Same Day ACH Updated 8/25/16* *Additional CIF 20/20 FAQs Appended. August 2016

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1 CIF 20/20 & ACH Client, ACH Manager, EPS ACH Origination, ipay, NetTeller *Additional CIF 20/20 FAQs Appended

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3 Introduction... 1 CIF 20/ RDFI... 2 ODFI... 2 Timeframe... 2 FAQs... 3 Additional FAQs Appended 8/25/ Internet Solutions NetTeller Additional Information Restrictions FAQs Payment Services ACH Client ACH Manager EPS ACH Origination ipay i Jack Henry & Associates, Inc.

4 Introduction Updated 7/19/2016 There are three phases that make up the entire Same Day ACH program. The first phase has an effective date of September 23, The information that follows is regarding phase 1, which requires that all RDFIs receive Same Day ACH payments and are required to provide funds availability by the end of the RDFIs processing day. There are no requirements in Phase 1 that ODFIs must participate in originating Same Day transactions. Phase 1 creates two new processing windows for Same Day items. Interbank settlement for Same Day items that meet the new 10:30 a.m. ET cutoff window will settle at 1:00 p.m. ET, and items that make the new 2:45 p.m. ET cutoff window will settle at 5:00 p.m. ET. A copy of the FedACH Processing Schedule (effective 9/23/2016) can be found at: Phase 1 Same Day items are Credits only, not an IAT or ENR Standard Entry Class Code and not over $25, per item. In addition, the Effective Date is used between the ODFI and the Fed to determine if an item is Same Day eligible. When the Effective Date is equal to the Current Day s date (if it is Stale Dated or if it is an invalid date and meets all other criteria), the Fed will treat the item as Same Day if received by the Same Day cutoff time of 2:45 p.m. ET. This is a premium service that is chargeable to the ODFI by the Fed at a rate of 5.2 cents per Same Day item. The RDFI will receive 5.2 cents from the Fed per Same Day item that is received. Following is information about the approach planned for Phase I. This approach may be subject to change Jack Henry & Associates, Inc.

5 CIF 20/20 RDFI Planned core development to address the NACHA requirements for the RDFI will include the ability to process incoming Fed files during the day (for JHA OutLink Processing Services) and to provide totals by date on a report of incoming transactions received from the Fed. There are no changes required or planned for Phase 1 regarding handling returns any differently than they are today. ODFI Although there is no requirement to originate Same Day items, planned core development to provide functionality for the ODFI includes parameters that give control when outgoing items with Same Day characteristics are originated. There will also be separation of Same Day / Next Day totals on reports. Planned are bank level parameters that allow the FI to indicate that as an ODFI they are participating in the Same Day ACH program. If so, Same Day criteria will be used to determine eligible items from the warehouse and allow them to be originated as Same Day items. Control is also given to determine if the items in the origination file will consist of only Same Day eligible items or if the items will be a mix of Same Day and Next Day items. Additionally, a parameter will be available to establish a time frame for pulling Same Day Items during Origination. At the company level, the ability to identify which companies the FI chooses to participate in Same Day will be available. This controls if items that meet Same Day criteria are pulled into the outgoing origination file or remain in the warehouse until after the Same Day time frame has elapsed. Additionally, there is functionality planned to allow for the optional Same Day identification of SD1300/SD1700 to be used between the Originators and ODFI as one additional check to determine if the items are truly Same Day or not. To be consistent with analysis charging that is available today for ACH items, all charging for Same Day items will be done through NetTeller also. Origination will take place using the same option that is taken today for origination. The parameters create the control and identification necessary to determine what items are contained in the outgoing file. Reports generated during origination will offer identification of Same Day items. Timeframe Same Day ACH origination functionality for Phase I will be available as part of the CIF 20/ release. Financial institutions that upgrade to Release 2016 prior to the availability of this functionality will receive the functionality once it is available in baseline Jack Henry & Associates, Inc.

