Centrix Solutions Inc. Western States Users Group Centrix Solutions Inc. ACH Risk Management & Reg E Compliance Let Centrix Simplify ACH Risk Management & Reg E Compliance Let Centrix Simplify Brad Johnson – Director of Business Development -

Centrix Solutions Inc. Agenda PRIZE DRAWING Omaha Steaks Gift Certificate ($100) ODFI - ACH risk management RDFI Check & ACH fraud detection ACH reporting for corporate clients Reg E Dispute Tracking PRIZE DRAWING

Originated ACH Payments Task: Insure Originated ACH Activity is Valid Risks: Financial loss Customer relationships Reputation Compliance Challenges: Multiple delivery channels (on-line / FTP) Procedures are outdated (lack of automation) Lack of diligence for security by clients Smart, Smart Bad Guys! Solution: Layers of technology Automation Task: Insure Originated ACH Activity is Valid Risks: Financial loss Customer relationships Reputation Compliance Challenges: Multiple delivery channels (on-line / FTP) Procedures are outdated (lack of automation) Lack of diligence for security by clients Smart, Smart Bad Guys! Solution: Layers of technology Automation Real-time File Monitoring Customer File Verification Submission Calendar / File Scheduling Data Validation Account White Lists CENTRIX Payments Fraud Protection & Risk Reporting

Incoming Payments Task: Insure check & ACH activity is valid Risks: Customer retention & acquisition Financial loss Reputation Challenges: Customer apathy  “The bank will cover it” Solution: Technology Automation Task: Insure check & ACH activity is valid Risks: Customer retention & acquisition Financial loss Reputation Challenges: Customer apathy  “The bank will cover it” Solution: Technology Automation ACH Positive Pay ACH Filter/Block Check / Payee / Teller Positive Pay EDI Translation Customer Returns Notification CENTRIX Payments Fraud Protection & Risk Reporting

Originated ACH Payments Real-time File Monitoring Customer File Verification Submission Calendar / File Scheduling Data Validation Account White Lists Payments Data Warehouse Bank Reporting Board Reporting Risk Assessment Returns Analysis Relationship Manager Reporting Exposure Reporting Bank Operations Chargeback Processing ACH Billing NOC Processing IAT / DNR Reports Reg E Dispute Tracking Incoming Payments ACH Positive Pay ACH Filter/Block Check / Payee / Teller Positive Pay EDI Translation Customer Returns Notification Payments Fraud Protection & Risk Reporting

Centrix Solutions Inc. ACH Risk Management Let Centrix Simplify

Originated ACH Payments Real-time File Monitoring Customer File Verification Submission Calendar / File Scheduling Data Validation Account White Lists Payments Fraud Protection & Risk Reporting Centrix Payments I.Q. System Origination file validation ACH Risk Reporting Relationship Manager Dashboard Originator activity reports Risk Assessment reports Exposure positions ACH Calendaring Detect fraud Enforce originator agreements

Passed to PIQS Workflow Originated Files Received VALIDATION RULES Company or Business Unit Limits Is it Scheduled? SEC Codes White List Company or Business Unit Limits Is it Scheduled? SEC Codes White List Warnings or Errors Warnings or Errors Alerts & Overrides Alerts & Overrides Centrix PIQS Processing Flow Payments Data Warehouse Payments Data Warehouse Validated Statistical Metrics Exception Reporting Originator Reporting Statistical Metrics Exception Reporting Originator Reporting Corporate Clients Originated ACH Files Originated ACH Files Incoming Fed File(s) Incoming Fed File(s)

Centrix Solutions Inc. ACH File Validation

Originated ACH Payments Real-time File Monitoring Customer File Verification Submission Calendar / File Scheduling Data Validation Account White Lists Payments Fraud Protection & Risk Reporting Centrix Payments I.Q. System File Validation Multi-day exposure monitoring Temporal risk White list (valid receivers) ACH calendaring SEC codes Duplicate file check File integrity checks Auto balance control totals Centrix Payments I.Q. System File Validation Multi-day exposure monitoring Temporal risk White list (valid receivers) ACH calendaring SEC codes Duplicate file check File integrity checks Auto balance control totals

Centrix Solutions Inc. ACH Risk Reporting

Centrix Solutions Inc. Reporting Considerations Relative to OCC | FFIEC Guidance | NACHA Rules Metrics and trend analysis on ACH volume, returns, operational losses and transaction types Summary of return rates by originator Unauthorized returns that exceed threshold  1% Metrics and trend analysis by originator Capital adequacy reporting ACH Risk Reporting

