1. Essentials of Cash Management zTypes of Cash Management Reports: yDomestic Cash Management xServices used by Corporation within the United States for day to day domestic cash management and borrowing needs. yGlobal Cash Management xServices used by Corporation when performing transactions related to import or export of goods and services to and from the United States. ySmall Business Web Banking xOnline banking services provided by the banks to small business owners. yMiddle Market Web Banking xOnline banking services provided by the banks to larger companies and corporations. yCorporate Cards and Merchant Services xCredit and Debit cards offered by the banks and other providers for use by corporation for various purposes.

2. Domestic Cash Management Report zDepository Services and Miscellaneous Charges yCommercial Checking Account Charges: all companies that utilize the cash management services use a concept called “account analysis”. Account analysis features allows banks to earn “points,” also known as Earning Credit Rate, for keeping high balances in their checking account (think interest earned by a consumers on his checking or savings account). Since corporation are not allowed to earn interest, by the end of the month, the actual dollars earned are applied towards fees accumulated in the customer’s checking account. xFor Example: ABC Inc.. accumulated $100,000 worth of charges in the last month. The company also kept really high cash balance in its checking account, so earnings credit for the same month is $125,000. Therefore, ABC Inc.. pays $0.00 in charges by the end of the month. If in the same example, ABC Inc.. only earned $85,000 worth of Earnings Credit, their account would have been debited by the bank $15,000 at the end of the month. xCommercial customers are charged for every single transaction in their checking account, which would also include miscellaneous fees, such as stop payments and wire origination.

3. Domestic Cash Management Report zBranch and Vault Cash/Currency Services yBranch Cash/Currency Services : xService of ordering or depositing large quantities of cash that is provided to the company at the branch level (think merchant windows that you see in the bank branches). yVault Cash/Currency Services : xService of ordering or depositing large quantities of cash that is provided to the company through the centralized vault at the bank (think of armored trucks).

4. Domestic Cash Management Report zZero Balance Account yThe concept behind Zero Balance Accounting (or for short ZBA) is to give companies an opportunity to keep all of their funds in one checking account, even though company might need multiple account for day to day operations. Funds are transferred to ZBA account automatically and only if required. xFor Example: If company has operational account and payroll account, most likely, payroll account is only used a few times a month. During the payroll period, company has paid out in salaries a total of $100,000 (let’s say all to one employee for simplicity). The payroll check is written against the payroll account. At the time when the check is being presented to the bank, funds are automatically transferred to payroll account from operational account in the exact amount required. Hence, the ZBA account always has a zero balance, as the name implies.

5. Domestic Cash Management Report zAutomated Clearing House (ACH) Services yACH service is an ability by a bank or a company to debit or credit someone’s account electronically, such as direct deposit of payroll or automated debit for your car loan. yThe ACH transactions can be originated either with companies own software, bank’s online product, or a third party (such as ADP). yIn all cases, pricing for the service is based on the method of origination and consumer vs. corporate relationship. For example, if you get your pay check via Direct Deposit to your checking account, you, as a consumer, are not charged to use the service. Each time your employer makes the payroll deposit to your account, they are being charged a fee.

6. Domestic Cash Management Report zAccount Reconciliation Services yReconciliation services are designed to help companies to organize and automatically track account activity for any given month. yThe types of Account Reconciliation Services are: xFull Account Reconciliation xPartial Account Reconciliation xRange Account Reconciliation xDeposit Account Reconciliation yAccount Reconciliation Related Services: xPositive Pay and Serial Sort

7. Domestic Cash Management Report zFull Account Reconciliation yThis reconciliation service provides the most comprehensive account reconciliation reporting. With Full Reconciliation, company receives a detailed listing by check number of all checks issued, paid, or outstanding since the last reconcilement period. To accomplish this task, company provides the bank with file of issued checks. The bank matches paid checks against issued check file. The information is transmitted back to the company for review.

8. Domestic Cash Management Report zPartial Account Reconciliation yPartial Reconciliation provides a computer report that lists all checks paid, in check number order. No other information is provided. zRange Account Reconciliation yRange Reconciliation provides a computer report that lists paid and outstanding checks. However, company has to provide the bank with the range of checks that were issued during the last reconciliation period.

9. Domestic Cash Management Report zDeposit Account Reconciliation yDeposit Reconciliation was developed for clients with multiple depositing locations or profit centers that deposit into one main account. Through deposit reconciliation method, bank issues a special MICR encoding of location number on deposit ticket. The MICR numbers then allow the bank to provide a report that details and subtotals each deposit, by location and in chronological order. zSerial Sort yWith Serial Sort bank sorts companies canceled checks into numeral order.

10. Domestic Cash Management Report zPositive Pay Service yPositive Pay is a fraud prevention service. Company provides the bank with information on all the checks issued, including day, dollar amount and payee information. Before paying each check bank verifies the information on the check against the file provided by the company. Only checks that exactly match companies file will be paid. Hence, the fraudulent check would be caught by the bank before it has been paid.

11. Domestic Cash Management Report zControlled Disbursement Service yWith controlled disbursement services, bank captures incoming check data early each morning and provides that information to the customer via PC, fax, or touch-tone service. The information is generally available by 9:00 am or 10:00 each morning. yControlled disbursement allows companies to maximize the inevitable dollars and to minimize the risk of costly overdraft. zSweeps yInvestment Sweep yLoan/Credit Sweep yCombined Sweep

12. Domestic Cash Management Report zInformation Reporting Services: yOnline Info Reporting: xWeb/Internet Commercial Banking xPC/Windows Commercial Banking yFax Info Reporting yTouch Tone Info Reporting

13. Domestic Cash Management Report zOnline Information Reporting: yWeb/Internet Banking: xOnline banking service that provides companies with up to the minute account information and allows to originate transactions via the Internet. Customer can access this service from any computer. Software does not need to be installed on customer’s PC. yPC/Windows Banking: xOnline banking service that provides companies with up to the minute account information and allows to originated transaction via direct modem connection with the bank. Customer is required to purchase a special software from the bank. Software has to be installed on customer’s PC. The information can be accessed only from the PC were software has been installed.

14. Domestic Cash Management Report zFax Information Reporting yAn outdated form of information reporting service, where customers would receive all the prior day account information from the bank via fax each morning. yTouch-Tone Information Reporting: xAn outdated form of information reporting service, where customer would call bank’s automated line to inquire on any type of account activity for the previous day. zNote: All the services, except Web Information Reporting are slowly being grandfathered by the banks.

15. Domestic Cash Management Report zLockbox yLockbox is centralized payment processing location owned by the bank, that provides the company with quick and efficient way of processing incoming payments and invoices. There are two major kinds of Lockbox sites: Wholesale Lockbox and Retail Lockbox. xWholesale Lockbox: designed to receive payment from companies, not consumers. This service is mostly manual and very expensive. Payment received at wholesale mailbox are very complicated and could involve multiple invoices and partial payment checks. xRetail Lockbox: designed to receive payments from consumers (think: where do your credit card payments go? Not to the credit card company itself, but to the P.O. Box, which is payment processing center!)

16. Domestic Cash Management Report zImaging Services yThe concept behind imaging services is an ability to provide business clients with image copy of the original document for record keeping, instead of returning the original at much higher cost. yBank can image any type of document that is processed through customer’s account. It could be a paid check, or a copy of the deposit slip, or an invoice. yThe most common for of imaging is called CD-ROM imaging, simply because check images are burned on to the CD and mailed to the customer at the end of the month. yThe online imaging, where customer can log on to their Internet banking account and simply view the picture of the document in question on the computer screen is becoming increasingly popular.