6 Additional information on Same Day ACH will be forthcoming, as needed. In the meantime, please contact CIF 20/20 Support if you have any questions by opening a case on the For Clients site or by calling (800) FAQs When will Same Day ACH Phase 1 be available to our clients? As an RDFI, the ability to receive Same Day transactions and make the funds available is existing functionality today. A new report that provides totals by date has been added and will be included with the 2016 PTF package in September. We anticipate being able to provide the additional report to all 2015 clients by the September 23 deadline for incoming Same Day ACH as well. When will Same Day ACH origination be available to our clients? These enhancements are anticipated to be included with the release R2016 upgrade starting in September. Release 2015 banks will receive the origination-related enhancements upon their upgrade to R2016. How will Same Day ACH documentation be distributed? The enhancement guide AC Same Day ACH Phase 1 Receive and Process Incoming Transactions from Fed is already available on the For Clients site in the following location: CIF 20/20 > Release Information > Regulatory Updates. This guide provides details about a new report that is generated when a Fed file is uploaded, which can be used as a tool to understanding the contents of the Fed file. An enhancement guide for the remaining Same Day ACH updates will be added to the Deposit Applications Enhancement Guide found on the For Clients site in the following location: CIF 20/20 > Release Information > Enhancement Guides. What is the timeline for testing internally? Internal JHA core testing is anticipated to be completed by the end of July. When can our clients schedule testing with the Fed? (The Fed testing window closes September 2, 2016.) Banks will only be able to test with the Fed using their current test system capabilities. Code will be distributed as quickly as possible but the only date commitments will be to have 2016 institutions updated by September 23, Receipt and posting of incoming credit transactions without the new report can be tested at any time. Receipt and posting of incoming credit transactions with the new report will be available for institutions that receive the code prior to September 2, Origination will be available for testing after the origination enhancements have been implemented for institutions that receive the code prior to September 2, Jack Henry & Associates, Inc.

7 What should FIs be doing now to prepare? The FI should determine if they will participate in originating Same Day transactions. If so, the FI will identify originators that are allowed to participate, review ACH agreements, discuss the form of identifying Same Day ACH items with that Originator, inform originators about the identification /treatment of Same Day ACH items, and determine pricing if applicable for that originator. Are there changes to processing windows that our FIs need to be aware of? (Does JHA have different cut-offs than the Fed?) Core With the 2016 enhancements, a cutoff time parameter is available as a means of directing the identification / control of Same Day eligible items when origination is taken. This cutoff time parameter is internal for Core programming only and should not be mistaken for the Fed cutoff time. When origination is taken prior to this Core cutoff time, identification of Same Day ACH items occurs at that time. When origination is taken after this Core cutoff time, the assumption is the origination file created is intended to be sent to Fed after Fed s cutoff time for Same Day ACH (2:45 p.m. ET); therefore all items are assumed as Next Day Future items. Institutions not on 2016 will need to be prepared that originating prior to the Fed cutoff time could trigger the Fed to treat an item as a same day item and will need to be prepared for the Fed to charge for those items in accordance to their guidelines. OutLink - Specific OutLink cutoffs for all of the core centers will be communicated in August What should our FIs be telling their customers? For Same Day ACH credits received Phase 1: The banks are able to receive and post same day items as required by the Fed for the 9/23/16 deadline today and can tell their customers they are compliant. For Same Day ACH origination: Core How the Same Day ACH Items are identified for purposes of originating to Fed: Use the optional SD1300/SD1700 identifier or not, Effective Date equal to Current Day, stale dated or invalid, Credit Only, Not IAT/ENR SEC code, must be $25, or under. The bank should also give their customers the time frame they expect to be able to handle the origination piece for outgoing transactions to be treated as Same Day items. In today s core code, if an item is in the warehouse (via bank upload) that meets the criteria, it would originate out with no issue banks will not have the enhancements to charge or identify these items and would have to likely try to identify them via query. What reports are available to view Same Day ACH transactions? Phase 1 Credits RDFI: AC3115 Incoming Fed File Totals by Settlement Date - Breaks Down incoming Fed Files by comparison of Settlement Date to Effective Date AC7115 Incoming Fed File Totals by Settlement Date (Cumulative) Jack Henry & Associates, Inc.

