUIRER NETWORK FEE (FANF)-AUG 2.00
613
09
33
07
PART THREE CONTINUED
352.26
257.45
VISA ASSOC APF FEE
VISA MISUSE OF AUTHORIZATION SYSTEM FEE
VISA CPS/SML TKT DB @ 1.55% + $.04
VISA CPS/RESTRNT CR @ 1.54% + $.10
11.95
.41
6.78
4.66
153 4,988.50 VISA CPS/RESTRNT DB @ 1.19% + $.10 74.66
Fees - continued
Number Amount Description Total
10 227.15 VISA CPS REWARDS 2 @ 1.95% + $.10 5.43
08 142.50 VISA SIG PREF ELEC TRVL @ 2.40% + $.10 4.22
01 14.50 VISA BUS ENH ELTRVL @ 2.75% + $.15 .55
01 8.00 VISA SML TKT PP @ 1.60% + $.05 .18
76 852.30 VISA SMLTKT REG @ .05% + $.22 17.15
263 8,335.29 VISA US REG @ .05% + $.22 62.03
23 04 145.00 VISA RESTRNT PP @ 1.15% + $.15 2.27
05 132.50 VISA DEBIT INTEGRITY FEE .50
03 169.75 VISA BUS CP DB @ 1.70% + $.10 3.19
01 22.60 VISA DOMESTIC SALES @ 2.70% + $.10 .71
29 898.10 VISA EIRF @ 2.30% + $.10 23.56
01 7.50 VISA EIRF-US DB @ 1.75% + $.20 .33
10 108.75 VISA CPS/SML TKT @ 1.65% + $.04 2.19
34 647.41 MC WRLD RESTRNT @ 1.73% + $.10 14.60
04 109.25 MC ELITERESTRNT @ 2.20% + $.10 2.80
23 605.75 MC ENH MERIT3 @ 1.73% + $.10 12.78
01 20.00 MC COMM TE1 MWB @ 2.67% .53
04 54.50 MC HV RESTRNT @ 2.20% + $.10 1.60
24 109 2,640.94 MC ASSOC NABU/LICENSE FEE 2.56
01 18.75 MC REG DB @ .05% + $.21 .22
21 583.95 MC REG DB FA @ .05% + $.22 4.91
13 329.33 MC MERIT III @ 1.58% + $.10 6.50
03 158.00 MC MERIT III DB @ 1.05% + $.15 2.11
05 114.00 MC REST DB @ 1.19% + $.10 1.86
08 338.20 DISC RESTAURANT RW @ 1.90% + $.10 7.23
01 36.00 DISC RESTAURANT PR @ 2.20% + $.10 .89
23 Visa Interchange
02 Categories
1,812.75 –DISC
At Host
COMM Merchant Services,
ELEC @ 2.30% + $.10we price everything as “Interchange Plus” 41.89
which is 28 BATCH This
also know as “Cost Plus”. CLOSE FEE details the “cost” side of the transaction for Visa cards
section 5.60
777 TRANSACTION/NETWORK ACCESS FEE 77.70
accepted. Some important
2,186.95 and frequently
DISC seen Interchange categories for card-present (swiped) merchants
ASSESSMENTS 2.30
include CPS/Retail (1.51% + 0.10), CPS/Restaurant (1.54% + 0.10), and US Reg Debit (0.05% + .22).
109 2,640.94 MC ASSESSMENTS 2.91US
16,529.65 VISA ASSESSMENTS 18.18
Regulated
720 Debit fees are charged
21,357.54 for many
V/MC/DS debit transactions
KILOBYTE/BASEII FEES under the rate relief provided by the Durbin
18.66
Amendment (link to Durbin article). However, some smaller banks are not regulated
Total Fees Due under this law and
458.60
therefore some cards from smaller issuers are charged at rates such as CPS/Restaurant Debit (1.19% +
0.10).

