The Future of Interchange

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Welcome!

Thank you for joining us.

Bryan Bauer is the President of Kahuna ATM

Solutions, a business development and service company

for ATM ISOs and distributors. Bryan currently serves on

the Board of Directors for the National ATM Council

(NAC), the ATMIA USA Board and ATMIA’s IAD

Committee.

David Tente is the U.S. Executive Director of the ATM

Industry Association (ATMIA). David has over 30 years of

experience in IT sales and business development and 13

years in the payments industry.

Our Presenters:

Current State of Interchange in the U.S.

Why is Interchange an Issue? – Network Rules and Variable

Surcharging

• Card Networks – Monopoly/Lack of Oversight

• Dodd-Frank/The Durbin Amendment

• Fluctuating Reductions to Appease Merchants

• 63.8% of IADs – Reduction of Interchange (3rd Annual IAD Survey)

• Card Networks Preventing Variable Surcharge

• Additional Requirements – EMV, PCI, ADA…

Current State of Interchange in the U.S.

Merchant Pressures Continue to Affect Interchange – What ATMIA is

Doing

• NAC Merchant/Network Class Action Settlement

• Merchant Agreement Still Prohibits Variable Surcharge

• Amicus Brief – Deployers NOT Part of Suit

Current State of Interchange in the U.S.

Steps IADs Can Take to Increase Profitability

Two Primary Revenue Buckets – Surcharge and Interchange

• Update Pricing Strategies

Interchange

Fees

Services

Steps IADs Can Take to Increase Profitability

• Increase the Surcharge

Steps IADs Can Take to Increase Profitability

• Increase Transaction Volume

Steps IADs Can Take to Increase Profitability

• Upselling

Steps IADs Can Take to Increase Profitability

• Outsourcing and Additional Services

Steps IADs Can Take to Increase Profitability

• Offset Interchange Losses

Steps IADs Can Take to Increase Profitability

• Agreements

The Future: Thoughts from the Industry

What ATMIA is doing about interchange in other markets

• South Africa – ATMIA Urges Careful Consideration

• Australia – Reserve Bank Allows Direct Charging

• ATMIA is taking legal action for U.S. and Europe

Questions. Comments. Concerns.

We will now take a few moments to address your questions.

Should we run out of time, please email further questions or

comments to:

info@kahunaatm.com

Thank you!

• Client Base of ISOs & IADs

• Focused on the Success of ISOs & IADs

• A Community of ISOs and IADs

• Over 20,000 ATMs

• Over 60 Million ATM Transactions Annually

• Dedicated to the Future Success of the ATM

Industry