Welcome to Creative Payment Solutions electronic payments webinar

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Welcome to Creative Payment Solutions electronic
payments webinar!
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• Todays Agenda
• Introduction
• CPS background and history
• AR-Box electronic payment and receivables service
• CheckTrack NSF check recovery service
• Image Cash Letter service
• Vault Services

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• INTRODUCTION
• CPS Sales, Product Development Management Team
• Scott Davis AR-Box product manager
• Chris Larkin CheckTrack product manager
• Stephanie Evans Remote Deposit Suite Branch
  Capture Suite product manager
• Scott Haynes responsible for your Account
  Relationship, supportcoordination and training
• Harold Williams Chief Operating Officer
• Brian McCollum Manger, Sales, Product
  Development Management Team
• Nancy Owens Manager, Operations and Customer
  Service Support

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• CPS Product Background
• Creative Payment Solutions has a dedicated
  operations and support staff located in Wilson,
  NC.
• CPS has built a successful and reliable customer
  service and support infrastructure for all of our
  products.
• We continually develop and enhance our products
  with new features and tools that make them state
  of the art in the industry.
• CPS provides an overall account relationship
  manager for each FI.
• We have a dedicated product manager/technical
  product consultant for each product.
• CPS can provide sales support and marketing
  materials as well as product consultation.

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AR-Box Electronic Payment and Receivables Processi
ng Solution
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• About AR-Box
• AR-Box is sold to businesses / municipalities
  that regularly bill consumers.
• How does it work?
• Consumer bill payment information is consolidated
  for each biller.
• Biller receives payment account receivable
  information and credit to their operating
  account.
• Receivables information is consolidated from the
  online banking systems.
• CPS is an industry consolidator for the major
  online bill payment processors.
• Biller receives
• A file that can automatically update their
  account receivables system
• An ACH credit for the total of each days
  payments.

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• Benefits to your businesses / municipalities
• Improved cash management capabilities
• Streamlined accounts receivables administration
• Reduced accounting costs and fees
• No more paper check from online payment
  processors
• Decreased paper handling
• Improved predictability of funds flow and funds
  availability
• No new DDA account needed and no capital
  investment

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• Features
• Online reporting tools and transaction search
  capabilities
• Ability to correct inaccurate receivables
  information online
• Ability to stop or return payments
• Account Receivable file created for automated
  posting
• CPS provides reporting on transactions up to 2
  years old

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• Target Markets
• Municipalities
• Utilities
• Cable Providers
• Retailers
• Insurance / Healthcare Providers
• Newspapers / Magazines
• Non-Profit Organizations

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• Benefits to the FI
• A product that will compete with all the major
  banks in the industry
• Good customer relationship building tool A
  potential prospect does not have to have to an
  account with your institution to use the
  product
• Can cross sell with Remote Remittance
• Customer can eliminate the need for lockbox
• State of the art electronic payment processing
• Easy to set up and maintain
• Volume will continue to increase automatically

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• Market Trends
• Online banking is expected to grow to 82 million
  households by 2012
• CPS has seen the number of billers and the number
  of payments double in the last year
• Billers and volume are expected to double again
  in 2009
• CPS processed 144M in online banking receivables
  for the billers in month of December

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CheckTrack Automated Returned Deposited
Item Collection For Businesses
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• About CheckTrack
• CheckTrack is an NSF check collection service
  that enables customers to focus on their business
  with less concern about checks returned for
  insufficient or uncollected funds.
• Businesses can accept personal checks with the
  comfort of knowing that eligible returns will be
  electronically re-presented through the ACH
  network, thus avoiding any uncomfortable face to
  face contact .
• Most banks process electronic items before paper,
  thereby increasing the likelihood that the
  returned check will be paid, saving them time
  and money.
• In 2008, CPS processed over 93,500 items totaling
  almost 26 million dollars.

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• How CheckTrack works
• CheckTrack is designed for business customers
  that accept consumer checks.
• All returned deposited items from your business
  customers are sent to CPS.
• CPS uses the ACH network to collect eligible
  returned deposited items.
• Once the face value is collected Your customer is
  credited for the full face amount of all
  collected items.
• After the face value is collected, CPS will make
  a second attempt through the ACH network to
  collect the standard returned check fee from the
  issuer of the check (check fees vary by state and
  range from 15 to 50).
• Once the fee is collected, CPS pays your bank 40
  of the collected fee.

