VeriFone ON THE SPOT Selling Guide

2

Additional images available on www.verifone.com

Market Opportunity 3

Value Propositions 4

Usage Models 5

Hardware 6-8

Solutions 9

Connectivity 10

Software 11

Frequently Asked Questions 12

Support Materials 13

Table of ConTenTs

abouT This Guide

This selling guide is designed to provide everything you need to successfully sell the ON THE SPOT solution within the restaurant industry. VeriFone provides high quality system solutions to help optimize time and increase revenues, while giving the customer more ways to pay. ON THE SPOT is about bringing secure, efficient payment solutions right to the point of the transaction, whether it is at the table, the counter, the car or the point of delivery.

Vx 670

Vx 670 aCCessories

Vx 570

3

markeT opporTuniTy

According to the National Restaurant Association’s Restaurant Industry Forecasts, from 2005 versus 2008 the number of restaurants operating in the US increased by 45,000 locations. Additionally, more establishments are offering delivery (an 11% increase from 2005) and takeout is being offered at the majority of restaurants (90% at casual or family dining AND 78% at fine dining).

*Source: NRA Restaurant Industry 2005 Forecast and 2008 Forecast

TarGeT markeT example

The largest restaurant segment opportunity is in small chain and independent restaurants – with approximately 300,000 locations and 1.5 million payment devices (averaging 5 devices per location).

Hospitality Market Opportunities 2005 2008

# of restaurant locations in the U.S. 900,000 945,000

Restaurant industry total sales in billions of dollars $475.8 $558.3

Share of typical consumer food dollar spent in restaurants 46.7% 48%

Delivery

Casual- and family-dining restaurants that offer delivery 17% 28%

Fine-dining restaurants that offer delivery 6% 12%

Take-out or Curbside

Casual- and family-dining restaurants that offer takeout N/A 90%

Fine-dining restaurants that offer takeout N/A 78%

123

Tier no. of loCaTions

1,500,000+ DEVICES

(5 per location)

Top 200 (60+ locations)

Top 201-1000 (10-59 locations)

Small chains and independents (fewer than 10 locations)

50,000

20,000

300,000 +/-

350,000+ DEVICES

(7 per location)

140,000+

DEVICES ( 7 per location)

OPEN

WE DELIVER

TAKE-OUT

4

Value proposiTions

Cost savings – pin debit• Enables restaurants to accept PIN-based debit

67% of consumers expect to be able to use their debit card at the table* Offering PIN-based transactions increases customer satisfaction

• Reduces costs associated with tip adjustments and chargebacks, provides lower interchange and reduces liability On average, PIN debit will save a restaurant $0.20-0.40 per transaction. A 30% shift

to customers paying using PIN-based debit can save the merchant up to $3,600 in interchange fees annually, or $300 a month**

• Improves customer satisfaction, bringing repeat business

security – pCi• Provides greater security against card skimming scams

60% of consumers are concerned about card security in table service restaurants*• Prevents tip fraud since the transaction is completed at the table

Currently most restaurants are not secure, leaving the merchant as well as the restaurant’s customers vulnerable to security breaches

• ON THE SPOT provides restaurant merchants with a clear path to PCI compliance The new “best practice” in restaurants is to never have the customer’s credit or debit card leave their sight

Server prints the receipt as it’s requested and provides payment device to the consumer

Customer performs transaction; user Interface is designed for intuitive operation by guests

Server returns to table to pick up signed receipt and payment device

*A Study of Acceptance and Perceptions of a New Concept in Tableside Payment Technology at Casual Restaurants Moore & Symons, Inc. 2006. **Better Payment at All Points of Service White Paper, May 2006. ***Feature benefit of the Managed and Integrated solution.

Processing Type Transaction Fee

MasterCard Credit $.94

Visa Credit $.92

MC/Visa Signature Debit $.73-$.75

Pulse/NYCE/ Star PIN Debit $.54-$.55

increased efficiency • Eliminates steps-of-service, reducing customer wait time

76% of consumers feel a pay at the table solution would be faster* TABlE SERvICE – Bringing payment to the point of service simplifies payment from eight steps to three CURBSIdE SERvICE – Bringing payment to the point of service simplifies payment to two steps

• Consolidates reporting and terminal settlement***• Increases table turns• Time spent adjusting tips at the end of each shift is drastically reduced

or eliminated.

