SBFW v2 Pricing Summary of FI and End User Pricing · 2009-08-31 · [2] Payroll Worksheet. Notes on pricing to end users • Client determines price to user and free trial length.

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SBFW v2 Pricing Summary of FI and End User Pricing

July, 2009

Intuit Confidential

Goal & Agenda

Provide clarity on Small Business FinanceWorks v2 pricing so that FIs are clear on their costs and the pricing decisions they need to make for selling to end users

– Reminder on SBFW v2.0

– Pricing overview• FI pricing• End user pricing

– End User Pricing worksheets

– FI pricing details and pivotal codes (this section is not included in the FI version)

Goal

Agenda1

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Small Business FinanceWorks v2.0 on Internet Banking

Generally Available Oct 2009

COMPONENTS:

Billing Manager (SSO) create, send, track invoices

Payroll (SSO - NEW) easily pay employees, payroll taxes, file tax forms

Merchant Service as an option within Billing Manager (for accepting credit cards)

MyCorporation (link) online assisted legal filing services

My Deposit scan checks using regular desktop scanner (SSO; sold/billed separately)

NEW FEATURES:• Single sign-on to Payroll• Updated home page with

marketing bursts• Navigator for easy access to

functions post sign up• Snapshot of business

expenses from PFW• Updated marketing pages

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Small Business FinanceWorks v2.1 on Business Banking

Generally Available TBD

FUNCTIONALITY: same as IB

Billing Manager (SSO)

Payroll (NEW - SSO)

Merchant Service (in BM)

MyCorporation (link)

My Deposit (SSO; sold separately)

NEW FEATURES:Same as v2.0 except no link

to FW Business expenses

DIFFERENCE:

BB vs. IB platform

Payroll will gets hero spot first

No business expenses

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SBFW v2 Pricing Summary

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One-time set up fee

Varies

Includes training

Usage fees with monthly minimums

Billing Manager [1]

A $4.95 per-user monthly fee “rolls up” to monthly minimum

Online Payroll [2]

A $21.95 per-user monthly fee for “rolls up” to minimum

Monthly minimums

FIs pay the greater of the minimum or the total per-user usage fees

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Revenue Sharing

Merchant Services [3]: N/A

My Corporation [4]: N/A

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Billed Separately

My Deposit [5]: separate set up, monthly minimum and billing

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N/A

Billing Manager [1]

$9.95 per month

1 month (30 day) Free Trial

Online Payroll [2]

$29.95 per month; unlimited

1 month (30 day) Free Trial

N/A

Merchant Services [3]

Plan 2

$10.95 monthly fee

2.9% discount rate

My Corporation [4]

N/A; pricing set by Intuit

My Deposit [5]

Bought separately from SBFW

$5 or 100% margin

$8 or 36% margin

$3.95 of monthly

30% of txn profit

15% of fee

FI pricing Recommended User Pricing

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Pricing Worksheets Context

In order to begin the installation of SBFW, a Financial Institution must decide on the price they are going to charge end users and then input that information into MyDI.

The next few pages are worksheets that contain information to help with the pricing decision and a place to record answers.

The worksheet can then be used as reference to fill out MyDI and speed SBFW implementation.

Structure:– Input fields– Recommendations– Summary competitive information to help with pricing decisions

(more detail in appendix)

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[1] Billing Manager Worksheet

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Notes on pricing to end users• Client determines price to user and free trial length. Client is billed per user fee regardless of free trial length. • Client is responsible for billing users: monthly usage file available in Management Console provides the data.• Client may impose a limit on number of invoices that can be paid each month: monthly usage file contains the data

Client can change pricing terms to users later at no additional cost by submitting a customer service ticket.