8 ACH Origination ODFI: AC3140 Originated Same Day ACH Items Per Company - Provides Company Count and Amounts of Same Day ACH eligible items per Origination AC7140 Originated Same Day ACH Items Per Company (Cumulative) AC ACH Origination Fed Offset Records - Provides listing of identified Same Day ACH Fed Offsets along with Fed Offsets for Next Day Future Items. Is there a different pricing model for Same Day ACH transactions? Core - Charging will be at the NetTeller level to keep this consistent with existing charging functionality. OutLink - OutLink pricing for Same Day ACH processing is being finalized, and will be communicated to all OutLink customers in. What are your group s plans for Phase 2 and Phase 3? Phase 2 At this time, we are not aware of any required software changes to be able to receive Same Day debit transactions. If the FI elects to participate in originating Same Day transactions, the functionality is available with the roll out of Phase 1 (ODFI) functionality. Through a parameter at the ACH General Level, the FI has the ability to simply turn Phase 2 functionality on at the desired time. This parameter, at the roll out of Phase 1, prevents Debit transactions from being held to the Same Day ACH Criteria. Phase 2 functionality, when turned on, will allow ACH Debits to be identified/treated as a Same Day Item for purposes of Origination. In anticipation of the U.S. Government adoption of Same Day ACH functionality after the Phase 1 effective date, a parameter is made available with the Roll out of Phase 1 to allow the FI to simply turn on U.S. Government Participation. Phase 3 Not determined at this time. OutLink At this point, we expect the additional processing windows that we are establishing for Phase 1 will satisfy all requirements. Will Same Day ACH Training be provided? Yes. Training will be available as part of the Release 2016 Enhancement training in both live and online (elearning) formats. In addition, when Same Day ACH Origination functionality is complete, a separate online session will be made available free of charge to all users. An announcement will be posted on the For Clients site and in Jack Henry University when this session becomes available Jack Henry & Associates, Inc.

9 Additional FAQs Appended 8/25/16 Will same day credits post as they are received? Or will CIF 20/20 post an additional two times per day after each cutoff? In-house clients can upload the Fed file and then take the option to memo post the items as they are received. Items are hard posted to the accounts during EOD processing. OutLink: OutLink will memo-post items as they are received according to the Fed processing schedule. OutLink clients will be informed of the data center cut-off times to meet Fed processing cutoffs. Will exceptions be available next day to work? Or will we work returns as they post? That is, if same day credits are posted at noon, will we work EIP items at 1:00 p.m. or will those items appear on the next day s EIP report? The ACH return process has not changed. Credit items coming in today would show up in EIP the next day. Will we have the ability to fix an item before it rejects as we do now? In other words, will we be able to go in at 11:00 a.m. and fix a transposed account number so that a credit will memo post at noon? ACH option Memo Post Transactions from Warehouse creates the AC4450P - ACH Memo Posting Register exception report. ACH option Work with Warehouse File is used to correct items listed on the report as exceptions. Clients can maintenance items in the warehouse, if they know the correct account number. OutLink: The same process applies for OutLink. The data center will process the ACH file and memo post, and the bank reviews any bad memo posts (wrong account,etc.), does the corrections, and reapplies the necessary memo posts. If an item is in the 10:30 file and set to post at noon but has an invalid account number, can we work it so that it posts at 5:00 p.m.? Memo posting can create the AC4450P - ACH Memo Posting Register exception report. Clients can maintenance items in the warehouse and an incorrect account number, for instance, can be redone. In-house clients can review their processes for return deadlines. Will there be an afternoon Non-Post report? Will the returns deadline be extended to accommodate processing returns for the last file of the day? Memo posting can create the AC4450P - ACH Memo Posting Register exception report. Clients can maintenance items in the warehouse and an incorrect account number, for instance, can be redone. OutLink: The same process applies for OutLink. The data center will process the ACH file and memo post, and the bank reviews any bad memo posts (wrong account,etc.), does the corrections, and reapplies the necessary memo posts Jack Henry & Associates, Inc.

10 Will I work my return items the same as I do today or do I need to look for same day credits to recheck and not return some items? The Return process did not change. Internal procedures might need to be adjusted to allow for possible Same Day ACH credits received that must be returned Same Day. OutLink: Your current procedures need not change. Will the transactions hard post or memo post? How will availability of funds work? Same as today? Same as today. On the origination side, if we send out a same day ACH file with all credits, will the debit offset continue to be stripped off and post at the time the file is sent? The debit would not be going into the ACH network at all, so it should post at the time of origination and not next day.how will this work? Pending existing parameter settings at the company level, this process of creating the offset has not changed. The date used for the SDA would have a date of the current banking day. If we allow origination of same day ACH credits, and our customer originates a file that happens to have on-us items on it (their employee also banks with us), will that same day ACH credit post today? Yes, this process has not changed. However, the earlier effective date for the SDA credits would cause an earlier date on the employee s transaction. Will CIF 20/20 pick up any automated transfers with a same day date? In other words, if we wanted to send a credit to another FI for a customer, would we be able to change the effective date on an auto transfer and would it get picked up and sent out? Auto transfers generate at EOD processing, not during origination. The bank would be required to do a manual ACH item. Will there be any automated processes in place to account for bank closings due to inclement weather? In-house banks should develop their own procedures for correcting transactions or memo posting items in the event of bank closure due to inclement weather. OutLink: OutLink data centers will continue to accept and memo-post items as scheduled. A bank that is closing due to inclement weather is encouraged to place a support case to inform the data center of the closing and arrange any special processing needs. What if I DO NOT want to provide same day ACH origination at this time? There are two options for FIs that do not want to participate. The first is a non-automated, manual process to control items released from the warehouse. Additionally, sending an origination file to Fed after the last Same Day ACH window of 2:45 p.m. can help ensure that items that meet Same Day ACH criteria contained in the origination file are not treated as Same Day ACH by Fed. The second is an automated feature that offers control per originator during origination to identify and hold any Same Day ACH eligible item in the warehouse until after the core Same Day ACH cutoff time Jack Henry & Associates, Inc.