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• The benefits of CheckTrack
• All eligible returned checks will be processed
  with no out-of-pocket cost to you.
• Allows two attempts to electronically re-present
  each eligible returned check.
• You provide a check collection service for your
  business customers that
• requires no additional equipment or software to
  buy.
• is free to your Customers.
• non-intrusive to your customers as the ACH
  transactions areautomatically debited.
• allows the business to collect more checks than
  traditional methods.
• Reporting of all pending and collected returned
  checks and their images are available via a
  secure website.
• No minimum number of returned items are required
  to qualify for the service.

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• CheckTrack Features
• Returned checks are presented for collection a
  second time through CheckTrack, if necessary.
• Collection attempts can be timed on the 15th and
  30th of the each month or on Fridays.
• Checks are credited each day as they are
  collected.
• CheckTrack online reports permit your customers
  to track the status of all submitted items.
• CPS collects, on average, over 75 of returned
  checks.
• Checks not eligible for ACH RCK processing are
  returned to your customer.
• Checks that are unable to be collected are also
  returned to your customer.

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Online web reports sample
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• The negative response approach
• Identify all customers that have had returned
  items within the last 6 months.
• Automatically enroll your business Customers in
  CheckTrack with the option to opt-out if the
  service is undesirable at that time.
• Customers are set up with special instructions to
  have all returned checks sent to CPS for
  processing.
• What CPS will do
• Notify your business Customers of this enrollment
  through a negative response letter (under your
  cover) that includes a sell sheet and a return
  check policy sign that they must display at the
  point of sale.
• Customers are called when the first returned
  check is received to instruct them on how to use
  the system and to give them a second chance to
  opt-out.

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• Market Trends
• Major banks throughout the country such as
  JPMorgan Chase, Bank of America, Wachovia and
  BBT have successfully implemented this type of
  service using a negative response letter
  approach.
• Over the last several years, non-bank payments
  providers have penetrated this customer service
  and fee income opportunity by going direct to
  businesses.
• Check guarantee providers who collect these
  returned items, usually take a percentage of the
  face amount of all the checks collected.
• Our research has indicated that
• Business customers would prefer that their own
  bank provide the service, especially if it is of
  no cost to them.
• About 60 of your business Customers will opt for
  the CheckTrack service because it keeps them from
  having to go directly to the customer and
  provides a much better chance of collecting the
  funds (CPS has a 75 - 80 collection rate and a
  65 returned check fee collection rate).
• Collecting returned checks takes away valuable
  time from running their business.

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Image Cash Letter ICL Service for Businesses
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• How does ICL work?
• High volume customers that do not use Deposit24,
  but have the capability to image checks through
  their own hardware and software.
• Customers create a balanced X9.37i file.
• Customers securely transfer the X9.37i file(s) to
  CPS for processing.
• Multiple deposits can be included in the X9.37i
  file.
• Multiple X9.37i files can be sent daily to CPS
  for processing.
• The ICL deposits will be included in a separate
  X9.37i or IRD file back to the FI to process and
  post.
• The same Deposit24 reports are available to ICL
  Customers to view their check images and deposit
  information.
• ICL allows the FI to convert eligible check items
  into electronic deposit transactions through the
  ACH network.

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• Benefits
• Reduction in operation costs, the risks, and
  delays associated with transporting paper.
• Potential later cutoff times for your customers.
• Expedited check processing by the FI.
• Faster access to funds.
• Allows for centralized back office processing.
• Expand the FIs potential footprint beyond
  traditional brick and mortar.

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• Features
• Image Quality Analysis
• Duplicate detection
• File receipt acknowledgement
• Multiple cash letters per file
• Deposits can be made to different DDAs
• File sizes up to 25,000 items
• Deposits can be processed through ACH or
  X9.37i/IRD
• Online access to deposit data for 2 years
• Availability of images online for 2 years
• File format must meet ANSI DSTU X9.37i standards

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• Market Trends
• Major banks throughout the country such as
  JPMorgan Chase, Bank of America, Wachovia and
  BBT have successfully implemented and ICL
  solution.
• Our research has indicated that
• Customers can be more efficient in their
  processing if they can leverage existing software
  and hardware and image their checks for
  processing.
• Many large customers have image enabled hardware
  and software.
• A good target market for this product are
  Pre-Encoded Items customers.

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• CPS ICL Product Background
• We have successfully been providing this product
  since March 2008 for 8 large customers.
• CPS has successfully processed over 118,000
  checks in one day for a single customer.
• In the month of December, CPS processed 1.1
  million checks totaling 52 million worth of
  deposits for the 8 ICL customers.