Record decisions:

Recommendation

Chase

BofA

Free trialInvoice limitMonthly fee

3 months

$9.95 / month(100% markup on $4.95)

1 month (30 day)Free trials increases signups

No limit

$10 / monthVery similar to BM

3 months20 invoicesThen $2 for each 5 more

$25 / monthMore robust: reports, ACH payments, multiple templates

25 invoices$0.25 each additional

Easy set up – import contacts from Outlook and add logo to invoices

Easily create invoices and print or email them; set up recurring invoices

Track invoices outstanding and send reminders

Get paid online with the optional merchant service option

Wells $9.95 / monthVery similar to BM

2 months25 invoices$0.50 each additional

FreshBooks $14 / monthBM plus time tracking

1 months (30 days)25 invoicesIncreases to $27/month

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[2] Payroll Worksheet

Notes on pricing to end users• Client determines price to user and free trial length. Client is billed per user fee regardless of free trial length. • Client is responsible for billing users: monthly usage file available in Management Console provides the data.• Client may impose a limit on number of employees that can be paid each month: monthly usage file contains the data

for client to enforce this limit. • Client can change pricing terms to users later at no additional cost by submitting a customer service ticket.

Record decisions:

Recommendation

Chase Premium

BofA Payroll Plus

Free trialEmployee limitMonthly fee

3 months

$29.95 / month(36% markup on $21.95)

1 month (30 day)Free trials increases signups

No limit

$36 / monthSimilar to OP plus 1099ees and QB exportBasic doesn’t include state payments and forms

3 months20 employeesthen $2 per ee

$30 / monthSimilar to OP plus can pay 1099ees; no QB exportBasic is just ACH payments

No limit

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Easy interview for set up

Create paychecks, pay taxes and submit forms for both federal government and state taxes

Free Direct Deposit and ePay included; Exports to QB

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[3] Merchant Services Worksheet

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Pricing Plan

Integrated into Billing Manager

Allows invoiced customers to pay online

Allows businesses to input credit card # to “Receive Payments”

Automatically reconciles payment with correct invoice

Record decisions:

SBFW QuickBooks Merchant Service Retail Price Plans

Set up fee

Monthly Fee Discount Rate

Per-Auth Fee Monthly minimum

Cancellation Fee

Plan 1 $0 $7.95 2.9% $0.30 None None

Plan 2 $0 $10.95 2.9% $0.30 None None

Plan 3 $0 $12.95 2.69% $0.30 None None

Competition Pricing

PayPal – Virt terminal $0 $30.00 3.1% $0.30 None None

First Data – Internet $0 $29.95 2.19% $0.25 $15 Not noted

QB CC processing kit $0 $14.95 2.69% $0.30 None None

Recommend

Note: pricing based on online or card-not-present discount rates. Card present rates are lower. Purchasing a terminal can be $200-500

Revenue Share to FIs:• FIs will earn 100% profit over the wholesale price of $7/user/month; Profit = $0.95, $3.95, or $5.95 /user/month • FIs will receive profit share of 30% after all transaction processing fees• FI will receive a revenue share check monthly, along with an accompanying report that provides the backup detail

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Alternative approach - bundling

• An alternative approach to pricing SBFW is to create a bundled pricing for Small Business FinanceWorks

• One Financial Institution has implemented a $12/month small business bundle that includes a checking account and access to SBFW which included Billing Manager (invoicing) for free [note: Payroll was not included for free]

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Cons:• Potentially confusing when customer

wants to sign up for payroll or uses merchant or incorporation services

Pros:• Positions you as robust provider

of small business solution• Initially simplifies pricing for end

users• Revenue regardless of Billing

Manager adoption

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Small Business FinanceWorks Setup Fee, Monthly Minimum and Per-User Fees

SBFW Setup Fee

Tier One Time Fee

1 $1,750

2 $2,250

3 $3,000

4 $4,000

5 $5,000

6 $6,500

7 $10,000

SBFW Monthly Minimum

Tier Monthly Minimum

1 $400

2 $500

3 $900

4 $1,800

5 $3,000

6 $5,500

7 $7,500

Monthly Per User Fees Counted Toward Minimum

Billing Manager

$4.95

Online Payroll

$21.95

Notes:

• Discount off 2nd service when buying SBFW on both IB & BB; 1st still full price

