Consumer Online Bill Payments

1. Consumer Online Bill Payments The Challenges for Billers

2. AGENDA • Growing Payments Channel • Payments Processing Gaps • Biller Exceptions & Customer Service Issues • CPS understands the challenges • Addressing the challenges • AR-Box Solution • About Creative Payment Solutions

3. GROWING PAYMENTS CHANNEL • Scope • 360MM online payments are processed monthly by various participants1 • This has grown approximately 48% over the last 10 years • 45% of transactions are initiated through online banking2 • 48% are initiated through biller direct websites2 • The remaining 7% use in store kiosks, telephone payments and other • payment options • Consumers • Like the convenience that technology permits • Continue to adopt these new payment channels • Want bill presentment to be more user friendly Sources- 1 NACHA Payments Summit (Exceptions Summit Pre-read), 2 Javelin Strategy & Research/2012 Online Bank and Bill-Payment Forecast

4. PAYMENT PROCESSING GAPS • Expectations • Consumers expect transactions to be paid quickly after initiation • Billers expect all transactions initiated to be processed quickly • Consumers expect today’s technology to be efficient from end-to- • end • Biller Challenges • Transaction flow to the biller is a batch process subject to processor times • Processing environment is decentralized with four major processors and • various smaller processors • Processing flow is the same for payments through FI’s online bill payments as • through biller websites • There is very limited industry knowledge of the processing timeframes • Processors make money on the consumer initiation of the transaction • Electronic bill presentment is being developed in a decentralized manner

5. BILLER EXCEPTIONS & CUSTOMER SERVICE ISSUES • Consumers view all problems as caused by the biller • Key issue is the time it takes to post transactions • Exceptions are expensive transactions to correct • Estimated cost per exception is $35 • Wrong account numbers entered • Late payments can lead to past due notices • Payments that revert to check require additional research • Transaction research is difficult due to multiple payment sources • Stop payments and return items cannot always be handled automatically • Industry specific rules/requirements often create manual processes • Smaller billers may not be utilizing full benefits of available technology

6. CPS UNDERSTANDS THE CHALLENGES • Industry knowledge of the complexity of the payment process • Understand the costs associated with exceptions and manual processing • Realize both financial and human resources are limited • Billers are plagued with customer service issues as a result of payments posting inconsistently • Management of multiple payment files and accounting entries creates challenges for staff • Researching payments received from various online bill payment processors is frustrating and impacts customer service expectations

7. ADDRESSING THE CHALLENGES A solution focused on the billers’ needs that meets consumer expectations • CPS has arrangements with all major online bill payment processors to receive payments for their biller customers • More timely and consistent transaction flow • Provide one posting file that automatically updates customer accounting system • Payment information can be sent to multiple accounting systems and credits sent to multiple bank accounts • Reduce and simplify exceptions • Automated account number correction • Incorrect account numbers are fixed online by biller when they occur • Automated returns processing • Biller validation and stop files are reviewed and appropriate returns are processed • Identified exceptions/stops can be reviewed by the biller for processing • Stop payments and other return items can be entered by the biller for return by CPS

8. ADDRESSING THE CHALLENGES (cont’d) • Multiple payment fields can be entered and automatically processed • Biller files are scrubbed to correct exceptions during the implementation process • “Straight-thru” processing or selected automated intervention • Online reporting and research • Work flows are continually being evaluated to reduce processing time • CPS accepts all billers of any volume and/or frequency • Centralized team that is dedicated to handling all customer service inquiries back to the processing source • A web payment capability is also available for use through biller websites • Provides the most efficient end-to-end payment processing cycle

9. AR-Box Solution Current Payment Process Process with AR-Box

10. ABOUT CREATIVE PAYMENT SOLUTONS • Creative Payment Solutions (CPS) is an Application Service Provider (ASP) specializing in innovative payment and receivables processing solutions • Established in 2003, CPS is based in Wilson, NC and is a wholly owned subsidiary of BB&T Corporation • Our products can significantly reduce operating expenses for financial institutions and businesses of all sizes • Comprehensive solutions with ongoing training and support, including on-site and remote product training and sales support services • Provide a web-based system that requires minimal integration and budget allocation • Industry certified subject matter experts on staff • Customer service team available from 8:00am to 11:00pm ET

11. Thank you! For more information or to request a detailed demonstration please contact : Tony Blackburn Julie Peckham 513.505.0797 or 312.915.0553 ahblackburn@ecpays.comjpeckham@ecpays.com Additional product offerings: Remote Deposit Capture Remote Remittance CheckTrack NSF Check Collection www.CreativePaymentSolutions.com