11 How do I charge fees for origination? Is it by product? Charging will be at the NetTeller level to maintain consistency with existing charging functionality. If I am looking for an item in the warehouse, how do I identify Same Day ACH items? Do I look for a Fed tran code or does CIF 20/20 add a Same Day ACH code to the transaction? RDFI can look for the settlement date to be equal to the current banking day. ODFI wise, look for the effective date to be equal to the current banking day, stale dated, or invalid. Additionally, for Phase 1, look for Credit transactions under $25, and not an IAT/ENR SEC code. Is there an additional return file to the Fed with Same Day ACH? What are the ramifications? According to the Federal Reserve FAQ: Q: What is the transmission deadline for same-day return payments? A: Returns of same-day forward items may be sent between 2:00 p.m. and 4:30 p.m. Items received between 2:00 p.m. and approximately 2:45 p.m. will be delivered by 4:00 p.m. Items received between approximately 2:45 p.m. and 4:30 p.m. will be delivered by 5:00 p.m. For both deliveries, returns will settle at 5:30 p.m. Alternatively, RDFIs can use the existing immediate return service at 2:00 p.m. ET. Current return deadline rules apply. All times are in Eastern Time. Do we know if the system will automatically exclude payments to the Federal Government? SDA Payments to Treasury will NOT be allowed, as the Federal Government will not be adopting SDA on 9/23. This is controlled by a parameter at the ACH General level. Scenario Question - ACH Files with Violations: On 8/17, Client A originates $20,000 with a $10,000 collected balance with an effective date of 8/18. The file is not released during origination. The next day the client has a collected balance of $60,000 and the file is released. Because the bank does not edit the file, the origination date and effective date will both be 8/18. The effective date drives whether the file is same day or next day. This file then becomes a same day file and settles at the end of the origination day at the RDFI. We may not have approved this client for Same Day ACH and the risk profile for this client may not warrant access to SDA, so will this file process? Company parameters control if the originator participates in SDA or not. If not participating, the file will be processed after the core s same day cut-off time. If so, will the client receive a Same Day ACH fee instead of the standard fee? Not on core. All charging is done on NetTeller and is done at upload, not origination Jack Henry & Associates, Inc.

12 Will we have a dedicated Expedited Response Team at JHA that will focus on resolving issues about Same Day ACH? The current case process where we may not get a response for 12 to 24 hours is fine for Standard Next Day ACH, but will not be okay for SDA. All ACH questions or issues are viewed as time sensitive by all Support teams at JHA. JHA Support staff for all core systems, NetTeller, ACH Manager, ACH Client, and ECS ACH have been apprised of the new same day ACH rule change effective September 23, 2016, and understand the sensitivity of meeting deadlines. Support staff is aware of the new ACH cut-off windows of 10:30 a.m. ET and 2:45 p.m. ET. Data centers will have cut-off times in advance of the Fed cut-off windows needed for OutLink processing. Will the JHA system reject an SDA ACH if ANY single file within the batch is an excess of $25,000? The $25,000 limit applies to individual items, not batches or files. By definition, items that exceed this limit are not Same Day items. They will be released from the warehouse based on parameter settings. We have a payroll company that bypasses NetTeller and their files are processed directly into the warehouse. If they have a client, or a file, that carries Same Day items, will they process as Same Day even though they did not process through NetTeller? Said another way, are the flags in NetTeller that allow for a client and a batch to process Same Day items carried into the ACH warehouse as a method of authenticating the approval for Same Day, or do they simply exist as a tollgate in NetTeller and once a transaction makes it into the warehouse it will be processed according to settlement date? Items that make it into the warehouse could be subject to meeting SDA criteria when origination is taken, pending parameter settings Jack Henry & Associates, Inc.