Waiter takes card out of the card-holder’s sight

A card skimmer is used to illegally record card information

Decoding software loads card information onto a computer where it can be manipulated and changed

Card information and cardholder identity is easily transmitted and often sold internationally

Stolen card information is loaded onto a new card using a card reader machine. Any information on the card can easily be changed via the computer

A new fraudulent card is now ready for use

on aVeraGe, pin debiT saVes up To $0.40 per TransaCTion

paymenT aT pos in Three simple

sTeps

i

2

3

Card skimminG proCess

Above is based on October 2007 U.S. Interchange Fees for a $50 transaction

5

usaGe models

four plaCes To pay – Tableside, Carside, aT deliVery poinT or aT The CounTer

Tablepay – The TablePAY solution offers a better way for guests to pay their bill – right at the table. Servers bring the device to the table allowing faster, easier payments with fewer trips. Guests no longer have to hand over their credit or debit card and watch it disappear – they can swipe their card and use a familiar ATM-style keypad to validate their purchase. What’s more, TablePAY enables PIN-based debit payment, resulting in lower transaction fees, increased customer satisfaction, improved security, reduced risk of fraud and increased revenues from faster table turns.

Carsidepay – Restaurants with curbside pick-up options will benefit from the fast transactions allowed by the vX 670’s CarsidePAY solution. Food can be delivered and paid for in one trip to the car, speeding customer service and reducing car lines. And accepting payment at the point of service means customers can choose PIN-based debit, which is more secure and often less costly than credit or signature debit transactions for the restaurant owner.

deliverypay – With the vX 670, secure payment isn’t limited to the restaurant. Utilizing GPRS technology, deliveryPAY enables payment at the point-of-service for most mobile environments. So while restaurants are focused on delivering quality food and service, the vX 670 can deliver the lower costs of PIN-based debit, along with speed, portability and convenience.

Counterpay – Want to speed up counter or bar transactions without sacrificing customer service? The compact design and super-fast speed of the vX 570 work efficiently – reducing hassles and increasing revenue.

Verifone’s on The spoT payment solutions work together or separately to meet a full range of restaurant and hospitality needs and offer solutions for every area of the restaurant.

6

hardware oVerView – Vx 670

funCTional yeT eleGanT for pay anywhere, pay anyTime enVironmenT

• Stylish/ergonomic design Fits comfortably even in the smallest hands lightweight, tapered design Ergonomically balanced midpoint for sure handling Easy to operate in the palm or resting on the table

• POS integration• Advanced security• Small footprint• large user interface/extremely readable• Rugged design

Moisture-resistant, sealed key pad Moisture-resistant, sealed display Bottom loading printer with dual-tear bar is whisper quiet, simple to reload and out of the way of spills Sealed, moisture-resistant magnetic stripe enclosure Rounded corners and drop resistance of up to 3 feet on concrete floors

• WiFi and GPRS wireless technology options are perfect for accepting payment tableside, curbside or at delivery point

paper installation• Hold roll so the paper feeds from the

bottom of the roll• drop roll into printer tray, leaving about

2” of paper sticking up past the serrated metal tear strip

• Gently press directly on the cover until it clicks shut

Charging base station• drop-and-go charging; no cords to

attach or buttons to push• Charges the device and spare battery• USB ports and dial up back-up• Modular design accepts optional

communication modules• desk or wall mount options

holster and Carrying Case accessories• Provides maximum portability• lightweight device fits onto server’s

belt and lies flat against the hip, leaving hands free

• Removes quickly from holster for easy handover to customer

• Also available: car charger and dongle to connect to any ECR

7

hardware oVerView – Vx 670

feaTures and benefiTs

exceptional ease of use• veriFone’s MAXui design provides largest user interface for an all-in-one payment system and the industry’s smallest

overall size for maximum ease of use• Bold design is sleek, stylish, and lightweight for conveniently handing the terminal to the consumer for PIN entry

or other input• Intuitive ATM-style interface, large 128 x 128 pixel screen offering up to 16 lines x 21 character display with split

screen capabilities, high-contrast backlit screen, large keys and extra-size menu prompts simplify training and reduce calls to the help desk