Centrix Solutions Inc. REPORTING DEMO ACH Risk Reporting

Centrix Solutions Inc. ACH Risk Reporting Sample Report (OCC | FFIEC) Sample Report (OCC | FFIEC) Daily Origination Activity Daily Inbound ACH Activity Payments Data Warehouse Payments Data Warehouse Originators who have an unauthorized return rate greater than X% (1%)

Centrix Solutions Inc. ACH Risk Reporting Sample Report (OCC | FFIEC) Sample Report (OCC | FFIEC)

Centrix Solutions Inc. ACH Risk Reporting Sample Report (OCC | FFIEC) Sample Report (OCC | FFIEC)

Centrix Solutions Inc. ACH Risk Reporting Sample Report (OCC | FFIEC) Sample Report (OCC | FFIEC)

Centrix Solutions Inc. ACH Risk Reporting Summarizing origination activity by customer (files/items/dollars)

Centrix Solutions Inc. Risk Assessment Features Coming Q Risk assessment worksheet… beyond ACH ACH, Deposits, Loans, RDC, etc… Auto calculate exposure limit adjustments Approval workflow for risk limit adjustments Relationship manager dashboard ACH Risk Reporting

Incoming Payments ACH Positive Pay ACH Filter/Block Check / Payee / Teller Positive Pay EDI Translation Customer Returns Notification Payments Fraud Protection & Risk Reporting Check Positive Pay ACH Positive Pay Client ACH Reporting Exact/TMS by Centrix Solutions, Inc.

Incoming Payments ACH Positive Pay ACH Filter/Block Check / Payee / Teller Positive Pay EDI Translation Customer Returns Notification Payments Fraud Protection & Risk Reporting Centrix Exact/TMS™ Check Positive Pay Payee match Teller positive pay Internal exception scrub On-line decisioning of exceptions Single signon from cash management Centrix Exact/TMS™ Check Positive Pay Payee match Teller positive pay Internal exception scrub On-line decisioning of exceptions Single signon from cash management

Incoming Payments ACH Positive Pay ACH Filter/Block Check / Payee / Teller Positive Pay EDI Translation Customer Returns Notification Payments Fraud Protection & Risk Reporting Centrix Exact/TMS™ ACH Positive Pay Pre-authorized originators (white list) Valid SEC codes Maximum amount Filter/block rules (black list) Originator SEC Codes Transaction type rules (DR/CR) On-line decisioning of exceptions Centrix Exact/TMS™ ACH Positive Pay Pre-authorized originators (white list) Valid SEC codes Maximum amount Filter/block rules (black list) Originator SEC Codes Transaction type rules (DR/CR) On-line decisioning of exceptions

Incoming Payments ACH Positive Pay ACH Filter/Block Check / Payee / Teller Positive Pay EDI Translation Customer Returns Notification Payments Fraud Protection & Risk Reporting Centrix Exact/TMS™ ACH Reporting for Clients EDI / Returns / NOC Auto delivery (web pickup) or automated attachment Centrix Exact/TMS™ ACH Reporting for Clients EDI / Returns / NOC Auto delivery (web pickup) or automated attachment

Centrix Solutions Inc. Centrix Solutions Inc. Reg E Dispute Management Debit Card | ACH | ATM Eliminate Spreadsheets Automate the Back Office Simplify Compliance Eliminate Spreadsheets Automate the Back Office Simplify Compliance

Centrix Solutions Inc. How would you define your dispute management process? Simplify, streamline, automate Eliminate paper, file folders & spreadsheets Incorporate an audit trail What would you like to do better? …Clunky, you say?

Centrix Solutions Inc. Centrix Dispute Tracking Browser user interface for CSR input Select disputed transaction and reason (no manual entry) Transaction and customer data feed from core Integrated dispute form(s) Back Office Review Queue Produce form to submit to card processor or Visa/MC Timeline Management Track dispute timeline for each type of transaction Debit card | ACH | ATM

Centrix Solutions Inc. Centrix Dispute Tracking Auto post transactions Provisional Credit | Charge Back | Charge off Customer Letters Contact notes (case management) Full audit trail

Centrix Solutions Inc. Centrix Solutions Inc. PRIZE DRAWING $100 Gift Certificate to Omaha Steaks

Centrix Solutions Inc. Western States Users Group Centrix Solutions Inc. ACH Risk Management & Reg E Compliance Let Centrix Simplify ACH Risk Management & Reg E Compliance Let Centrix Simplify Brad Johnson – Director of Business Development -