13 Internet Solutions NetTeller Although there is no requirement for Phase 1 to originate Same Day items through NetTeller, the following has been planned for NetTeller financial institutions using the SilverLake System, CIF 20/20, Core Director, or Episys platform: Ability to establish ACH account analysis counter and hard charges, per item and per batch, for same day NetTeller initiated ACH batches, at the commercial NT ID level. (SilverLake and CIF 20/20 NetTeller FIs). Additional CM user level entitlement to allow CM users to initiate same day ACH batches through NetTeller. Ability to indicate an ACH batch as same day when initiating the batch through NetTeller. Additional Information In addition to the CM user level entitlement, the ACH Company associated with the batch must also be enabled to participate in same day ACH, and the batch must be initiated within the NetTeller-specific cutoff window for same day ACH. When a same day ACH batch is initiated through NetTeller and included in the financial institution s outgoing ACH file, the Fed will settle credits within the batch that meet qualifying criteria on the same day. Any debits within the batch or credits that do not meet the criteria would not be settled same day. Both balanced and unbalanced batches can be initiated as same day through NetTeller. For NetTeller SilverLake FIs, ACH Positive Pay exceptions from Same Day ACH batches will follow SilverLake Core s existing 2-day return process. Additional information on same day ACH will be forthcoming, as needed. In the meantime, please contact IS Support if you have any questions by opening a case on the For Clients site or by calling (800) Restrictions FAQs CM users will not be able to indicate same day ACH for Federal tax payments when initiating through NetTeller, as the federal government will not be participating in Phase 1 ( When will Same Day ACH Phase 1 be available to our clients? No changes are required for the NetTeller product in support of Phase 1 receipt of credits. When will Same Day ACH origination be available to our clients? Functionality for NetTeller origination of Same Day ACH batches is anticipated for inclusion in the Internet Solutions release, which is scheduled for production on 9/27/ Jack Henry & Associates, Inc.

14 Financial institutions must be on Release 2016 for their respective Core platform to use NetTeller Same Day ACH functionality. For NetTeller Episys financial institutions, NetTeller Same Day ACH functionality will be available through a 2016 service pack upgrade. Note: NetTeller functionality for Same Day ACH batch origination is dependent on supporting Core functionality. How will Same Day ACH documentation be distributed? Documentation specific to NetTeller Same Day ACH functionality will be posted to the For Clients site under the NetTeller suite & godough > Release Information section. What is the timeline for testing internally? Testing and validation of NetTeller Same Day ACH functionality will be conducted between now and September 15th. When can our clients schedule testing with the Fed? (The Fed testing window closes September 2, 2016.) This item is not applicable to the NetTeller product. What should FIs be doing now to prepare? No action is necessary until after NetTeller Same Day ACH functionality is available. Afterward, financial institutions can: Establish the cutoff time for NetTeller originated Same Day ACH batches (available in ACH general parameters for SilverLake and CIF 20/20 financial institutions) Enable Same Day ACH origination for the desired ACH companies (available in ACH company parameters for SilverLake and CIF 20/20 financial institutions) Enable each Cash Management user authorized to initiate Same Day ACH batches through NetTeller (available through Back Office and in NetTeller for CM Administrators) Are there changes to processing windows that our FIs need to be aware of? (Does JHA have different cut-offs than the Fed?) Nothing will change for the NetTeller product. Processing windows (i.e., when a financial institution chooses to send ACH files to the Fed) are established by each individual FI participating as a Same Day ACH ODFI. It is recommended that each financial institution check with their respective data center rep to see what changes would be needed in support of Same Day ACH processing. What should our FIs be telling their customers? For Same Day ACH credits received Phase 1 No changes are required for NetTeller in support of Phase 1 receipt of credits. NetTeller is compliant today. For Same Day ACH origination Functionality for NetTeller origination of Same Day ACH batches is anticipated for inclusion in the Internet Solutions release, which is scheduled for production on 9/27/ Jack Henry & Associates, Inc.

