Fee Methodology

Broomfield Platform Base II/KB Fee Methodology

TSYS bundles several miscellaneous fee items that are passed from the card brands into a single line item, Base II/KB at an expense of .02% + $.02 per transaction.

• Visa^® Base I Authorization Fees — per file
• Visa Base II Clearing/Settlement Fees — per file
• File Transmission Fees (Kilobyte Fee) — per file size
• Mastercard^® MCBS — Gateway Access Fee — per trans costs
• Mastercard MCBS — ISS Cross Border Network License Fee — per trans costs
• Mastercard MCBS — ACQ Cross Border Network License Fee — per trans costs
• Visa PANF — per trans costs
• Association Adjusted Costs (file transmission errors) — per incident/variable

Through this calculation, we estimated our cost between 4-5 bps on all volume. To ensure we have the least impact on all merchants and partners, we determined we split the 4 bps points and bill 2 bps on all volume and $0.02 on all transactions.

Broomfield Platform Pin Debit Network Pricing Methodology:

The Broomfield Platform for TSYS approaches Pin Debit Interchange differently than many other platforms due to system infrastructure. Below explains our methodology:

• TSYS takes a blended approach to Pin Based Debit Interchange
• TSYS maps the 75+ various interchange levels by network to 9 buckets
• Based on the transaction criteria some transaction will be below published interchange rates and others may be higher

Contributing factors:

• Average Ticket
• Network
• Card Type
• Merchant Industry Type

Network Limitations:

TSYS can only bill merchants on 9 debit networks on the Broomfield Platform. As a result, we bill the top 7 most prevalent networks, separately, and roll all the remaining networks under Other and Regulated. Regulated combines all transactions under all networks and imposes Durbin related fees. The networks are as follows:

• ACCEL
• INTERLINK
• MAESTRO
• NYCE
• PULSE
• SHAZAM
• STAR
• OTHER
• REGULATED

Pass-Through Limitations:

• We cannot apply specific billing caps (i.e., high ticket) as may be imposed from various PIN Debit networks.
• We cannot support PIN Debit custom SIC interchange levels (i.e., Petroleum, Supermarket, etc.).
• As a result, merchants are assessed flat percent and per item based on a blended average expense by PIN Debit network. We map 75+ various PIN Debit interchange levels into 9 buckets.
• Based on the transaction criteria, some transactions will be below published interchange rates, and others may be higher.

Switch-Fee Handling:

• We do not segment switch fees on our merchant level billing (switch fees range from $0.025 - $.08)
• We do not line-item bill sponsorship fees for PIN-based Debit
• We do not line-item bill Visa SMS fees ($0.014)

As a result, we impose a $0.05 expense to the per item fee to cover these costs.

Annual Debit Network Participation Fees:

TSYS will pass Pin Debit Network annual Merchant Participation Fees to PIN Debit merchants for accessing the Debit Networks.*

Debit Network Interchange rates*, as allocated by TSYS:

*Debit Network Interchange rates subject to change based on changes made by the PIN debit networks.

Generally, Interchange, Assessments, and other fees assessed by the various Card Brands will be passed through to partners and/or merchants.