Each participant continues to operate their site(s) as an independent marketer; establishing their own pricing structure, marketing plan, and distribution of cards.

Each site in the network has, in addition to the participant's signage, a common, network-wide sign and dispenser identification.

All participants' customers have the ability to use the sites of all other participants. Therefore, all participants greatly extend their marketing area and convenience to their customers.

CFN tracks and redistributes Network Domestic, Remote and Foreign transactions.

Participants bill their own customers for purchases throughout the network. Individual customers of each participant are treated as such, and are not customers of CFN.

Participants designate the closest supply terminal to each of their sites.

CFN receives the Oil Price Information Service (OPIS) average rack price for each of these designated terminals daily.

Participants charge the network OPIS + haul allowance + applicable taxes + $.05 (5 cents) for each foreign transaction at his sites (credits).

Participants pay the network OPIS + haul allowance + applicable taxes + $.05 (5 cents) for each remote transaction of his customers (debits).

Participants are charged transaction fees as follows:

CFN 4.0

Remote Transaction

35 cents + .0035/gal.

Foreign Transaction

.0035/gal.

Domestic Transaction

No Charge

Card Status Update

40 cents per update

Emergency Lockout

40 cents per update

Statement Processing Fee

$15 per statement
(3 per month)

CFN Host Authorization Software Support

$100 per month

CFN 4.0 Communication Fees (All Participants) Effective Upon Activation

Option 1: Land Lines (Network Carrier TNS)
CFN will charge the Participant who owns the site $35 per month port connection charge + $0.04 variable communication cost per transaction. Therefore, both Network Domestic and Foreign transactions will be charged the variable communication cost per transaction.

In most cases, two data-grade telephone circuits (dedicated lines) from your local telephone carrier are required for each site controller.

The variable cost per transaction will be adjusted monthly based on the actual prior month's cost. For example, if the actual cost per transaction for January 2000 is $0.041, this cost will be used for the February 2000 transactions.

Gasboy Site Controllers: Recommended one Authorization modem per site controller (Contact site controller manufacturer for modem) maximum speed 2400 strongly recommended. The lower speed generally results in a quicker modem synchronization and authorization time.

Option 2: VSAT (Network Carrier Hughes Network Systems - HNS)
CFN will charge the Participant who owns the site $125 per month port connection charge. Each VSAT can provide network connection for two similarly configured site controllers.

There is no variable cost per transaction for VSAT sites.

CFN will charge the Participant a one time purchase price of $5,500 for each VSAT, should the Participant elect to purchase the VSAT. Contact FMAC for financing program.

Site Communication Cost Summary Charged by CFN:

One Time Charge

Monthly Charge

Land Line

N/A

$35 per site + $0.04 (adjusted monthly) per network domestic and foreign transaction.

VSAT

$5,500 per site
(if purchased)

$125 per site

CFN 4.0 Gasboy Gateway Fees

Participant will pay a one time fee applicable to Gasboy sites only:

Number of Gasboy Site Controllers

One Time Gateway Fee

1 - 3

$700 per site controller

4 - 6

$600 per site controller

7 and Over

$500 per site controller

All participants utilize a CFN NCC at their home office.

Card validations/invalidations are captured at the CFN authorization host through the use of the CFN NCC.

CFN becomes, in effect, a clearinghouse for these transactions. Each participant will receive from the network a statement every 10 days. This statement will net out credits (foreign transactions at your site) and debits (remote transactions by your customers at other sites) and all transaction fees.

Terms between the participants and CFN are net 10 days from date of statement, therefore, CFN initiates Corporate Funds Transfer between itself and each participant 10 days from date of statement.


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©1997 Commercial Fueling Network 650-583-4446