• 40% off setup• 40% of monthly mins year 1; • 25% of min year 2+

• My Deposit Sold Separately

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Small Business FinanceWorks and MyDeposit Pricing Structure and Product Codes

IB Codes BB Codes Name Type Notes

3305 3310 SBFW Setup Fee One-time • Varies by tier

3306 3311 SBFW Monthly Minimum

Monthly recurring minimum

• Varies by tier

3307 3312 SBFW Billing Manager Monthly Per User Fee

Monthly recurring

• $4.95 per user enrolled in Billing Manager • Rolls up to 3306, SBFW Monthly Minimum• Note that this price allows the FI “room” to mark up

3308 3313 SBFW Billing Manager Setup Fee

‘One-time’ ($0) • This is a “dummy” product code; no pricing associated with it. It is used to launch/manage implementations process.

3309 3314 SBFW MyCorporation ‘One-time’ ($0) • This is a “dummy” product code; no pricing associated with it. It is used to launch/manage implementations process.

3304 3315 SBFW Online Payroll Monthly recurring

• $21.95 per user enrolled in online payroll• Rolls up to 3306, SBFW monthly minimum• Note that this price allows the FI “room” to mark up

7275 7278 Certification SBFW Training

‘One-time’ ($0) • Included in product setup fee, so this is also a “dummy” product code, used for tracking in Learning & Development

1385, 1386, 1387, (1388, 1389 optional)

My Deposit Multiple • Pull separate quote from Pivotal for My Deposit• See slide 12 for My Deposit pricing info

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My Deposit pricing (Pivotal codes = 1385, 1386, 1387 required; 1388, 1389 optional)

Proposed FI Price Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Tier 6 Tier 7

Product Installation & Training (includes 1 Admin Login ID)

$7,000 $7,00 0

$7,50 0

$9,00 0

$10,0 00

$12,0 00

$13,5 00

Monthly Minimum per FI 600 750 900 1250 1800 2400 3600

Per Item Fee items (0 - 3,500) $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40

Per Item Fee items 3,501+ $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25

Additional EZ ADMN set up $75 $75 $75 $75 $75 $75 $75

Additional EZ Admin User per Mo. $50 $50 $50 $50 $50 $50 $50

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Appendix

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Details on Competitors to SBFW Invoicing

Competitor Pricing Invoice threshold

Introductory Offer Notes

Chase $25/mo$0.25 each over 25

25 First 3 months free More robust than Billing Manager; more reporting, more template types; multiple companies; ACH payment optionhttp://demo.chase.com/presents/preview/Payments_Transf ers-qp.html

Bank of America

$10/mo$2 for 5 after 20

20 First 3 months free Similar functionality to Billing ManagerCan get paid via online payments center (ACH)http://www.bankofamerica.com/small_business/online_ban king_and_services/index.cfm?template=express_invoicing

Wells $9.95/mo$0.50 after 25

25 First 2 months free (up to 25 invoices)

Similar to Billing ManagerPayments via ACH vs. Credit Cardhttps://www.wellsfargo.com/biz/receivables/invoicing/

FreshBooks $0 for 3 per month$14/mo for 3-25$27/mo if > 25

Tiered pricing

2, 25, 100

30 day money back guarantee on any price level

A bit more robust than Billing ManagerTime tracking, PayPal & card paymentshttp://www.freshbooks.com/

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Details on Competitors to SBFW Online PayrollCompetitor Pricing EE

thresholdIntroductory Offer Notes

Chase: Premium

$30/mo No limit First 3 months free Include Contractors. Multiple companies. Multi-user. No QB export

BofA: Plus(PayCycle)

$36/moover 20 ee: $2/ee

20 First 3 months free State forms, Contractors, Export to QB & QBO

BofA: Basic(PayCycle)

$20/moover 20 ee: $2/ee

20 First 3 months free If SB pays all employees by DD to a BofA account, then fees are waivedhttp://www.bankofamerica.com/small_business/onli ne_banking_and_services/index.cfm?template=comp are_payroll_services

