sergeant...how ironic if CBA isn't ready ! Have a question for...

sergeant...how ironic if CBA isn't ready ! Have a question for you. Given Customers would be doing close to 90 million transactions a year now with the 5500 machines and with transactions up, will the extra $1 drop straight to the bottom line ? I know for a fact the average contract length is 37 months ( Wildash stated this at the AGM ) and for existing contracts, merchants do not share in the extra $1 from DC. ( he stated this as well ). We know transactions will drop for a period of time as some users try to change their habits but can you think of any other costs apart from the costs that exist already that we have discussed a great length here ? The transfer of the $2 from the users bank account to Customers bank account would have a small processing cost ....that's all I can think of. However, on the other hand Customers cashflow with increase dramatically...they dont have to wait for the banks to pay them.

So what I'm thinking is there will be an increase of $5.8 mill a month to EBITAD ($70M a year )...building to $7.5M a month after 3 or 4 months ($90 M a year ) when people return to their old habits, then flat or declining contribution to EBITAD as merchants demand a piece of the extra $1 in new contracts offset by increase in machine numbers and new revenue flows...hard to predict the exact number. I asked Wildash what the deal is for merchants....he said there is no set deal...all the deals are different.