U.S. Bank Corporate Payment Systems Payment Plus

Low Value-Low Dollar (<$2,500) Emergency Purchases Low Need for Control Common Card Commodities Minimal Systems Integration High Supplier Card Acceptance Low/specialized Data Needs Medium Dollar ($2,500 - $10,000) Inventory/Contracted Purchases High Control Requirements Systems Integration Requirements Additional Float Supplier Card Acceptance High Data Needs High Dollar (>$10,000) Inventory/Contracted Purchases High Control Requirements Systems Integration Requirements Additional Float Potential Financing Minimal Supplier Card Acceptance High Data Needs Transaction Size Complexity/Control High Low B2B Payment Continuum Traditional Purchasing Card Access Online Payment Plus PowerTrack Payables

Payment Plus Provides new tools and technology that leverage the purchasing card platform and enable settlement of larger, more complex payments Features –Virtual Accounts Per supplier pre-authorized limit (PAL) accounts Per transaction single-use account (SUA) pools –Dynamic Limits Accounts are closed with no available credit until payment is authorized –Accounts Payable Integration Automated Payment Instruction File Online Forms for one-off payments & Virtual account stored in Access Online Client Supplier Information –Automatic Matching & Reconciliation support Reports & Extracts

Payment Plus Provides new tools and technology that leverage the purchasing card platform and enable settlement of larger, more complex payments Benefits –Improve Cash Management Days Payable Outstanding and Cash Float Support Strategic Sourcing –Increased Rebate Non-traditional Purchase Card spend –Improved Control Payments authorized when you provide instruction Accounts open only when payment is outstanding Limits increased to amount of payments only –Automated Reconciliation Leverage existing systems and processes

Payment Plus Process Flow Client U.S. Bank Supplier Create Approved Payments /Upload Payment Instruction File Process Transaction Confirm Supplier Notification (Optional) Generate Reconciliation Report/File Extract Reconcile Transactions Using Access Online Report/File Extract Open Accounts/ Adjust Credit Limits Load Payment Instructions to U.S. Bank Access Online Generate/Send Payment Notification to Supplier/Buyer Post Transaction in Access Online and Match to Payment Instruction

Creating a Payment What is required? –Vendor Name & ZIP –Vendor address –Payment Amount –Control Number –Expiration (good until) date How is a payment instruction entered? –Automated Input Load File Flat text, fixed field length, multi-row file 01 Record – Payment Total, Control Number, Exp Date, Supplier Name & ZIP 06 Record – Supplier , Client Vendor ID, Comments 07 Record – Invoice number and amount –Online Form Delegate to multiple users Form is customizable

Supplier Enablement Accounts Payable Analysis –Identify Target Suppliers –Visa/MC capable merchants –Suppliers w/out special terms U.S. Bank resources –Dedicated Supplier Enablement Managers –Let U.S. Bank contact suppliers –Clients can take on as much or as little of supplier enablement as desired Elavon Merchant Services –Help suppliers lower fees or enhance data capture

Supplier Notification Sent: Tuesday, April 15, :03 PM To: Cc: Subject: Purchase authorization for Payment # Verizon is now authorized for the next 20 days, to charge the credit card account ending in 2712 for the following customer: Customer Name: U.S. Bank For a total Amount of: $ This Payment covers the following Invoices: Invoice Number: Invoice Amount: Also, for the best and most efficient results, please process this charge amount in a single transaction within 72 hours of receiving this notification. Thank you. * If you have any further questions, comments, or concerns regarding this matter, please direct them to Bob Smith at DO NOT REPLY TO THIS MESSAGE. * *** THIS ADDRESS IS USED BY AN AUTOMATED SYSTEM AND RESPONSES ARE NOT MONITORED. ***

–Current Process –Payment Plus Process Receive InvoiceProcess Payment DRCR Expense Vendor/ AP Liability $1,000($1,000) DRCR Cash Vendor/ AP Liability $1,000($1,000) DRCR Expense Vendor/ AP Liability $1,000($1,000) Receive InvoiceProcess PaymentPay U.S. Bank DRCR U.S. Bank Liability Vendor/ AP Liability $1,000($1,000) DRCR U.S. Bank Liability $1,000($1,000) Cash Receive Match File Accounting Process

Payment Reconciliation Reconciliation model is similar to reviewing a DDA in traditional check or ACH process (e.g. Positive Pay) Access Online Auto Matches Payment Instructions to transactions from Level II capable suppliers Access Online Reports, Statements, and Extract Files are the same as a traditional Purchasing or One Card Dedicated Reports for Payment Plus –Payment Instruction Detail –Payment Instruction Analysis –Billed Transaction Analysis with Payment Instruction Detail

Payment Plus Payment Instruction Analysis Example

Payment Plus Billed Transaction Analysis w/Payment Detail

Payment Plus Full Transaction & Order Detail

Implementation & Next Steps Standard Purchasing Card contract or Master Agreement covers Payment Plus –3 or 5yr deal –No fees, entry or early termination –Rebate based on total volume, avg. transaction size, and speed of pay U.S. Bank Implementation Project Manager is assigned to coordinate weekly limits and manage a customized project plan Tasks include: –Identify target suppliers –Establish new billing company & Payment Plus virtual accounts –Add payment type to client AP system & flag vendor master for target suppliers –Develop Payment Instruction File out of AP (if using automation) –Establish file link (FTP) with U.S. Bank (if using automation) –Add financial extract file or report for posting to GL and settling w/U.S. Bank 2-4 weeks for Online Payments, 6-8 for Payment Plus w/AP Automation