PayCycle: Basic

$24.99/moOver 5 ee: $1.5/ee

5 30 days FREE + 2 more months at $9.99! (Incl. 5 ee)

https://www.paycycle.com/external/business/overv iew.jsp?name=small_business_learn_moreFederal tax payments, Direct Deposit, QB integration

PayCycle: Plus

$42.99/moOver 5 ee: $1.5/ee

5 30 days FREE + 2 more months at $9.99! (Includes 5 ee, 1 state)

Extras over Basic: Contractors, State Payroll Taxes & Forms

Suntrust Payroll

$35/moover 50 ee: $1/ee

50 Phone support Mon-Sat, Email – 24/7Only on CM, not Retail platform. Nice Demohttps://www.suntrust.com/portal/server.pt?space= Opener&control=OpenObject&cached=true&parentna me=CommunityPage&parentid=3&in_hi_ClassID=512 &in_hi_userid=2&in_hi_ObjectID=1786&in_hi_Opene rMode=2&

Chase: Basic $10/mo$2.5 per occurrence fee$5/mo Tax Pmt Svc

N/A First 10 months free Just ACH payments, not calcshttps://www.chase.com/ccp/index.jsp?pg_name=cc pmapp/smallbusiness/payments_payroll/page/bb_p ayroll_solutions

SurePayroll $30.95/payroll (biweekly)$44.95/payroll (monthly)Plus $1.85/ee

N/A Don’t know They take the tax liability, file the forms, send tax paymentsDD is free. Can pay contractors

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Details on Competitors to SBFW Card Processing

Competitor Monthly Fee Discount Rate Per Auth Fee Notes

PayPal – Virtual Terminal

$30.00 Tiered3.1% if < $3K/mo.2.7% if $3-10K/mo.2.4% if >$10K/mo.

$0.30 Take payments over the phone via a web page so no terminal required. Very similar to Billing Manager servicehttps://www.paypal.com/us/cgi- bin/webscr?cmd=_display-vt-fees-outside

First Data – Internet processing

$29.95• $19.95 gateway• $10 customer service

2.19%Monthly minimum of $15If process less than $15,

get charge $15

$0.25 Virtual terminal offering. Additionally can place a link on website for processing. Similar to allowing Billing Manager customers pay from an invoicehttp://www.instamerchant.com/internet-merchant- account.html

QB credit card processing kit

$14.95 2.69% card-not-present

1.79% card present

$0.30 Software that is purchased to send and track invoices similar to billing manger that has an associated merchant accounthttp://quickbooks.intuit.com/product/add_ons/credi t_card_processing_kit.jsp

BofACall for pricing

Process cards without buying a terminalhttp://www.bankofamerica.com/small_business/mer chant_card_processing/index.cfm?template=mail_p hone_order_dial_pay

Wells Fargo Call for pricing Have a processing without a terminal optionhttps://www.wellsfargo.com/biz/merchant/pricing

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Example of Merchant Service Pricing

Example:Pricing Plan 2:Monthly $10.95 Discount Rate 2.9% Transaction fee $0.30

One transaction of $150

End User Charges:

Txn charge = (Txn $ amount x discount %) + txn fee

$4.60 = ($150 x 2.9%) + $0.30

$0.30 [batch fee, one per day]

$4.90 = Total

FI revenue share calculation:

Assumption: Visa fee is 2.27%

Txn cost = Txn $ x (Visa fee + bank processing fee) + txn fee + AVS fee

($3.54) = $150 x (2.27% + 0.03%) + $0.08 + $0.01

($0.08) [Batch fee]

($3.62) = Total cost

$1.28 = Net Profit

X 30%

$0.38 = Rev Share

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SBFW V2: Content Overview

New Features Description

SSO to Online Payroll Full featured Payroll solution similar to Billing Manager: - Single Signon (SSO)- Client controls all aspects of billing end users- Light branding (FI logo, some emails customized)- FI can administer users of SBFW Online Payroll

Updated SBFW Center - Enhanced marketing capabilities- New FI configurable pricing items- All offerings displayed on single page- FinanceWorks Biz Snapshot (if you offer FW)