15 Financial institutions must be on Release 2016 for their respective Core platform to use NetTeller Same Day ACH functionality. For NetTeller Episys financial institutions, NetTeller Same Day ACH functionality will be available through a 2016 service pack upgrade. What reports are available to view Same Day ACH transactions? Phase 1 credits Standard Core reports will apply. ACH Origination No additional reporting specific to NetTeller originated same day ACH batches. Same Day ACH reporting will be considered in a subsequent release. Is there a different pricing model for Same Day ACH transactions? Account analysis and hard charge parameters, per item and per batch, will be available for NetTeller originated batches marked as Same Day ACH, NetTeller SilverLake, and 20/20 financial institutions. What are your group s plans for Phase 2 and Phase 3? NetTeller will review and scope requirements for Phase 2 and 3 following implementation of Phase I NetTeller Same Day ACH functionality Jack Henry & Associates, Inc.

16 Payment Services ACH Client When will my FI be able to receive Same Day ACH Credits (Phase 1)? ACH Client is used only for the origination of ACH transactions, so Same Day ACH rules related to incoming credits will have no impact on this product. When will my FI s customers/members be able to originate Same Day ACH Credits (Phase 1)? ACH Client will allow organizations to originate transactions that meet Same Day ACH requirements immediately after the deployment of the July release, but ACH Operators will not begin processing these items as Same Day ACH transactions until September 23. Financial institutions will be able to view updates contained in the release during the Beta Review Period that runs from July 11 through July 22. These updates will be deployed to production on July 23. Additional reporting capabilities are targeted for the October 22 release. These reporting enhancements will simplify tracking and billing for Same Day ACH transactions. How will Same Day ACH documentation be distributed? Same Day ACH information will be included in the release notes and training materials associated with the July release. This information will be made available on the For Clients site. What is the timeline for ACH Client s internal testing? EPS has completed internal testing of the ACH Client Same Day ACH updates contained in the July release. These features are on schedule for deployment on July 23. When can my financial institution schedule Same Day ACH testing with my ACH Operator? Financial institutions may schedule testing with the Federal Reserve or other ACH Operators any time after the Beta period begins on July 11. The Federal Reserve s testing window runs from June 28 through September 2. The Fed provides testing on an FI-by-FI basis, and it must be scheduled in advance. The Federal Reserve s Same Day ACH Test Request Form can be found here: What should my FI be doing to prepare for Same Day ACH? Various resources are available to help financial institutions and their customers/members prepare for Same Day ACH. Additional information can be found at these sites: NACHA Same Day ACH Resources: Federal Reserve Same Day ACH Resources: Jack Henry & Associates, Inc.

17 Will processing windows be changing for my FI? Financial institutions set their own cut-off times for processing files created by ACH Client. FIs should review proposed new processing windows for the Federal Reserve or other ACH operators and adjust their cut-off times, as necessary. The Federal Reserve s proposed processing schedule may be found here: What should my FI be telling my customers/members? Financial institutions may wish to convey information about Same Day ACH availability to customers/members for whom they intend to offer Same Day service. (FIs are not required to offer Same Day ACH origination to everyone, so institutions may need to determine which of their customers/members they wish to approach about this service.) Various resources are available to help financial institutions and their customers/members prepare for Same Day ACH. Additional information can be found at these sites: NACHA Same Day ACH Resources: Federal Reserve Same Day ACH Resources: What are the new options and reports related to Same Day ACH? Financial institutions will be able to prevent the origination of Same Day ACH transactions at the customer/member and category level. Items submitted for customers or in categories that do not allow Same Day ACH must have an Effective Date of the following business day or later. The ACH Collection/File Pickup Report will identify potential Same Day ACH transactions. Summary totals have been added to reflect the total count and number of potential Same Day items. A new ACH Transaction Detail Pick-up Report will be added to help financial institutions better identify Same Day ACH transactions, but this report is targeted for delivery with ACH Client s October release. Is there a different pricing model for Same Day ACH transactions? EPS will not charge financial institutions additional fees for processing Same Day ACH transactions. Financial institutions may pass along fees for originated Same Day ACH transactions, but FIs will need to leverage downstream processing systems (such as ACH Manager) for this purpose, or assess the fees manually using the information in ACH Client reports. What are your plans for Same Day ACH Phase 2 and Phase 3? ACH Client July updates will support the NACHA Same Day ACH rules changes for both Phase 1 (Credits) and Phase 2 (Debits). Because Phase 3 relates to posting and funds availability on core processing systems, EPS does not anticipate a need for changes to ACH Client to support that phase Jack Henry & Associates, Inc.