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Vault Services
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• About Vault Services
• Vault services is developed for customers that
  are cash intensive, such as grocery stores,
  convenient stores and restaurant chains that use
  armored couriers to deliver their deposits to the
  bank.
• Vault services is compatible for customers that
  have multiple locations and multiple banking
  relationships.
• Allows customers to make all of their deposits
  with the same FI even if they operate outside of
  the FIs banking footprint.

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• How does Vault Services work?
• The FI must establish a relationship with the
  armored courier.
• Once the FI has partnered with an armored
  courier, the courier will transport check and
  cash deposits to a commercial vault centers for
  processing and crediting.
• The armored courier will scan the customers
  deposits, including cash tickets, and transmit a
  balanced X9.37i file securely to CPS for
  processing.
• Vault services also allows the FI to convert
  eligible check items into electronic deposit
  transactions through the ACH network.

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• Benefits
• Save money by minimizing the number of banking
  relationships and accounts.
• Improve liquidity since businesses easily can
  move money between accounts, investments or lines
  of credit.
• Reduce monthly reconcilement effort and expense,
  which leads to more accurate cash flow
  forecasting and better fraud prevention.
• Customers can offset service charges and free up
  more money for investing (through higher balances
  at only one financial institution).
• Help reduce potential losses (compared to
  traditional check clearing) with an ACH
  electronic conversion option.
• Customers keep employees and money safe with
  armored courier.
• FI can expand banking footprint.

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• Features
• Image Quality Analysis
• File receipt acknowledgement
• Multiple cash letters per file
• Deposits can be processed through ACH or
  X9.37i/IRD
• Online access to deposit data for 2 years
• Availability of images online for 2 years
• File format must meet ANSI DSTU X9.37i standards

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• Market Trends
• It is difficult for customers to manage their
  business operations through different banking
  institutions across the country and different
  time zones. Through an image enabled vault
  service, customers can consolidate their banking
  relationship, simplify account reconciliation and
  save time and money.
• Most major armored couriers have the ability to
  create an X9.37i file.

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• CPS Vault Services Product Background
• CPS has been successfully providing this product
  since May 2008 with Brinks
• CPS processed vault deposits for 3 customers with
  deposits totaling over 800,000 in December 2008.

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Branch Capture
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• How does Branch Capture work?
• A scanner and PC are deployed to branches and are
  placed behind the teller line.
• Tellers access our Branch Capture application
  through a high speed internet connection and scan
  periodically throughout the day.
• Teller work can be transmitted balanced or
  unbalanced.
• Images are transmitted securely through an https
  connection to CPS.
• CPS processes the batches of teller work.
• CPS will create a balanced X9.37i/IRD file and
  transmit to the FI to process.

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Branch Capture workflow
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• Benefits
• Reduction in operation costs, the risks, and
  delays associated with transporting paper
• Reduce, or potentially eliminate courier costs
• Reduced labor costs
• Extend branch cutoff time
• Improve funds availability
• Improve Teller utilization
• Improve FI system release

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• Features
• Internet based application
• Provided through ASP model
• No software to purchase by the FI
• Application reads full MICR line and amount
• Image Quality Analysis
• File receipt acknowledgement back to the branch
• Reports of scanned items
• Access to images through online reports

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• CPS Branch Capture Product Background
• We have been successfully providing BBT with
  Branch Capture since August.
• Branch Capture has been deployed to 335 BBT
  branches to date, with Decembers volume totaling
  over 5 million items. BBT is planning to deploy
  to more branches in 2009.
• BBT will save 10 million a year in courier
  costs alone.

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ACH Origination
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• How will ACH Origination work
• For FIs that originate ACH transactions through a
  third party to clear to the FED, CPS can
  originate on the FIs behalf.
• This product is for the FIs customers who can
  create an ACH file through their own software and
  either want to credit or debit accounts (for
  example payroll).
• Customers can securely transfer the ACH file to
  CPS, who will use BBT to clear the items.
• The FI would open an account at BBT. CPS would
  use this account to settle to the FI, who would
  in turn, settle back to their customer.
• CPS is looking for Financial Institutions to
  pilot this solution.

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Small Volume RDC Remote Deposit Capture for
Small Volume Businesses
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• About Small Volume RDC
• Small Volume RDC is designed for businesses that
  are in the lower end of the business segment of
  the bank, with low transactional volume.
• Businesses that typically have fewer than 20 to
  30 checks a day to deposit.

