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Table of Contents

Lead Story

Contactless still in the race

News

Industry Update

Governator terminates data protection bill

It's thumbs down for proposed illegal Internet gambling regs

Want fries with that MRI? Health care's looming retail environment

SoCal burns, payments industry responds

Web-based tools to help merchants tackle PCI compliance

WSAA's winning meeting

SCA explores the contactless, mobile realm

Use rapport to score with cash advance

Mike Evans
2nd Source Funding

Features

AgenTalkSM:
Craig Lesser

NCR drops Tidel ATM brand

Tracy Kitten
ATMmarketplace.com

Industry Leader

Adam Atlas –
Across the airwaves, into law

Views

Tomorrow has come for PEDs

Paul Rasori
VeriFone

Education

Street SmartsSM:
Surge with emerging markets

Dee Karawadra
Impact PaySystem

Changes afoot for signature debit

Ken Musante
Humboldt Merchant Services

B2B: Rich in opportunity

Aaron Bills
3Delta Systems Inc.

Widgets: Isn't this fun?

Joel and Rachael Rydbeck
Nubrek Inc.

Company Profile

eProcessing Network

New Products

New prescription for the PCI pain?

VoyenceControl PCI Advisor
Company: Voyence Inc.

Click-and-go reordering for MLSs

USA ePay Reseller Online Product Order Form
Company: USA ePay

Online gadget brings Zen order to scheduling

Todoist
Todoist.com

Inspiration

Not rich, wealthy

Miscellaneous

Contactless creeps like early dept: Is a sprint ahead?

POScript

Departments

Forum

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

November 12, 2007  •  Issue 07:11:01

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Forum

Basis point basics

I am an MLS trying to figure out what I am being paid. Can anyone show me how to figure out how basis points are determined?

Example: Auth. count, 10,117; Gross sales, $511,665.64; Income, $17,767.51; Expense, ($12,409.88); Profit $5,357.63; My profit, $2,678.65

Thanks,
Jayne Loomis
Bankcard Federated LLC

Jayne,

We referred your question to Jerry M. Julien, Executive Vice President of Equity Commerce LP. He is on our advisory board and graciously provided the following response:

"Basis points are actually very easy to calculate, so long as you remember 100 basis points equal 1%. The gross sales figure is always the denominator in determining basis point profitability. The denominator is the number on the bottom of any fraction. For example, in 1/2 (or one-half) the denominator is 2. OK, math review lesson is over. In your example, we can calculate basis points for each entry:

"You can calculate your revenue share split by dividing net profit by gross profit: 2,678.65/5,357.63 = 0.50 or 50% gross profit share."

Editor

MasterCard's latest rates

How can I get a copy of the October interchange rates? Under Resources, your site shows "latest rates" for June.

David Laporte
eServe Transaction Co.

David,

MasterCard Worldwide updated its commercial interchange programs and rates on Oct. 12, 2007; Visa Inc., however, did not. MasterCard's October rate changes are now available in PDF format on our Web site, http://www.greensheet.com/pdf/MC_interchange_1007.pdf . Links to the interchange rates that took effect in April and June 2007 are also under the Card Association Interchange Rates header on our Resources page.

Additionally, Visa and MasterCard post current interchange rates and programs at http://usa.visa.com/merchants/operations/interchange_rates.html and www.mastercard.com/us/merchant/how_works/interchange_rates.html, respectively.

Editor

Correction

In "Mastering the interchange game," by Ken Musante, issue 07:10:01, published Oct. 8, 2007, an editorial mistake altered the author's meaning in the third-from-last paragraph on page 94. The text should read: Additionally, such a transaction is already downgrading to nonqualified, so unless HMS increases fees to card not present merchants, the company will experience a basis point deterioration on 4% of volume. The Green Sheet regrets the error.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | USAePay | Super G Capital LLC | Humboldt Merchant Services | Impact Paysystems | Electronic Merchant Systems