U.S. Bank Corporate Payment Systems Payment Plus

1. U.S. Bank Corporate Payment Systems Payment Plus

2. High Transaction Size Low Complexity/Control Low High B2B Payment Continuum PowerTrack Payables • High Dollar (>$10,000) • Inventory/Contracted Purchases • High Control Requirements • Systems Integration Requirements • Additional Float • Potential Financing • Minimal Supplier Card Acceptance • High Data Needs • Medium Dollar ($2,500 - $10,000) • Inventory/Contracted Purchases • High Control Requirements • Systems Integration Requirements • Additional Float • Supplier Card Acceptance • High Data Needs Access Online Payment Plus • Low Value-Low Dollar (<$2,500) • Emergency Purchases • Low Need for Control • Common Card Commodities • Minimal Systems Integration • High Supplier Card Acceptance • Low/specialized Data Needs Traditional Purchasing Card

4. Payment Plus • Provides new tools and technology that leverage the purchasing card platform and enable settlement of larger, more complex payments Features • Virtual Accounts • Per supplier pre-authorized limit (PAL) accounts • Per transaction single-use account (SUA) pools • Dynamic Limits • Accounts are closed with no available credit until payment is authorized • Accounts Payable Integration • Automated Payment Instruction File • Online Forms for one-off payments • Email & Virtual account stored in Access Online Client Supplier Information • Automatic Matching & Reconciliation support • Reports & Extracts

5. Payment Plus • Provides new tools and technology that leverage the purchasing card platform and enable settlement of larger, more complex payments Benefits • Improve Cash Management • Days Payable Outstanding and Cash Float • Support Strategic Sourcing • Increased Rebate • Non-traditional Purchase Card spend • Improved Control • Payments authorized when you provide instruction • Accounts open only when payment is outstanding • Limits increased to amount of payments only • Automated Reconciliation • Leverage existing systems and processes

6. Payment Plus Process Flow Client Create Approved Payments /Upload Payment Instruction File Confirm Supplier Notification (Optional) Reconcile Transactions Using Access Online Report/File Extract U.S. Bank Post Transaction in Access Online and Match to Payment Instruction Generate Reconciliation Report/File Extract Load Payment Instructions to U.S. Bank Access Online Open Accounts/ Adjust Credit Limits Generate/Send Payment Notification to Supplier/Buyer Supplier Process Transaction

7. Creating a Payment • What is required? • Vendor Name & ZIP • Vendor email address • Payment Amount • Control Number • Expiration (good until) date • How is a payment instruction entered? • Automated Input Load File • Flat text, fixed field length, multi-row file • 01 Record – Payment Total, Control Number, Exp Date, Supplier Name & ZIP • 06 Record – Supplier Email, Client Vendor ID, Comments • 07 Record – Invoice number and amount • Online Form • Delegate to multiple users • Form is customizable

8. Supplier Enablement • Accounts Payable Analysis • Identify Target Suppliers • Visa/MC capable merchants • Suppliers w/out special terms • U.S. Bank resources • Dedicated Supplier Enablement Managers • Let U.S. Bank contact suppliers • Clients can take on as much or as little of supplier enablement as desired • Elavon Merchant Services • Help suppliers lower fees or enhance data capture

9. Supplier Notification Sent: Tuesday, April 15, 2008 12:03 PM To: paul.billings@verizon.com Cc: APS@directconnect.com Subject: Purchase authorization for Payment # 242424422 Verizon is now authorized for the next 20 days, to charge the credit card account ending in 2712 for the following customer: Customer Name: U.S. Bank For a total Amount of: $10296.46 This Payment covers the following Invoices: Invoice Number: Invoice Amount: 673422 2356.47 673423 3854.34 673424 4085.85 Also, for the best and most efficient results, please process this charge amount in a single transaction within 72 hours of receiving this notification. Thank you. * If you have any further questions, comments, or concerns regarding this matter, please direct them to Bob Smith at 555-333-1234. DO NOT REPLY TO THIS EMAIL MESSAGE. * *** THIS E-MAIL ADDRESS IS USED BY AN AUTOMATED SYSTEM AND RESPONSES ARE NOT MONITORED. ***

10. Receive Invoice Process Payment DR CR DR CR Vendor/AP Liability Vendor/AP Liability Expense Cash $1,000 ($1,000) $1,000 ($1,000) Receive Match File Receive Invoice Process Payment Pay U.S. Bank DR CR DR CR DR CR U.S. Bank Liability U.S. Bank Liability Vendor/AP Liability Vendor/AP Liability Expense Cash $1,000 ($1,000) $1,000 ($1,000) $1,000 ($1,000) Accounting Process • Current Process • Payment Plus Process

11. Payment Reconciliation • Reconciliation model is similar to reviewing a DDA in traditional check or ACH process (e.g. Positive Pay) • Access Online Auto Matches Payment Instructions to transactions from Level II capable suppliers • Access Online Reports, Statements, and Extract Files are the same as a traditional Purchasing or One Card • Dedicated Reports for Payment Plus • Payment Instruction Detail • Payment Instruction Analysis • Billed Transaction Analysis with Payment Instruction Detail

12. Payment Plus Payment Instruction Analysis Example

13. Payment Plus Billed Transaction Analysis w/Payment Detail

14. Payment PlusFull Transaction & Order Detail

15. Implementation & Next Steps • Standard Purchasing Card contract or Master Agreement covers Payment Plus • 3 or 5yr deal • No fees, entry or early termination • Rebate based on total volume, avg. transaction size, and speed of pay • U.S. Bank Implementation Project Manager is assigned to coordinate weekly limits and manage a customized project plan • Tasks include: • Identify target suppliers • Establish new billing company & Payment Plus virtual accounts • Add payment type to client AP system & flag vendor master for target suppliers • Develop Payment Instruction File out of AP (if using automation) • Establish file link (FTP) with U.S. Bank (if using automation) • Add financial extract file or report for posting to GL and settling w/U.S. Bank • 2-4 weeks for Online Payments, 6-8 for Payment Plus w/AP Automation