• Integrated, high-speed, internal thermal printer simplifies paper loading and virtually eliminates paper jams• Triple-track, high-coercivity card reader handles most magnetic-stripe cards

Countertop performance in a hand-over design• 32 bit processing and multi-tasking capabilities make short work of payment,

payment-related and value-added applications• Exceptional graphics, handling capabilities of display and printer quickly render

logos, graphical fonts and character-based languages• veriCentre Appliance Management Suite employs advanced file compression

to streamline simultaneous downloads of application software to hundreds of terminals

• Integrated PIN pad offers added convenience to handle PIN-based applications• Ensures uncompromising reliability from veriFone, the worldwide leader

in e-payment

True multi-application Capability• Up to 12 MB (8 MB of Flash, 4 MB of SRAM)• veriShield security architecture meets published specifications for PCI PEd and

provides sophisticated file authentication to prevent execution of unauthorized software on vX 670 terminals

• PCI PEd approved for debit and other PIN-based transactions

wireless Connectivity• Point of payment can be almost anywhere – customers are not tied to a

fixed location• “Always on” wireless connection is made using the latest wireless technologies,

including GSM/GPRS and Wi-Fi• Built-in security protections guard against fraud and misuse

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hardware oVerView – Vx 570*

feaTures and benefiTs

exceptional ease of use• Perfect for bar area or anywhere that lines form for service

or checkout• ATM-style interface is familiar and easy to use; more durable

than touch screens• 8 line x 21 character, anti-glare, white backlit screen improves

readability• Optional larger paper roll for less frequent paper change

superior Countertop performance for restaurants• Gratuity table and open tab receipt print with signature line

options available • PIN-entered debit saves money• Simple toggle, with no reprogramming required, supports

Spanish language needs for multi-lingual staff• Wall mounts and accessories available• White backlit screen makes reading easy in all

lighting conditions• True multiple application support provides options of

numerous independent value-added service providers

True multi- application Capability • 6MB and 12MB memory versions available for faster processing and the ability to support more

value-added applications• Supports options of numerous independent value-added service providers• PCI PEd approved device meets all industry standards; no data stored in device; more secure and tamper resistant• Read-only USB port prevents virus and hacker interference, making it more secure than the standard read/write

USB ports; allows for 4-second application downloads• verix v proprietary OS less likely to be hacked than off-the-shelf operating systems

Connectivity• 2nd generation IP product provides peace of mind• Ethernet port lights shows link and activity lights for IP connection for easier troubleshooting• dial backup standard; no interruption of service if IP connection goes down

* Use in ON THE SPOT Managed and Stand Alone solutions only.

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PROCESSOR

on The spoT soluTions

sTand-alone soluTion

An excellent solution for a merchant needing three or fewer devices in one restaurant location. The Stand-Alone solution functions as an ordinarily wired terminal would.

key benefits:• Reduce operating costs with PIN-debit transactions• Increase revenues with higher table turns and faster transaction

processing• Reduce risk of card skimming and fraud

manaGed soluTion

Brings the power of the portable vX 670 together with an efficient web-based management service designed to provide much of the same administration and timesaving features found in Restaurant Management Systems (RMS) – without the expense.

key benefits:• Allows merchants without an RMS to add services that an RMS typically

would provide• Refined payment user interface for merchant/consumer ease of use

Increased acceptance of PIN-debit at the point of purchase Increased card holder security decreased time for payment process

• Managed Services Portal Secure web-based payment gateway service Provides a familiar web browser interface for transaction retrieval, review, adjustment and void

Transaction consolidation, settlement and management PCI/dSS compliant – no transaction information is stored on the terminals Historical and real-time reporting Tip adjusting less end-of-shift and nightly management functions

No adding totals from multiple terminals inTeGraTed soluTion

Allows merchants using an existing RMS system to achieve exceptional benefits of integrating ON THE SPOT so all payment related functions are completed through the RMS provider. Perfect for enterprise level (multi-chain) customers.