New Marketing Pages - Ability to show a free trial, if client offers one- Easier to scan benefits- Updated look and feel

Company Name field in IB registration

- New field available for business owners to self identify during internet banking registration

- Feature is only available for SBFW FIs that use Std Reg or PIC screens

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Complete Payroll (Billing Mgr model)

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Branding

Some attributes passed through SSO

FI controlled user billing

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SBFW Center Redesign

V1 V2

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SBFW Center – Specific Enhancements

1 Trial bursts for BM, OP

5 FW data snapshot

4Toolbar for active users (BM, OP, FW)

3 All apps on 1 page

6Single width design across IB and BB

Emphasis shift to OP2

Marketing Improvements

Active Use and Delight

Streamline across platforms

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SBFW Center – Specific Enhancements

1 Trial bursts for BM, OP

5 FW data snapshot

4Toolbar for active users (BM, OP, FW)

3 All apps on 1 page

6Single width design across IB and BB

Emphasis shift to OP2

Marketing Improvements

Active Use and Delight

Streamline across platforms

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SBFW Center – Specific Enhancements

1 Trial bursts for BM, OP

5 FW data snapshot

4Toolbar for active users (BM, OP, FW)

3 All apps on 1 page

6Single width design across IB and BB

Emphasis shift to OP2

Marketing Improvements

Active Use and Delight

Streamline across platforms

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Free Trial Burst available for

Marketing pages enhanced to drive signups

V2Free trial bursts

(new FI configurable item)

Better credit card messaging

Not called merchant service

Updated images

• Online Payroll• Billing Manager• FinanceWorks (if FI offers FW)

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Screen shots showing where end user pricing & “Free Trial” appear in SBFW

If client offers a free trial, a burst can be

displayed on the SBFW Center and Payroll

Marketing Page

Client price to users displayed here

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Billing Manager: End User Pricing/Billing Information

• Your institution will set the price and handle the end user billing for this application if you will be charging for it. Note: the Merchant Service option is handed separately.

• There are no limits to the number of invoices or customers that can be handled in Billing Manager built into SBFW so the simplest pricing plan is to charge a flat monthly fee for the service.

• Reporting is available if you wish to bill based on the number of invoices created and sent per month.

• For SBFW on Business Banking: The Company Profile Report will indicate active Billing Manager status and the Summary Activity Report will include the number of invoices generated by each Billing Manager user.

• For SBFW on Internet Banking: You can download a usage file from Management Console each month. This file will show which of your users/members have signed up for Billing Manager, and their registration and cancellation (if applicable) dates, and number of invoices created each month.

Intuit Confidential

Billing Manager: MyDI DGF: Retail Pricing Verbiage: Billing Manager

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Default language shown in MyDI – for example purposes only

• Adjust this text to be appropriate for the SBFW offering within your institution

• We strongly recommend that you offer a free trial period for Billing Manager – for example 60 or 90 days.

• Intuit’s research has shown that free trials drive higher adoption of products

• However, there is no requirement built into the product for this free trial

Intuit Confidential

Billing Manager Pricing Verbiage: “Learn More” or “marketing” page for Billing Manager

MediumLimited to 180 alphanumeric characters

LongLimited to 180 alphanumeric characters

• This is the page that appears when a user clicks “Learn More” about Billing Manager from the SBFW landing page. It is also called the “marketing page” for Billing Manager.

• There are two areas on the page where you can specify text for pricing or promotional information.

• You do not have to put pricing information here, you can put any promotional or informational text, however…

• There is no Billing Manager pricing information once the user gets into Billing Manager (there is FI-specific card processing pricing information available within Billing Manager)

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Billing Manager Short Pricing Verbiage: Signup page for Billing Manager

• This popup is what appears when the end user clicks on “Get Started” for Billing Manager from the “Learn More” or “marketing” page for Billing Manager

• The short pricing verbiage, circled in red, gives you the opportunity to remind users what the price to them for using Billing Manager will be.

• You do not have to put pricing information here, you can put any promotional or informational text.