18 ACH Manager When will my FI be able to receive Same Day ACH Credits (Phase 1)? ACH Manager Same Day ACH Phase 1 updates will be included in its August Release. Financial institutions will be able to view these updates during the Beta Review Period from August 1 through 12. The updates will be deployed to production on August 20. Financial institutions can begin utilizing the updates at that time, including using new reports to identify transactions from their originators that would qualify as Same Day ACH items beginning on September 23. When will my FI s customers/members be able to originate Same Day ACH Credits (Phase 1)? ACH Manager already allows organizations to originate transactions that meet Same Day ACH requirements, but ACH Operators will not begin processing these items as Same Day ACH transactions until September 23. After deployment of the August 20 release, financial institutions may choose to have ACH Manager suspend Same Day ACH transactions from selected originators to review and approve them prior to generating outbound ACH files. How will Same Day ACH documentation be distributed? Same Day ACH information will be included in the release notes and training materials associated with the August release. This information will be made available on the For Clients site. What is the timeline for ACH Manager internal testing? EPS has completed internal testing of the ACH Manager Same Day ACH updates. These features are on schedule for inclusion in the August release. When can my financial institution schedule Same Day ACH testing with my ACH Operator? Financial institutions may schedule testing with the Federal Reserve or other ACH Operators any time after the Beta period begins on August 1. The Federal Reserve s testing window runs from June 28 through September 2. The Fed provides testing on an FI-by-FI basis, and it must be scheduled in advance. The Federal Reserve s FedACH Services Test Request Form can be found here: What should my FI be doing to prepare for Same Day ACH? Various resources are available to help financial institutions and their customers/members prepare for Same Day ACH. Additional information can be found at these sites: NACHA Same Day ACH Resources: Federal Reserve Same Day ACH Resources: Will processing windows be changing for my FI? Financial institutions set their own cut-off times for processing generated files from ACH Manager. FIs should review proposed new processing windows for the Federal Reserve or Jack Henry & Associates, Inc.

19 other ACH operators and adjust their cut-off times, as necessary. The Federal Reserve s proposed processing schedule may be found here: What should my FI be telling my customers/members? FIs that provide ACH origination may wish to convey information about Same Day ACH availability to customers/members to which they intend to offer Same Day service. FIs are not required to offer Same Day ACH origination to everyone, so institutions may need to determine which of their customers/members they wish to approach about this service. Various resources are available to help financial institutions and their customers/members prepare for Same Day ACH. Additional information can be found at these sites: NACHA Same Day ACH Resources: Federal Reserve Same Day ACH Resources: What are the new options and reports related to Same Day ACH? ACH Manager will have a new option to force additional validation of Same Day ACH transactions. Financial institutions may choose to allow originated Same Day ACH to flow through ACH Manager unimpeded, or they may opt to suspend originated Same Day ACH batches in order to review them prior to processing. This new Same Day ACH validation setting will be added to the Originator Profile page, the Search Organizations page, and the Organizations Report. The Generation File Preview Screen, Generation File Preview Report, and Generation File Totals Report now include two new sections that show potential originated Same Day ACH activity. Financial institutions may also run a new, on-demand Same Day ACH report to track originated Same Day ACH activity or to assist with billing originators for Same Day ACH transactions. The new report is available in both PDF and CSV formats. Is there a different pricing model for Same Day ACH transactions? EPS will not charge financial institutions additional fees for processing Same Day ACH transactions. Financial institutions may pass along fees for originated Same Day ACH transactions, and ACH Manager will generate those fees automatically for organizations that use a Same Day ACH only profile, or FIs may assess them manually using the Same Day ACH Report. What are your plans for Same Day ACH Phase 2 and Phase 3? ACH Manager August updates will support the NACHA Same Day ACH rules changes for both Phase 1 (Credits) and Phase 2 (Debits). Because Phase 3 relates to posting and funds availability on core processing systems, EPS does not anticipate a need for changes to ACH Manager to support that phase Jack Henry & Associates, Inc.