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• How will Small Volume Capture work?
• Small volume business capture will access our
  internet based application, and with a
  single-feed scanner such as DigitalCheck or
  CheckNique, will capture their deposit.
• Customers do not have to correct MICR line data,
  just ensure amounts are captured correctly, as
  well as appropriate image quality.
• Customers will submit balanced deposits to CPS
  for processing.
• FI will receive these deposits in their current
  X9.37i/IRD file(s).
• Customers will access the same Deposit24 reports
  that are currently available to RDC Customers.

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• Benefits
• Creates a reduction in operation costs and
  eliminates the time needed for the small business
  customer to travel to the bank to make deposits.
• Extended customer deposit cutoff times can extend
  traditional banking hours.
• The footprint of the FI can be expanded to
  include areas outside of its geographical
  footprint.
• The FI is able to bundle a product suite designed
  and targeted for small businesses.

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• Features
• Internet based application
• Duplicate Detection
• Full MICR line read
• Image Quality Analysis
• File receipt acknowledgement back to the client
• Simple self-guided installation of scanner driver
• Reports of Deposit data and access to check
  images

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• Market Trends
• 60 of US financial institutions have remote
  deposit solutions, two-thirds offer the same
  product to both large and small businesses.
• 30 of retail banks are planning a separate RDC
  product targeted directly to small businesses.
• Our research has indicated that
• According to Celents Banking group
• Checks represent 75 or more of total receivables
  for over two-thirds of small businesses.
• Checks are central to small business finances and
  will remain so for the foreseeable future.
• There is an economic opportunity for remote
  deposit among the smallest businesses, 20 million
  of them with annual revenues of less than 1
  million.
• Small business Customers are more willing to pay
  for an all-in-one service which includes the
  scanner rental in the monthly fee.

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• The future of Small Volume RDC with CPS
• CPS will pilot Small Volume RDC at the end of 2nd
  Quarter 2009
• CPS is looking for Financial Institutions to
  pilot the application
• CPS will keep you informed of our progress

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RDC With automated posting file for accounts
receivable
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• CPS Remote Deposit Capture Products
• Remote Remittance
• PC-based
• Checks, Money Orders
• Remittance Coupons
• RDC with Accounts Receivable Input
• Web-based
• Checks, Money Orders
• Four remittance data entry fields

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• How does an Automated Posting File work?
• RDC and Remote Remittance both contain electronic
  payments information.
• Payments information is necessary to update
  Accounts Receivable.
• Information can originate on a check and a
  remittance document.
• A single posting file can be automatically
  created each business day.
• The posting file is available immediately after
  your clientscut-off time.
• CPS works with you and your customers to create
  the automated posting file format.

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• Benefits to Business Customer
• Enables a single point of data collection for
  payments information.
• Resources are freed up, because the posting file
  is used to interface electronic payments
  information into Accounts Receivable.
• Customers save time by reducing or eliminating
  the need to manually enter payments information.
• Data integrity across applications.
• The posting file is developed specific to your
  customers Accounts Receivable system.

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• Features
• Minimal time is necessary to create a typical
  posting file.
• Posting files available online or via secure FTP.
• Online access to posting files is for two years,
  along with associated reports and check images.
• The format of the posting file can be created
  uniquely for each of your customers Accounts
  Receivable system.
• CSV, fixed length, or tab delimited
• Detail item records containing variables and
  constants
• Optional header and trailer records
• CPS does not charge to implement a typical
  automated posting file.

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• Successful Business Approach
• RDC, Remote Remittance, and AR-Box.
• Customers with an Accounts Receivable system.
• Determine if customer can accept an automated
  Accounts Receivable feed.
• CPS Will
• If necessary, enable entry of additional RDC data
  entry fields.
• Work with you and your customer to create the
  automated posting file.
• Test posting file availability for customer.
• Provide posting file modifications, as needed by
  customer.
• Establish method of posting file delivery.

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• Market Trends
• With the increase in electronic payments,
  customers are anticipating a continued reduction
  in the amount of time necessary to process
  payments.
• Our research has indicated that
• Customers are well aware of the efficiencies they
  can gain by receiving the input of payments
  information from a single centralized location.

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• Thank you for attending!
• Please let us know which products would be
  helpful in your markets.
• We will then schedule a time to meet with you in
  order to provide much more detail.
• If you have an industry referrals who might find
  the CPS product line useful please let us know.
• Are there any other payments and related products
  which you would like us to provide.
• Please send us your comments on this session and
  suggestions for more similar meetings in the
  future.
• Also, your feedback on how CPS compares to other
  vendor/suppliers that you use or know about would
  be helpful .

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Questions?