24 MasterCard Interchange Categories – These are Interchange pass-through fees from MasterCard. Although
MasterCard uses a slightly different schedule, these fees are similar overall to Visa Interchange.
 04 109.25 MC ELITERESTRNT @ 2.20% + $.10 2.80
23 605.75 MC ENH MERIT3 @ 1.73% + $.10 12.78
01 20.00 MC COMM TE1 MWB @ 2.67% .53
04 54.50 MC HV RESTRNT @ 2.20% + $.10 1.60
109 2,640.94 MC ASSOC NABU/LICENSE FEE 2.56
01
21
13
PART THREE CONTINUED
18.75
583.95
329.33
MC REG DB @ .05% + $.21
MC REG DB FA @ .05% + $.22
MC MERIT III @ 1.58% + $.10
.22
4.91
6.50
03 158.00 MC MERIT III DB @ 1.05% + $.15 2.11
05 114.00 MC REST DB @ 1.19% + $.10 1.86
08 338.20 DISC RESTAURANT RW @ 1.90% + $.10 7.23
25 01 36.00 DISC RESTAURANT PR @ 2.20% + $.10 .89
02 1,812.75 DISC COMM ELEC @ 2.30% + $.10 41.89
28 BATCH CLOSE FEE 5.60
26 777 TRANSACTION/NETWORK ACCESS FEE 77.70
27 28 2,186.95 DISC ASSESSMENTS 2.30
109 2,640.94 MC ASSESSMENTS 2.91
29 30 16,529.65 VISA ASSESSMENTS 18.18
720 21,357.54 V/MC/DS KILOBYTE/BASEII FEES 18.66
31 Total Fees Due 458.60

25 Discover Interchange Categories – these are Interchange pass-through fees from Discover. Although there
is some perception that Discover cards are more expensive to accept, you will find that the rates are very
similar to MasterCard and Visa. Most categories are within a few basis points (hundredths of a percentage
point) (link to bps article) of their Visa and MasterCard counterparts.

26 Batch Close Fee – a small fee from Host Merchant Services that is charged each time you settle the batch
on your terminal, point-of-sale, or virtual terminal. With some virtual terminals (TXP, TC, Authorize.net),
your batch will settle automatically each day.

27 Per Transaction Fee – this is the other component of your fee to Host Merchant Services. We generally
charge a discount percentage (item #15) and a transaction fee in addition to our cost. The transaction fee
portion of your charges is reflected here. The first column shows your total number of transactions on the
left side of the statement, which when multiplied by your transaction fee equals the number in the right
column. While the actual cost per transaction is not shown on the statement, you can easily compute it by
dividing the total charge on the right by the number of transactions on the left.

28 Discover Assessments – Discover charges an assessment of 0.105% on gross transaction volume

29 MasterCard Assessments - MasterCard charges an assessment of 0.11% on gross transaction volume on

transactions less than $1,000.

30 Visa Assessments - Visa charges an assessment of 0.11% on gross transaction volume.

31 Kilobyte/BaseII Fees – these are pass-through costs relating to miscellaneous fee items we are assessed
from the various networks. Some of the fees include: Visa Base I Auth, Visa Base II Clearing/Settlement
Fees – per file, File Transmission Fees, MCBS - Gateway Access Fees, MCBS – ISS Cross Border Net-
work License Fee, MCBS – ACQ Cross Border Network License Fee, Visa PANF Fees, and Association
Adj. Costs
 PART FOUR OF YOUR STATEMENT
Discount Due 53.47 32
Fees Due 458.60 33
Amount Deducted 512.07 34

VISA, MASTERCARD, AND DISCOVER ASSOCIATIONS HAVE ANNOUNCED MODIFICATIONS

35 TO THEIR CURRENT INTERCHANGE RATES AND HAVE INTRODUCED SEVERAL NEW
INTERCHANGE PROGRAMS. WE ARE VERY PLEASED TO ANNOUNCE NO INCREASE TO
BASE DISCOUNT RATES. ASSOCIATION CARD PROGRAM CHANGES WILL BE INCLUDED
IN YOUR CURRENT RATES OR ADDED TO NON-QUALIFIED CATEGORIES AS APPLICABLE
EFFECTIVE OCTOBER 1ST, 2012. WE THANK YOU FOR YOUR BUSINESS AND WE WILL
CONTINUE TO WORK HARD TO MINIMIZE THE IMPACT OF THESE CHANGES TO YOUR
MERCHANT ACCOUNT.

PLAN CODES TRANSACTION CODES

VS -VISA MC -MASTERCARD DS -DISCOVER JC -JCB T -ALL PLANS D -DEPOSIT
VL -VISA LARGE TICKET ML -MASTERCARD LARGE TICKET DD -DISCOVER DEBIT AM -AMERICAN EXPRESS 1 -PLAN ONE C -CHARGEBACK
VD -VISA DEBIT MD -MASTERCARD DEBIT DZ -DISCOVER BUSINESS DB -DEBIT 2 -PLAN TW O A -ADJUSTMENT
VB -VISA BUSINESS MB -MASTERCARD BUSINESS DJ -DISCOVER JCB EC -ELECTRONIC CHECK 3 -PLAN THREE B -CHARGEBACK REVERSAL
V$ -VISA CASH ADVANCE M$ -MASTERCARD CASH ADVANCE D$ -DISCOVER CASH ADV EB -EBT

32 Total discount due – the same number from #16 above.

33 Total fees from the section beginning with #18.

34 The total amount of all fees (from Host Merchant Services and all card associations) deducted from your
account. This number is the same as #6 above and is also the sum of #32 and #33.