key benefits:• RMS System integration• PCI PEd compliance• Single settlement batch per multiple terminals• WiFi connectivity supported

PROCESSOR

PROCESSOR

MANAGED SERVICES PORTAl

RMS

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ConneCTiViTy – Vx 670

The vX 670 supports both WiFi for local area wireless and GPRS for wide area wireless. The communications technology to use should be discussed with the merchant in conjunction with other business requirements.

wireless wide area neTwork (wwan)

• The wireless modem in the vX 670 supports Wide Area Wireless Network: GSM/GPRS (on 900/1800 MHz or 850/1900 MHz)

• GPRS (General Packet Radio Service) is a standard for wireless communications (based on GSM) that allows packets of data, transactions, email and Web content, to travel across a wireless telephone network and to the internet

• WWANs allow electronic payment where other means do not exist

• GPRS: Extensive availability GPRS pricing – prices decreasing, incentives increasing “Always on” saves valuable connection time

wireless loCal area neTwork (wlan)

• The wireless modem in the vX 670 supports local Area Wireless WiFi Network (802.11 b/g; WPA encryption at 2.4 ghz)

• WiFi is based on the 802.11 b/g wireless networking standard that operates in the 2.4 GHz radio band

• 802.11 b/g-based WlANs can achieve a maximum data rate of 11 Mbps per second at distances up to approximately 300 feet

• 802.11 b/g, the first WlAN technology offered to consumers, enabled instant wireless networks in businesses and homes

• Requires internet service via dSl or cable modem

• WiFi is primarily used in hospitality and advanced retail environments, such as restaurants, service stations and malls

• Based on the router’s capabilities, the merchant can provide hotspot access – to provide their customers with a value-add service

wireless ConneCTiViTy opTions

GPRS Advantages

deployment is easier (load and go)

Mobile (good for delivery and distances greater than 100 feet)

Works in sites without broadband

Cost effective for small (3 or fewer) terminal deployments

WiFi Advantages

Not restricted to the number of terminals

Faster/more secure

Can provide fault isolation and troubleshooting

Network can be remotely adjusted

ConneCTiViTy – Vx 570

inTerneT proToCol (ip) or dial ConneCTiViTy

Connectivity options:

• dial connectivity

• High-speed IP plus dial back-up

maximum flexibility:

• Start with dial and switch to IP at any time without added cost or inconvenience

• leverage broadband service already installed at the merchant location

advantages of ip:

• Super fast, “always on” Ethernet service

• Transaction times average 2-4 seconds

• No time is lost waiting for deal connections

• lower communications costs

• Faster application downloads

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sofTware

Verix operating system:

The vX 670 utilizes veriFone’s popular verix–based operating system for maximum flexibility and integration capabilities.

• Fully compatible with other devices using the same software; it simplifies application development, estate management and system upgrades. A developer’s tool kit and development suite offer users a full collection of tools and utilities that streamline the design, development and testing of customized applications for all verix-based systems.

on The spoT application suite:

• designed for consumer interactive environments – enabling fast, secure payments at the point of purchase

• It is the primary user interface for both the server and the customer

• Provides reporting and admin features (from any device within a given installation)

• Ideal for customer-facing hospitality environments

benefits:

• User-friendly for servers and customers

• Highly customizable

• Compatible with a broad range of veriFone payment systems

• Turnkey solution

• Secure and efficient

• designed to grow with a merchant’s business needs

01/04/08 02:00

PAYMENT

REPORTS/ADMIN

main menu

opTion 1opTion 2

reTurn To main menu

TypiCal TransaCTion flow This flow can be tailored to meet individual restaurant needs

welcome screen

server login

enter table or ticket

enter ticket or payment

payment (split/single)

confirm amount

enter tip

split-payment

cycle

receipt print

SERvER

CUSTOMER

end of transaction

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freQuenTly asked QuesTions (faQ’s)

Q: How do I decide if I should use the WiFi or GPRS solution?

A: The connectivity coverage options for your restaurant as well as your business needs and how you’d like to use ON THE SPOT need to be discussed.