• This is only text – it does not interact with the software or usage/billing reports in any way.

ShortLimited to 32 alphanumeric characters

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Note: the Short, Medium and Long Pricing text is for sample purposes only. Your financial institution will set the price for your end users.

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Only $29.95 per month after 2 month free trial.

Only $29.95 per month after 2 month free trial.

Payroll Pricing Verbiage: “Learn More” or “marketing” page for Payroll

MediumLimited to 180 alphanumeric characters

LongLimited to 180 alphanumeric characters

• This is the page that appears when a user clicks “Learn More” about Payroll from the SBFW landing page. It is also called the “marketing page” for Payroll.

• There are two areas on the page where you can specify text for pricing or promotional information.

• You do not have to put pricing information here, you can put any promotional or informational text, however…

• There is no Payroll pricing information once the user gets into Payroll

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Payroll Short Pricing Verbiage: Signup page for Payroll

• This popup is what appears when the end user clicks on “Get Started” for Payroll from the “Learn More” or “marketing” page for Payroll.

• The short pricing verbiage, circled in red, gives you the opportunity to remind users what the price to them for using Payroll will be.

• You do not have to put pricing information here, you can put any promotional or informational text.

• This is only text – it does not interact with the software or usage/billing reports in any way.

ShortLimited to 32 alphanumeric characters

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Note: the Short, Medium and Long Pricing text is for sample purposes only. Your financial institution will set the price for your end users.

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Default language shown in MyDI

• You can adjust this text; however, the default language here has been tested to be effective and we recommend that you only adjust the monthly fee to match the plan you selected: $7.95, $10.95 or $12.95

• The 30-day free trial is a standard part of the Merchant Service offering.

Merchant Service: MyDI DGF: Retail Pricing Verbiage

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Merchant Service Pricing Verbiage: “Learn More” or “marketing” page for Merchant Service

MediumLimited to 180 alphanumeric characters

LongLimited to 180 alphanumeric characters

• This is the page that appears when a user clicks “Learn More” about Accept Credit Cards from the SBFW landing page.

• There are two areas on the page where you can specify text for pricing or promotional information.

• You do not have to put pricing information here, you can put any promotional or informational text.

• There is also FI - specific pricing regarding accepting credit cards information available to the users in Billing Manager.

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My Deposit in addition to SBFW

• Separate purchase and installation process for My Deposit

• My Deposit feature can be integrated into SBFW

– If your institution has purchased My Deposit, and it has been delivered or is live, during the SBFW implementation process, My Deposit can be made accessible from the SBFW landing page

– This will help you position My Deposit as part of your suite of small business offerings

Intuit Confidential

My Deposit: MyDI DGF: Retail Pricing Verbiage

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SBFW MyDeposit Verbiage Only displays if My Deposit is ‘Delivered’ or ‘Installed’ Review the defaulted verbiage that will display on SBFW screens referring to the My Deposit feature, and update if needed. My Deposit medium verbiage: [Displays at top of the My Deposit marketing page] [Maximum 180 characters] My Deposit long verbiage: [Displays at bottom of the My Deposit marketing page] [Maximum 180 characters]

Use your PC, scanner and online banking access to deposit checks day or night!

Don’t lose another day getting checks deposited into your account, make your deposit now!

Default Language shown in MyDI

• You can adjust this text to be appropriate for the SBFW offering within your institution.

• We do not anticipate that many financial institutions will be charging their customers or members for the home scanner-based remote deposit offering

Intuit Confidential

My Deposit Pricing Verbiage: “Learn More” or “marketing” page for Merchant Service

MediumLimited to 180 alphanumeric characters

LongLimited to 180 alphanumeric characters

• This is the page that appears when a user clicks “Learn More” about ‘Deposit Checks Remotely’ from the SBFW landing page. It is also called the “marketing page” for My Deposit.

• There are two areas on the page where you can specify text for pricing or promotional information.

• You do not have to put pricing information here, you can put any promotional or informational text, in fact, we believe that most FIs will not charge their customers or members for this service.

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