20 EPS ACH Origination When will my FI be able to receive Same Day ACH Credits (Phase 1)? EPS ACH Origination is used only for the origination of ACH transactions, so Same Day ACH rules related to incoming credits will have no impact on this product. When will my FI s customers/members be able to originate Same Day ACH Credits (Phase 1)? EPS allows ACH transactions to be submitted through three channels: Web Services, File Upload, and the Merchant Portal/ SmartPay Business Portal. EPS will allow merchants to originate Same Day ACH transactions, but will phase in those capabilities one channel at a time. EPS expects to support Same Day ACH transactions for at least one channel in October, but the order of the channels is still being determined. How will Same Day ACH documentation be distributed? Same Day ACH information will be included in the release notes and training materials associated with each release. This information will be made available on the For Clients site. What is the timeline for ACH Origination s internal testing? EPS will complete its internal testing of all Same Day ACH features as part of the release in which they are contained. When can my financial institution schedule Same Day ACH testing with my ACH Operator? Since changes to support Same Day ACH will not be available until October, EPS customers will not be able to take advantage of the Federal Reserve s testing window, which runs from June 28 th through September 2 nd. However, Same Day ACH transactions are formatted identically to existing transaction types, and no file format or data content modifications are required. Financial institutions and partners may, at their discretion, roll out Same Day ACH service to a single merchant/location or a limited number of merchants/locations after the October release as a means by which they can ensure accurate processing of Same Day ACH transactions before offering the service to a broader set of clients. What should my FI be doing to prepare for Same Day ACH? A variety of resources are available to help financial institutions and their customers/members prepare for Same Day ACH. Additional information can be found at these sites: NACHA Same Day ACH Resources: Federal Reserve Same Day ACH Resources: Jack Henry & Associates, Inc.

21 Will processing windows be changing for my FI? EPS will continue to offer financial institutions and partners the option of an afternoon cutoff time, which would facilitate delivery of Same Day ACH transactions to the Federal Reserve or other ACH Operators by their processing deadline. FIs should review proposed new processing windows for the Federal Reserve or other ACH operators to align their internal processing schedules with these windows. The Federal Reserve s proposed processing schedule may be found here: What should my FI be telling my customers/members? Financial institutions may wish to convey information about Same Day ACH availability to customers/members to which they intend to offer Same Day service. (FIs are not required to offer Same Day ACH origination to everyone, so institutions may need to determine which of their customers/members they wish to approach about this service). A variety of resources are available to help financial institutions and their customers/members prepare for Same Day ACH. Additional information can be found at these sites: NACHA Same Day ACH Resources: Federal Reserve Same Day ACH Resources: What are the new options and reports related to Same Day ACH? EPS ACH Origination will support the creation of transactions with today s Effective Date to allow for Same Day ACH origination. As stated above, this functionality will be offered through at least one transaction channel Web Services, File Upload, or manual entry into the Merchant Portal/SmartPay Business Portal in October. Subsequent releases in January 2017 or later will provide for originating Same Day ACH transactions in any remaining channels. EPS will also make reporting modifications to support Same Day ACH transactions as part of the October release, which will be deployed on October 22 nd. These reporting enhancements will make it easier to identify and track Same Day ACH transactions. Is there a different pricing model for Same Day ACH transactions? EPS may charge financial institutions or partners additional fees for processing Same Day ACH transactions. Financial institutions and partners may also wish to charge their merchants fees for originated Same Day ACH items, but they will need to leverage downstream processing systems for this purpose, or assess the fees manually using available reports. What are your plans for Same Day ACH Phase 2 and Phase 3? EPS anticipates support for origination of Same Day ACH Phase 2 (Debit) transactions in its October 2017 release. Because Phase 3 relates to posting and funds availability on core processing systems, EPS does not anticipate a need for changes to our products to support that phase Jack Henry & Associates, Inc.

22 ipay With Phase 1 (9/23/2016) of the Same-Day ACH initiative, ipay will not be making any changes to our bill pay processing. The Same Day ACH functionality in Phase 1 (9/23/2016) is limited to credit transactions and requires those transactions to be submitted to the ACH network by 3:00 p.m. ET. ipay s payment distribution process runs in the late afternoon/early evening, so we are unable to take a day off of the cycle. Out of the gate, we do not expect many (if any) major billers to modify their legacy platforms to accept payments earlier in the day. In addition, ACH payments to many of our largest billers would be ineligible for Same-Day ACH under any phase since these consolidated credits typically exceed the rule s $25,000 threshold. Our debits to our financial institutions settlement accounts will continue to run on their current schedule. This process is not accelerated by Same Day ACH Phase 1 (9/23/2016). As NACHA moves on to Phase 2 (9/15/2017; incorporate debits) and Phase 3 (3/16/2018; accelerated availability), we will continue to review these rule changes for potential opportunities; however we currently do not plan to make changes due to the timing of our processes and our billers processes Jack Henry & Associates, Inc.