What’s the geographic location of your restaurant?

Do you have outside tables?

Will you offer curbside pay or delivery pay?

How many VX 670 terminals will be required per shift based on your anticipated table turns?

Finally, let’s review the pricing options to help determine the right solution for your business.

VAluE PROPOSITIOn: With two connectivity options, there’s a solution to fit every restaurant’s needs.

Q: When several customers want to divide a check, how does the On THE SPOT solution handle split payment?

A: The VX 670 is able to facilitate split payment between multiple credit and debit cards. Each cardholder will decide his own amount, his tip and swipe his card for payment then pass the terminal to the next person to pay.

VAluE PROPOSITIOn: On THE SPOT is able to handle multiple card payment methods for one bill.

Q: How can I easily calculate each servers’ tips across multiple terminals?

A: The ON THE SPOT solution allows the server to print out his own server report from one VX 670 terminal, even if they used multiple terminals.

Alternatively, the manager can provide each server with their own report from the Managed Services Portal which aggregates transactions from all terminals used.

VAluE PROPOSITIOn: Servers can easily print their own tip reports from one terminal, or you can print each servers’ report from the Managed Services Portal.

Q: I run an upscale restaurant. I don’t like the idea of leaving the terminal at the table, or requiring customers to use the terminal at all. I prefer to have my wait staff complete the card transaction on behalf of the patron. How can I do this?

A: VeriFone’s ON THE SPOT solution allows the wait staff to process the card like a traditional restaurant transaction by keying past the tip prompt and leaving a sales receipt with a tip line for the cardholder to enter the tip. The cardholder will still appreciate the added security of his card staying in his sight at the table, not to mention the speedier transaction.

The tip can be entered afterwards from the sales draft via the terminal or via the Managed Services Portal.

VAluE PROPOSITIOn: On THE SPOT is customizable to fit all restaurant types and meet all service levels set within each restaurant.

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supporT maTerials

Academy CD A complete training tool for merchant-level sales representatives including an interactive demo of the Vx 670, a tutorial and a wide array of sales tools. Available on CD or for download at www.verifonezone.com under the Solutions by Market – Hospitality

Media Clips local and national news segments, from around the US, of restaurant establishments using ON THE SPOT. Available at www.verifone.com/inthenews

Sales Sheets There are multiple merchant sales and technical collateral pieces available in the appendices section of the Academy CD or at www.verifonezone.com under the Solutions by Market – Hospitality

Press Releases Read VeriFone’s most recent stories about ON THE SPOT or recent customer wins at www.verifone.com/pressroom

Product Images Download a image of the VX 670 or other VeriFone devices at www.verifone.com/imagelibrary

Customer Case Studies VeriFone’s customer case studies exemplify how VeriFone is helping businesses expand their methods of payment by implementing secure solutions such as the ON THE SPOT solution. Case studies are available at www.verifone.com/casestudies

ROI Calculator Tool Need help justifying the procurement of new equipment to your merchants? Use VeriFone’s ON THE SPOT ROI calculator to help each merchant see how quickly their investment will pay off. Available in the appendices of the Academy CD or at www.verifonezone.com under Marketing Tools – ROI Calculators

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Our solutions add value, streamline processes and provide comprehensive security, while generating new sources of revenue at the point of purchase. With VeriFone as your payment solutions partner, you have more choices, more services, unmatched global expertise, combined with unsurpassed product quality, security, technology and flexibility. You get the right payment solution to fit your precise needs…any time, any place, and in any market.

Please visit www.verifone.com or www.verifonezone.com

for information on Verifone’s full line of hardware, software and services and more specific details on

Verifone’s payment solutions and market applications:

•

© 2008 veriFone, Inc. All rights reserved. veriFone, the veriFone logo, vX Solutions, verix, SoftPay, vX 670, vX 570, TablePAY, CarsidePAY, deliveryPAY, CounterPAY and ON THE SPOT are either trademarks or registered trademarks of veriFone in the United States and/or other countries. All other trademarks or brand names are the properties of their respective holders. All features and specifications are subject to change without notice.04/08 45637 Rev A 0M/FS