Opt In Solutions by…. Benefit your members by taking action.

1. Opt In Solutions by….Benefit your members by taking action.

2. Agenda Presentation Topics for credit unions participating with Xtend • Getting Started – Selecting Your Configurations • Spreading the word • Making the outbound call • Understanding a little more about credit union choices • Handling the Maintenance • Mailing the Confirmation Notice

3. What configuration Settings Does The Credit Union Need To Make? • Each credit union needs to define the configuration of their overdraft protection services. Will the negative balance limit be used to for approval for authorization and posting or simply for posting? • The settings that control how this works are part of the NSF/Overdraft Transfer configuration on menu MNCNFA, as part of the Overdraft Protection Activation screen. The flags: "Use Negative Balance Limits for Authorizations" and "Use Negative Balance Limits for Posting” control whether the member's negative balance limit is added when determining the available balance amount. • Additionally, the credit union can select which Opt In/Opt Out selection will be pre-checked when a new membership is opened. While the default is to not check either option, credit unions can pre-check either the In or Out checkbox. A credit union might feel, for example, that most members will want to Opt In and select this option. (Employees can always change this selection when speaking directly with the member.)

4. This Summers Hot Topic • Documentation on Reg E Opt In/Opt Out is now available on the Reference Page under O.  • Opt In/Opt Out (Reg E) - Managing Your Offering Dated:06/09/2010 • 23 pages • This includes an introduction by Randy as well as information on configuration, questions the credit union needs to answer and the features in CU*BASE that allow for the collection of the member’s selection

5. The Choice Is Yours • Get your game plan! • “This is the hardest regulation of 2010 for credit unions, as it is one that requires salesmanship. You have to craft a service and then get a positive confirmation that the member wants the service. The reason this is tough is that credit union camps are split in their motivations: the “consumer protectionist” camp, the strict “rule compliance and interpretation” camp, and the “reality of needing the income stream and avoiding negative savings account losses” camp. “ Randy Karnes “A CEO’s Thinking On Regulation E • Decide on your CU’s Configuration Choices • Define Your Policy • Define Your Communication Plans • Enjoy the benefits of having a good game plan!

6. Notification to Members • Member Letters are anticipated to hit mailboxes as early as next week. • You must approve your letter before letters will be mailed. Please respond quickly to all approval requests. • Email/Online Banking Delivery within two business days of your letter being mailed.

7. The Outbound Call In the past, you have been able to take your account negative by using your ATM or Debit card and we would honor those transactions up to your Overdraft limit. Based on a new government regulation, we are now required to have you Opt In to this overdraft privilege. If you choose to Opt Out, you may be declined when trying to use your cards if sufficient funds are not available. Outbound Calls will begin a week after the letters hit the mail

8. No ANR Courtesy Pay Checked “We will authorize your transactions only if you have funds available in the account tied to the ATM or Debit card and clear transactions by using funds available in your accounts tied to overdraft protection“

9. ODP Authorize- No ANR CourtesyPay “We will authorize your transactions only if you have a combined balance of funds available in the accounts tied to your Overdraft Protection and will clear based on that combined balance“

10. Courtesy Pay Authorize Not Checked No Authorization ‘boxes’ are checked, we state the following: “We will authorize your transactions only if you have funds available in the account tied to the ATM or Debit card and will clear transactions based on your Courtesy Pay limits“

11. All boxes are checked “We will authorize your transactions based on your overdraft limit and clear transactions up until that limit is reached“

12. Regardless… • There are only two choices • Opt In • Opt Out

13. Understanding Trackers • Tracker Types = OI (Opt In) • Memo Types • OM = Outbound Maintenance – Credit Union must perform maintenance AND print & mail form. • IM = Inbound Maintenance – Credit Union must perform maintenance AND print & mail form. • OF = Outbound Form – Xtend has performed maintenance- Credit Union must print & mail form. • IF = Inbound Form - Xtend has performed maintenance- Credit Union must print & mail form.

14. The Opt In What is the benefit of choosing to Opt In? “By choosing to Opt In you are allowing us to better serve you by avoiding the embarrassment and hassle associated with denied transactions. Opting In gives you peace of mind that your transactions will be honored as they have been in the past.”

15. The Opt Out Why you don’t want to Opt Out? • You avoid embarrassing situations where your transaction is denied. • By choosing to Opt Out you acknowledge that you DO NOT want us to authorize and pay overdrafts on your everyday debit card transactions effective August 15th. • If now is not a good time for you to Opt In, remember that as of August 15th, your one-time ATM/Debit transactions performed using an account with non-sufficient funds may be declined. You can change your mind at any time by calling or stopping into the credit union. Would you like me to proceed with Opting you In?

16. Once the Choice is Made • CU*BASE Maintenance is completed by Xtend OR a member of your team. • When Xtend handles your members selections (either by performing maintenance or thru contact) a CU*BASE Tracker is assigned. • Credit union staff will be responsible to print & mail the “Opt In” Miscellaneous Account Form.

17. Linking the powers together is your key to success! • Julie Gessner – jgessner@xtendcu.com • Jim Vilker – jvilker@cuanswers.com • Scott Collins - scollins@xtendcu.com • 800-324-3478