35 Please review this section for important announcements related to your account each month.
 GLOSSARY
Key Card Processing Terms in Plain Language

Total Amount You Submitted – The total dollar amount of card transactions submitted and processed during the
Statement Period.

Third-Party Transactions – These are transactions that are passed directly to third party service providers for
processing and/or funding. Common third-parties include American Express® and Discover®.

Basis Points - A unit of measurement with a value equaling one one-hundredth of a percent

Chargebacks/Reversals – Those transactions that are challenged or disputed by a cardholder or card-issuing

bank. A Chargeback equals the transaction amount that is disputed by the cardholder or card-issuing bank. A
Reversal is the amount that was initially resolved against the merchant, but has subsequently been resolved in
favor of the merchant.

Adjustments – The amounts added to or deducted from your account to resolve processing and billing discrep-
ancies.

Fees Charged – Transaction-based and/or fixed amounts charged for specific card processing services.

Interchange Charges – These are the variable fees charged by card payment networks for processing transactions.
Factors that affect Interchange Charges include card type, information contained in the transaction, and how/
when the transaction was processed.

Total Amount Processed – The total amount processed is the dollar amount that Wells Fargo Merchant Services
deposits into your bank account for the statement period, net of third party transactions, adjustments, fees, and
chargebacks/reversals. Please note that some fees shown on this statement may not be deducted from your ac-
count until several business days after receipt of this statement.

Merchant Number – The unique account number assigned to every merchant and merchant location. You’ll find
it at the top of your statement.

Durbin Amendment - An addition to the Dodd-Frank Wall Street Reform and Consumer Protection Act of
2010. The reform drastically lowers swipe fees on debit cards issued by big banks.
 INTERCHANGE PLUS PRICING
Interchange fees are set by the credit card networks, and are the largest component of the various fees that most
merchants pay for the privilege of accepting credit cards. Visa, Mastercard, and Discover are each known as card
associations. And each card association has their own rate sheets known as Interchange Reimbursement Fees.
These fees make up the majority of what you pay to your processor and they vary greatly depending on the card
type accepted.

Interchange Plus pricing means that the acquirer charges you a variable merchant service charge (or MSC) con-
sisting of the cost price plus a fixed markup. Interchange Plus Pricing is exclusively how we quote at Host Mer-
chant Services. Interchange Plus, also known as Cost Plus, pricing gives the customer a fixed rate over published
Interchange Fees. This pricing format is normally quoted as a discount rate (percentage fee) along with a per
item or authorization fee. The great thing about Interchange Plus pricing is that you always know exactly what
you are paying to your processor for your merchant account with no hidden fees or surcharges.

Think of Interchange, and all the associated fees, as an unavoidable cost. No matter who you process with, you
have to pay these fees. They may be labeled differently, or wrapped up in a confusing pricing tier, but one way or
the other, you are paying Interchange fees. By understanding the markup you pay over Interchange, you know
exactly what you pay to your processor and exactly what is going to the card associations. That allows you to
make a decision on whether or not the markup seems reasonable for the service you get and choose your pro-
cessing partner accordingly.

A CLOSER LOOK AT INTERCHANGE PLUS PRICING

Interchange plus is the most transparent form of pricing for Merchant Account services.
The formula is simple, Merchant Services Providers add a flat markup rate to the
interchange fees that are listed by Visa and MasterCard.

INTERCHANGE MARKUP
Rates established by Visa and Rates established by the
MasterCard Merchant Services Provider

Here’s a quick rundown on how Interchange Plus quotes may sound from a potential
Merchant Services Provider:

A quote using Interchange Plus pricing will typically sound like: “interchange PLUS
0.25% PLUS $0.10.”
That’s why its called interchange plus. The PLUS part is the markup that the
processor is making on top of interchange. It will usually be less than 0.50% of your
volume and $0.30 per transaction. Anything more than that is probably too high.
What is being quoted is the markup. Average interchange rates are about 1.77%, but it
does vary depending on what kind of cards your customers use, your average ticket
size and the type of business you are. For example, the average rate for ecommerce
interchange rate is higher at around 2.06%.

And here’s how Interchange Plus saves a merchant money: