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according to such vendor profile. If you select the optional feature to permit conversion of check payment instructions into a virtual card payment instruction, you will be required to enter into a Commercial Card Agreement with the Bank.
In addition to the P Service’s payment transmission feature, the specialty print feature enables the printing and packaging of certain documentation such as bills, statements, and notices – with or without check payments – for delivery to your intended recipients by mail.
Security Procedures – The Security Procedure for transmission of a payment order to our Provider through the P Service are via host-to-host secure file transmission protocols or other secure transmission protocols. A user identification code (“User ID”) and a password (or digital access ID) are also required. You agree to use the Security Procedure when sending a payment order to our Provider via transmission. With respect to access to the P Service through the web, you will be assigned one or more user identification code (“User ID”) and passwords to enable your employees and agents to access and use the P Service and to send payment orders to the Provider through the web (such User IDs and passwords are the Security
Procedure for use of the P Service through the web).
In addition, the Bank makes available to you upon your
request a token for your use at login to the P Service. Such token may be made mandatory for use with the P Service as communicated to you from time to time. You agree to use the P Service in accordance with the Security Procedure described above. The purpose of the Security Procedure is to verify the authenticity of the payment order delivered to us in your name and not to detect errors in the transmission or content of a payment order. You further agree that this Security Procedure best meets your needs given the size, type, and frequency of your payment orders, and is a commercially reasonable Security Procedure for you. You agree that any payment order, the authenticity of which has been verified through the use of the Security Procedure, shall be effective, whether or not it was in fact authorized by you. You agree to preserve the confidentiality of the Security Procedure and promptly notify us of any compromise of the integrity of the Security Procedure.
Administrative Controls – The Administrative Controls offered by the Bank for your use with the P service through transmission (as may be changed from time to time) include: IP address restrictions, file encryption, file acknowledgements by the Bank, and payment limitations and multiple approver requirements.
Additionally, we recommend the following Administrative Controls offered by the Bank (as may be changed from time to time) for your use with the P service through the web, to further assist you in mitigating fraud: malware detection for use with your device, IP address restrictions, payment and user entitlements, dual approval for payments and administration, Item Number: 10.
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alerts for administrative changes, limitations on payment amounts, and access and administration controls.
You agree to take all reasonable security precautions to prevent unauthorized or fraudulent use of the P Service by your employees, agents, contractors, customers, and third parties.
Neither we nor the Provider assumes responsibility to discover breaches of your security. You must immediately notify us if you discover any security breach related to the P Service.
In addition to the Security Procedures, Administrative Controls, and other security precautions mentioned in this section, you agree to employ the Best Practices as appropriate for the Service.
Proprietary Information – All systems, programs, operations, instructions, documentation, and know-how (the “Provider Information”) relating to the P Services are and remain the property of the Provider and us. You agree to hold in the highest confidence all information that you may receive from us or the Provider respecting the Provider Information. You shall disclose the Provider Information only on a need-to-know basis. You agree not to use the Provider Information for your own purposes except in furtherance of your activities under this Agreement.
Provider Third-Party Beneficiary – The Provider is an intended third-party beneficiary of this Agreement.
ACH Terms – You understand that with respect to CCD and other ACH Entries initiated through the P Service, you will be considered the Originator of the ACH Entries; we will be considered the Originating Depository Financial Institution (ODFI) unless you request that the Bank forward the payment detail to another institution for processing.
Description of Process – You agree to upload your electronic payment or document file via a secure HTTPS protocol to the P Service system. We will acknowledge receipt of the file and you will authorize the processing of the transactions. We will attempt to retrieve the payment file and post its status within an hour after receiving the file. In connection with the P Service, you authorize us and the Provider to contact you via mail, telephone, e-mail, or other electronic method, and you agree to comply with reasonable information requests from us or the Provider.
Item Number: 10.
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Investment Sweep
We make available a sweep service which allows you to either purchase shares in a Money Market Mutual Fund (“MMMF” or “fund”) or sweep funds into an interest deposit account (“IDA”) as described in the Investment Sweep Agreement and Sweep Application. Please contact your banking office for more information.1
Invoice-to-Pay Service
The Invoice-to-Pay Service is an accounts payable solution that automates certain invoice processes by receiving invoices and then, via optical character recognition technology (“OCR Technology”), capturing certain data (header and line item information), and routing such invoice information to your enrolled users via an Internet-based system for invoice approval.
Additionally, certain information from such functions may be posted to your accounting or enterprise resource planning system (your “System”), if compatible. At your election, you may subsequently instruct payments via the Bank’s Integrated Payables Service (the “P Service,” and such payments, “P Service Payments”), subject to the terms and conditions (including with respect to security procedures) as set forth in the Deposit Account Agreement and this Agreement (collectively, the “Disclosure Agreement”); provided that in the case of the virtual card Payment Type (as defined below), such terms and conditions shall be supplemented by those set forth in the Bank’s Commercial Card Agreement, as may be amended,
supplemented, or otherwise modified from time to time (the Disclosure Agreement and Commercial Card Agreement, each, a “Service Agreement”). As an alternative to making payments via the P Service, you may choose to make payments directly to your vendors externally to the Bank’s services.
1 MMMF shares are sold through a prospectus, which contains information about investment objectives, risks, charges, and expenses. The prospectus can be obtained through your
Relationship Manager or from the fund’s sponsor. Please read it carefully before you invest. You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. MMMF shares are NOT insured by the FDIC or by any other federal government agency, are NOT a deposit or
obligation of, or guaranteed by, MUFG Union Bank, N.A.
(Bank) or any Bank affiliate, and MAY lose value, including the possible loss of principal invested.
The IDA is NOT insured by the FDIC.
Item Number: 10.
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Security Procedure – The Security Procedure for the Invoiceto-Pay Service is a user identification code (“User ID”) and password. In addition, the Bank makes available to you upon your request a token for your use at login to the Invoice-to-Pay Service. Such token may be made mandatory for use with
the Invoice-to-Pay Service as communicated to you from
time to time.
You agree to use the Invoice-to-Pay Service in accordance with the Security Procedure described above. The purpose of the Security Procedure is to verify the authenticity of the payment order delivered to us in your name and not to detect errors in the transmission or content of a payment order. You further agree that this Security Procedure best meets your needs given the size, type, and frequency of your payment orders, and is a commercially reasonable Security Procedure for you. You agree that any payment order, the authenticity of which has been verified through the use of the Security Procedure, shall be effective, whether or not it was in fact authorized by you. You agree to preserve the confidentiality of the Security Procedure and promptly notify us of any compromise of the integrity of the Security Procedure.
Administrative Controls – In addition to the Security Procedure described in this section, we recommend the following
optional Administrative Controls offered by the Bank (as may be changed from time to time) for your use with the Invoice-toPay Service to further assist you in mitigating fraud: malware detection for use with your device, IP address restrictions, payment and user entitlements, dual approval for payments and administration, alerts for administrative changes, limitations on payment amounts and access, and administration controls.
In addition to the Security Procedures, Administrative Controls, and other security precautions mentioned in this section, you agree to employ the Best Practices as appropriate for the Invoice-to-Pay Service.
Service Provider – The Invoice-to-Pay Service may be made available to you through a third-party service provider (the “Provider”). The Provider Information provisions set forth in the Integrated Payables Service section of this Agreement shall apply hereto. You agree to permit the Provider to perform any necessary activities to install, train you on, and apply the Invoice-to-Pay Service. You agree that the Bank may provide information regarding you and your vendors to the Provider in order to provide the Invoice-to-Pay Service. In connection with the Invoice-to-Pay Service, you authorize the Bank and the Provider to contact you via mail, telephone, e-mail, or other electronic method, and you agree to comply with reasonable information requests of the Bank or the Provider. The Provider is an intended third-party beneficiary of this Agreement.
System Access – By your acceptance of the terms of the
Invoice-to-Pay Service: (a) the Bank grants to you a nonexclusive, non-transferable right to use the Invoice-to-Pay Item Number: 10.
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Service, subject to the restrictions herein and any other restrictions we or the Provider may hereafter communicate to you from time to time, and (b) you grant the Bank and the Provider access to your System in order to and solely to the extent required to provide the Invoice-to-Pay Service. To the extent reasonably necessary, you hereby grant to the Bank and the Provider a non-exclusive and irrevocable license to so access your System and related software for such intended purpose. You hereby represent, warrant, and agree that when properly used as contemplated herein, such access shall not infringe or misappropriate any third-party’s intellectual property rights.
P Service Payments – To the extent you have agreed to
the applicable Service Agreement, you will be permitted in accordance therewith and subject to the terms thereof to provide instructions for P Service Payments for check, ACH Entry, virtual card, and wire (each, a “Payment Type”), subject also to the terms set forth immediately below pertaining to checks and virtual card, respectively. P Service Payments may not be possible if and to the extent that you provide erroneous or incomplete information in connection therewith. P Service Payments may be executed at the end of each Business Day and may be subject to cutoff times as disclosed to you from time to time.
Checks – For P Service Payments by check, the Bank or the Provider will print and mail checks on your behalf. Each check payment record will be printed, packaged, and delivered based on the distribution information provided by you. You hereby acknowledge and agree that the Bank or the Provider may not have the ability to edit or cancel the payment instruction after a check print and mail payment instruction has been submitted.
Virtual Card – For P Service Payments by virtual card, the Bank or the Provider will submit requests for virtual card numbers to the Bank’s card issuing processor. The Bank’s card issuing processor will then send back a corresponding response that contains the issued virtual card numbers. The Bank or the Provider will communicate payment notification to vendors. If you choose to make P Service Payments using virtual cards, you agree that the Provider may assist your vendors to migrate to card payments.
Limitation on Liability – The limitations on liability set forth in the Disclosure Agreement (and in the case of virtual card, the Commercial Card Agreement) shall apply hereto for the benefit of the Bank and the Provider. You acknowledge that data processing entails the risk of human and machine errors and omissions, including inadvertent loss or misstatement of data.
You agree to receive, resolve, and respond to errors alleged by others as may be required by applicable law, regulation, or rules.
Service Agreement – The terms set forth in this Invoice-to-Pay Service section supplement your underlying Service Agreement with the Bank in connection with the relevant Payment Type (in Item Number: 10.
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the case of check, ACH, or wire, your Disclosure Agreement, and in the case of virtual card, your Commercial Card Agreement, as the case may be, if applicable).
Internet-Initiated or Application Programming
Interface-Initiated Transactions
(WEB, CCD, Debit Card, and Credit Card)
Description of Service – This Service enables your customer (the “Merchant Customer(s)”) to pay you for goods and services via the Internet through an Internet-enabled or Application Programming Interface-enabled, third-party paymentprocessing system (the “System”) by the origination of ACH debit, debit card, and credit card transactions.
The System can allow the Merchant Customer to create a user identification code (“User ID”) and password to access the System and initiate a WEB Entry for a consumer payment, a CCD Entry for a business payment, or a debit card or credit card transaction.
The Provider will store your transaction information on its servers. For WEB, PPD, and CCD Entries, transaction files are sent through the ACH, which debits the bank account of the Merchant Customer and credits your Union Bank account.
Notice of returned WEB, PPD, and CCD Entries will be available within 2 Business Days after the return through Internet reporting.
Your Responsibility – You are fully responsible for all transactions initiated through the System and deposited to your account, including, but not limited to, transactions that are later alleged to be unauthorized or erroneous, or that were issued on nonsufficient available funds or subject to stop payment or other rejection, returns, or chargebacks. Without limiting the foregoing, you assume all risks associated with performing transactions in an Internet environment.
WEB & MOBILE Entries – A WEB/MOBILE Entry is initiated when an Internet authorization is given to make a transfer of funds from a consumer’s account.
Your Website – You must make any necessary changes to your website in order to offer Merchant Customers the option to pay via the Internet. We recommend that your website (if applicable) include the following information in a clear and conspicuous manner: a) a complete description of the goods and services you offer; b) your refund and returned merchandise policy; c) a customer service contact, including both a telephone number and an email address; d) a statement that all prices and payments will be in U.S. dollars; e) any applicable export or legal restrictions that might be relevant to your customers; f) your delivery policy; and g) your privacy policy.
Shipping Goods – If you ship goods through a method that does not provide delivery confirmation, such as the U.S. mail, you should consider establishing a maximum dollar amount for Item Number: 10.
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sales transactions over which you will ship only using a means that allows you to obtain delivery confirmation. Any shipping address must be the same as the Merchant Customer’s address.
Merchant Customer Identification – The Provider will verify that the routing number supplied by the Merchant Customer for ACH transactions matches the designated financial institution’s name. The System does not verify or authenticate the identity of the Merchant Customer, the Merchant Customer’s account number, the Merchant Customer’s address, or other Merchant Customer identifying information.
You must use a commercially reasonable authentication/
address verification system to indicate whether a person initiating a transaction is the Merchant Customer, as you are fully responsible for identification of the Merchant Customer and the validity of the transaction.
Disclosure of Your Fees and Charges – You must clearly and conspicuously disclose all applicable fees and charges before a Merchant Customer conducts a transaction using the System.
Reinitiation of ACH Entries – Reinitiated Internet-Initiated Entries may only be originated in the same amount as the original transaction. No collection amount may be added.
To originate an ACH debit to collect fees associated with a returned WEB Entry, you must follow the NACHA Rules
governing PPD Entries, including first obtaining the consumer’s written authorization for such an Entry.
Warranties – You represent and warrant that the person or entity whose account was debited authorizes all payments accepted for deposit to your account using the System. In addition to all other warranties in the NACHA Rules, you warrant that with respect to each transaction conducted using the System a) the transaction represents the Merchant Customer’s obligation to you for the amount of the transaction; b) the amount of the transaction is not subject to any dispute, setoff, or counter claim; and c) you have no knowledge or notice of any fact, circumstance, or defense that would indicate that a transaction was fraudulent or not authorized by the Merchant Customer, or that would otherwise impair the
validity or collectability of the Merchant Customer’s obligation to you or relieve the Merchant Customer from liability with respect thereto.
WEB Annual Audit – As the Originator of WEB Entries, you must comply with the NACHA Rules associated with processing
WEB Entries before the start of Origination. NACHA Rules and Guidelines require you to conduct annual audits to ensure that financial information you obtain from consumer Merchant Customers is protected by security practices and procedures that include, at a minimum, adequate a) physical security to protect against theft, tampering, or damage; b) personnel and access controls to protect against unauthorized access and use; and c) network security to ensure secure capture, Item Number: 10.
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storage, and distribution of financial information. If requested, you must provide us with copies of these audits. The audit requirement may be met in several ways. It can be a component of a comprehensive internal or external audit, or it can be an independent audit that uses a commercially reasonable, generally accepted security compliance program.
IVR-Initiated Transactions
(TEL, CCD, Debit Card, and Credit Card)
Description of Service – A TEL Entry is a Single or Recurring Entry debit initiated when the Receiver gives authorization by telephone for a transfer from a consumer’s account. You must comply with the NACHA Rules associated with processing TEL Entries before the start of Origination. TEL Entries may only be originated when there is an Existing Relationship between you and the Merchant Customer or when the Merchant Customer initiates the telephone call. Under the NACHA Rules, an Existing Relationship exists when there is a written agreement in place between you and the Merchant Customer or when the Merchant Customer has purchased goods or services from you within the past 2 years.
Description of Process – Your customer (the “Merchant
Customer(s)”) will telephone an Interactive Voice Response unit and provide account numbers and other information.
Transaction information is archived on the Provider’s System.
For TEL and CCD Entries, a transaction file is sent to the ACH, which debits the Merchant Customer’s bank account and
credits your Union Bank account. Notice of returned TEL and CCD Entries will be available through Internet information reporting within 2 Business Days after the return.
Your Responsibility – You are fully responsible for all transactions credited to your account through the System, including, but not limited to, transactions that are later alleged to be unauthorized or erroneous, or that were issued on nonsufficient available funds or subject to stop payment or other rejection, return, or chargeback. In addition to other applicable NACHA warranties, you warrant to us when you initiate a TEL Entry that you have employed commercially reasonable procedures to verify the identity of the Receiver.
The Provider’s service is designed to record the Merchant Customer’s oral authorization for the transaction.
Liquidity Center
The Liquidity Center Service is a tool accessed by you through MUFG Exchange (as more fully defined in the Web Service provision of the Agreement) that will, to the extent chosen by you on the Setup Form for the Liquidity Center Service, allow you to: (i) view your accounts held with the Bank and accounts held with other banks and the data associated with such accounts; and/or (ii) enter additional data for future cash flow and compare such expected data for future cash flow against Item Number: 10.
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actual cash flow; and/or (iii) access the Pooling Report; and/or (iv) create book transfers from your accounts held with the Bank through the Liquidity Center Service for approval and ultimate execution through your Wire and Internal Transfers Service.
The Liquidity Center Service is available 24 hours a day, 7 days a week, with the exception of scheduled outages for maintenance and upgrades.
Lockbox Service
Three types of Lockbox Services are available: Retail, Wholesale, and Wholetail. To initiate the Lockbox Service, you must ask your Relationship Manager for a sample letter to the United States Postmaster authorizing us to rent a United States Post Office Box in your name and to have unrestricted and exclusive access to the Lockbox. You instruct your customers to mail checks you want to have processed through the Lockbox
Service to the Lockbox address. We pick up mail at the Lockbox address according to our mail pickup schedule and deliver it to our processing center. Initial United States Post Office charges will be billed directly to you. Subsequent renewal charges will be applied to your account analysis statement.
Processing in General – We will handle checks received at the Lockbox address according to the Deposit Account Agreement, except as modified by this Agreement. The Lockbox Service is intended for check processing only. You should advise your customers not to send currency or coin to the Lockbox address.
We will open the envelopes received from the Lockbox and remove the contents. Checks and other documents contained in the envelopes will be inspected and handled in the manner specified in the User Documentation. We will endorse all checks we process on your behalf.
Acceptable Payees – Unless otherwise agreed, you will provide us with the names of acceptable payees. We will process a check if it is made payable to an acceptable payee and if the check is otherwise processable. You warrant that each payee has authorized checks payable to it to be credited to the account you designate for the Service. We may treat as an acceptable payee any variation of an acceptable payee’s name that we deem to be reasonable.
Service Provider – These Services are made available through our designated service provider (“Provider”).
1. Retail Lockbox Processing – The Retail Lockbox Service is a lockbox service that allows for automated processing of high volumes of consumer-to-business payments including a drawer’s check and a remittance coupon. The Retail Lockbox Service involves processing optical character recognition (OCR) remittances, checks, and other payment instructions that are received at a Lockbox address. You authorize us to open each envelope and remove the contents, disregarding all notations and other marks on the envelopes. We shall not be required to retain (and may securely destroy) remittance envelopes or Item Number: 10.
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miscellaneous enclosures or forward either of them to you (image or physical return), unless otherwise agreed with you in writing. If we are required to forward remittance envelopes or miscellaneous enclosures, whether in imaged form, by physical return, or otherwise, additional fees may apply. Remittances and envelopes submitted to us for processing must meet
any specifications designated by us from time to time. All changes in remittances and return envelope design are subject to prior testing and approval by us. We may adjust the price for processing your payments if changes are made to your remittances and/or envelopes (including remittance scan line configuration) without such prior approval.
Retail transactions typically comprise 2 separate document types: the remittance coupon and the drawer’s check. We will process, endorse, and deposit remittances in accordance with our standard procedures. We will process transactions containing: one remittance with one check (“Singles”); one remittance with multiple checks; multiple remittances with one check; or multiple remittances with multiple checks (“Multiples”), as specified in the applicable User Documentation.
We will have no obligation to examine checks or other items with respect to payee names, check dates, or check signatures.
We will process transactions that match/balance between remittance amount(s) and check amount(s). Unless you make other arrangements with us, if there is a mismatch between the remittance total and the check total of a particular check, such check will be flagged as an exception and processed according to your specifications as set forth on your processing instruction worksheet. If the check payee is blank and either the written or numeric amount agrees with the OCR remittance, the check will be processed. Unless otherwise agreed, a check received without an OCR remittance (“Check Only”) or with a missing date will be processed. If either the written or numeric amount on the check agrees with the OCR remittance amount, the check will be processed for the OCR remittance amount.
If the written and numeric amount of the check agree but do not agree with the OCR remittance amount, the check will be processed for the check amount. You may instruct us to send foreign currency or foreign bank checks for collection. Unless you make other arrangements with us, a check may be returned to you when any of the following occur: a) the payee is blank and neither the written nor the numeric amount agrees with the OCR remittance; b) the check is postdated by more than 3 days from the date of deposit; c) the check is stale-dated by more than 6 months from the date of deposit; d) it is a second-party check; or e) the check is drawn in a foreign currency or on a foreign bank.
You agree that we will not be liable in the event that a check with any of the conditions listed above is not detected and is processed. We will send you any checks we do not process as well as the related coupon. You should provide your remitters with notice, on a regular and repeated basis, to (a) mail directly to you checks bearing a handwritten or typed notation
Item Number: 10.
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“Payment in Full,” “Final Payment,” or words of similar meaning on the face of the check and (b) not include miscellaneous enclosures in mailings to the Lockbox. We shall disregard any such restrictive notation on any check and shall treat any such check as though such language did not appear thereon. We will not attempt to return to you checks bearing such notations, and we will not be liable to you for losses you suffer if we deposit checks bearing such notations. Your remitter notice should warn that mailing checks bearing such notations to the Lockbox address waives the remitter’s rights, if any, regarding final payment. If we process an unsigned check that is paid, but the account owner does not authorize payment, you agree to indemnify us, the drawee bank (which may include us), and any intervening collecting bank for any liability or expense incurred due to the payment and collection of the check.
Acceptable Remittance Payments – You may provide us with an automated file that contains customer numbers located in the remittance scan line that specifies either all acceptable payments or unacceptable payments. We will program our
system to automatically search the file provided and separate unacceptable transactions/checks. For transactions/checks issued by a drawer that you designated as not acceptable, we will return any checks bearing such drawers to you for disposition. You agree that we will not be liable in the event that a check bearing such drawer is not detected and is processed.
Exception Review and Decisioning – This optional online Service will deliver images of exception transactions as specified in the processing instruction worksheet. Rejects or exception transactions are those transactions that are out of balance, are Check Only, or are missing information, including, but not limited to, an invoice, account, or some other identifying number for the remitter or payment. You have the option to: (i) balance the transaction; (ii) provide us with the missing information and instruct us to accept the transaction for deposit; or (iii) reject the transaction. Rejected transactions will be returned to the location indicated on your processing instruction worksheet. We will not provide exception reports or activate the Service until we receive your first mail in the Lockbox. Any transaction identified as a reject for non-negotiability reasons will be excluded from Exception Review and Decisioning. You must provide us with your accept or reject decision by the established deadline for each exception item we present to you. We are entitled to conclusively rely on the instructions we receive to accept or reject transactions. Any communication purporting to have been sent by you will be deemed to have been sent by and authorized by you, and you authorize us to act in reliance on the communication. If you fail to notify us by the deadline, we will handle those Items according to the default procedures in effect for you. Our deadline, default procedures, and procedures for acknowledging accept and reject decisions are described in the applicable User Documentation.
Item Number: 10.
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2. Wholesale Lockbox Processing – If the check payee is blank and either the written or numeric amount agrees with the invoice, the check will be processed. A check received without an invoice or with a missing date will be processed. If either the written or numeric amount on the check agrees with the invoice amount, the check will be processed for the invoice amount. If the written and numeric amount of the check agree but do not agree with the invoice amount, the check will be processed for the check amount.
A check will normally be returned to you when any of the following occur: a) the payee is blank and neither the written nor the numeric amount agrees with the invoice; b) the check is postdated by more than 3 days from the date of deposit; c) the check is stale-dated by more than 6 months from the date of deposit; d) the written and the numeric amount of the check differ and neither agrees with the invoice; e) the signature is missing on the check; f) it is a second-party check; or g) the check is drawn in a foreign currency or on a foreign bank.
You may instruct us to send foreign currency or foreign bank checks for collection. We will send you any checks that are not processed and other Materials (such as invoices) received at the Lockbox address along with information regarding the day’s deposit. You agree that we will not be liable in the event that a check in any of the conditions listed above is not detected and is processed.
If you instruct us not to process a check bearing a handwritten or typed notation “Payment in Full,” “Final Payment,” or words of similar meaning on the face of the check, we will attempt to return the check to you unprocessed; however, we will not be liable to you for losses you suffer if we fail to detect checks bearing such notations.
If you instruct us to process an unsigned check that is paid, but the account owner does not authorize payment, you agree to indemnify us, the drawee bank (which may include us), and any intervening collecting bank for any liability or expense incurred due to the payment and collection of the check.
Acceptable Drawers – You may provide us with a list of
acceptable drawers. For checks issued by a drawer that you designate as not acceptable, we will attempt to a) inspect the face of such checks, and b) return any checks bearing such drawers to you for disposition. You agree that we will not be liable in the event that a check bearing such drawer is not detected and is processed.
Exception Decisioning – This optional online Service will deliver images of exception transactions. Rejects or exception transactions are those that are missing information, including, but not limited to, an invoice, account, or some other
identifying number for the remitter or payment. You have the option to provide us with the missing information or reject the transaction. Rejected transactions will be returned to the location indicated on your processing instruction worksheet.
Item Number: 10.
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We will not begin providing exception reports or activate the Service until after we receive your first mail in the Lockbox. Any transaction identified as a reject for non-negotiability reasons will be excluded from Exception Decisioning.
You must provide us with your accept or reject decision by our established deadline on the same day we report exception Items to you. We are entitled to conclusively rely on the instructions we receive to accept or reject transactions. Any communication purporting to have been sent by you will be deemed to have been sent by and authorized by you, and
you authorize us to act in reliance on the communication.
If you fail to notify us by the deadline, we will handle those Items according to the default procedures in effect for you. Our deadline, default procedures, and procedures for acknowledging accept and reject decisions are described in the applicable User Documentation.
3. Wholetail Lockbox Processing – The Wholetail Lockbox Service involves processing optical character recognition (OCR) remittances, checks, and other payment instructions that are received at a Lockbox address.
Wholetail transactions typically comprise 2 separate document types: the remittance coupon and the drawer’s check. We will process transactions with one remittance and one check (“Singles”), and multiple remittances and/or multiple checks (“Multiples”), as specified in the User Documentation. Unless otherwise agreed, we will process Wholetail transactions that match/balance between remittance amount(s) and check
amount(s). The transaction will be returned to you when the remittance total does not balance to the check total.
If the check payee is blank and either the written or numeric amount agrees with the OCR remittance, the check will be processed. Unless otherwise agreed, a check received without an OCR remittance ("Check Only") or with a missing date will be processed.
If either the written or numeric amount on the check agrees with the OCR remittance amount, the check will be processed for the OCR remittance amount. If the written and numeric amount of the check agree but do not agree with the OCR remittance amount, the check will be processed for the check amount. Unless you make other arrangements with us, a check will be returned to you when any of the following occur: a) the payee is blank and neither the written nor the numeric amount agrees with the OCR remittance; b) the check is postdated by more than 3 days from the date of deposit; c) the check is stale-dated by more than 6 months from the date of deposit; d) neither the written nor the numeric amount of the check agrees with the invoice; e) the signature is missing on the check; f) it is a second-party check; or g) the check is drawn in a foreign currency or on a foreign bank. You may instruct us to send foreign currency or foreign bank checks for collection. We will send you any checks we do not process, other Materials such Item Number: 10.
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as OCR remittances received at the Lockbox address, and information regarding the deposit for the day. You agree that we will not be liable in the event that a check with any of the conditions listed above is not detected and is processed.
You should provide your remitters with notice, on a regular and repeated basis, to mail directly to you checks bearing a handwritten or typed notation “Payment in Full,” “Final Payment,” or words of similar meaning on the face of the check.
We will not attempt to return to you unprocessed checks bearing such notations, and we will not be liable to you for losses you suffer if we deposit checks bearing such notations.
Your remitter notice should warn that mailing checks bearing such notations to the Lockbox address waives the remitter’s rights, if any, regarding final payment.
If we process an unsigned check that is paid, but the account owner does not authorize payment, you agree to indemnify us, the drawee bank (which may include us), and any intervening collecting bank for any liability or expense incurred due to the payment and collection of the check.
Acceptable Remittance Payments – You may provide us with an automated file that contains customer numbers located in the remittance scan line that specifies either all acceptable payments or unacceptable payments. We will program our
system to automatically search the file provided and separate unacceptable transactions/checks. For transactions/checks issued by a drawer that you designated as not acceptable, we will return any checks bearing such drawers to you for disposition. You agree that we will not be liable in the event that a check bearing such drawer is not detected and is processed.
Positive Pay Services
The Positive Pay Services (Payee Positive Pay, Basic Payee Positive Pay, Positive Pay, Basic Positive Pay, Reverse Positive Pay, and Basic Reverse Positive Pay) allow you to identify exceptions (as defined below), view images of exceptions, and instruct us to pay or return those exceptions. By following these procedures, you may significantly reduce the chance that fraudulent checks will post to your account.
Payee Positive Pay, Basic Payee Positive Pay, Positive Pay, and Basic Positive Pay – On each Business Day, we provide you with a report of checks presented to us for payment on the prior Business Day that have been identified as exceptions. For customers utilizing the Controlled Disbursement Service, the Same Day Positive Pay option is available to view exceptions identified on the same Business Day. Exceptions are identified by comparing checks presented to us for payment against a list of checks you issued or canceled that you have transmitted electronically to us (the “Check Issue Report”). Checks presented to the Bank for payment that are not on your
Check Issue Report are “exceptions” and the list of exceptions provided to you is an “Exceptions Report.”
Item Number: 10.
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For Payee Positive Pay and Positive Pay, we will not begin providing you with an Exceptions Report or activate the service until after we receive your first Check Issue Report. For Basic Positive Pay and Basic Payee Positive Pay, we will activate the service on the agreed-upon start date.
Reverse Positive Pay and Basic Reverse Positive Pay – With the Reverse Positive Pay plans, you do not submit Check Issue Reports, and we report all checks presented for payment. We will treat all such checks as exceptions. Reverse Positive Pay does not protect against fraudulent Items that are cashed at one of our banking offices, and for that reason, you release us from liability for paying over-the-counter checks.
Regardless of the Positive Pay product you use, you must notify us by our established deadline, as separately disclosed by the Bank to you (the “Deadline”), on the same day we provide you the Exceptions Report, as to which checks you want us to pay and which to dishonor and return. We are entitled to conclusively rely on the “pay or return” instructions we receive.
Any communication purporting to have been sent by you will be deemed to have been sent by and authorized by you, and you authorize us to act in reliance on the communication. We will handle any exceptions you have not dispositioned by the Deadline according to the default options you have chosen in your Positive Pay Customer Default Disposition Setup Form (the “Setup Form”), and we are entitled to conclusively rely on the options you have chosen. If you have not executed a Setup Form choosing your default options, we will handle the exceptions you have not dispositioned by the Deadline according to the default procedures established by the Bank.
For Positive Pay, Payee Positive Pay, Basic Payee Positive Pay, and Basic Positive Pay, the Bank’s default procedure is “Return” for all exceptions. For Reverse Positive Pay, the default procedure for presented checks is “Pay,” and for duplicate or invalid checks, it is “Return.” Our Deadline, default procedures, and procedures for acknowledging pay and return requests are described in the applicable User Documentation.
Access Options – You may access the Exceptions Report from our website or a mobile device in order to assist you in making a pay/no-pay decision on exceptions. A check identified as an exception may have more than one reason to be flagged as an exception, even though the Bank will present only one. It is your responsibility to review all check information in its entirety prior to making a pay/no-pay decision. You may view or print the front and back of your paid check images to help you identify authorized checks. You must then use the applicable system to notify us of your pay or return decision. The online option is available for all Positive Pay types. The mobile option is available for Payee Positive Pay, Positive Pay, Basic Payee Positive Pay, and Basic Positive Pay accounts.
Acknowledgments – We will have no liability for payment of any check, including any check that has been altered or that bears forged, missing, or unauthorized signatures, if the check Item Number: 10.
35 TRANSACTION BANKING SERVICES
is included in an Exceptions Report and you (i) have not given us timely instructions by the Deadline to return the check; or (ii) have instructed the Bank to pay the exception in your Setup Form. By transmitting a Check Issue Report to us, you warrant that you properly issued all checks that match the information on the Check Issue Report, and we shall have no further responsibility or liability for examination of the checks for fraudulent signatures or material alterations.
If you choose to use Reverse Positive Pay, except as may be attributable to the Bank’s lack of good faith or failure to exercise ordinary care, you assume all the risk of loss associated with the Bank’s payment of fraudulent Items presented for payment over the counter at a banking office.
The Positive Pay Services do not entirely replace our standard check-processing procedures, which may cause a check to be dishonored even if your instructions or the default procedure do not otherwise require us to return such check.
We will use reasonable efforts under the circumstances to respond promptly to proper requests for copies of exceptions, but you acknowledge that our failure to provide copies does not extend the Deadline by which you must notify us of your pay or return decisions.
Real-Time Payments (Receive Only)
Definitions
● Account(s): Your deposit Account(s) held with the Bank and used with the Service.
● Payment Amount: The amount of funds sent to you by a
Sender through the Service.
● Return Request: A message that the Sender submits to the RTP System to request a return of funds related to an RTP payment.
● RTP (“RTP” or the “Service”): An electronic payment system which allows you to receive funds in real time into your Account(s).
● RTP System Operating Rules: The Clearing House’s
operating rules governing the obligations of parties using the RTP System.
● RTP System: The payment system accessed by the Service. ● Sender: The person or entity who sends a payment to you through the Service.
● Sending Financial Institution: A financial institution that participates in the RTP System and holds the Sender’s
account.
● Service Transfer: A payment made from a Sender to you through the Service.
The Real-Time Payments (Receive Only) Service (“RTP” or the “Service”) allows you to receive real-time payments into your Account(s) from Senders that have accounts with Sending Financial Institutions. Funds transferred to your Account(s) will be credited upon completion of the Service Transfer request Item Number: 10.
36 TRANSACTION BANKING SERVICES
and will be available for withdrawal immediately. The Service will not allow you to send payments. You are not obligated to accept a Service Transfer. If you wish to reject a Service Transfer sent to you through the Service, please contact us at 800-238-4486.
The Service is available 24 hours a day, 7 days a week, including weekends and holidays. However, the Service may be
unavailable, from time to time, including due to maintenance; and we may suspend or terminate your access to the Service at any time, including if we determine that you or a Sender has used the Service in an unlawful manner. Incoming payments cannot exceed the general transaction limit set forth in the RTP System Operating Rules per Service Transfer, as may be modified from time to time. It is your responsibility to advise the Sender of this Service Transfer limit. The Service may be used with domestic payments only. It may not be used with senders or receivers who are not residents of or otherwise domiciled in the United States. You agree that you will comply with this restriction and with all regulations of the Office of Foreign Assets Control as well as all other laws applicable to you in connection with your use of the Service.
Payments through the Service are irrevocable and cannot be reversed; however, a Sender may request that you return the funds. If this happens, the Bank will notify you of its receipt of a Return Request from the Sending Financial Institution, and you must respond to the Bank with information requested by the Bank regarding the Return Request within five (5) Business Days of our notification to you. The Bank has no responsibility for and shall not be liable in any way in connection with a dispute between you and a Sender.
A Service Transfer may fail if: 1) there are insufficient funds in the Sender’s account; 2) the Bank or the Sending Financial Institution believes that the Service Transfer does not comply with these RTP terms, or applicable law; 3) you reject or have declined to receive a Service Transfer; 4) the Transfer Request exceeds the Sending Financial Institution’s limits and/or the Sending Financial Institution declines to process the transaction; or 5) the Service is unavailable. In addition, completion of a Service Transfer request might be delayed if the Service Transfer is subject to review by the Sending Financial Institution. We will not contact you to notify you if the Service Transfer has failed.
Remote Deposit Services
Remote Deposit Capture and Image Cash Letter Services
(together, “Services”) are for customers who directly create or use a service provider to create check image files for processing and deposit to their Union Bank accounts.
Customer Responsibilities – You must not use the Remote Deposit Service to deposit checks payable to third parties. Only original checks that are eligible for imaging should be scanned Item Number: 10.
37 TRANSACTION BANKING SERVICES
by you or sent to the service provider for processing. Eligible checks are negotiable checks for any amount in U.S. dollars, drawn on or payable through a U.S. financial institution. The checks must not have been previously presented and paid.
In order to reduce the risk of fraud and to minimize service interruptions, you should implement practices and controls, including, but not limited to, the following:
a) Develop a contingency plan to deposit checks in the
event you lose Internet access or the Bank’s website is inaccessible
b) Periodically perform testing of your systems to minimize service interruptions
c) Segregate user duties and implement dual controls, where reasonably possible, to mitigate the risk of one individual having responsibility for end-to-end processing and
accounts receivable reconciliation
d) Implement a routine to audit users’ use of the Service e) Ensure access credentials are removed when a user leaves the company or is reassigned to other duties
f) Ensure that users cannot share access to the Service or equipment with a third-party without the knowledge and
prior written approval of the Bank
g) Ensure deposit files stored on a server or desktop computer are adequately secured and/or encrypted
h) Develop written procedures to train new users on the Service
i) Implement controls to safeguard non-public information in paper and image formats, and limit access to the
information to only employees who are authorized to handle deposit accounts on the Service
j) Implement system security and antivirus software to
safeguard against viruses, malware, and other potential system risks
k) Dedicate a workstation for the Service and other bank services to minimize the risk of viruses and malware
Foreign Transmittals Prohibited – All check images must be scanned and electronically transmitted to the Bank using equipment located solely in the United States. Image devices leased to you or otherwise made available to you by or through us must not be transported or used outside the United States.
Any exception to these prohibitions must be approved in advance by the Bank.
Security Procedures – You agree to take all reasonable security precautions to prevent unauthorized or fraudulent use of these Services by your employees, agents, contractors, customers, and third parties. You may be assigned one or more user identification codes (“User IDs”) and passwords to enable your employees and agents to access and use the Services.
Item Number: 10.
38 TRANSACTION BANKING SERVICES
Once such User IDs and passwords have been assigned and validated, the use and confidentiality of such numbers shall be your sole responsibility. We do not assume responsibility to discover breaches of your security. You must immediately notify us if you discover any security breach related to the Services.
Image Exchange – When you send images to us, you will create check images of original checks using Bank-provided or Bankapproved scanning equipment to scan the front and back of the checks. You are responsible for entering the correct dollar amount for each check.
The Image Cash Letter (ICL) Service allows you to transmit electronic files of check images in an industry-standard file format instead of paper checks to the Bank for clearing. Using Direct Send, you can transmit images of the checks you receive and scan at your place of business. Using Vendor Send, a vendor can scan checks and transmit the image deposit file to the Bank on your behalf.
You are responsible for any loss or failure to collect a check image that results from an inaccurate or illegible check image or your failure to provide full and correct MICR data or a dollar amount for a check image.
You will transmit check images to us according to the
transmission schedule provided to you by us from time to time.
A check image shall not be deemed received by us until we receive the check image at the Bank. We are not responsible for any losses arising directly or indirectly from damage or alteration to the check image prior to its receipt by us.
Check Storage and Destruction – You agree to retain the original Items in secure storage after submitting the check images for deposit until such time as you have a reasonable expectation that the original checks have finally cleared.
You will then destroy the Items in a safe and secure manner.
Among other things, these security procedures should be designed to ensure that the original checks are not accessed by unauthorized persons during the destruction and disposal process and, once destroyed, the original checks are no longer readable or capable of being reconstructed.
Upon our request, you agree to provide us with your procedures for securing and destroying original Items and will permit us to review your process.
During the time period that you maintain the original checks, you understand and agree that you must use a high degree of care to protect these original checks against security risks. These risks include, but are not limited to, a) theft or reproduction of the original checks (including by employees) for purposes of presentment for deposit of these original checks after they have already been presented for deposit via the Remote Deposit Service, and b) unauthorized use of information derived from the original checks.
Item Number: 10.
39 TRANSACTION BANKING SERVICES
You should maintain written procedures to ensure that only employees who are authorized to handle deposit accounts have access to the checks, and that the destruction of scanned checks is completed after the record retention period. Keys to cabinets or areas where checks are stored should be accessible only to authorized employees, and any movement of scanned checks for storage purposes should be conducted under
secured conditions. You should maintain a daily log of deposits with the date of the deposit, initials of the person storing the checks, and the check destruction date.
Scanning Equipment – Scanners cannot be moved from the
original shipping address to another location without the prior written approval of the Bank, and you cannot move scanners to a location outside of the United States, Puerto Rico, or Guam.
We must approve your use of scanning equipment that is not purchased or leased through us. We are not responsible for the servicing or repair of this equipment. If you have a check scanner purchased through the Bank that is under extended or advanced unit-exchange warranty, and it requires repair, you may be provided with a working scanner to ensure your remote deposit service is not interrupted. You have 10 calendar days after the date a working scanner is shipped to you to return your scanner requiring repair. If the scanner requiring repair is not returned within the specified time period, you will be charged a fee, plus any fees associated with missing accessories, which will be applied to your account.
All loaned scanners should be returned to:
Superior Press
9440 Norwalk Blvd.
Santa Fe Springs, CA 90670
Please adhere to all shipping instructions included in the scanner box. If you have any questions, please contact
Transaction Banking Customer Service at 800-322-2778.
Lockbox Service with National Remote Deposit Services – You instruct your customers to mail checks to the Lockbox address. We will pick up mail at the Lockbox address at regularly scheduled times and forward checks and other document
images to the Bank’s designated check processor for further processing and collection.
Cash Vault Service with National Remote Deposit Services – Your cash and check deposits are transported to a cash vault location owned and operated by a third-party service provider.
The cash vault operator will scan the checks and electronically transmit image files to us for collection and deposit to your account.
Processing Check Images – We will collect check images
through the bank check collection system. We may also use, at our discretion, the check image to create a substitute check and collect that substitute check through the bank check Item Number: 10.
40 TRANSACTION BANKING SERVICES
collection process. In certain cases, we may request that you deposit the original check in lieu of the check image.
For checks sent to our service provider for imaging, we will retain the original check relating to the check image for a period of time to be determined by us. We are responsible for storage and destruction of the original check and any copies of the original check or check image in a secure and confidential manner.
The deposit of all check images is subject to our verification and final inspection. We reserve the right at any time to refuse the deposit of a check image or to return all or part of a deposit of multiple check images to you without prior notice.
In certain cases, we may submit the original check through payment processing. The amount of the image deposit will be adjusted to reflect any checks that are cleared through paper processing. We will advise you of any such adjustment.
A check image shall not be deemed received by us for deposit until we receive the check image at a licensed location of the Bank, whether received directly from you, your service provider, or our service provider. If we receive a check image on a day that is not a Business Day or after the processing cutoff hour for a Business Day as established by us, that check image shall be deemed to have been received by us at the opening of the next Business Day.
We are not under any obligation to you to inspect or verify a check image to determine accuracy, legibility, or the quality of the check image or MICR-line information associated with the check image, or for any other purpose. We reserve the right, but are not obligated, to correct or amend MICR-line information associated with a check image to facilitate processing of the check image or a substitute check created from that check image. You agree to obtain a replacement check from the drawer if a check image is rejected and the original check is unavailable.
We and other banks may process and collect a check image or a substitute check through one or more check clearinghouses, Federal Reserve Banks, or private clearing agreements with other banks. The check images or substitute checks will be subject to the rules of that clearinghouse, Federal Reserve Bank, or private clearing bank agreement.
You agree that, notwithstanding its electronic form, a check image that is created from an original check, or a substitute check created from that check image, shall be a “check” and/or an “Item” for all purposes under this Agreement, the Commercial Code, the Expedited Funds Availability Act,
Regulation CC, and any other federal or state check law, to the same extent as that original check is a “check” or an “Item.” You acknowledge that a check image may not capture or include all the security features contained in the original check, such as watermarks.
Item Number: 10.
41 TRANSACTION BANKING SERVICES
Warranties for Check Image Processing – You represent and warrant to us each time you use the remote deposit service to transfer or deposit a check image with us directly, including through your service provider, or indirectly through our or your service provider, that:
1) the check image is an accurate representation of all information on the front and back of the original at the time the original check was converted to a check image, and the check image contains all endorsements from the original check (if sent by you or your processor);
2) each check image (or related electronic data file) contains a record of all MICR-line information required for a substitute check and otherwise satisfies all of the requirements
of Check 21 and Regulation CC for the creation and/or
transferring of a substitute check created from that image (if sent by you or your processor);
3) the original check, a duplicate check image, or any copy of the original check or check image will not be deposited by you with us (unless we expressly instruct you to do so) or under any circumstances with any other bank;
4) the original check, a duplicate check image, or any copy of the original check or check image will not be presented, transferred, or returned such that we or any other person (such as the drawer of the check) will be asked to make payment based on a check or check image that we or the
other person already paid;
5) each check’s format shall adhere to industry standards and may change from time to time. The current Image Quality Guideline is black/white, minimum 200 DPI TIFF G4;
6) all the information provided to the Bank is accurate.
In addition, each time you use the Service to transfer or deposit a check with us directly, including through your service provider, or indirectly through our service provider, you are deemed to make to us any representation, warranty, or indemnity that we make, under applicable law, clearinghouse rule, Federal Reserve Operating Circular, bi-lateral agreement, or otherwise, to any bank (including a Federal Reserve Bank and the paying bank) or other person when the bank transfers or presents the check image or any substitute check created from that check image. We may charge back to your account(s) any deposited check that is later returned to us owing to an actual or alleged breach of any such representation or warranty.
Internet Access and Information Security – You acknowledge that we do not control the Internet or other information systems operated by third parties, and you will not hold us or our agents liable for any failures, acts, or omissions of any third-party information system operator, including, but not limited to, unauthorized access to or alteration, theft, or destruction of information and data.
Item Number: 10.
42 TRANSACTION BANKING SERVICES
We will exercise due care in seeking to preserve the
confidentiality of any user number, password, test key, or other code or identifier, and to prevent the use of Internet-delivered remote deposit services by unauthorized persons (and in this connection it is understood and agreed that implementation by us of our normal procedures for maintaining the confidentiality of information relating to our customers, and where practicable obtaining similar undertakings from third parties engaged in the installation, maintenance, and operation of a system used to provide the Service, shall constitute our fulfillment of exercising due care), but shall not otherwise be under any liability or have any responsibility of any kind for any loss incurred or damage suffered by you in consequence or by reason of any unauthorized person gaining access to or otherwise making use of the Service. You assume full responsibility for the consequences of any missing or unauthorized use of or access to the Service or disclosure of any confidential information or instructions by you, your employees, or your agents.
Use – You agree to use the Service only for your own internal business purposes. Without limiting the generality of the foregoing, you agree not to make the Service available or allow use of the Service on a computer with a service bureau business or timesharing, or otherwise disclose or allow use of the Service by or for the benefit of any third-party. Without our express permission, you may not use the remote deposit service to deposit Items to a personal account.
Third-Party Beneficiary – Any service provider engaged by us to deliver the Service is an intended third-party beneficiary of this Agreement to the extent that the service provider or its affiliate and/or such other service provider delivers goods or services in connection with the Service. Our licensors or suppliers will not be subject to any liability to you in connection with any matter related to the remote deposit service made available through the service provider.
Remote Deposit Service Cancellation – If we have made a scanner available for your use and you cancel your remote deposit service within 30 days of initiation of the Service, you must return the scanner within 10 days. You will be charged an implementation fee and a restocking fee for the early return of the scanner. If the scanner is not returned, you will be charged the full purchase price. Please refer to the applicable Business Fee Schedule.
Suspension of Exchanging ICL Files – Either party may request to suspend the exchanging of files with at least 24 hours’ written notice to the other party if the continued exchange of files is or will be commercially unviable and therefore subject to suspension; such notice shall provide in reasonable detail the reasons that the exchange of files is commercially unviable.
Upon receipt of such notice and request, the other party shall consent or object to the suspension in writing as promptly as possible, provided that party shall consent if, based on the request, it can reasonably be expected that the continued Item Number: 10.
43 TRANSACTION BANKING SERVICES
exchange of files would have material adverse impact on check processing.
The foregoing notwithstanding, the non-requesting party shall have until the end of the 24-hour period to propose a remedy to the stated problem, and the requesting party will give due consideration to the solution and consent or object to the implementation of such solution, consent not to be unreasonably withheld. The parties agree to use commercial best efforts to resolve any problem and end any suspension of the exchange of image files as promptly as possible. The parties shall process paper Items until image exchange is resumed.
The parties shall give 24 hours’ notice of the intention to resume the image-exchange processes, a period that shall exclude weekends and holidays.
Testing of ICL Files – Both parties will mutually agree upon testing to be performed whenever software or hardware
modifications or enhancements, initiated by either party, may affect the creation and processing of ICL files. Both parties will make their best effort not to impact the accuracy of ICL file formats.
Termination – Notwithstanding any other provision of this Agreement, we may terminate your use of the Remote Deposit Service at any time by giving you notice.
Telephone-Initiated Transactions
(TEL, PPD, CCD, Debit Card, and Credit Card)
Description of Service – A TEL Entry is a Single or Recurring Entry debit initiated when the Receiver gives authorization by telephone for a transfer from a consumer’s account. You must comply with the NACHA Rules associated with processing TEL Entries before the start of Origination. TEL Entries may only be originated when there is an Existing Relationship between you and the Merchant Customer or when the Merchant Customer initiates the telephone call. Under the NACHA Rules, an Existing Relationship exists when there is a written agreement in place between you and the Merchant Customer or when the Merchant Customer has purchased goods or services from you within the past 2 years.
Description of Process – Your customer (the “Merchant
Customer(s)”) will telephone your customer service
representatives and provide account numbers and other
information. Your designated employee(s) and your other designated agents will be provided with a user identification code ("User ID") and password to access the System and enter the Merchant Customer’s information. Transaction information is archived on the Provider’s System. For TEL, PPD, and CCD Entries, a transaction file is sent to the ACH, which debits the Merchant Customer’s bank account and credits your Union Bank account.
Item Number: 10.
44 TRANSACTION BANKING SERVICES
Notice of returned TEL, PPD, and CCD Entries will be available through Internet information reporting within 2 Business Days after the return.
Your Responsibility – You are fully responsible for all transactions credited to your account through the System, including, but not limited to, transactions that are later alleged to be unauthorized or erroneous, or that were issued on nonsufficient available funds or subject to stop payment or other rejection, return, or chargeback.
In addition to other applicable NACHA warranties, you warrant to us when you initiate a TEL Entry that you have employed commercially reasonable procedures to verify the identity of the Receiver.
You must tape-record the Merchant Customer’s oral
authorization for the transaction or provide, in advance of the settlement date of the TEL Entry, written notice to the Merchant Customer that confirms the oral authorization.
You must clearly state, and the Merchant Customer must
acknowledge, the following terms of the transaction: a) the date on or after which the Merchant Customer’s account will be debited; b) the amount of the Entry; c) the Merchant Customer’s name; d) a telephone number that you answer that is available to the Merchant Customer during normal business hours for Merchant Customer inquiries; e) the date of the Merchant Customer’s oral authorization; and f) a clear statement by you that the authorization will be used to originate an ACH debit Entry to the Merchant Customer’s account. You must retain either the original or a duplicate tape recording of the Merchant Customer’s oral authorization, or a copy of the written notice, for 2 years from the date of authorization. Upon our request, you must promptly provide us with a copy of the authorization.
Merchant Customer Identification – The Provider will verify that the routing number supplied by the Merchant Customer for ACH transactions matches the designated financial institution’s name. The System does not verify or authenticate the identity of the Merchant Customer, the Merchant Customer’s account number, the Merchant Customer’s address, or other Merchant Customer identifying information.
Total Biller Solution
Total Biller Solution (TBS) enables your customers to
receive bills and make payments through the Web, mobile, an Interactive Voice Response (IVR), a Customer Service Representative (CSR), and a point-of-sale terminal using their checking account, credit card, debit card, or digital wallet.
Authorized ACH transactions for payments made by your
customers through Web, mobile, IVR, and CSR channels will be processed through the Bank's ACH system. The Bank will credit your specified DDA the next Business Day.
Item Number: 10.
45 TRANSACTION BANKING SERVICES
Certain credit, debit card, and digital wallet payments made by your customers through Web, mobile, IVR, CSR, and point-ofsale channels may be authorized and settled by Worldpay®.1 Worldpay will credit your specified DDA the next Business Day. Additionally, we may, at our sole discretion, use any other bank-approved, third-party merchant processor consistent with the fee type(s) imposed on card transactions initiated by your customers.1
Upon receipt of the TBS payment detail and deposit from the Bank, you will post the payments within 24 hours.
Payment cancellations and reversals will be performed by your designated representatives via the TBS Admin console.
Your designated system administrator will be responsible for adding, deleting, and updating the entitlements for authorized users of the TBS Admin console.
TBS may be used in conjunction with other Services described in this Agreement which enable your customers to initiate payment transactions in various ways. These Services may include Electronic Bill Presentment and Payment, IVR-Initiated Transactions, Interface-Initiated Transactions, Internet-Initiated or Application Programming Interface-Initiated Transactions, and Telephone-Initiated Transactions. The terms and conditions under which we provide these Services, and the Security Procedures for such Services, are set forth in the relevant sections describing those Services, within this Agreement.
You understand that with respect to TEL, CCD, WEB, PPD, and other ACH Entries initiated through TBS, you will be considered the Originator of the ACH Entries, and we are the Originating Depository Financial Institution. You agree to be bound by the NACHA Rules in effect, which may be amended from time to time, for all Entries whether or not an Entry is sent through the ACH Network.
Administrative Controls – In addition to the Security
Procedures as set forth in relevant sections of this Agreement for the Services that may be used in conjunction with TBS, we recommend the following Administrative Controls offered by the Bank (as may be changed from time to time), for your use with TBS to further assist you in mitigating fraud: malware detection for use with your device, IP address restrictions, payment and user entitlements, alerts for administrative changes, limitations on payment amounts and access, and administration controls.
1 MUFG Union Bank, N.A., on the one hand, and Worldpay and other merchant processors that may be used with Total Biller Solution on the other hand, are separate legal entities and are not affiliated by common ownership, management, control, or otherwise.
Item Number: 10.
46 TRANSACTION BANKING SERVICES
In addition to the Security Procedures, Administrative Controls, and other security precautions mentioned in this section, you agree to employ the Best Practices as appropriate for the TBS Service.
Web Service: MUFG Exchange
(F/K/A Financial Center)
We offer many of the Services online via MUFG Exchange (f/k/a Union Bank Financial Center). MUFG Exchange is a web portal that allows you to use multiple Services through a single access point. You may perform many of your transactions through MUFG Exchange, including accessing account statements,
opening and closing accounts, initiating stop payments, sending wires and updating wire arrangements, originating ACH files, viewing check images, viewing lockbox check
images and remittances, and transmitting financial data to us.
To enhance security, use a commercially reasonable level of security, which must comply with current, applicable, regulatory guidelines that impose more rigorous encryption obligations.
Security Procedure – The Security Procedure for MUFG
Exchange is a user identification code (“User ID”) and a password. For approval of an ACH Entry or Wire, the Security Procedure also requires your use of a token.
In addition, the Bank makes available to you upon your request a token for your use at login to the MUFG Exchange Service.
Such token may be made mandatory for use with the MUFG
Exchange Service as communicated to you from time to time.
You agree to use the MUFG Exchange Service in accordance with the Security Procedure detailed above. The purpose of the Security Procedure is to verify the authenticity of the payment order delivered to us in your name and not to detect errors in the transmission or content of a payment order. You further agree that this Security Procedure best meets your needs given the size, type, and frequency of your payment orders, and is a commercially reasonable Security Procedure for you. You agree that any payment order, the authenticity of which has been verified through the use of the Security Procedure, shall be effective, whether or not it was in fact authorized by you. You agree to preserve the confidentiality of the Security Procedure and promptly notify us of any compromise of the integrity of the Security Procedure.
Administrative Controls – Additionally, we recommend the following Administrative Controls offered by the Bank (as may be changed from time to time) for your use with the MUFG Exchange service to further assist you in mitigating fraud: malware detection for use with your device, IP address restrictions, payment and user entitlements, dual approval for payments and administration, alerts for administrative changes, limitations on payment amounts and access, and administration controls.
Item Number: 10.
47 TRANSACTION BANKING SERVICES
In addition to the Security Procedures, Administrative Controls, and other security precautions mentioned in this section, you agree to employ the Best Practices as appropriate for the MUFG Exchange service.
Wires – In order to update wire arrangements utilizing the MUFG Exchange, you must be an Authorized Signer on the
Bank’s standard Funds Transfer Authorization form. Each person listed as an Authorized Signer on the Funds Transfer Authorization form has the authority to enter into or change any agreement with the Bank concerning funds transfers on your behalf, including, but not limited to, the authority to add or delete Authorized Representatives and designate accounts used for funds transfers.
In addition, two Web Administrators authorized by a Contracting Officer (or by another Web Administrator) through MUFG
Exchange, acting with dual authority (one Web Administrator will initiate an action and another will approve), will be able to perform all the following functions: (1) entitle Users to use Wires on the Web, (2) add Customer accounts to the Wires on the Web Services; and (3) add or modify User entitlements (User entitlements shall include wire limits and the ability to create wire templates). This authority is in addition to the authority granted to the Authorized Signer(s) (or the Contracting Officer, as applicable) on the Funds Transfer Authorization form or other applicable agreement. The security procedures chosen by the Customer on the Funds Transfer Authorization form apply to any payment order initiated by any Web Administrator or User authorized by such Web Administrator, and Company will be bound by any such payment order, whether or not authorized, issued in Customer’s name, and accepted by the Bank in
compliance with the Security Procedure chosen. Should you desire to use this feature, please reach out to your Treasury Management Officer.
To access Services through our website, you must be enrolled in MUFG Exchange. All persons entering MUFG Exchange on your behalf and using the Services agree to accept any terms of use appearing on MUFG Exchange. Most Services available through MUFG Exchange require additional documentation to establish the underlying Services.
MUFG Exchange Mobile – MUFG Exchange Mobile is an
alternate service delivery channel for MUFG Exchange and provides access to some of our key MUFG Exchange Services.
Accessing the MUFG Exchange Mobile service requires users to have an Internet-enabled mobile device. To use services through MUFG Exchange Mobile, users must have the
appropriate entitlements to certain online Transaction Banking service(s). All users accessing MUFG Exchange Mobile on behalf of your organization and using the services agree to accept all terms of use applicable to MUFG Exchange.
Item Number: 10.
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The mobile service offers the same security controls as MUFG Exchange. However, as with all electronic banking services, security is contingent upon users’ responsible behavior in protecting their User IDs and passwords and mobile devices.
The MUFG Exchange Mobile service is dependent upon the
functionality of the telecommunications or wireless service provider. The Bank is not responsible for the unavailability or temporary interruption of service to MUFG Exchange Mobile due to service issues, lack of network coverage, or technical failure of the mobile device or wireless service provider.
Access to MUFG Exchange Mobile is provided at no additional cost. However, users may incur charges for mobile Internet access and should contact their wireless carrier for more information.
Authorized Persons – The Contracting Officer has the highest level of authorization and is the individual authorized to enter into agreements with us for any Transaction Banking Services, as well as accessing the Services through MUFG Exchange Mobile. The Contracting Officer may delegate full or partial authority to one or more Web Administrators; add and delete Web Users; perform password administration; grant new Web Users access to existing Web Services; and create, modify, and delete user entitlements for existing Web Services.
The Contracting Officer must designate at least one Web Administrator (who may be the Contracting Officer). A Web Administrator has the authority to manage Services subscribed to by the Contracting Officer, including designating the individuals who may use these Services and identifying the account(s) assigned to each Service. A Contracting Officer or Web Administrator, each acting alone, may select one or more Web Users or View Only Web Users to access the Services, and designate the accounts to which the Web User or View Only Web User has access.
Web Users can use the Services to which the Contracting Officer or Web Administrator has granted them access. Web Users may not grant or delete their own or another person’s access to any Service or account. A Web Administrator has the ability to add and delete Web Users, reset a Web User’s password, and issue a temporary password to a Web User.
View Only Web Users may view information but not perform transactions. This status is not available for all Services.
Security Procedure – The Security Procedure for access to MUFG Exchange Mobile is a user identification code (“User ID”) and a password (such user identification code and password can be replaced after initial login with a biometric identification).
For approval of an ACH Entry or wire, the Security Procedure also requires your use of a token.
In addition, the Bank makes available to you upon your request a token for your use at login to the MUFG Exchange Mobile Item Number: 10.
49 TRANSACTION BANKING SERVICES
Service. Such token may be made mandatory for use with the MUFG Exchange Mobile Service as communicated to you from time to time.
You agree to use the MUFG Exchange Mobile Service in
accordance with the Security Procedure detailed above. The purpose of the Security Procedure is to verify the authenticity of the payment order delivered to us in your name and not to detect errors in the transmission or content of a payment order.
You further agree that this Security Procedure best meets your needs given the size, type, and frequency of your payment orders, and is a commercially reasonable Security Procedure for you. You agree that any payment order, the authenticity of which has been verified through the use the Security Procedure, shall be effective, whether or not it was in fact authorized, by you. You agree to preserve the confidentiality of the Security Procedure and promptly notify us of any compromise of the integrity of the Security Procedure.
Administrative Controls – Additionally, we recommend the following optional Administrative Controls offered by the Bank (as may be changed from time to time) for your use with the MUFG Exchange Mobile Service to further assist you in mitigating fraud: dual approval for payments and administration, alerts for administrative changes, limitations on payment amounts, and access and administration controls.
In addition to the Security Procedures, Administrative Controls, and other security precautions mentioned in this section, you agree to employ the Best Practices as appropriate for the MUFG Exchange Mobile Service.
Wire Transfer Service
The Wire Transfer Service allows you to transfer funds and related messages electronically. These wire transfers are typically from your deposit accounts with us to other deposit accounts at our Bank or at other banks. These transfers may also include transfers to your accounts with us from accounts at other banks. These transfers may be made according to a specific request from you or according to your standing instructions. The types of Wire Transfer Services offered and the Security Procedures offered with them are separately disclosed to you in the Master Funds Transfer Agreement and Security Procedures or other comparable document provided to you. The Security Procedure to be used by you in connection with such Wire Transfer Services are chosen by you in the Funds Transfer Authorization or other comparable document provided to you.
Authorized Persons – Before using Wire Transfer Service, you must designate the persons you authorize to perform certain duties in connection with the execution of wire transfer instructions.
Security Procedure – You agree to use Wire Transfer Service in accordance with the Security Procedure as detailed in the Item Number: 10.
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documents described above. The purpose of the Security
Procedure is to verify the authenticity of the payment order delivered to us in your name and not to detect errors in the transmission or content of a payment order. You further agree that this Security Procedure best meets your needs given the size, type, and frequency of your payment orders, and is a commercially reasonable Security Procedure for you. You agree that any payment order, the authenticity of which has been verified through the use of the Security Procedure, shall be effective, whether or not it was in fact authorized by you. You agree to preserve the confidentiality of the Security Procedure and promptly notify us of any compromise of the integrity of the Security Procedure.
Administrative Controls – Additionally, we recommend the following Administrative Controls (as may be changed from time to time) offered by the Bank for your use with the Wire Transfer Service accessed through the web to further assist you in mitigating fraud: malware detection for use with your device, IP address restrictions, payment and user entitlements, dual approval for payments and administration, alerts for administrative changes, limitations on payment amounts and access, and administration controls.
The Administrative Controls (as may be changed from time to time) offered by the Bank for your use with the Wire Transfer Service, through transmission include: IP address restrictions, file encryption, file acknowledgements by the Bank, and payment threshold and multiple approver requirements.
In addition to the Security Procedures, Administrative Controls, and other security precautions mentioned in this section, you agree to employ the Best Practices as appropriate for the Wire Transfer Service.
Execution of Transfer Requests – We will use our best
efforts to execute each properly authorized wire transfer payment order and/or instruction on the day of receipt if a) we receive the payment order and/or instruction and are able to authenticate it before our cutoff time, and b) the day of receipt is a Business Day for us and the transmission facility selected.
We may change our cutoff time without prior notice to you. If you initiate a request to debit an account of a third-party, you must provide us with documents, in a form acceptable to us, evidencing the third-party’s authorization.
We will notify you of all wire activity on your account on your periodic account statement. We have no obligation to notify you in any other way. However, you may choose to make special arrangements with your banking office to receive earlier notice of wire transfer activity on your account via telephone, facsimile transmission, or U.S. mail.
Rejection of Transfer Requests – We may reject any request that does not comply with our requirements or the applicable User Documentation; that we have been unable to verify
Item Number: 10.
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through use of the Security Procedure; or that contains inconsistent, ambiguous, or missing information. Notice of rejection may be given to you by telephone, electronically, by facsimile, or by mail and will be effective when given. We will not incur liability to you for any loss occasioned by our refusal to honor any request.
Transfer Request Exceeds Account Balances – If there are nonsufficient available collected and available funds in your account(s) to cover your request, we may, at our sole discretion, choose to complete wire transfers that you initiated. You agree to immediately repay us the amount of any overdraft created, plus any overdraft charges, without notice or demand to you.
Recall, Return, or Amendment of Wires – We have no
obligation to honor a request for a recall, return (including a debit authorization), or amendment to a wire transfer payment order and/or instruction after we receive it. If you send us a request instructing us to recall, return (including honoring a debit authorization), or amend a prior transfer request and we are able to verify the authenticity of the request using the Security Procedure, we will make a reasonable effort to act on that request, but we will not be liable to you if it is not effected.
You agree that the Security Procedure used to verify the authenticity of such a request will be a signature verification to confirm that the written request was made by an individual you have authorized, and a call back to an individual you have authorized (provided, however, for requests using SWIFT, the Security Procedure is as agreed to between you and us for SWIFT instructions generally).You agree to indemnify us in connection with your request to the same extent as we indemnify other parties under UCC 4A. Your obligations under this provision will survive termination of this Agreement.
Inconsistency of Name and Number – A beneficiary’s bank can make payment to a beneficiary based solely on the account or other identifying number, even if the name in the request differs from the name on the account.
Identification of Intermediary or Beneficiary’s Bank – If your wire transfer payment order identifies an intermediary bank or a beneficiary’s bank by both name and identifying number, we and other banks may rely on the identifying number regardless of whether the bank name and identifying number refer to different entities. We may select any intermediary bank, funds transfer system, or means of transmittal to send your payment order. Our selection may differ from that indicated in your instructions without our incurring liability to you.
Intermediary Bank Fees – Union Bank may charge fees for sending or receiving a payment order. You acknowledge and agree that the Bank may deduct its fees from your account or from the amount of the payment order. You further
acknowledge and agree that intermediary banks may deduct their fees from the amount of the payment order that they process (whether an outgoing or incoming transfer), and Item Number: 10.
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that a portion of such fees may be shared with the Bank. You authorize the Bank and such intermediary banks to deduct such fees, and you further authorize the Bank to share in such fees with such intermediary banks, as described above.
Foreign Transfers; Currency Conversion – If your payment order involves a transfer to a beneficiary in a foreign country, we may execute the order in the currency of the country of the beneficiary’s financial institution. Unless you notify us in writing otherwise, you consent to conversion of the funds into foreign currency by us (or our agents or processers), any correspondent bank or intermediary bank, the beneficiary’s bank, or any other third party reasonably involved in the completion of the funds transfer, at conversion rates generally applied by that converting party. If the transfer is returned for any reason, you agree to accept the refund in U.S. dollars in the amount of the foreign money credit, based on the current buying rate on the day of the refund, less any charges and expenses incurred by us. We will not be liable to you for a sum in excess of the amount of the payment order after we have converted it from the foreign currency to the account currency using the applicable rate of exchange in effect at the time on the day we confirm the cancellation of the payment order. We bear no liability if the applicable rate of exchange differs from rates offered or reported by us or by third parties, or based upon different times of the day, amounts, locations or involving different systems, agents or procedures. Foreign transfers may be subject to delays and changes in foreign currency exchange rates. Currency exchange rates fluctuate over time, based upon market conditions, liquidity and risk. You acknowledge and accept the risks of such fluctuations between the time you request a payment order and the time the payment order is either completed or is unwound due to a cancellation, an amendment, a rejection or a return. Fees imposed by
intermediary banks may be deducted from the amount of your order. A portion of those charges may be shared with us.
Designation of Funds Transfer System – You hereby instruct us to use the following: Fedwire, CHIPS, SWIFT, any intermediary bank identified by the foregoing systems as a correspondent bank of the beneficiary’s bank, or any payment system or intermediary bank that we deem reasonable under the
circumstances. You agree to be bound by the rules of the wire transfer payment system utilized.
Zero Balance Accounting
Our Zero Balance Accounting Service (“ZBA Service”)
automatically transfers funds between your, or your and your affiliated companies (“Affiliates”), as applicable, Concentration Account and Zero Balance Accounts. The ZBA setup forms
will identify the operating parameters for the ZBA Service. At the end of each Business Day (or at the end of those Business Days that you select on your setup form, as applicable), we will process the debit and credit transactions to the Zero Balance Accounts and transfer funds to and from the Concentration Item Number: 10.
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Account to bring the Zero Balance Accounts to the target balance as chosen by you on the set up form.
There must be sufficient available funds in the Zero Balance Accounts and Concentration Accounts to cover all transactions under the ZBA Service. The Bank may, but is not required to, transfer funds if the transfer would create an overdraft.
If any of the Zero Balance Accounts is owned by Affiliates, you are responsible for any financial liability (including any tax implications) resulting from commingling and/or movement of funds to and from the Zero Balance Accounts and the
Concentration Account.
Funds transferred must be returned to your or your Affiliate’s account no later than 183 days from the date of transfer, and may be returned as soon as the next Business Day. Failure to do so may subject you to tax withholding. We recommend that you consult your tax advisor. The Bank does not agree to assume primary withholding and reporting as your agent.
Pooling Report – We will make available an automated report that tracks ZBA credits and debits posted to your Accounts and/ or your Affiliates' Accounts, along with intercompany interest for the Concentration Account and Zero Balance Accounts calculated based on an interest rate you have designated on your setup forms.
Additionally, if applicable, we will allocate any such interest (whether debit or credit) to each of your Affiliates' Accounts by debiting or crediting the Accounts as designated in the intervals you have chosen on your setup form.
GENERAL PROVISIONS
Changes to a Service
You may request at any time to change the processing
instructions for a Service. We are not obligated to implement any requested changes until we have had a reasonable
opportunity to act upon them. In making changes, we are entitled to rely on requests purporting to be from you. For certain changes, we may require that your requests be in writing, in a form and manner acceptable to us, or be from an authorized person you designate. Changes are subject to our approval.
Communications
Any written notice or other written communication to be given by us under this Agreement will be addressed to you at the address specified in our records. Unless we advise you otherwise, written communication to us should be sent to your office of account. Notices are effective upon receipt, except as otherwise provided in this Agreement or any Materials.
We may electronically monitor and/or record any telephone communications with you. You consent to such recording. If our Item Number: 10.
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records about any communication are different from yours, our records will govern.
If we allow you to use email or communications via our website to initiate payment requests or other instructions with respect to a Service, you will be subject to the terms and conditions of this Agreement and must comply with the applicable User Documentation.
We may rely on oral instructions from any person who identifies himself or herself by a name that is included on a list from you of persons authorized to give such instructions.
Except as otherwise expressly stated in this Agreement, we are not required to act on any instruction from any person or to give notices to any person.
Compliance with Laws, Operating Procedures, and
Guidelines; Bona Fide Transactions
You shall comply with all applicable laws, regulations, rules, or ordinances, and orders of governmental and governing authorities having jurisdiction, including, but not limited to, the Electronic Funds Transfer Act, federal Regulation E, the Fair Credit Reporting Act, the FTC Telemarketing Sales Rule (including, but not limited to, any requirement to obtain your customer’s express verifiable authorization to originate a charge against the customer’s bank account), federal and state privacy laws, anti-money-laundering laws (Bank Secrecy Act, USA PATRIOT Act, and Office of Foreign Assets Control lists/directives), and all rules and operating guidelines of the NACHA to the extent the same are applicable to the Services.
You represent that all transactions are the result of bona fide business transactions.
Confidentiality
You acknowledge our claim to proprietary rights in the Materials and that the Materials constitute our trade secrets or trade secrets of our licensors or vendors. You understand that all Materials are confidential and you will a) safeguard the Materials at all times; b) establish and maintain procedures to assure the confidentiality of the Materials and any password or code you are assigned or use; c) use the Materials only for the purposes for which we provide them; and d) notify us promptly by telephone, confirmed in writing, if any Materials are lost or their confidentiality is compromised.
You will not, nor will you allow anyone else to, do any of the following without our prior consent: a) disclose any Materials to any person or entity, except to your employees and agents with a need to know the Materials; b) make any copies, in whole or in part, of any Materials in whatever form or medium (electronic, printed, or otherwise) in which they may exist from time to time, except as provided in the Software License section; and c) translate, reverse engineer, disassemble, or decompile any software or security devices.
Item Number: 10.
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These confidentiality obligations continue after a Service you are using is terminated.
You have sole responsibility for the custody, control, and use of all Materials. You agree that no individual will be allowed to initiate a request or other instruction contemplated in connection with the Services or have access to any Materials without proper supervision and strict security procedures.
We will be fully protected in relying on the correct user identification codes and passwords, as described in the relevant User Documentation.
Neither party will use the other’s name or refer to the other party directly or indirectly in any solicitation, marketing material, advertisement, news release, or other release to any publication without receiving the other party’s specific prior written approval for each such use or release, except that we may use your name as a reference in service proposals if we obtain your prior oral approval for such use. This section does not limit either party’s ability to satisfy any governmentally or judicially required disclosure.
Customer Responsibility
You agree to be solely responsible for your proper use of the Services, including, but not limited to, implementing internal procedures to safeguard your confidential access capability.
You will assume full responsibility for the provision, repair, and maintenance of any facilities, computer devices, or other equipment necessary to or used by you in connection with accessing the Services.
Cutoff Hours
A number of our Services are subject to processing cutoff hours on a Business Day. You can obtain information on our current cutoff hours by contacting your Relationship Manager or office of account. Instructions received after a cutoff hour or on a day other than a Business Day may be deemed received as of the next Business Day.
General Matters
This Agreement will be controlling in the event of any conflict between it and any relevant Deposit Account Agreement,
Customer Manual, User Documentation, Materials, and any other document or written or oral statement. Current User Documentation is available upon request.
This Agreement is binding upon each of our respective
successors and permitted assigns. You may not assign any of your rights or duties under this Agreement without our prior written consent. Except as otherwise provided, this Agreement is not for the benefit of any other person, and no other person has any right under this Agreement against you or us. Nothing contained in this Agreement creates any agency, fiduciary, joint venture, or partnership relationship between you and us.
Item Number: 10.
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We are responsible only for performing the Services expressly provided for in this Agreement. We may contract with an outside vendor in providing any Service. If any provision of this Agreement or the application of any such provision to any person or set of circumstances is determined to be invalid, unlawful, void, or unenforceable to any extent, the remainder of this Agreement, and the application of such provision to persons or circumstances other than those determined to be invalid, unlawful, void, or unenforceable, shall be enforceable to the fullest extent permitted by law. Except as otherwise stated herein or required by law, the provisions of this Agreement are governed by, and interpreted according to, the laws
of the state where your account is located, and federal law.
No delay or failure to exercise any right or remedy under this Agreement is deemed to be a waiver of such right or remedy.
No waiver of a single breach or default under this Agreement is a waiver of any other breach or default. Any waiver under this Agreement must be in writing.
Information Processing and Reporting
We offer a number of Services that require us to receive, process, and report information involving your accounts and transactions. We will not be responsible for determining the accuracy, timeliness, or completeness of any information that you or others provide to us. We shall be protected in acting on any oral or written request, whether received by telephone, courier, U.S. mail, fax, email, Internet, or other means of communication, believed in good faith to be genuine and to have been made by you or your authorized agents. We will not have a duty to interpret the content of any data transmitted to us, except to the limited extent set forth in this Agreement and the User Documentation. Unless we agree otherwise in writing, we will not be required, by means of the Security Procedures or otherwise, to detect errors in the transmission or content of any information we receive from you or third parties.
We make no warranty, express or implied, in law or in fact, including, but not limited to, any implied warranty of fitness for a particular purpose or of merchantability, with respect to the Services, or any computer programs, equipment, or software made available to you. Unless otherwise agreed in writing, the computer programs, Materials, User Documentation, Security Procedures, software, and systems provided to you in connection with any Service represent our proprietary property and must be returned to us upon request.
You acknowledge that it is not possible for Services to be totally free from operator, programming, or equipment error, and that errors in processing and compiling data may occasionally occur (e.g., due to the failure of others to provide accurate information, or to telecommunication failures or a breakdown in an electronic data interchange). You agree to review and verify all results and to maintain adequate controls for ensuring both the accuracy of data transmissions and the detection of errors.
Item Number: 10.
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Unless otherwise required by law, our sole responsibility for any reporting errors we cause will be to reprocess the information for the period in question and to submit corrected reports at our expense. You agree to maintain adequate backup files of the data you submit for a reasonable period of time to facilitate any needed reconstruction of your transactions. If we are unable to provide a Service for any reason, we will promptly inform you of the problem and will take reasonable steps to resume processing.
Limitation of Liability; Indemnity
Except as otherwise stated in this Agreement or required by law, we will be liable to you only for damages arising directly from our intentional misconduct or gross negligence.
We will not be responsible for any loss, delay, cost, or liability that arises, directly or indirectly, in whole or in part, from a) your actions or omissions, or those of third parties, that are not within our immediate and reasonable control; b) your negligence or breach of any agreement with us; c) any ambiguity, inaccuracy, or omission in any instruction or information provided to us; d) any error, failure, or delay in the transmission, processing, or delivery of data, records, or Items due to a breakdown in any computer or communications facility; e) accidents, war or military action, strikes or labor disputes, civil unrest, terrorist attacks, fire, flood, water damage (e.g., from fire suppression systems), government action, or acts of God; f) causes beyond our reasonable control; g) the application of any government or funds transfer system rule, guideline, policy, or regulation; h) the lack of available funds in your account to complete a transaction; i) public health emergency or communicable disease outbreak; or j) our inability to confirm to our satisfaction the authority of any person to act on your behalf.
Except for losses caused by our gross negligence or willful misconduct, our liability for any loss, cost, damage, or liability arising from our actions or omissions will not exceed the monthly charge for the Service in question for the month preceding the date of loss, except as otherwise required by UCC 4A.
We will not be liable under any circumstances for any special, consequential, punitive, or indirect damages that you incur in connection with your account(s), even if we are aware of the possibility for such damages, unless specifically imposed by statute that cannot be waived by the parties.
You acknowledge that our fees have been established in
contemplation of a) these limitations on our liability, and b) your agreement to review statements and notices promptly and to notify us immediately of any discrepancies or problems.
You will indemnify us against and hold us harmless from any and all liabilities, claims, costs, expenses, and damages of any nature (including reasonable attorney’s fees) arising out of or relating to disputes or legal actions by parties other than you Item Number: 10.
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and us concerning your accounts and Bank Services. The
obligations contained in the preceding sentence will continue after your account or Bank Service is terminated. This section does not apply to any cost or damage incurred by a third-party that is attributable to our gross negligence or intentional misconduct and for which we are legally responsible.
Limitation of Time to Bring Action
Any action or proceeding you bring to enforce an obligation, duty, or right arising under this Agreement or by law in connection with these Services must begin within 1 year after the cause of action occurs.
Limitation on Third-Party Use and Access
Unless you have our prior written consent, you may not a) permit a third-party to initiate Service transactions on your behalf, or b) use the Services to process transactions on behalf of others.
Notifying Us of a Problem
You agree to notify us immediately if you discover a) any error or discrepancy between your records and the information we provide to you about your accounts or transactions (e.g., in a statement, confirmation, or electronic report); b) unauthorized transactions involving your bank accounts or records; c) a breach in the confidentiality of the Security Procedures; or d) other problems related to the Services. You must send us a written notice of the discrepancy or other problem, including a statement of the relevant facts, within a reasonable time (not to exceed 14 days from the date you first discover the problem or receive information reflecting the problem, whichever occurs first). The provisions of this section shall survive termination of all Services.
Representations and Warranties
On and as of each day we provide any Service to you, you represent and warrant to us that a) your agreement to each provision contained in this Agreement is a duly authorized, legal, valid, binding, and enforceable obligation; b) the debiting of any account as provided in this Agreement is not inconsistent with any restriction on the use of that account; and c) your performance of your obligations will not violate any law, regulation, judgment, decree, or order applicable to you.
Software License
This section applies to all software we provide you unless a separate license agreement for specific software is given to you.
For each software application, we grant you a non-exclusive, non-transferable license to use that software and its related Materials. No such license grants you any rights to any patents, trademarks, or trade names.
Item Number: 10.
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You may not sublicense, lease, distribute, or otherwise transfer a software application, the related Materials, or your right to use the software and related Materials.
You may not make, or allow anyone else to make, copies of the software or related Materials beyond one copy for backup and archival purposes, except as we may otherwise agree in writing.
You may not remove, obscure, or deface any proprietary
notices contained in the software or related Materials, and you must include such notices in any permitted copy of the software.
You may not alter, modify, or adapt any software or related Materials or create derivative works from them. You may not translate, reverse engineer, disassemble, or decompile the software.
A license to use software and related Materials will terminate automatically if you fail to comply with the terms of the license or any other material provision in this Agreement, or if the Services for which you are using the software are terminated.
Upon termination of a license granted you, you must cease using the software and related Materials and, at our election, return or destroy all copies of the software you may have in your possession or under your control, and certify to us that you have done so. All your obligations herein will survive termination of any licenses.
Termination
You or we may terminate some or all of the Services, with or without cause, by giving 30 days’ prior notice to the other party.
We may terminate the Services immediately if a) you breach any agreement with us; b) the confidentiality of the Security Procedures is compromised; c) we have reason to believe that an unauthorized transaction has taken or may take place involving your account or a Service; d) you become insolvent or the subject of a bankruptcy or dissolution proceeding; e) you make any assignment for the benefit of creditors; f) you fail generally to pay your debts as they become due; g) any material adverse change occurs in your financial condition; h) we are uncertain as to any person’s authority to give us instructions regarding your accounts or the Services; or i) you violate any applicable rule, regulation, or law.
Termination of a Service you use does not affect your payment obligations for Services we provide to you before the Service is terminated or any other obligations that survive termination.
GLOSSARY OF TERMS
The following are some important terms that appear in this Agreement and shall apply equally to the singular or the plural form of the term.
Administrative Procedures and Controls means the additional controls, offered by us, in addition to any applicable Security Item Number: 10.
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Procedure, that you may implement to enhance security and reduce the risk of erroneous or unauthorized transactions.
These controls may include, but are not limited to, among other things, IP address restrictions, account and transaction payment limitations, dual control for payment and template approval, and notification of certain administration changes.
The application of the Security Procedure, Administrative Controls, and the Bank’s unilateral controls may cause delays in, or rejection of the processing of, Entries, payment orders, instructions, reversal or deletion requests, recall/return/ amendment requests, advices of checks, check issuance
requests, or stop payment requests, and/or result in the Bank denying access to a Service.
Best Practices means the actions you can take in order to mitigate fraud, including but not limited to the following:
● Do not share your User ID, PIN, token, or password with anyone.
● Closely scrutinize employee entitlements. Allow access to services to only those employees necessary to perform the job. ● Report lost or stolen tokens to us immediately.
● Check your account balance and transactions regularly and check your notifications as applicable.
● Avoid using public or shared computers to access online banking services.
● Set up dedicated computers and use them for online banking only. Keep the computers in a secure location and limit access. ● Install a reputable vendor security software suite that includes firewall security, anti-virus, anti-spyware, and malware and adware detection, and keep it up to date. Run periodic scans. ● Routinely install all new operating system and browser software and hardware patches, or use the automatic update feature when available.
● Routinely install all patches and updates for software applications (e.g., operating systems, browsers, etc.). ● Educate employees on good cyber security practices.
● Do not open any attachments or click any link in an email requesting your account information. We do not request
information about you or your accounts by email. If you receive such an email request, call us immediately.
● Use our secure message system when sending confidential information, such as account numbers or financial data, to Bank staff.
● Tell your employees not to open email or attachments from unknown senders.
● Periodically engage a security expert to test your network or run security software that will help close known vulnerabilities.
Business Day means each Monday through Friday, excluding holidays observed by the bank providing the Service.
Business Fee Schedule means our published fee schedule for the Services outlined in this Agreement.
Check 21 means the Check Clearing for the 21st Century Act (Pub. L. 108-100), as it may be amended from time to time.
Item Number: 10.
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Concentration Account means a U.S. dollar demand deposit account maintained by you or your Affiliate at the Bank from which funds are transferred to a Zero Balance Account or to which funds are transferred from a Zero Balance Account.
Credit Entries means requests, on or through prescribed media and format, for the transfer of funds to accounts of depositors at Union Bank or other financial institutions.
Customer Manual means the manual containing specific
procedures, media, and data formats for a Service.
Debit Entries means requests, on or through prescribed media and format, for the withdrawal of funds from the accounts of depositors at Union Bank or other financial institutions.
Deposit Account Agreement means the current signature
card, the Business Accounts & Services Disclosure and
Agreement, or similar master account disclosures and
agreements, as amended from time to time, that we provide or make available to you containing terms and conditions applicable to each deposit account for which you use a Service.
Deposit Delivery Handbook means the guide for preparing deposits for check courier and armored carrier transportation.
Entries means Credit Entries and Debit Entries consistent with the NACHA Rules and also includes any data for Entries, any pre-notification, and any Entries initiated through any payment channel that we approve.
Image Cash Letter means an electronic file of check images in an industry-standard file format.
Materials means software user identification codes, passwords, codes, keys, test keys, and security devices, as well as website access codes and passwords used with a Service.
NACHA means the National Automated Clearing House
Association.
NACHA Rules means the rules of the National Automated
Clearing House Association (including any other clearinghouse rules applicable to automated clearinghouse transactions), as amended from time to time.
Processing Schedule means the schedule we provide for
processing all requests for Entries and other Services if you are enrolled in the Services, or subscribe to the Services.
Regulation CC means Federal Reserve Board Regulation CC:
Availability of Funds and Collection of Checks, 12 CFR Part 229, as it may be amended from time to time.
Relationship Manager means the Union Bank account officer, deposit manager, or other officer who assists you in managing your accounts and the Transaction Banking Services we
provide.
Item Number: 10.
62 TRANSACTION BANKING SERVICES
Security Procedure means the applicable security
procedure for your data delivery type or Service for verifying the authenticity of Entries, funds transfers, payment orders, instructions, reversal or deletion requests, recall, return, amendment requests, and to the extent applicable, advices of checks, check issuance requests, or stop payment requests.
Service means any Transaction Banking Service described or covered by this Agreement or those we later make available to you.
Substitute Check means a copy of an original check, created from a check image that is similar in size to an original check, with a slightly reduced image of the front and back of the original check. The term “substitute check” shall have the meaning set forth in Check 21 and Regulation CC, as in effect from time to time.
UCC 4A means Article 4A of the Uniform Commercial Code– Funds Transfers, as adopted by the state whose law applies to a Service, as amended from time to time.
User Documentation means any written information we
provide you, including information in electronic format, as amended from time to time, that contains detailed instructions regarding the use of a Service, including, but not limited to, the Deposit Delivery Handbook, Materials, and Customer Manual.
Website means the Union Bank website with the Internet
address unionbank.com.
Zero Balance Account means a U.S. dollar demand deposit account maintained by you or your Affiliate at the Bank for which either the Ledger Balance or the Available Balance is returned to $0 or some predetermined amount as chosen by you on the Setup Form at the end of each Business Day through the transfer of funds to or from a designated Concentration Account. 179284_UB_84163_CVR.indd 2 12/9/21 4:30 PM
Item Number: 10.
Disclosure and Agreement
Business
Accounts &
Services and
Transaction
Banking Services
EFFECTIVE JANUARY 1, 2022
©2022 Mitsubishi UFJ Financial Group, Inc. All rights reserved.
The MUFG logo and name is a service mark of Mitsubishi UFJ Financial Group, Inc., and is used by MUFG Union Bank, N.A., with permission; Union Bank is a registered trademark and brand name of MUFG Union Bank, N.A., Member FDIC.
unionbank.com/commercial
84163 (01/01/2022)
179284_UB_84163_CVR.indd 1 12/9/21 4:30 PM
Item Number: 10.
© 2023 Wells Fargo Bank, N.A. All rights reserved.
Deposit products are offered through Wells Fargo Bank, N.A., Member FDIC. Wells Fargo Bank, N.A. is a banking affiliate of Wells Fargo & Company.
City of Desert Hot Springs
Response to Request for Proposal for Banking Services
January 31, 2023
Submitted by:
Jamie O’Connell
Relationship Manager
951-295-7482
[email protected]
Yolanda Mates
Treasury Management Sales Consultant
480-348-4006
[email protected]
Todd Reed
Wholesale eReceivables Consultant
619-857-3855
[email protected]
Item Number: 10.
© 2023 Wells Fargo & Company. All rights reserved.
Jamie O’Connell
Vice President
Relationship Manager
Wells Fargo Bank, N.A.
334 W. Third St.
Fourth Floor
San Bernardino, CA 92401
January 31, 2023
Jerryl Soriano
City of Desert Hot Springs
11999 Palm Dr.
Desert Hot Springs, CA 92240
Dear Jerryl Soriano,
We thank you for the opportunity to review the banking services for the City of Desert Hot Springs (“City”). We are excited to share our technologies, best practices, and experience with you and hope you see the value in choosing Wells Fargo.
As your local relationship manager, I help to ensure the City is always kept up to date with the latest banking trends. I provide an ongoing review of the City’s banking services, and ultimately, am the City’s advocate for any financial services you request from Wells Fargo. With 26 years of banking experience, and 16 years focusing on government customers, I take pride in the customer relationships we have built over the years and believe great customer service is most important in building that foundation. It is my goal to show you the value in our efficiencies and demonstrate that Wells Fargo is the best choice for all the City’s financial needs.
Why change banks?
With the growth of both the City and the technology, you need a bank that specializes in treasury management and focuses on your financial success. Wells Fargo is a leader in innovation, developing new services that meet your needs — today and tomorrow. Should you select Wells Fargo as your next banking partner, we want to offer a full Business Process Review (BPR). Wells Fargo employees with treasury management expertise will come evaluate your processes, at no charge, and then offer ideas to streamline some of your banking activities so that we help your staff increase their efficiencies doing day-to-day tasks. Our services integrate seamlessly. Moreover, having a bank process your collections, payables, and electronic billing, you can potentially get the added benefit of offsetting those service charges with an earnings credit based on collected balances. In addition, we have an experienced merchant services team that can consolidate your departments with one gateway and manage your credit card processing for your customers. This service provides one system for all online, phone, and face-to-face transactions.
Item Number: 10.
We offer a robust commercial card system that is also an all-in-one expense reporting tool, which keeps track of receipts and out-of-pocket expenses.
We welcome the opportunity to provide a demo of our online banking portal, Commercial Electronic Office® (CEO®) and all of the tools you would receive as our customer.
Managing your relationship
We will assign the City to our local Government Banking Division in San Bernardino for all mail correspondence. My office is located at 334 W 3rd St., in San Bernardino. Your relationship will be assigned to me, and I will meet with you in person (and virtually when appropriate) for any new projects.
We’ll discuss relationship goals, and ideas to improve your current position on all financial services. Anna Gonzales is my relationship associate, and she will be responsible for your service requests, and your inquiries when I am away to visit other customers. Yolanda Mates and Jessie Volz work with all of my customers and together we will help to recommend treasury management services. Depending on the services you choose, I work with a team of government industry experts at the bank, and we can provide you a strategic plan to financial growth that can optimize the City’s internal resources.
We also have a local branch in Desert Hot Springs located at 14000 Palm Drive. Jorge De La Cerda, Jr. is the branch manager and his employees have served the residents of Desert Hot Springs for many years. The team is very involved in the community, and we share some of those events with you in our response.
Please reference my “Message to the City” page that precedes the pricing documents. Drawing upon our questions posed during this RFP process, the message provides scenarios and recommendations that the City will find most applicable to your goals for banking services.
What’s next?
We’ve attached our proposal for banking services as requested in the RFP. After your RFP period has closed, it would be my pleasure to speak with you about how Wells Fargo can help the City to leverage secure technologies and implement cost controls with the end game to improve efficiencies and funds availability. We look forward to working with you.
Sincerely,
Jamie O’Connell
Vice President
Relationship Manager
Local Government Banking Division
Item Number: 10.
Table of contents
Executive summary .........................................................................................................1 Wells Fargo experience and qualifications............................................................5 Team qualifications............................................................................................................................9 Our commitment to community ..............................................................................................12 Exhibit A: Scope of work for governmental banking services...................16 Objectives ...........................................................................................................................................16 Banking services required ............................................................................................................40 References........................................................................................................................74 Pricing.................................................................................................................................76 Appendix
Pricing.......................................................................................................................... Tab A Additional information on products and services ....................................Tab B Sample implementation schedules................................................................ Tab C Investing in California ..........................................................................................Tab D Evidence of insurance............................................................................................Tab E Disclosures*...............................................................................................................Tab F *Please note that we provide our account agreements and service descriptions in a supplemental document.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 1
Executive summary
We appreciate the opportunity to review banking services for the City and are excited to show you the value of choosing Wells Fargo. Throughout our response, we have highlighted some of the services that can benefit the City.
Like many of our customers, the City is looking for ways to both leverage secure technology for improved efficiencies and implement changes that control costs and improve availability of funds, while enhancing financial services to constituents.
We are behind you to help achieve those goals. Ultimately, if resources are not managed effectively, you could run the risk of missing the opportunity to take advantage of potential cost savings that could come from process improvements. These improvements can also help retain the talent that the City has in its employees, all by eliminating unnecessary steps that ultimately cost the City time and money.
What if you could take advantage of process reviews by utilizing dedicated strategy consultants who can focus on the City’s current account receivables and account payables processes, and then tailor the steps to achieve the City’s long-term goals? Our strategy consultants are available to help you consolidate efforts and plan systems that can support your future growth. In addition, we have conducted numerous BPRs with many of our customers’ back office financial operations. We’ve examined current systems, workflows, financial controls, and staff assignments to provide a comprehensive analysis that illustrates both shortand long-term strategies and solutions tailored for their organizations.
With our understanding of your current needs, we intend to focus on the following key components:
Key component Description
Detailed process review Your Wells Fargo relationship team will conduct a full BPR, which includes a detailed assessment of your current processes and technologies as well as careful recommendations of process improvements that could significantly enhance your operations.
ERP-specific strategy consultant By participating in the BPR, an Enterprise Resource Planning (ERP)- specific consultant will help you consolidate efforts and plan a treasury and ERP integration to help support your future growth.
Enhanced banking structure No matter what solutions you need, we have experience with government customers that allows us to develop a solid plan for you.
A strong banking relationship The City's relationship team consists of tenured experts who will use their extensive knowledge and experience in government banking to help you stay up-to-date on common challenges. You also have the opportunity to partner with Wells Fargo for the services listed in your RFP, as well as for future enhancements.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 2
Protecting your most valuable assets
As a respected government entity, you’re tasked to deliver quality services to your community on a tight budget and with limited resources — all while maintaining a high standard and under the scrutiny of your constituents and regulators.
Due to limited budgets and resources, many government entities continue to operate in a manual and paper-based environment. Not only are manual processes costly and inefficient, these outdated processes can also increase your exposure to fraud. So, it’s important for the City to evaluate your current processes with a focus on mitigating fraud risk for your organization.
Payments fraud continues to grow
According to the 2022 Association of Finance Professionals® (AFP®) Payment Fraud and Control Survey Report,* 71% of organizations were targets of payment fraud in 2020.
Checks continue to be the payment method most often impacted by fraud activity than any other payment types.* It only takes one successful fraud attempt for your organization to be compromised.
Effects of a data breach
You collect and store constituents’ and vendors’ sensitive account information. Similarly, the City’s vendors can store your sensitive account information. With all the data breaches that have occurred over the years, it’s more important now than ever for you to evaluate your current processes with a focus on mitigating fraud risk for your organization.
According to IBM,† a data breach costs an average of $3.62 million when you recognize all of the related costs, forensic accounting, reworking processes, legal fees, and remediation costs.
For an organization like the City, the cost to clean up a fraud attack is high. However, there are more far-reaching consequences than monetary loss. Imagine the negative impact to your municipality’s reputation if the data breach became public. Your constituents’ satisfaction and confidence in the City and its leadership would decline and the relationships you’ve worked so hard to build would be damaged.
In addition, the exposed confidential business and personal information can put your organization, staff, constituents, and vendors at risk.
What could happen?
There are many manual processes involved in sending out a check payment. Imagine the ramifications of one overly tired and distracted payables clerk sending out payments to the wrong address. All of your checks have your account numbers displayed. Not only could those funds be spent, but your account is now compromised. You would need to allocate staff to help research and ensure there aren’t any other erroneous or fraudulent payments, close the old account and open a new account, and reach out to all your vendors with a new account number — all while continuing to handle your everyday responsibilities.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 3
Gain insight into your process
What if you had a
tailored plan to
help mitigate risks,
eliminate manual
steps, and improve
processes?
Let us examine your current system and workflows, understand your processes, and help you evaluate the impacts. This complimentary business process review will allow us to create a customized roadmap to augment your risk management process and position you for success. We’ve found that this important step helps ensure our implementation is focused on the areas where we can bring the most value to your organization.
* “2022 AFP Payments Fraud and Control Survey Report,” Association of Financial Professionals, afponline.org/paymentsfraud. † “2019 Cost of a Data Breach Report,” https://www.ponemon.org. Benchmark research sponsored by IBM Security and independently conducted by Ponemon Institute, LLC.
A leader in innovation
We will work with you to help you improve your
customer experience, reduce strain on information
technology (IT) resources, and accelerate
automation. We’ve tackled these common
challenges by changing our approach to the entire
product lifecycle — including funding, staffing,
development, and decision-making — in addition to
investing in infrastructure enhancements, like the
cloud. Together, these programs allow us to deliver
new and enhanced products and services to the
market faster.
Why Wells Fargo?
Best Information Security and
Fraud Management*
Best Online Portal*
Best Open Banking Application
Programming Interface (APIs)*
Since the launch of our online banking portal in 2000, we have a 22-year record of consistent, annual reinvestment in the business in both new product development and digital channel enhancements. We also continually invest in our team members’ tools.
A methodical approach
We’ll put these innovative tools and expertise to use to conduct a review of your internal workflows.
• When we meet with you, we’ll observe and analyze workflows and processes in one or more of your financial back-office operations. This review can include processes such as accounts receivables, accounts payable (AP), reconciliation, cash positioning, or all of these. • We use observation, analysis, and reporting techniques that we’ve deployed through working with hundreds of organizations, both public and private. • Once we have observed and analyzed your current treasury processes, we will provide recommendations on how we believe you can improve those processes to gain efficiencies, take advantage of automation, and improve the use of working capital.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 4
Are you ready to take the next steps?
Knowing how important it is to the City to meet the needs of your constituents, we’ll work closely with you to determine the best plan for success by focusing on your requirements. Addressing your current operations and positioning you for the future while working to reduce risk is a powerful combination. We are positioned uniquely to help you with a solution and would like to begin by meeting with your team to start our collaboration once the RFP bidding process ends. * “World’s Best Digital Bank 2020 Round 1: Covid Raises the Digital Ante,” Global Finance. gfmag.com > The Magazine > September 2020.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 5
Wells Fargo experience and qualifications
On March 18, 1852, our founders — Henry Wells and William G. Fargo — began an innovative start-up company dedicated to helping customers build businesses and manage money in a rapidly changing world. Wells and Fargo used their hands-on experience making deliveries by steamship and stagecoach to develop a network of offices from California to New York and around the world. Wells Fargo agents in thousands of communities provided financial services to local businesses, including money orders and funds transfers by telegraph as well as delivery of valuable goods and mail.
Much has changed since 1852. New communities and industries have emerged and grown.
Evolving technology has made communication and financial transactions faster. Across time, and for every generation, Wells Fargo has continued helping customers go further by providing innovative financial services to get ahead. In times of prosperity, depression, or war, people and businesses have turned to Wells Fargo for the solutions they need to survive and thrive. We’re committed to continuing this legacy of providing essential services, innovative solutions, and removing barriers so that we help enable consumers and communities achieve prosperity and success.
Wells Fargo & Company is a nationwide, diversified financial services company. We’re headquartered in San Francisco, but we’re decentralized, so every local Wells Fargo office is a headquarters for satisfying all our customers’ financial needs and helping them succeed financially.
We identify key measures of our financial strength in the following table.
Key facts Measure
Capital ratios
Total equity to assets1
Risk-based capital2
• Common equity Tier 1
(CET1)
• Tier 1 capital
• Total capital
Tier 1 leverage
9.76%
10.5%
12.0%
14.7%
8.0%
Total assets2 $1.9 trillion+
Market capitalization3 $183.6 billion
Website wellsfargo.com
1. Wells Fargo. 2021. wellsfargo.com > About Wells Fargo > Investor Relations > Annual Reports and Proxy Statements > 2021 Annual Report.
2. Wells Fargo. 2022. wellsfargo.com > About Wells Fargo > Investor Relations > Wells Fargo Quarterly Earnings > Q1 2022 Quarterly Supplement.
3. Internal Wells Fargo reporting as of Q1 2022.
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Wells Fargo Treasury Management
City of Desert Hot Springs | 6
Wells Fargo subscribes to DBRS, Fitch, Moody’s, and Standard & Poor’s ratings agencies as indicated in the following table.*
Wells Fargo &
Company
DBRS
Morningstar
Fitch Moody’s S&P Global
Long-term Issuer
Rating
AA (low) A+ A1 BBB+
Short-term Issuer
Rating
R-1 (middle) F1 P-1 A-2
Senior Unsecured AA (low) A+ A1 BBB+
Subordinated A (high) A- A3 BBB
Preferred Stock A (low) BBB Baa2 BB+
Wells Fargo Bank,
N.A.
DBRS
Morningstar
Fitch Moody’s S&P Global
Long-term Issuer
Rating
AA AA- Aa2 A+
Short-term Issuer
Rating
R-1 (high) F1+ P-1 A-1
Bank Deposits AA AA Aa1 A+
Senior Unsecured AA AA Aa2 A+
Subordinated AA (low) A Aa3 BBB+
*The information provided can be found on our Investor Relations site and is provided for informational purposes only. We do not guarantee the accuracy or completeness of information on or available through this site, and we are not responsible for inaccuracies or omissions in that information or for actions taken in reliance on that information. Please read Legal Disclaimers before using or relying on information on or available through this site. Potential investors in our securities should seek professional advice before they invest.
Annual Report
To review the full Wells Fargo & Company Annual Report, please visit our About Wells Fargo webpage here: wellsfargo.com/invest_relations/annual.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 7
Wells Fargo Government Banking
For the last 170 years, Wells Fargo has been a trusted
financial institution. We’re a leading national bank ranked third in assets by the Federal Deposit Insurance
Corporation (FDIC) in 2022. The strength of our balance sheet helps us serve our government customers across
the country.
Government Banking is part of our Specialized Industries group. Through this group and its resources, we strive to provide the high level of service that you expect and
deserve from your banking provider.
Our more than 300
Government Banking team
members work with nearly
5,500 government customers
across our footprint of 39
states and the District of
Columbia, with $42 billion in
deposits and $21 billion in
commitments.
A dedicated government team
Our group aligns sales, specialized banking teams, investment banking professionals, and taxexempt fixed-income trading and distribution capabilities.
The team itself consists of more than 300 banking, credit, and treasury management professionals including relationship managers, treasury management sales consultants, treasury management sales analysts, customer care for business representatives, and implementation consultants who work together as one team in order to help provide you with industry knowledge and expertise.
Our 79 relationship managers — including Jamie O’Connell — are tenured professionals who are local to their markets. Your treasury management sales consultant, Yolanda Mates, further supports your relationship by sharing new ideas and consulting with you about your services.
Customers like you
We support approximately 5,500* government customers with our coast-to-coast, national Government Banking practice, giving your local team access to industry intelligence and innovative best practices.
* Wells Fargo internal reporting, as of 2021.
Our customer relationships include federal, state, county, and city governments, as well as government agencies, authorities, and municipal utilities. In addition to the regional support provided by our teams, we also specialize in key subsectors of the industry including public power, transportation, and state housing finance authorities.
Helping you meet your challenges
We understand the different needs and challenges facing our government customers.
Our employees work with you to help you maximize efficiency and take advantage of cost-saving options. They can also help you navigate the strict guidelines and technology challenges unique to government entities.
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Wells Fargo Treasury Management
City of Desert Hot Springs | 8
Whether advice on how to raise capital, manage assets, or increase operational efficiencies, we constantly share the knowledge we’ve gained from other government customers that have similar challenges.
An enhanced customer experience
We regularly monitor our service levels to validate and help ensure the consistent quality of the customer service that we provide you. We also offer educational sessions on current treasury management topics to keep you aware of industry best practices and regulatory changes.
Why Wells Fargo?
We help make it convenient to use our services. As one of the first banks in the U.S. to offer webenabled treasury management services, Wells Fargo is recognized as a leader in online and mobile services, as shown below.
Global Finance* Best Corporate/Institutional Digital Bank in North America (2020)
• Best Online Portal
• Best Online Investment Management Services
• Best Trade Finance Services
• Best Integrated Corporate Banking Site
• Best Information Security and Fraud
Management
Best In Social Media Marketing and Services
• Best Open Banking APIs
Keynova Mobile Banking Scorecard† #1 in Overall Performance, tied with Bank of America and Chase
#1 in Mobile Web Banking Experience and Privacy and
Security (March 2020)
Keynova Small Business Banking Scorecard† #1 Overall Performance — Small Business Banking Experience through Digital Channels (2020)
* Global Finance. August 12, 2020. “World’s Best Digital Bank Awards 2020 Press Release.” † Wells Fargo. 2021. wellsfargo.com > About Wells Fargo > Who We Are > Quarterly Fact Sheet.
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Wells Fargo Treasury Management
City of Desert Hot Springs | 9
Team qualifications
Please provide a resume of each staff member that will be working with the City directly to provide Banking services, as needed by the City. The resume should include, but is not limited to, the following information:
Range of experience related to providing and recommending appropriate banking services, as requested; number of years performing this type of service; education; number of years with firm; title of position with the firm; hourly rates and name of individual.
Your relationship manager, Jamie O’Connell, and treasury management sales consultant, Yolanda Mates, are part of our Government Banking group. a team of seasoned professionals dedicated exclusively, to serving the unique banking needs of the public sector. This team provides consultative, analytical, and qualitative service — your needs are our priority.
Our relationship-focused approach to our diversified set of products and services helps ensure you have solutions that are right for you — at the right time. We are your advocate, and our goal is to exceed your expectations and establish a collaborative relationship.
We provide brief biographies of your relationship team in the table on the following page.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 10
Relationship Manager
Jamie O’Connell, Vice President
.
334 W. Third St.
Fourth Floor
San Bernardino, CA 92401
.
[email protected]
951-295-7482 mobile
Jamie offers the City consultative financial and banking guidance and coordinates the team of specialists that support your banking relationship. Jamie is your advocate at the bank and assists with all financial services you request from the bank.
Jamie began working for Wells Fargo in 1996. She has been a relationship manager since 2012 and has focused on
government customers for the past 16 years.
She is an active member of the Wells Fargo Volunteer Chapter and is on the advisory board for the Inland Empire Ronald McDonald House. She also organizes volunteer groups for Habitat for Humanity and the Community Action Partnership of San Bernardino County. She is also a corporate member of CSMFO and frequently attends Coachella Valley Chapter
meetings.
Relationship Associate
Anna Gonzales
.
333 S. Grand Ave.
Seventh Floor
Los Angeles, CA 90071
.
[email protected]
213-253-7304, ext. 7304 office
Anna supports your relationship manager and helps to enhance your customer service experience. She serves as your liaison with other areas of the bank. She also assists with questions related to account analysis statements and overdrafts.
Anna has been in banking since 2008 and a relationship
associate since 2019.
She received her business management degree from Mount
San Antonio College.
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Wells Fargo Treasury Management
City of Desert Hot Springs | 11
Treasury Management Sales Consultant
Yolanda A. Mates, Senior Vice President
8601 N. Scottsdale Rd.
Suite 200
Scottsdale, AZ 85253
[email protected]
480-348-4006 cell
Yolanda will share best practices on product and service information to assist in guiding the city in developing its’ treasury management goals, priorities, and objectives, all while understanding the uniqueness of her public sector customers.
Yolanda has worked in banking since 2005 and has dedicated more than 13 years to the public sector.
Yolanda is an active member of Women in Public Finance, CMTA, and CSMFO.
Treasury Management Sales Analyst
Jessie Volz, Assistant Vice President
.
1350 Fashion Valley Rd.
Fourth Floor
San Diego, CA 92108
.
[email protected]
619-688-2850 office
Jessie supports your treasury management sales consultant.
She works with you to begin new service implementations and can assist with treasury management questions when your sales consultant is unavailable.
Jessie brings more than 14 years of banking experience to her current position.
Jessie earned her B.S. in business management from San Diego State University in 2008.
Lead Merchant Services Product Sales Consultant
Todd Reed, CPP
.
1350 Fashion Valley Rd.
Fourth Floor
San Diego, CA 92108
[email protected]
619-857-3855 office
Todd recommends payment processing solutions to fulfill the City’s processing needs. He shares best practices and product and service information to guide you in developing your eReceivables program. He can also assist you with other receivables and print services products.
Todd has worked in banking since 2000. He began working for Wells Fargo in 2017 as an eReceivables consultant. He is a Six Sigma Black Belt, an Enterprise Content Management
Professional (ECMP), and a Management Action Program
(MAP) graduate.
Todd received his B.S. in business administration from the Rochester Institute of Technology.
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Wells Fargo Treasury Management
City of Desert Hot Springs | 12
Our commitment to community
Please include in the proposal a listing of community benefits the contractor has provided to the communities in which it has operated.
Philanthropy
The Wells Fargo Foundation launched a philanthropic initiative designed to make a greater impact in communities by more effectively combining our financial resources and business expertise The new strategy focuses on three strategic areas that are critical for economic advancement:
housing affordability, small business growth, and financial health.* Through our business and the Wells Fargo Foundation, we are using our philanthropic resources, business expertise, and ingenuity in collaboration with public and private sector organizations to help solve complex housing, small business, and financial health needs.
†
* Wells Fargo. Accessed July 27, 2021. www.wellsfargo.com > About Wells Fargo > Corporate Responsibility > Community Giving. > National Priorities.
Housing affordability
The U.S. has a shortage of affordable housing for its low- and moderate-income residents, and high housing costs have further amplified growing economic inequity. To achieve our goal to increase access to stable, affordable places to live — including transitional housing, rentals, and home ownership, we place special emphasis on individuals impacted disproportionately by the housing affordability crisis. Examples of some of the initiatives include:
• Committing to donating $1 billion through 2025 to help address the full spectrum of housing affordability.
• Launching a $20 million Housing Affordability Breakthrough Challenge to uncover the most viable ideas for increasing housing affordability.*
• Supporting sustainable homeownership and help advance neighborhood stability by delivering down payment assistance grants and financial education to homebuyers through our NeighborhoodLIFT Program.
†
* Wells Fargo. January 15, 2020. wellsfargo.com > About Wells Fargo > Newsroom > News Releases > “Wells Fargo and Enterprise Community Partners Launch the Housing Affordability Breakthrough Challenge.” † Wells Fargo. Accessed July 27, 2021. .wellsfargo.com/mortgage/lift/.
Financial health
Wells Fargo aims to improve the financial health of low- to moderate-income individuals and families by supporting innovation and research that improves financial behaviors and decisionmaking. We work with nonprofits to expand access to financial health tools and coaching that can empower millions who are struggling to save money, reduce debt, and rebuild financial stability.
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For example, we are:
• Collaborating with the Association for Financial Counseling and Planning Education®, the National Disability Institute, the National Foundation for Credit Counseling, and other national nonprofits to expand access to free, virtual financial coaching and counseling for individuals who are struggling to pay for rent and other households needs, worrying about debt, or facing other financial hardships.
• Launching a program with UnidosUS that integrates free, bilingual financial coaching into the delivery of health care and wellness services.*
• Promoting Hands on Banking® (El future en tus manos®) to teach people in all stages of life about the basics of responsible money management.†
* Wells Fargo. October 23, 2019. wellsfargo.com > About Wells Fargo > Newsroom > News Releases > “Wells Fargo Grants Aim to Improve Financial Health for Struggling Families.”
† Hands on Banking. Accessed July 27, 2021. handsonbanking.org/.
Small business growth
Small businesses are an important driving force in job creation and thriving communities. We continue to intensify our efforts to provide entrepreneurs with technical assistance and increased access to affordable sources of capital and training so they can grow, build assets, and create local jobs. Examples of our commitment to support the small-business community include:
• Providing debt equity and philanthropic capital to support more than 90 Community Development Financial Institutions through the Wells Fargo's Diverse Community Capital program.
• Accelerating the path to marketing for promising clean technology, sustainable agriculture, and residential housing start-ups through our Wells Fargo Innovation Incubator (IN2). * Wells Fargo. Accessed July 27, 2021. www.wellsfargo.com > Commercial > Commercial Financing > Commercial Real Estate > Community Lending and Investment > community Development Financial Institutions > Diverse Community Capital. † Wells Fargo. Accessed July 27, 2021. in2ecosystem.com/#content.
Global philanthropy
Our global philanthropy strategy focuses on disaster response, local giving, and strategic grants made to support diversity and inclusion, economic empowerment, and environmental sustainability.
Employee volunteering and giving
Every year, eligible employees receive 16 hours of paid volunteer time to volunteer in local communities where they live and work. Employees may choose from a variety of volunteer opportunities that can have a lasting positive impact. Through the Wells Fargo Foundation, Community Care Grants help extend the impact of our employees’ donations who provide personal financial gifts. Through this personal giving and service activities, each employee may qualify for up to $2,000 in Community Care Grant funds that the employee can direct to eligible charities.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 14
Investing in our communities
Wells Fargo is committed to opening pathways to
economic advancement, championing safe, affordable
homes, empowering small businesses to thrive, and
enabling a just, low-carbon economy.
Through our businesses and the Wells Fargo Foundation,
we align our resources and expertise to make a positive impact in communities, address complex societal issues, and help build a more inclusive, sustainable future for all. “We believe we have both an
obligation to do all we can and are
in a position to provide meaningful
support to our employees,
communities, and customers.”
Charles W. Scharf, CEO
Wells Fargo & Company
Wells Fargo is dedicated to making meaningful, inclusive, and enduring contributions as our communities address and recover from recent social and economic challenges. We’re focused on addressing systemic issues and supporting an inclusive recovery as we aim to break down barriers to enable a better future.
The following table shows some of the major investments we made in local communities in 2021. 2021 highlights
$615 million In total charitable contributions
$390 million Donated to help address the housing affordability crisis in the country, including supporting available and affordable rentals, homeownership, and housing stability $420 million In grants committed to nonprofits serving small businesses through the Open for Business Fund, to be paid out over the next several years
$500 billion Committed toward sustainable finance initiatives by 2030 Additional highlights and commitments can be found in our most recent Environmental, Social, and Governance (ESG) report, which is accessible through the following link:
wellsfargomedia.com/assets/pdf/about/corporate-responsibility/environmental-socialgovernance-report.pdf Through these commitments, we work to strengthen the resiliency of our communities and our planet, with a focus on supporting nonprofits that strategically align with ourfunding priorities, which are:
• Financial health
• Housing affordability
• Small business growth
• Sustainability and environmental justice
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 15
Wells Fargo in Desert Hot Springs
Desert Hot Springs is home to our bankers, our customers, and our community. Jorge De La Cerda manages the local branch and along with banker Shamira Canaca, they have been serving the residents of Desert Hot Springs for many years. We know that community is important to the City, and we are proud to share community impact information with you.
In addition to being a strategic financial partner, we hold ourselves accountable to support and measure a positive impact in the communities where we do business. Investing in our communities is a way for us to help create future economic growth and prosperity where we live and work.
Here's how Wells Fargo makes an impact in your community.
Our presence Total
Employees 111
Community banking branches 11
ATMs 31
Deposit share (ranking) 17.6% (#32)
Total deposits $1.4 billion (approx. $60,400 in the
City)2
Lending in Desert Hot Springs4
Home mortgage5, 6
We provided 59 mortgage loans (total HMDA),
extending $7.9 million in credit
• Of that total, 50 mortgage loans were made in
low-to-moderate income (LMI) communities,
providing $6.5 million in credit. A total of 14
mortgage loans were made to LMI borrowers,
providing $2.4 million in credit.
Wells Fargo is the largest lender in
low- and moderate-income
communities and the largest
affordable housing lender in
America.*
*According to the Mortgage Bankers
Association, 2020
Small business6
We provided 47 small business loans, extending $1.6 million in credit • Of that total, 44 small business loans were in LMI communities, providing $1.4 million in credit
1. Twelve-month company data as of March 2022.
2. FDIC Deposit Market Share report as of June 30, 2021.
3. Twelve-month company data as of March 2022.
4. Information provided is as of December 31, 2021.
5. Mortgage includes home purchase, home improvement, home refinance, and multi-family originated and purchased loans.
6. Totals include census tract income level classified loans only.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 16
Exhibit A: Scope of work for governmental
banking services
Objectives
The City of Desert Hot Springs is requesting a proposal for a primary banking relationship with a financial institution. The following is a listing of mandatory services the City requires of its financial institution:
Based on the information requested in this RFP, we can meet all the current treasury management requirements set forth. We are committed to being one of the best treasury management banks. Our investment in people and systems has built the infrastructure to support high-quality service and implementation. While we cannot anticipate your future requirements, we would be happy to work with you to determine how we can best meet the City’s future needs. • Checking Accounts
WellsOne Commercial Checking
Checking accounts are the foundation of your treasury
services with Wells Fargo. Through your checking
accounts, you can establish a convenient way to manage
your finances and set up a variety of services and
reporting methods.
A simplified banking structure
with convenient online access.
With a WellsOne® Commercial Checking account, the City can make secure deposits through the deposit channels of your choice, including:
• Cash vault
• Lockbox
• Remote deposit
You can also make outgoing disbursements through:
• Automated clearing house (ACH)
• Wire transfer
• Commercial card
Creating the cash management structure that works best for your organization, you choose how to collect receivables and make disbursements — you can use any of our treasury management services in conjunction with your WellsOne Commercial Checking account. The account also helps you to centralize your cash for maximum return.
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Wells Fargo Treasury Management
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The WellsOne Commercial Checking account also offers an earnings credit rate (ECR) which you can use to offset treasury management service fees. It helps reduce your overall out of pocket banking expense.
Additionally, our balance reporting, check imaging, and inquiry features — available on our online banking portal — provide daily account visibility. You can apply multiple fraud prevention services, such as positive pay* and payment authorization*. You can also have confidence knowing that your account is FDIC insured up to the full limit allowable by law. * Additional fees apply.
Analyzed business checking
Our analyzed business checking account helps improve efficiency and control over your banking activities. With this account, you can access your selected treasury management services through our online banking portal. From there, you can make and receive payments, receive alerts and reports, assign dual approvers, and control who among your staff may access account information.
If you have high transaction volumes or multiple treasury management needs, this account may best meet your needs.
The account is eligible for an earnings allowance to offset eligible fees and expenses, including certain service fees. The earnings credit rate is a variable rate that the bank can change at any time. You can make outgoing payments through ACH initiation and wire transfers. You can make deposits through:
• ACH received items
• ATM deposits
• Paper and electronically-presented checks
• Wire transfers
Our balance reporting, check imaging, and inquiry features — available on our online banking portal — provide daily account visibility. The account is insured by FDIC up to the full limit allowable by law.
Sweep services
Sweep accounts provide you with an automated solution for optimizing funds and earning interest on balances invested overnight. Because investments are either overnight or short-term, you’ll still have daily access to your money.
We also offer a credit sweep service that allows you to use bank account balances to pay down a line of credit. You can use the line of credit to fund a bank account that has fallen below a target balance amount. You can also choose to tie an investment sweep to the credit sweep account structure.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 18
Sweep accounts provide:
Automated investment of funds
By sweeping automatically each night, our service eliminates the need for costly and timeconsuming manual funds movement to and from investment accounts.
Accuracy of funds transfer
Sweep transfers occur after all the day’s debits and credits post to your account. Transferring funds after debits and credits post helps ensure that the sweep won’t accidently overdraw your account.
Consolidated reporting
You receive a monthly statement that includes information on your balances and the interest paid on your investment. Our confirmations provide you with sweep transaction activity and daily rates.
You can monitor your sweep activity online using our information reporting service. We can also deliver your statements and notifications electronically.
How it works
Once you determine a target amount (which you can set to zero), we sweep excess collected balances over the target amount from your checking account to an investment. Alternatively, we sweep excess collected balances over the target amount to pay down a line of credit, depending on your cash flow needs.
Sweep options
You can choose from three automated sweep investments that include our Preferred, Repurchase Agreement, and Money Market Mutual Fund options.
Preferred Option
Our Preferred Option* is a fully automated, end-of-day investment sweep that automatically invests excess cash into a U.S.-based, interest-bearing deposit account† held by the bank. At the opening of the next business day, we return the funds and any interest to your checking account. * Additional fees my apply
† The Federal Deposit Insurance Corporation insures funds transferred to the deposit account up to the legal allowable limit.
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Repurchase Agreement Option
Our Repurchase Agreement Option* † automatically sweeps excess collected balances at the end of each business day into a repurchase agreement investment. At the opening of the next business day, we’ll return the funds and any interest to your account. You generate earnings overnight while maintaining access to your cash during the day.
* Investments in repurchase agreements are not deposits, are not insured by the Federal Deposit Insurance Corporation (FDIC), and are not guaranteed by the U.S. government or any agency of it, or by the bank, nor is it the bank’s obligation to repurchase your interest in any securities. The securities held by Wells Fargo as collateral may or may not be guaranteed by the U.S. government, but such guaranty does not flow to you, the investor. All securities carry investment risk and may lose value. General banking assets may be used to satisfy Wells Fargo’s obligations under a repurchase agreement. The interest rate on a repurchase agreement is not the same as the rate on government securities. The repurchase agreement contains specific provisions and additional disclosures. Please read it carefully.
† Additional fees my apply
Money Market Mutual Fund Sweep
Our Money Market Mutual Fund* † automatically sweeps excess collected balances into one of our Allspring Money Market Mutual Funds:
• Government Money Market Fund
• Treasury Plus Money Market Fund
• 100% Treasury Money Market Fund
* Not FDIC insured, no bank guarantee, and may lose value. † Additional fees my apply.
Because funds stay invested until you need them, you can generate earnings without sacrificing access to your cash.
If your checking account balance is above your target balance at the end of the day, we automatically sweep the excess balance from your account into an FDIC-insured omnibus account* at the bank. At the beginning of the next business day, we transfer the funds to the money market mutual fund custodian. The custodian invests funds in a non-FDIC insured, nonbank guaranteed money market mutual fund.† Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 20
* Funds transferred to the omnibus account are eligible for FDIC insurance up to the allowable limit. Additionally, government deposits remain collateralized in accordance with state or federal law. We hold funds in your organization’s name until released for investment the following business day.
† This statement is just a summary. For complete information, please see the Wells Fargo Stagecoach Sweep® Service Description and the current prospectus for the Allspring Funds® ALLSPRING FUNDS MANAGEMENT, LLC, A WHOLLY OWNED SUBSIDIARY OF ALLSPRING GLOBAL INVESTMENTS HOLDINGS, LLC (“ALLSPRING GLOBAL”), PROVIDES INVESTMENT ADVISORY AND ADMINISTRATIVE SERVICES FOR THE ALLSPRING FUNDS®. OTHER SUBSIDIARIES OF ALLSPRING GLOBAL PROVIDE SUBADVISORY AND OTHER SERVICES FOR THE FUNDS. THE FUNDS ARE DISTRIBUTED BY ALLSPRING FUNDS DISTRIBUTOR, LLC, MEMBER FINRA/SIPC, A SUBSIDIARY OF ALLSPRING GLOBAL. Your investment in a money market mutual fund will be pooled with funds belonging to other investors in an omnibus investment account in the name of Wells Fargo as agent on behalf of all its customers invested in the money market mutual fund. An investment in a money market mutual fund is not insured by the FDIC or any other government agency. Although the mutual funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market mutual fund. In addition, mutual funds are not guaranteed by Wells Fargo and may lose value. For more information regarding the money market mutual fund investment sweep option, obtain a current prospectus for the money market mutual fund by visiting allspringglobal.com, by calling 1-800-260-5969, or by contacting your Wells Fargo relationship manager Jamie O’Connell. Consider the investment objectives, risks, charges, and expenses of the investment carefully before investing. This information can be found in a current prospectus. • ACH Debit Services
Direct debits and direct payments
You can initiate preauthorized debits to your customers’ bank accounts for recurring and other customer-approved payments with our ACH services. You may benefit operationally from:
• Reduced payment processing costs
• Faster funds availability
• Improved collections
• Fewer return items
• Enhanced customer retention
• Credit/Debit Card Services
Experience in government
Government entities face distinct challenges when accepting electronic payments. Successfully serving constituents requires managing tight budgets and strict regulatory requirements, while striving to provide the latest in payment technology. Our Wells Fargo Merchant Services group supports 575 government entities with 5,047 locations throughout the U.S. With this experience, we understand the City’s constraints and goals.
Your size, geographical regions, responsibilities, mission, and statutory requirements— among other factors, impact your operations. Having worked with hundreds of diverse government organizations, including states, municipalities, and agencies, we have developed strategies that helped them — and can serve as considerations for the City’s solution — effectively control cost, manage risk, and offer constituents convenient payment options.
Item Number: 10.
Wells Fargo Treasury Management
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Controlling cash flow and cost
As soon as next business day funding
Accelerating collections may reduce strain on organizations working with slim budgets. You can receive funds as soon as the next business day to your Wells Fargo business account.* * You may settle your merchant services funds to an account at the financial institution of your preference. We settle by ACH to other institutions, and projected funding may vary. The actual time could be longer than two days, depending on the financial institution’s status with the Federal Reserve.
When you use a Wells Fargo account for settlement or other merchant services purposes, you must use a Wells Fargo business deposit account.
Deposit products offered by Wells Fargo Bank, N.A. Member FDIC.
Merchant services are provided by Wells Fargo Merchant Services, L.L.C. and Wells Fargo Bank, N.A. Merchant services are not deposit products. Wells Fargo Merchant Services, L.L.C. does not offer deposit products, and its services are not guaranteed or insured by the FDIC or any other governmental agency. Merchant Services are subject to application, credit review of the business and its owners, and approval.
Cost control
Many variables affect card transaction processing costs. Through our understanding of these variables, we can help you identify ways to help optimize interchange clearing. For example, you may be able to manage interchange by passing specific data with a transaction or configuring a merchant account so that you qualify for specialized interchange programs, such as “emerging markets.”
Managing risk
Meeting Payment Card Industry Data Security Standard (PCI DSS ) requirements can be complex and costly. Operating under strict budget constraints, government entities may face even more difficulty in this area. Our teams search for opportunities to help you achieve and maintain PCI compliance, such as recommending solutions designed to help reduce PCI scope.
When one of our state customers decided to transition their technology, they aimed to meet PCI requirements in time. To help them control the cost of PCI compliance, we advocated for them with the card networks. Consequently, the state qualified for a special technology program based on their investment in solution upgrades.
Anticipating needs
Appropriate solutions
Government departments and agencies can have varying payment acceptance requirements, depending on the services they provide. Implementing the right solution for each entity (for example, tax, utility, police, and parks and recreation) may enable each one to collect funds faster, while making payments more convenient for constituents.
Whether the City requires online or in-person payments, we can support you with payment gateways, electronic bill presentment and payment solutions, point-of-sale and mobile technologies, and fraud management tools.* To help you transact securely and meet PCI compliance requirements, our solutions support security protocols, such as encryption and tokenization.
* Additional fees apply for these services.
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Wells Fargo Treasury Management
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If you choose to use your own or a third-party solution, we can typically support you with core processing. Our processor’s system is compatible with thousands of independent software vendors (ISVs). The majority of third-party gateways and point-of-sale systems, including government-specific solutions, are certified to the processing platforms we use.
So that you can reconcile and track transactions, we also offer detailed reporting and convenient dispute management tools, at no additional cost.
Emerging technology
For the convenience of constituents, government entities want to offer the fast, easy-to-use payment options available in the private sector. Consumer payment options continue to multiply, and we help our government customers understand these changes and make effective use of technology.
For instance, we enabled in-app payments through an API to simplify collections for a transportation agency, while streamlining ticket purchases for their riders. Constituents using public transportation can pull up the agency’s mobile app to pay for tickets as easily as they pay for rides with popular ride-hailing apps.
Designated support
Our dedicated support model for government entities is one of our strategic advantages.
Government specialists help ensure consistency, familiarity, and a solid understanding of the City’s environment and mission. A specialist in government implementations will help guide you through a smooth transition.
Our merchant service center operates 24 hours a day, 365 days a year, and you can call at any time. Normal business hours for the merchant services account management team are between 5:30 a.m. and 4:00 p.m. Pacific Time, Monday through Friday.* * Availability exclusive of unplanned outages.
Your eReceivables consultant, Todd Reed, and specialized industry market manager, Rich Toomey, can provide guidance as your payment acceptance requirements evolve. Our treasury management and commercial banking teams work in coordination with our merchant services team. Your treasury management sales consultant, Yolanda Mates, and relationship manager, Jamie O’Connell, will also offer insights that encompass the full breadth of your receivables strategy.
• Courier Services
The City should contract directly with, and pay fees directly to, an armored courier of your choosing from our approved list of courier companies. We can work together to identify local couriers to support your cash vault needs, or work with your current provider if needed. • On-line wire transfers
The City can sign on to our online banking portal to initiate repetitive or free-form domestic and international wires.
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Wells Fargo Treasury Management
City of Desert Hot Springs | 23
Initiation
To sign on to our online banking portal or mobile service, you use a company ID, user ID, and password. Then, you enter a PIN and token code. Once authenticated, you can perform wire functions based on your authorizations. Functions include initiating repetitive or free-form wires and approving wires. We include the steps to create and submit wires in the following table.
Repetitive wires* Free-form wires
1. Access the appropriate template by searching or
selecting from a drop-down list.
2. Enter information not built into the template (for
example, the value date or amount).
3. Submit the wire. You receive a confirmation that you can print.
1. Input all required wire transfer fields.
If needed, you can use our bank lookup feature to
search for financial institution information — for
example the beneficiary bank identifier routing
number — and insert it into the appropriate field.
2. You submit the wire. You’ll receive a confirmation
that you can print.
* For repetitive wires, you must set up the wire template in advance.
Approval
You can approve free-form and repetitive wires through our online and mobile wire transfer services. You can customize your setup to require up to four approvers. You can also require an additional approver for wires over a specific dollar amount.
We display items that require approval in the Pending Payments queue. From that screen, you see all pending wires for your authorized accounts. You can approve or reject one or more wires from the Pending Payments summary list based on your approval authority. Before approving or rejecting a wire, you can also review full wire details and then modify the wire (if you have the authority). After all required approvals are in place, we release the wire. • Positive Pay on Checking
With positive pay services, we identify checks that may be fraudulent or unauthorized by matching checks presented against your account for payment to the check issue information you provide us.
We report positive pay exceptions to you through our online banking portal.
You make pay or return decisions through the online banking portal. You can also use our mobile service to make your positive pay decisions.
Positive pay at the teller line is included with all positive pay accounts. When you send check issue information to us, we make the information available to our tellers at all Wells Fargo branches within 30 minutes of receipt. This procedure enables them to verify that an issue record is on file before cashing a check or accepting some checks for deposit.
We recommend positive pay or payment authorization on all accounts to prevent check fraud. We noticed that two of the City’s accounts do not currently have positive pay or fraud protection. If the City doesn’t write checks on an account, implementing payment authorization will block unauthorized paper items from being presented. Positive pay will notify you of items being presented and give you the option to review the activity being presented.
Item Number: 10.
Wells Fargo Treasury Management
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Check issue deadline
You will need to send check issue records to Wells Fargo prior to distribution of the checks. If we receive your check issue file prior to 8:00 p.m. Pacific Time, we update your check issue information in our system that day. This deadline helps ensure that we have the most recent check issue information to compare with checks presented for payment.
To avoid exceptions, you should distribute checks on or after the issue date. If you send a futuredated issue record, that information will not be available for positive pay in our system until the morning of the issue date.
Next-day positive pay
Our next-day positive pay service compares checks presented against your account to your issue file information after the checks post. We review all positive pay exceptions, and we reverse checks that we can correct (such as encoding errors) and repost them to your account the following business day. This feature saves you time and money because we research and resolve the majority of your exception items for you.
The following table provides the service delivery and decision response deadlines. The City accesses the reports and enters decisions using our online banking portal.
Next-day positive pay exception reporting
Option 1
Receive exceptions by 7:00 a.m. PT.
Make your decisions by 12:00 p.m. PT.
Option 2
Receive exceptions by 9:00 a.m. PT.
Make your decisions by 2:00 p.m. PT.
Create a check issue record
We do not automatically add approved exceptions to your check issue file. Instead, we give you the option to create a check issue record for the exceptions you choose to pay. The following screen shot shows where to click Create Check Issue after you’ve selected the pay decision. .
Check issue deadline
The City will need to send check issue records to Wells Fargo prior to distribution of the checks. If we receive your check issue file prior to 8:00 p.m. Pacific Time, we update your check issue information in our system that day. This deadline helps ensure that we have the most recent check issue information to compare with checks presented for payment.
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To avoid exceptions, you should distribute checks on or after the issue date. If you send a futuredated issue record, that information will not be available for positive pay in our system until the morning of the issue date.
ACH Fraud Filter
More than debit blocking, our ACH Fraud Filter service
reports all payment information so you know who is
attempting to send transactions to your account. You
receive potentially unauthorized ACH transaction
information through our online banking portal and mobile service.* With options to review or stop debits, credits, or all transactions, you can protect your accounts from fraud.
You can review transactions and
decide what to return,
automatically stop unauthorized
transactions, and monitor
converted check entries.
Review transactions and decide what to return
With our review option, you preauthorize ACH transactions to post to your account. Through our online fraud manager tool, we notify you of any that are not preauthorized. You review those transactions and tell us whether you want them paid or returned.† When you tell us to return a transaction, we create a reversing adjustment and then return it as unauthorized. * Download the latest version of the CEO Mobile® app available for your device from the Apple App Store® or Google Play™ store. † If you do not make a pay or return decision on an item by the specified deadline, the item is automatically paid or returned based on the default action you select during implementation.
You can request that we inform you about:
All ACH transactions posted to your account
All ACH transactions that exceed a predetermined dollar amount ACH credit or ACH debit transactions only
ACH credit or debit transactions that exceed a predetermined dollar amount ACH credit or debit transactions outside a specified date range ACH credit or debit transactions that exceed a specified maximum number of occurrences Item Number: 10.
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Automatically stop unauthorized transactions
With our stop option, we automatically return transactions that you did not preauthorize and process all that you preauthorized. You can request that we stop and return:
All ACH transactions
All ACH transactions that exceed a predetermined dollar amount All ACH credit or debit transactions only
ACH credit or debit transactions outside a predetermined dollar range All ACH credit or debit transactions outside a specified date range All ACH credit or debit transactions that exceed a specified maximum number of occurrences Monitor converted check entries
Our electronic check (eCheck) option, for no additional fee, helps you monitor converted check entries for business-sized checks that have an auxiliary on-us field in the magnetic ink character recognition (MICR) line. This service includes eCheck Post and eCheck Stop options for accounts receivable check (ARC), back office conversion (BOC), and point-of-purchase (POP) transactions. eCheck Post
If you use the eCheck Post option in conjunction with our next-day positive pay service, you have the opportunity to see unmatched items that will post to your account. You use our online fraud manager tool to indicate your decision to pay or return them.
If you use the eCheck Post option with our same-day positive pay service, we do not match ACH converted checks against your check issue records. Instead, we call you for instructions to pay or return the converted checks.
eCheck Stop
If you choose the eCheck Stop option, we automatically stop all ineligible items inadvertently converted before they post to your account.
• Overdraft protection
Daylight overdraft lines are provided as an accommodation to creditworthy customers to bridge intraday timing gaps between their disbursement needs and the receipt of funds into their account. Daylight overdraft lines, when provided, are both uncommitted and unadvised.
Usage under daylight overdraft lines is to be repaid through credits to the customer’s account by the end of the banking day. Daylight overdraft lines are not intended to support overnight overdrafts, purposeful or inadvertent.
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Should the City have an overdraft situation in the morning, your relationship associate, Anna Gonzales, and your relationship manager, Jamie O’Connell, will reach out to the City to confirm activity that caused the overdraft. Then, the City can move funds over by wire transfer to cover items before 9:30 a.m. Pacific Time.
• ACH reporting
Online ACH initiation
We noticed the City has an outside payroll service and that you are not initiating ACH services today, but may inquire in the future. Here are some of the reporting options available. You have access to several standard reports through our online ACH initiation service, including:
Available reports
ACH Payment Detail Payment Template Audit
Beneficiary Detail Payment Template Detail
Payment Audit Payment Template Summary
Payment Summary
You can customize standard reports for reporting periods, payment types, accounts, and transaction status, among other options. You can view reports* on screen (HTML) or download them in CSV, Excel, or PDF for printing. You have access to the following reports through our online ACH service:
• Payment Summary
• Payment Details
• Payment Audit
The City can select specific criteria to customize your report: payment type, payment status, account, and date range. You can view reports on screen in HTML format.
After reviewing the account analysis statements provided, we noticed that the City is currently set up for ACH origination, but not processing any volumes.
Online information reporting
Our online reporting service provides comprehensive ACH reporting. Standard reports include:
Available reports
ACH Customer Activity ACH Receive
ACH Origination ACH Return/NOC
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You can view* and print reports in HTML and PDF formats. You can also download reports into BAI V2, CSV, and Excel and upload them into your accounting, treasury workstation, or spreadsheet applications.†
* A user’s ability to view a particular report depends on the configuration of the individual user’s entitlements and the user’s access to relevant accounts.
† Downloading and viewing formats may vary by report.
We retrieve information from the ACH network multiple times throughout the day. We update our online information reporting approximately 90 minutes after we process ACH activity. • On-line balance reporting
Our online banking portal, CEO, is available 24 hours a day, seven days a week, providing you with single sign-on access to account information and a wide range of financial services. By tailoring your user preferences on the portal home page, you can view your account balances and transaction information at a glance.
The services you can access through our online banking portal are listed in the following table.
Online services
Treasury Management
ACH Payments
Alerts
Basic Banking
Bill Manager
Cash Concentration
Cash Vault
Centralized Disbursements
Deposit Maintenance
Desktop Deposit®
E-Box® Decisioning
Electronic Document Delivery
Fraud Manager
• Positive Pay
• Check Issues1
• ACH Fraud Filter
Healthcare Claims Payments
Healthcare Supplier Payments
Lockbox
Payment Manager®
Payment Manager File Validation Tool
Receivables Manager
Returned Item services
Reverse Positive Pay
SAFE Transmission
CEO Administration
Treasury Information Reporting
• Cash Flow Analysis
• Pooling and Intercompany Loans
WellsOne Expense Manager
WellsOne Virtual Card Payments
WellsTax® payments
Wire Transfer
International Services2
Canadian Treasury Services
CyberSuite
Foreign Exchange (FX)
CEO Trade
Credit, Loan, and Finance
Capital Finance
Commercial Mortgage Servicing View
Credit Management
Customer Online Management System
Trust and Investment3
Allspring Funds
Commission Management System
Derivatives Access
Fed Funds
Institutional Investing: Reporting
Institutional Investing: Trading
Mutual Fund Reporting
Mutual Fund Trading
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Online services
Statements & Notices
Sweep Statements and Confirmations
Transaction Search
• Search transaction history
• Images
• ACH Deletes and Reversals
• Stop Payments
Prime Services
Security Valuations
Trust Information Delivery
Trust Portfolio Reporting
Wells Capital Management
Wells Cap Portfolio Reporting
1. Add new checks, cancel existing checks, or place stop payments.
2. Deposits held in non-U.S. branches are not FDIC insured.
3. Investment products are not FDIC insured, are not deposits of, or guaranteed by the bank, and may lose value. Deposit and credit products are offered by Wells Fargo Bank, N.A. Member FDIC.
Features and capabilities
With our online banking portal, you can:
• Sign on for services, including alerts by email or text • Centralize your payment and disbursement capabilities • Place stop payments, research transactions, and view images • Customize and download current and previous day reports • Initiate domestic and international ACH payments, wire transfers, FX, trade, credit, and trust transactions
• Help mitigate fraud and operational risk with advanced monitoring tools • Set and manage user authorizations, transaction limits, and assign administrators To see a demonstration of our online banking portal, please contact your treasury management sales consultant, Yolanda Mates.
The City may find value in our Basic Banking Service and Express Balance Report. Please see Tab B in the Appendix section of our response for additional information.
Security features
User security
All users must enter a company ID, user ID, and password to access our online banking portal.
In order to access transaction-based or user-management services, a user must enter a PIN and token code. This second level of authentication helps ensure that the individual performing an activity on your account is authorized to do so.
Dual custody
To help reduce your fraud risk, we require dual custody (separate users to initiate and approve) to release online payment transactions, and for any administration services related to transactionbased services.
Dual custody is an industry standard and best practice. This feature helps protect against fraud that could originate inside or outside your company.
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For maximum effectiveness, dual custody should involve two users on different computers or mobile devices. You can choose to add dual custody to other online features such as user setup and password resets. By separating user tasks to initiate and approve a payment or make changes to user access, you are better positioned to help prevent fraud. • On-line Image Retrieval
Available through both our online banking portal and mobile service, our Transaction Search service enables you to:
• Search for a variety of transactions
• View and print images
• Manage stop payments
• Request ACH deletes and reversals
• Access activity reports
Search
With the search function, you can search for transactions across multiple accounts and ACH IDs.
You can search for:
• Deposits, paid checks, and other account activity for the previous seven years • Initiated ACH transaction history for up to 180 days — or 13 months with our extended storage option
• Stop payment information for as long as the stop remains in effect • Extended detail for wire transactions, RTP® network payments,* and received ACH transactions for up to 180 days
• Expanded account reconcilement plan (ARP) information for cancelled and voided checks for the current statement cycle and two previous statement cycles† * RTP is a registered service mark of The Clearing House Payments Company L.L.C. Our RTP Services for credit transfer are available subject to applicable product eligibility.
† The outstanding check information remains available until the item is dispositioned.
Images
You can view images online and download them in PDF formats. Eligible items include:
• Deposit tickets • Deposit checks • Paid checks
Images are available by 6:00 a.m. Pacific Time the business day after posting. Some images may also be available on an intraday basis. Images are available for seven years.
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Stop payments
You can place a stop payment for a single check or a list or range of up to 50 checks. Our service automatically
verifies if the check posted within the last 180 days,
including intraday memo post activity. If you try to place a stop on a check that already has one, our service
displays the existing stop payment with expiration date.
Stop payments are effective
immediately when successfully
initiated through the
Transaction Search service.
ACH
Deletes and reversals
Authorized users can submit a request to either delete or reverse an initiated ACH transaction.
Request
Delete You can request to delete an ACH transaction before we distribute the transaction to the ACH operator. Delete requests must be received before 1:00 p.m. PT on either the day the original file was submitted or two business days prior to the item’s posting date, whichever is later. For same-day transit items, we must receive your deletion request by 5:00 a.m. PT.
If you submit a deletion request after the deadline, we process the item as a reversal. Per the National Automated Clearing House Association (Nacha) guidelines, you must notify the receiver of the reversal.
Reversal You can request to reverse an ACH transaction after we have distributed the transaction to the ACH operator. Reversal requests must be received before1:00 p.m. PT by the fourth business day after the settlement date of the original item. Per Nacha guidelines, you must notify receivers of any reversals.
Re-initiate
If you use a check conversion service, you’ll have the ability to reverse, re-initiate, or reverse and re-initiate ACH converted check transactions with a new dollar amount.
Activity reports
Authorized users can access 365 days of Transaction Search user activity related to image retrieval and stop payment activity. Activity reports are available in HTML.
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• On-line Stop-pays
With our online banking portal, you can place stop payments, research transactions, and view images.
Using our Transaction Search service, the City can place a stop payment for a single check or a list or range of up to 50 checks. Our service automatically verifies if the check posted within the last 180 days, including intraday memo post activity. If you try to place a stop on a check that already has one, our service displays the existing stop payment with expiration date.
Stop payments are effective
immediately when successfully
initiated through the
Transaction Search service.
• Banking Supplies
You can purchase deposit tickets and other supplies such as deposit bags, cash straps, and coin wraps through our supply order desk. We’ll debit your account to handle fees for the deposit supplies. Alternatively, you can purchase these supplies from your own supplier.
We can apply charges for deposit slips and cash vault supplies against your account analysis.* * Analysis fees will be based off of volume for that month and the ECR at the time. • Excellent customer service
General banking services
The relationship team should always be your first point of contact for any customer service needs.
They can assist with maintenance on the account, including signer changes, updates to forms and documents, and they can help guide the City to the right departments for escalation.
Our Customer Care for Business Service Office representatives are available Monday through Friday from 4:00 a.m. to 7:00 p.m. Pacific Time and Saturday from 6:00 a.m. to 12:30 p.m. Pacific Time.
While most inquiries can be resolved by our service representatives during the initial call, there are occasions where we might need to bring in our various operations groups, such as ACH investigations or transmissions staff. In these cases, service representatives still act as your primary contact, reaching out to these groups on your behalf and communicating the resolution back to you.
Our core operations teams are managed in-house and are often available during extended business hours, which means that service representatives can respond to your inquiries in a timely manner.
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Merchant service center
Our merchant service center operates 24 hours a day, 365 days a year, and you can call at any time.*
*Availability exclusive of unplanned outages.
Normal business hours for the merchant services account management team are between 5:30 a.m. and 4:00 p.m. Pacific Time, Monday through Friday.* *Availability exclusive of unplanned outages.
Authorize.net payment gateway
Authorize.net® payment gateway provides support for customers 24 hours a day, seven days a week.* This support includes a dedicated toll-free number for Wells Fargo customers, E-ticket support, and live chat.
* Availability exclusive of unplanned outages.
• Data Equipment Compatibility
System interfaces
We have existing interfaces with a wide variety of accounting, ERP, and treasury workstation systems. Integration with our system does not require any type of software installation on your system of record; it is accomplished through data file exchange between the City and us.
Merchant services integration
Whether the City requires online or in-person payments, we can support you with payment gateways, electronic bill presentment and payment solutions, point-of-sale and mobile technologies, and fraud management tools.*
* Additional fees apply for these services.
If you choose to use your own or a third-party solution, we can typically support you with core processing. Our processor’s system is compatible with thousands of ISVs. The majority of third- party gateways and point-of-sale systems are certified to the processing platforms we use.* * Your eReceivables consultant can provide additional information Item Number: 10.
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The following is a list of optional services the City may require:
• Automatic Account Reconciliation
• Trust & Escrow Agent Services Accounts
• Payment of Financial System Upgrades and Fees through use of analysis and supplies • Online Banking payments collected in a batch deposit
• E-Payments
• Web Based Payment System
Acknowledged. We have provided the set-up fees for services included in this RFP and can review enhanced services with the City if chosen as a vendor.
We provide information below on a few of the optional services the City may require. Please review our merchant services pricing in the Appendix section of our response for additional details.
We offer a variety of credit card processing services they City may want to consider.
Account reconciliation
With our ARP and automated reporting services, you can reconcile your disbursement accounts quickly and efficiently with your internal accounting records. Our Full ARP service and our Partial ARP service each help you to identify checks and electronic transactions as paid or outstanding — saving you time. In addition, these services help you detect and reduce your exposure to check fraud.
Potential benefits
• Reduces accounting costs and increases productivity
• Improves cash control and provides faster, accurate payables information • Increases your audit control
• Minimizes your internal and external fraud losses
Full ARP
Our Full ARP service reconciles your paid checks to your issued checks then sends a detailed statement. First, you provide us your issued check information* by one of three methods:
• Direct transmission
• Uploading a file to our online fraud manager tool†
• Manually entering check to the Add Check Issues feature of our online fraud manager tool * Your check issue information includes stops, voids, cancels, and manually-issued checks. † The file you load to the online tool can contain up to 1,500 registers in a single batch, and you may submit multiple batches daily.
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Within 90 minutes of your submission, you can receive an optional file confirmation for the check issue information or stop payments. We update check issue information more than 50 times each day, seven days a week.
On a weekly or monthly basis (according to your preference), we make comprehensive statements available for your account. You can request a variety of optional reports including Paid Checks, Outstanding Checks, and Stop Payments. You can receive these reports daily, weekly, or monthly in PDF, Excel, CSV, flat file text (transmission), and paper formats. The PDF and paper formats can include sorting and subtotaling by location or high-order prefix.
Partial ARP
Our Partial ARP service provides an ARP statement. You can also request a variety of optional reports including Paid Checks and Stop Payments. You can receive these reports daily, weekly, or monthly in PDF, Excel, CSV, flat file text (transmission), and paper formats. You use the statement and any optional reports to reconcile your account and identify any exceptions.
Optional reports
We have fully integrated our information reporting system with our online banking portal, making it easierfor your staff to access all relevant reports and information online.
With our Full and Partial ARP services, you can customize your reporting to match your accounting needs. Choose from the following 14 optional reports.
ARP optional reports
• Bank Originated Entries
• Credits
• Deposit Location
• Issue Notices Not Received†
• Issues This Cycle*
• Matched Paid Items†
• Outstanding Checks*
• Paid Checks
• Posted Items
• Prior Payments*
• Reversed Checks†
• Stop Payments
• Unpaid Checks*
• Voids and Cancels*
* Only available with Full ARP.
† Only available with Full ARP or Partial ARP with Positive Pay.
Samples of commonly requested optional reports, shown in PDF, follow. You may also receive optional reports in Excel, CSV, and flat file text (transmission) formats.
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Paid Checks
Outstanding Checks
Stop Payments
Voids and Cancels
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.
• E- Payments
ACH and wire transfers
You can initiate and release electronic payments using our ACH and wire transfer services, available through our online banking portal. To sign on to our online banking portal, users must provide a company ID, user ID, and password. To then access the ACH and wire initiation payment services, users provide a PIN and token code. Once authenticated, your users can perform ACH and wire service functions based on user profiles.
Consolidated payables
Our consolidated payables service can help you streamline and automate your payment and remittance processes. By reducing the use of paper documents and manual data entry, you can minimize mistakes and increase efficiency.
In a single file, you can provide payment instructions and include all related remittance information. Your file can include multiple payment types; we separate the payments by type and process them accordingly. Consolidated payables can help you:
• Lower error rates
• Accept a variety of payment file formats
• Improve cash forecasting and reconciliation
• Potentially reduce costs
Commercial card: one card, one workflow
Help maximize convenience, efficiency, and control with one card and one platform that handles your employee spending, travel, general procurement, AP disbursements, and more. When you consolidate expenses into one program, the City gains access to comprehensive information for smart decision making. You have the potential to realize significant savings in time, transactionprocessing costs, and internal resources required to support the program. A single-card platform integrates multiple processes and creates a solid foundation for future growth.
Additionally, you’ll gain an ally with more than 28 years of experience in the card industry and knowledge to help make your program successful. Our program also offers:
• Full implementation support
• Dedicated payables account manager
• Two commercial card service centers dedicated exclusively to serving our commercial card customers
• Assistance 24 hours a day, seven days a week
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Accepted almost everywhere
We issue both Visa® and Mastercard®, with both platforms boasting millions of global acceptance locations.*† This coverage means your employees can make purchases almost everywhere cards are accepted. We’ll help you determine which issuer best meets your needs. * Visa. 2021. “Visa Annual Report 2021.” Visa > Investor Relations > Annual Reports & Meeting. † Mastercard. November 10, 2021. “Mastercard Investment Community Meeting.” Mastercard > Investor Relations > Events and Presentations.
Corporate liability: A best practice
Organizations typically choose a corporate liability program because it’s designed to:
• Increase visibility of spending across the entire organization • Decrease costs, losses, and risk
• Eliminate individual liability and unnecessary burdens on employees Corporate liability also means that your earned revenue share doesn’t depend on cardholder reconcilement — giving you the potential to earn more.
Online program management
For low IT burden and flexibility, manage your program through our expense management service, which offers self-administration functionality and customizable components. There is no need to install hardware or software on your system. Our service provides:
• Intuitive coding of common expenses
• Real-time online card management
• Comprehensive standard, custom, and ad hoc reports
• Customizable transaction fields
• Secure multi-level approvals
You can upload expense data from the application to most ERP and treasury workstation platforms, which eliminates any manual data entry to your general ledger. Your employees can use our expense management service to:
• Review and approve transactions
• View and upload receipts
• Input cash expenses
• Reclassify line items to multiple cost centers
One file for all payments
To help simplify your payables process even further, send us an electronic payment file directly from your treasury workstation, ERP, or AP system. You can consolidate multiple payment types — check, ACH, wire transfer, and virtual card transactions — in a single file. Upon receipt of the file, we separate payments by type, process them accordingly, and send human-readable remittance information to the payee.
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Help protect yourself from fraud
It’s important to have the best fraud protection for your cardholders and accounts. We use proprietary fraud mitigation technology, customized transaction monitoring, and convenient reconciliation tools to help keep your cardholders and accounts safe. Enhanced fraud alerts are just one of the capabilities we use to fight fraud. We send your cardholders alerts by email or text* when we identify a suspicious purchase. They can confirm whether the transaction is fraudulent by simply responding to our email or text. Their responses help us detect and prevent fraud almost instantly.
* Your mobile device’s coverage area can affect availability. Your mobile carrier's message and data rates may apply.
Premium rewards program
The City can offer your senior executives and frequent travelers a premium rewards program. Our executive card program offers:
• No minimum spending requirements
• Competitive annual fee of $250
• Direct customer service line to our most experienced staff, available 24 hours a day, seven days a week
• Free 24 – 48 hour card replacement
Concierge service, 24 hours a day, seven days a week
With our concierge service, your executives can make the most of each trip for themselves and their valued business customers. They won’t need to spend valuable time researching local entertainment options, obtaining tickets, or updating travel plans. Our concierge service offers:
• Travel information and assistance
• Entertainment planning
• Business services
Enhanced insurance protection
Protect your executives at higher levels of coverage — without additional cost to the cardholder or your organization. Enhanced protections include:
• $1,000,000 travel accident insurance
• $5,000 for lost luggage
• $500 for delayed luggage
• $300 for trip delays
• $1,500 for hotel theft
Reduced airline fees
You can save money and enhance the travel experience for executives by providing them with $400 in annual statement credits to apply toward airline amenities and fees.
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Executives can use the credit for expenses, such as:
• Checked baggage
• Day passes for airline club access
• In-flight meal or snack
• In-flight Wi-Fi
• Priority boarding
• Seat upgrades
We also offer up to $100 for Global Entry and TSA Pre-Check application fees.
Banking services required
1. General Banking: The Firm must have centralized cash vault operation that can accommodate the security, deposit volume, and change order demands associated with City accounts. The Firm must process returned/re-cleared items, stop payments, change currency orders, and photocopying services for items or documents related to the City's bank accounts.
Cash vault services
To safeguard and simplify your deposits, an armored courier picks up your deposits and transports them to a cash vault location*. This transport means your staff will no longer carry cash to the bank, helping to reduce business and employee risk. The City can make deposits at any cash vault in our nationwide network;
† however, we recommend you use our Los Angeles site. You can consolidate numerous banking relationships, relying on our geographic coverage and common service platform to help simplify.
The City will contract with an armored courier (of your choice with bank approval). You receive same-day credit for deposits received by the deadline.
* The City is responsible for contracting with an armored courier for delivery of your deposits to the designated cash vault site. The contract is between you and your armored courier.
† Our extensive network includes approximately 100 vaults strategically located across the U.S.
Different deadlines apply for cash-only, check-only, and mixed deposits of cash and checks. The following table lists our cutoff times for deposits and change orders, in local time.1 Cash vault site Deposit deadline Order deadline
Cash-only Check-only Mixed Touch tone Online or
Transmission
California
Los Angeles 7:30 p.m. 7:30 p.m. 6:00 p.m. 10:30 a.m. 10:00 a.m.
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How it works
You can place coin and currency orders 24 hours a day, seven days a week — using our online banking portal, automated touchtone phone system, or direct file transmission service.
You can access details about your deposits, adjustments, and coin and currency orders online. Our comprehensive suite of cash vault reports includes:
• Cash Vault Activity Summary
• Deposit Activity
• Deposit Adjustment Activity
• Order Request
• Order Activity
• SafeVantage® Expedited Credit
• Envelope Activity Detail
• Counterfeit Note
Change orders
Branch locations
You can call your branch, 24 hours in advance, to place a change order. Depending on the settlement method that you choose, restrictions may apply for pickup. If you use a third-party courier for order pickup, then bank preapproval is required prior to initiating a relationship with the local branch.
Additional restrictions — relative to the size and frequency of change orders — vary depending on the branch’s location. We will work with you during implementation to review any restrictions and identify the best option for you.
Cash vault
You can place change orders online, by touch-tone order service, through a standing order, by transmission, or through DTS Connex®. Your contracted armored courier delivers change orders from a Wells Fargo vault to your location. For cash vault services, we will work with you during implementation to review cash vault restrictions and help you to compare our suite of services to identify the best option for you.*
* Some services are available subject to applicable product eligibility.
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Automated change orders
You can place automated coin and currency orders. We debit your account the day that we fill your orders and include your location numbers (if applicable) on your electronic reports and statements.
Online tool for cash management
The City can create, track, and manage cash deposits and change orders online across multiple banks using the DTS Connex Online Cash Management Tool.* You make deposits and place coin and currency orders that we provision with our cash vault by armored courier and cash vault by mail services.
International Financial Services requires a separate enrollment to use this tool. * DTS, DTS Connex and corresponding logos are registered trademarks or service marks of International Financial Services, Inc. IFS is not a subsidiary or affiliate of Wells Fargo. The DTS Connex Tool and any other products or services provided by IFS to you are separate from the services you receive from us, and we make no representations or warranties and will have no liability to you in connection with products and services provided to you by IFS.
Security features
The DTS Connex tool features:
• Account lockout — The system locks out a user account ifthere are too many invalid password attempts.
• Password expiration — The system requires users to update their password every 90 days. • Timed sign-off — The system automatically signs off users during periods of inactivity.
Standing, automated order
During your cash vault service implementation, you can provide details to receive change orders on a predetermined delivery schedule (recurring orders). As a security measure, such standing orders eliminate the need to place an order manually, which can reduce the likelihood of inaccurate or fraudulent orders.
Deadlines
Different deadlines apply for cash-only, check-only, and mixed deposits of cash and checks. Coin and currency orders vary according to the cash vault that provisions your order.
Returned items
Processing returned items can be a burden on your staff. You can improve the efficiency of your process with handling instructions, reporting, and electronic returned items. These timesaving steps can help you reconcile, research, and collect on returned items.
During implementation, you tell us whether you will follow our standard processing instructions or set up special instructions, as described in the following table.* Item Number: 10.
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Standard instructions Special instructions*
Mail all returned items (originals or image
replacement documents) and standard notices by
U.S. mail to the statement address on your system
Post separate debits for each returned item to the
depository account
Post all returned items to the depository account
in one lump sum per day
Automatically redeposit all items (regardless of
amount) returned for NSF or UCF
Debit the depository account for chargebacks Redeposit all Wells Fargo items less than a predetermined dollar amount
Automatically redeposit non-Wells Fargo items of
less than $300 that are returned for nonsufficient
funds (NSF) or uncollected funds (UCF)†
Mail physical items or additional copies of the debit
advice to an alternate address
Charge back items to an account other than the
depository account
Key additional data (such as maker name, phone
number, and address) on the advice
* Additional fees apply for some special instructions.
† We cannot redeposit items returned for any reason other than NSF or UCF.
Online reporting and images
Information reporting
With information reporting, you can reduce the time spent researching, recording, and collecting on checks returned unpaid. Our same day and previous day reports provide detailed information about your returned items; the HTML format of the report includes links to item images.
You can also access the same day report through your mobile device.
Decisioning
You can begin your collection efforts on the same day we receive returned items. View your returned items beginning at 6:00 a.m. Pacific Time and change the default disposition (chargeback or redeposit) by 4:30 p.m. Pacific Time.
Notification
You receive an email notification when we process returned items or when items are available for decisioning. This email prompts you to sign on to the portal to view the detailed returned item reports, or to review and decision the returned items.
Images
You can access returned items images and detailed information the next business day after we receive the items; information is available up to 180 days.
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Transmission reporting
Report type Details
Data transmission Receive a transmission file — including keyed data — for both returned checks and those converted to ACH transactions.
Image transmission Receive a transmission of returned check images, associated index information, and detailed information through our Image File Import service.
You can import these files into your internal or a third-party image archive. The files consist of an XML formatted file containing index information and a zipped image file containing associated images in JPEG or TIF format.
Electronic returned items
Our service automatically converts eligible paper returned items into ACH debits. This conversion allows us to make up to two re-presentment attempts (instead of only one with the paper deposit process), which can increase your collection rates.
Consumer checks of less than $2,500 that are returned for NSF or UCF are eligible for this service.
Stop payments
You have three options for issuing stop payments on checks, which we describe below. With the electronic methods, you can make stop payment requests 24 hours a day, seven days a week.
Online transaction search
Stop payments are effective immediately after you successfully initiate the request through our online Transaction Search service.
The system automatically reviews the previous 180 days and intraday teller-cashed activity to determine whether a requested check has paid. While you can place stop payments on a range of checks, we have a maximum of 50 stops that you can place at one time.
ARP issue file transmission
Stop payments are effective after you successfully initiate the requestthrough our online fraud manager tool and the bank’s systems process the file.
You can make a stop payment request as late as 8:00 p.m. Pacific Time and still receive same-day posting.
With a file transmission, you can include up to 1,500 entries per file.
Using the Add Check Issues option of our online fraud manager tool, you can upload as many files per day as needed. An imported file can include stop payments, new issues, cancels, and voids.
The system automatically reviews the previous 90 days and intraday teller-cashed activity to determine whether a requested check has paid. If you need to place a stop payment on a range of checks, you should include each individual check number in the file.
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Customer service
Our customer service representatives are available Monday through Friday from 4:00 a.m. to 7:00 p.m. Pacific Time and Saturday from 6:00 a.m. to 12:30 p.m. Pacific Time to provide assistance by phone to:
• Place a stop payment on a range of checks
• Place a stop payment on more than 50 checks at one time Effective period
Stop payments remain in effect for six months. You can renew an individual stop payment on an as-needed basis through our online Transaction Search service, or you can choose to use our automated renewal option.
The auto stop renewal option of our Stop Payment service extends the retention period for stop payments and provides greater flexibility for you to manage stop payments. This option lets you:
• Extend a stop payment for up to an additional six years (in 12-month increments) • Pre-determine a dollar threshold for automatic stop payment renewals • Limit the number of times a stop payment is automatically renewed Photocopying services
Acknowledged. Copies can be provided upon request.
2. Deposit Verifications: The Firm must provide for deposit verification and return of validated deposit receipts to the City.
For the library deposits processed at the branch, you will receive a receipt for the amount listed on the deposit ticket and provisional credit at the time you hand the deposit to the teller.
Based on the branch’s proximity to a cash vault location, we verify the cash either at the branch or at one of our cash vault locations. When cash is verified at branch, it is completed within 48 hours, When cash is verified at a cash vault, we verify it within 72 hours.
You can view deposit information on your monthly bank statements. You can also view deposit information through our online banking portal. Daily balance reports* include a full description of every deposit and adjustment transaction.
If we process a deposit at a cash vault, you can view its information online. Use the deposit activity search function on the portal. This feature lets you research your deposits and adjustments quickly and free of charge.
* Additional fees apply for reports.
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Cash Vault Detail Reporting
You can access details about your deposits, adjustments, and coin and currency orders on our online banking portal. Our comprehensive suite of cash vault reports includes:
• Cash Vault Activity Summary
• Deposit Activity
• Deposit Adjustment Activity
• Order Request
• Order Activity
• SafeVantage Expedited Credit
• Envelope Activity Detail
• Counterfeit Note
3. Electronic Money Transfers: The Firm must provide incoming and outgoing electronic money transfer services, including ACH and Wire safeguards and security measures.
Electronic payment originations provide the City efficient and convenient ways to transfer funds.
Our ACH and wire services allow you to avoid the risks of paper check fraud. Each provides online reporting.
Both enable you to control the payment date, meaning that you can keep that money in your account until the settlement date you determine.
If you want to manage your collection and payment transactions, then ACH could be your ideal electronic payment solution. When you have a large volume of deposits daily, then wire origination best meets cash management needs for the City.
ACH services
Helping you avoid the fraud risks of paper checks, our
innovative ACH services help solve your need for reliable electronic banking. We maintain a proprietary ACH
system.
You control your payment date
with options for same-day, oneday, and two-day settlement.
Our electronic link to the ACH network allows us to receive and initiate any payment type available through Nacha. We have no processing window restrictions. You can initiate same-day, one-day, and two-day ACH transactions that settle to U.S. accounts through all of our input methods.
When using our online initiation service, you can require dual approval for outgoing ACH payments. Our ACH Fraud Filter service further helps to protect your accounts with options to review or stop unauthorized debit and credit transactions.
You can increase your accounting efficiency with detailed treasury reporting, and you can gain a more predictable cash flow — versus using paper checks — because settlement options let you know when payments will clear.
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Streamlining your business, you can use our ACH services to:
• Deposit employees’ wages directly into their checking accounts • Pay vendors
• Convert paper checks to ACH debits for electronic processing • Make state and federal tax payments
• Make international payments
• Handle cash concentration and disbursement transactions • Make other direct deposits and direct payments
Initiation methods
You can use software to create Nacha-formatted files then transmit them to us, use web-based templates through our online banking portal, or send consolidated payables files. Using API technology, you can integrate ACH initiation directly into your treasury workstation, ERP platform, or accounting system. You determine the input method that’s best for you. The City can send payment files 24 hours a day, seven days a week. File cutoff times vary by settlement target.* We supply an electronic file confirmation within 15 minutes of receipt of a file. We can warehouse files for up to 45 days before the effective date.
* If you send a file after the established cutoff time, or with the effective date of a holiday or weekend, we process the file on the next business day.
Each channel offers these three settlement options for transactions in the U.S. • Two-day • Next-day • Same-day (on-us and transit)
Direct origination
Many payroll and accounts receivable software packages on the market have the ability to create an output file in the standard Nacha file format. You use the software of your choosing to send us Nacha-formatted files that contain the required ACH transaction information, such as routing and transit number, account number, dollar amount, and effective date. You send and receive ACH files by internet-based file transfer, direct connection to our mainframe, or SWIFT FileAct. The following table lists a portion of the available payment types.
Sample ACH payment types for direct origination
Cash concentration and disbursements (CCD)
• Child support payments (CCD+)
• Federal and state tax payments ( CCD+)
• Vendor payments (CCD)
Consumer debits and credits (PPD)
• Payroll (PPD)
Corporate trade exchange (CTX)
International ACH transactions (IAT)*
International low-value payments (ILV) *,†
Re-presented check entries (RCK)
Single Euro Payments Area (SEPA) payments*,†
WEB- and TEL-initiated consumer debits
* IAT are not eligible for same-day ACH.
† These codes are not Nacha standard entry class codes. Use them with our Global ACH payments service.
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Consolidated payables file transmission
Save time by grouping ACH debits and ACH credits with other payment types in a single file using our consolidated payables service.
Payment types for consolidated payables
U.S. ACH transactions in U.S. dollars (USD)
USD and Canadian dollar (CAD)* paper checks
Global ACH transactions in foreign currencies
USD wires
Foreign currency wires
Requests for transfer (SWIFT MT101 messages)
Wells Fargo virtual card transactions
Disbursements with Zelle®†
* CAD paper checks are available only for off-us accounts. † Zelle and Zelle-related marks are wholly owned by Early Warning Services, LLC, and are used herein under license.
You initiate ACH payments directly from your treasury workstation, ERP platform, or AP system.
The service separates payments by type and processes them accordingly, sending traditional or human-readable remittance information to payees as appropriate.
Online banking portal
Using our web-based ACH service, you initiate ACH transactions without needing software. You build templates based on the payment type — making your effort convenient and faster to create ACH transactions — and submit them to us for processing. You can import account information for beneficiaries from your systems such as payroll and accounting. You can export templates, beneficiaries, and payment batches to update your payables and receivables systems. As an added convenience, you can use our mobile service* to approve ACH templates and payments that require immediate attention. Mobile users (in the U.S.) can view, approve, and delete payment batches and payment templates by securely accessing our online banking portal. * Download the latest version of the CEO Mobile app available for your device from the Apple App Store or Google Play store.
Dual custody
To reduce your fraud risk, we require dual custody (separate users to initiate and approve) to release online payment transactions and perform administration actions related to transactionbased services.
Sample ACH payment types for our online ACH service
Cash concentration and disbursements (CCD)
• Child support payments (CCD+)
• Federal and state tax payments (CCD+)
• Vendor payments (CCD)
Consumer debits and credits (PPD)
• Payroll (PPD)
Corporate trade exchange (CTX)
International ACH transactions (IAT)*
International low-value payments (ILV) *,†
Re-presented check entries (RCK)
Single Euro Payments Area (SEPA) payments*,†
WEB- and TEL-initiated consumer debits
* IAT are not eligible for same-day ACH.
† These codes are not Nacha standard entry class codes. Use them with our Global ACH payments service.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 49
Wire services
You can send and receive wires, and transfer funds between your accounts more quickly, easily, and securely.
Incoming wires
We accept wires from Wells Fargo accounts and from the following networks:
• Federal Reserve
• Society for Worldwide Interbank Financial Telecommunication (SWIFT) • Clearing House Interbank Payments System (CHIPS)
If we receive a wire with your valid account number before the processing cutoff time, we credit the funds to your account the same day.
Incoming wires deadlines
We accept incoming Fedwires until 4:00 p.m. Pacific Time and, incoming CHIPS wires until 3:00 p.m. Pacific Time, for same-day credit. We process incoming SWIFT transactions for sameday credit until 4:00 p.m. Pacific Time.
Wires formatted incorrectly or containing inaccurate information may post to your account the next day.
Outgoing wires
We process outgoing wire transfers on a straight through basis according to your instructions. We manually review, correct, and verify a wire that does not pass our initial screening and that our system cannot correct automatically.
Our wire system confirms your available funds automatically and verifies that wires are not going to a country or beneficiary on the U.S. Treasury’s Office of Foreign Assets Control (OFAC) Specially Designated Nationals Blocked Persons list. If a wire meets these requirements, we release it.
Initiation methods
Method
Online and mobile You can sign on to our online banking portal to initiate repetitive or free-form domestic and international wires. Using our mobile service, you can initiate repetitive wires.
Consolidated payables You can send one file with multiple payment types (including wires, ACH payments, credit card payments, and USD and CAD paper checks) and remittance information using our consolidated payables service. You can send a file directly from your treasury workstation or ERP, AP, or other internal system.
We accept most file formats and offer several file transmission protocols, as well as an option to upload your file online.
Telephone1 You can call a single toll-free number and provide an account number, PIN, and voiceprint. We validated these credentials through a voice response unit (VRU).
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 50
Method
In person2 You can go to any Wells Fargo branch to initiate a wire. You must have signing authority on the account to initiate the request.
Online FX You can manage your FX transactions and reporting with our online FX service. 3 We combine the advantages of our live market FX rates with the convenience of sending payments throughout the world over the internet.
SWIFT4 If your organization is a member of SWIFT, you can submit your wire payment instructions for processing using SWIFT FIN messages.
Wire Payments API For domestic and international transactions, you can initiate free-form or template wires (including book transfers) from your ERP, account platform, or payment system.
FX API You can book, validate and offset FX contracts, process wire settlement instructions, and receive FX rates and static rate sheets — transmitting requests directly to our FX system.
1. Book transfer initiation option is not available by telephone.
2. Book transfer initiation option is not available in person.
3. While our online system is available 24 hours a day, seven days a week, FX markets close 5:00 p.m. Pacific Time on Friday and reopen at 2:30 p.m. Pacific Time on Sunday.
4. SWIFT bills membership and volume fees.
Outgoing wires deadlines for U.S. accounts
The following table includes the opening times and cutoff times — by transfer type — for sameday execution of initiated wires on U.S. accounts. The same times apply for all of our wire initiation methods, including the internet, mobile service, file transmission, and telephone service.
Pacific Time
Wire type Opening time Cutoff time
Fedwire 5:00 a.m. 3:15 p.m.
CHIPS 5:00 a.m. 2:00 p.m.
Drawdown request 5:00 a.m. 2:30 p.m.
SWIFT 5:00 a.m. 2:30 p.m.
Request for Funds
Transfer (RFT)
5:00 a.m. 2:30 p.m.
U.S. Federal tax
payments
5:00 a.m. 2:00 p.m.
Within
Wells Fargo*
5:00 a.m. 5:00 p.m.
* Transactions within Wells Fargo are moving funds from one Wells Fargo account to another. You can originate these from all origination channels to all our available accounts.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 51
Security
We strongly recommend dual custody for initiating free-form wires and for creating or maintaining wire templates online. With dual custody, a second user provides approval of the freeform wire and wire templates before they’re effective.
If you choose to use single custody, we enroll you in our Secure Validation service. This service provides an added layer of security without requiring another user’s approval when completing free-form wire initiation or template maintenance. Each time you initiate a free-form wire or perform template maintenance, you select from a list of enrolled phone numbers. You receive a six-digit validation code that you enter online to complete your request.
Reporting for ACH and wire services
Our Treasury Information Reporting service provides comprehensive intraday and previous day reporting of ACH information. With our Alerts service, The City can select the criteria to receive notifications on:
• ACH received activity
• ACH return activity
• Incoming wires
• Outgoing wires
You can view reports and alerts online. Otherwise, you can receive them by email or transmission.
The City can view reports and alerts online or receive them by transmission. Additionally, our Secure Document Delivery service sends you an email with a link to ACH reports.
Online treasury information reporting
From our online banking portal and our mobile service,* the City receives reporting that includes transaction information listed in the following table.
* Download the latest version of our CEO Mobile app available for your device from the Apple App Store or Google Play.
ACH Wires
Company name
Company ID
Customer ID
Discretionary data
Entry class code
Entry description
Account name and number
Corresponding bank
Currency
Fed or SWIFT reference number
Internal reference or confirmation number
Processing date and time
Receiving and originating bank
Transaction status
Value date
Wire amount
Wire text
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 52
You can view, print, and download any report into your accounting, treasury workstation, or spreadsheet applications. Downloading and viewing options vary based on the report you choose.
Format options include:
BAI v2 CSV Excel HTML PDF
.
Email notification for ACH activity
With our Secure Document Delivery service, you can receive an email with a link to a report that notifies you when your ACH reject and ACH delete and reversal reporting is available. Click on a link in the email to retrieve your report easily.
Automated transmission file
You can receive an automated transmission file that
contains the same information available in our online wire reports. You can choose from two format options —
BAI V2 and ISO 20022.
Be informed every 15 minutes
Our daily transmission file contains previous day information; our intraday transmission file contains same day information, and you can receive as frequently as every 15 minutes.
We offer an additional transmission reporting option with our consolidated receivables service. It translates and consolidates wire payments and remittance information with other payment types, and reports this data for automated posting to your receivables system. You can choose from the following formats:
• ANSI 820 • BAI V2 • ISO 20022 • Standard flat
file
We also support most custom and proprietary formats.
Our online banking portal requires multiple levels of user authentication, which helps prevent unauthorized access. All online payment and administration services accessed on the portal further require two-factor authentication.
Company administrators can perform all administration functions. They can segment and assign access to account information. The following table compares the functions between the administrator for the online banking portal and the administrator for ACH services.
Function Online banking
portal administrator
ACH service
administrator
Create online banking user profiles Yes No
Determine service entitlements Yes No
Customize dual custody settings Yes No
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 53
Function Online banking
portal administrator
ACH service
administrator
Determine company-level guidelines for
your online services
Yes No
Create user IDs and passwords for ACH
Payments service
No Yes
Add, modify and delete user access for ACH
Payments service
No Yes
Control user access to ACH accounts and
services
No Yes
Set user access levels — including ACH
transaction limits — based on business need
No Yes*
Perform administrative functions through
online ACH services
No Yes
Add user entitlements, such as the ability to
create certain ACH payment types, ACH
templates, and ACH payments
No Yes
* ACH service administrators may only add account access, payment types, and ACH Company IDs within the ACH service.
Dual custody
For our online wire service, your company administrators manage security through our online administration service. We require dual custody for administrative tasks related to our online wire and foreign exchange services. You can choose to add dual custody to other online features such as user setup and password resets.
Within the online wire service, dual custody is required for initiating free-form wires and creating or maintaining wire templates on our online banking portal. Modifications made to a wire template by one user must be approved by a second (or more) user before they take effect. You can require up to four approvers to create or modify templates, or to release wires.
Administrator functions
Online administration service
Through our online administration service, your company administrators can:
• Set up and maintain user access to the online banking portal • Restrict user access to services, functions, and accounts for better control • Set up multiple users with similar access levels at the same time • Reset passwords
• Delete or disable former employees or employees who are on leave or vacation Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 54
Online wire service
Your company administrators also establish the following controls for online wire transfer service functions:
• Identify the accounts for which the user can initiate and approve wires or templates • Specify the individual and cumulative daily dollar limit for wire creation, type of wire (book transfer, drawdown, free-form, or repetitive templates), and type of approval (up to four levels of approval) for wires the user initiates
• Set the individual and cumulative daily dollar wire amounts the user can approve
4. Overdraft Protection: The Firm must provide overdraft protection. Provide a description of overdraft protection services available and any cost associated with the service.
We charge for both overdrafts and the use of UCF.
The standard interest rate is based on the prime lending rate +3%.
The formula for our UCF fee uses that interest rate basis as the overdraft rate, applying this formula:
(average daily negative collected balance × overdraft rate × days in period) ÷ (360) = UCF fee We can offset these fees (overdraft and uncollected funds) by the earnings credit allowance.
We do not charge for daylight overdrafts.
As mentioned earlier, the City can go through an approval process to establish a daylight overdraft facility that has not been reviewed as a condition of this RFP. If the City has a negative balance in the morning, your relationship team contacts the City’s staff to try in an attempt to make the account positive before the overdraft cut-off. Only collected funds may be used to pay items against an overdraft. Wires from LAIF or another collected source can be reviewed.
5. Tax Processing and Remittance: The Firm must accommodate the City's payment and reporting of payroll and other taxes.
Funds availability
One-day and two-day settlements put payments in your employees’ accounts on payday morning.
Same-day settlement puts payments in employees’ accounts local time by 1:30 p.m., 5:00 p.m., or the end of the receiving bank’s processing day. Your choice among three processing deadlines determines when receiving banks make funds available.*
* Following Nacha’s Same Day ACH Rule, we make settlement activity available to you by the end of the processing day on the same business day that we generate the settlement transaction for your originated debit entries.
WellsTAX Payments
Our WellsTAX Payments service allows the City to make federal, state, and local tax payments by touch-tone phone or through our online banking portal.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 55
Your user logs on to the banking portal with your Company ID, the user ID, and a password. To access our WellsTAX Payments service, your user enters:
• Your bank-provided access code and PIN*
• Tax code
• Due date
• Payment amount
* We link a unique WellsTAX access code and PIN to your designated Wells Fargo checking account and tax identification number. You can authorize access by user.
Confirmations
The online banking portal displays a payment confirmation page. If you access the service by touch-tone phone, your checking account statement serves as the receipt for payments. You can also choose to receive a confirmation by fax or mail.
ACH Payments
To access the online banking portal, your user logs on with your Company ID, the user ID, and a password. To initiate the ACH transaction, your user enters a PIN and one-time token code.
Selecting tax as the payment type, your user then follows these steps to create a payment:
1. Enter the effective date.
2. Select whether the payment is recurring.
3. Import or select the beneficiary information.
The City can consolidate payments to multiple tax authorities in one batch, as long as you originate them from the same account.
Confirmations
Within the service, the Pending Payments screen reflects a status of “scheduled” when payments are approved and ready to be processed. The Processed Payments screen reflects a status of “submitted” when the ACH system receives payments for processing.
You can also confirm the items you originate using our Treasury Information Reporting service, which is available through the online banking portal.
Mobile processing
If you use our mobile service to access the CEO ACH Payments service, you receive confirmation in two ways:
• Within the mobile screen — On the final confirmation step, users can choose to send themselves an email receipt that includes the details of the action just taken.† • By email — With our Alerts service, users can sign up for email or text message notifications for ACH payment events.
† Email receipts do not have an additional fee.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 56
Choose the option that fits your needs
Service
features
WellsTAX Payments CEO ACH Payments
Channels • Online
• Telephone
Online
Deadlines One business day prior to due date:
Federal payments: 3:30 p.m. PT
State payments: 4:00 p.m. PT
On-us same day*:
4:00 p.m. PT
Transit same-day†:
6:00 a.m., 10:00 a.m., and 12:00 p.m. PT
One and two day:
6:00 p.m. PT
Multiple payment
upload
Online only Yes
Ability to initiate
other ACH
payment types
No Yes
Ability to create
templates
No Yes
Warehouse
capabilities
30 days 45 days
Settlement options One day • Same day
• One day
• Two day
Dual control Optional (online only) Required
Reporting • Access to online tax payment
history up to two years
• Online quarterly activity
statement
• Same-day fax or next day mail
confirmations for phone
payments
• Same-day online payment
confirmations for online
payments
Standard payment reports (available for
30 days):
• ACH Payment Detail
• Beneficiary Detail
• Payment Audit
• Payment Summary
• Payment Template Audit
• Payment Template Detail
• Payment Template Summary
* Both the originating account and receiving account must be Wells Fargo accounts. The $100,000 transaction limit for Nacha’s Same Day Rule does not apply to on-us transactions. † Transactions more than $100,000 and IAT are not eligible. Funds from incoming credits are available by 5:00 p.m. local time.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 57
6. Balance Reporting: The Firm must have an electronic communication/file transmission system that allows the City to access data by 8:00 a.m. Pacific Standard Time, including previous day balance, collected balances, earnings allowance, and transaction information for each designated account.
Online and mobile information reporting
The City can access prior day information through our online reporting service, mobile service, and by transmission.
We update previous day information by 3:30 a.m. Pacific Time Tuesday through Friday and by 5:30 a.m. Pacific Time on Saturday.
If there is a service interruption, we update the system as soon as possible, typically within 15 minutes, post updates to describe the problem, and provide expected availability.
Our previous day reporting includes all transaction types that post to your account. The following table includes a description of our previous day reports and the information they provide. * For Money Market Mutual Fund Stagecoach Sweep® and Credit Sweep customers only. Investment products are not FDICinsured, are not deposits of or guaranteed by the bank, and may lose value. Deposit and credit products are offered by Wells Fargo Bank, N.A. Member FDIC.
Previous day reports With this report, you can:
ACH Customer Activity Access ACH settlement information and adjustment details, by account, as well as a summary of return activity, to help you make more informed account management decisions.
Express Balance Get a quick snapshot of your previous day account balance information, as well as your current available balance.
Loan Manager Receive a consolidated view of your asset-based loan activity, including summarization of operating account, collateral account, and loan activity.
Month-to-Date Balance View a daily summary of account balances, including averages, aggregate float, and total transactions posted to your account, for month to date, prior month, or a specific date range.
Previous Day Posting Status View report throughout the day to see if previous day information is available for your accounts. This report can include information for Wells Fargo accounts and accounts at other financial institutions.
Previous Day Composite Get a comprehensive view of previous day information, including balances, transaction summaries, and transaction details. You can also view images of checks.
Previous Day Return Item View details of paper returns after we charge them to your account. You can also view images of each returned item.
Sweep Account Position* Monitor your line of credit, view your investment position for the next day, see how sweep activity impacts your line of credit, and track dividend accruals.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 58
Transmission
Previous day BAI, SWIFT, and ISO 20022 XML files are available by 3:30 a.m. Pacific Time Tuesday through Friday and by 5:30 a.m. Pacific Time on Saturday, though the files are often available sooner. We are unable to notify you in advance if a scheduled download is unavailable. If a scheduled download does not occur, you can contact our Customer Care for Businesses Service Office for information and expected resolution time. Each file includes all balance, summary, and transaction details for each account.
Reconciliation reports and statements
Our reconciliation reports and statements allow you to reconcile your account with your internal accounting records. These reports may also help you detect and reduce check fraud on your accounts.
Available reports
Reconciliation reports and
statements
With this report you can:
ARP Statements and Optional
Reports1
ARP Off-Cycle Reports1
Access your ARP statements as well as 14 optional ARP reports, or choose only the data you want to see before you download your ARP statements and off-cycle optional reports in CSV or Excel format.
ARP File Posting Confirmation2 View a summary of your account reconciliation activity by date, including check issues, cancels, voids, and stop payment requests, releases, and renewals.
ARP Data Query Report3 Perform queries on your ARP account information and download the results in CSV or Excel.
DDA Cycled Statement4 View your electronic statement of checking activity the day after your statement cycle closes.
1. Standard storage is 13 months.
2. Standard storage is 45 calendar days.
3. Standard storage is 90 calendar days.
4. Standard storage is five cycles with a daily cutoff or three cycles with all other cutoffs.
Why Wells Fargo
Our information reporting features differentiate our service.
Report configuration and sharing options
Your users can have near real-time access to the information they need to make critical business decisions. Users can save up to 100 custom reports. To save time for all your users, you can share saved reports among similarly authorized users. Our service allows customers to share up to 200 reports at the company level, and each user can share up to 50 reports.
Configure reports,
share data, and
access your
information 24 hours
a day, seven days a
week.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 59
Data exchange
Our data exchange reporting service allows you to combine the information from your accounts at Wells Fargo and other banks for a complete look at your financial position. Incoming Data Exchange sends intraday or previous day account balance and transaction details to Wells Fargo from participating financial institutions worldwide.
Mobile access
When you need to view reports while you are on the go and away from your desk, we offer our mobile service* as an extension of our online banking portal. Through our mobile service, you can access the same reports that you access through our online banking portal. * Download the latest version of the CEO Mobile app available for your device from the Apple App Store or Google Play store.
Automated downloads
With our optional automated downloading service, you can reduce the amount of time you spend on routine tasks like report retrieval. Our service can generate reports at any time, or you can schedule them to run daily, weekly, or monthly, and have them automatically delivered to your printer, email, or system of record.
Optional alerts
Our optional Alerts service complements our information reporting service. If you subscribe to this service, you can receive critical information alerts by email and text about account activities, including:
• Controlled disbursement totals
• Incoming and outgoing wires
• Intraday balances
• Positive pay exception activity and unauthorized ACH transactions • Received and returned ACH activity
• Returned checks
Based on your preferences, we can notify you immediately, once every hour, once every two hours, once a day, or twice a day.
7. Account Reconcilement: The Firm must provide monthly reconcilement reports, bank statements, account analysis statements, confirmations and other report related features within a maximum of 3 working days after month end. The Firm must be able to provide various reports and statements in a computer media and also provide specialized reports as needed.
Your electronic analysis statement is available within one to three business days after we generate the billing period’s statement data.
The billing period cuts off the last calendar day of the month. It takes five days for our system to consolidate the month’s activity, then your statement is generated within one to three business days thereafter, per our service levels.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 60
The following table details report availability through our online information reporting service.
Previous day reports Availability (PT)
Express Balance Tuesday – Friday: 3:30 a.m.
Saturday: 5:30 a.m.
Month-to-Date Balance Tuesday – Friday: 3:30 a.m.
Saturday: 5:30 a.m.
Previous Day Posting Status Tuesday – Friday: 3:30 a.m.
Saturday: 5:30 a.m.
Previous Day Composite Tuesday – Friday: 3:30 a.m.
Saturday: 5:30 a.m.
Previous Day Returned Item
Detail
Tuesday – Friday: 3:30 a.m.
Saturday: 5:30 a.m.
Sweep Account Position Tuesday – Friday: 3:30 a.m.
Saturday: 5:30 a.m.
.
Intraday reports Availability (PT)
Controlled Disbursement Detail Monday – Friday: 6:00 a.m. and 7:30 a.m.
Controlled Disbursement
Summary
Monday – Friday: 5:30 a.m. and 7:00 a.m.
Deposit Detail Monday – Friday:
We update throughout the day, approximately four hours
after you submit your electronic deposit.
E-Box Monday – Friday:
We update throughout the day from 10:30 p.m. through
6:30 p.m.
EDI Payment Detail Monday – Friday:
Data is available at 5:30 a.m., 10:00 a.m., and 3:00 p.m.
Payments received after 2:00 p.m. will show on the report the next day.
Intraday Composite Monday – Friday:
We receive feeds from various systems throughout the day, from 10:30 p.m. through 6:30 p.m.
Intraday Position Monday – Friday:
We receive feeds from various systems throughout the day, from 10:30 p.m. through 6:30 p.m.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 61
Intraday reports Availability (PT)
Intraday Returned Item Detail Monday – Friday:
Intraday file: 3:30 a.m.
Updated intraday file: 4:00 p.m.
Lockbox Availability Monday – Friday:
Approximately two hours after your lockbox deposit
deadline(s).
Updates then occur every 15 minutes between the hours of 6:15 a.m. and 1:30 p.m.
We do not report lockbox deposits with a deadline after 1:30 p.m. on an intraday basis.
Lockbox Detail Monday – Friday:
Every 15 minutes from 6:15 a.m. to 1:30 p.m.
Wire Transfer Detail Monday – Friday:
Available in real time from 5:00 a.m. to 5:30 p.m.
.
ACH reports Availability (PT)
ACH Customer Activity Monday – Friday: 9:30 a.m.
ACH Origination 60 – 90 minutes after the ACH system creates the file.* ACH Receive Monday – Friday:
60 – 90 minutes after the ACH system processes the
transactions.
ACH Return/NOC Monday – Friday: 3:00 a.m., 11:00 a.m., 3:00 p.m., 7:00 p.m., and 11:00 p.m.†
* The ACH system runs 24 hours a day from 5:00 p.m. Sunday to end-of-day Friday. † We distribute reports up to five times a day. You can choose the distributions that best meet your needs.
Statements Availability (PT)
ARP statement and reports Monday – Friday: 6:00 a.m.
We generate statement and report data based on the cycle you select.
DDA Cycled Statement Monday – Friday: 3:30 a.m.
.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 62
8. Credit/Debit Card Processing: The Firm must provide an electronic system to accommodate credit/debit card authorizations and processing.
Please see the Appendix section of our response for information on credit card processing. We took the information from the Q & A response, but we will need additional details to complete a quote for all the City’s departments. Wells Fargo offers a wide variety of e-commerce solutions that the City may wish to consider.
Clover
Clover® is a cloud-based point of sale (POS) and business management system that uses integrated devices to help you simplify and centralize payment acceptance, customer engagement, and operations management.*
Its software platform lets you do more. It includes software that enables complex inventory and order management, and tighter integration between the front and back of house. * Clover solutions made available through Wells Fargo Merchant Services, L.L.C. come with Clover Payments software that allows you to take payments through a web browser, mobile app, or your Clover device. The cost of this software is included in the monthly service fee Wells Fargo Merchant Services charges each month per account. Clover Station products will not work with the Clover Payments software alone, and require a more advanced software plan. Upgraded software plans, including those for Clover Station products, require an additional monthly fee per device, and will be billed directly from Clover. All your devices must use the same software plan. Availability of certain software plans, applications, or functionality may vary based on your selected Clover equipment, software, or industry. All fees are subject to change.
Wells Fargo Merchant Services and Wells Fargo Bank, N.A. do not provide, and are not responsible for, third-party software or applications, including those offered by Clover. Clover software, applications, and other third-party applications that may be available through Clover or in the App Market are subject to the terms and conditions of the developer and may include additional fees subject to change at any time. Software and App Market application fees are disclosed in the Clover App Market or your Clover dashboard and are in addition to the fees listed within your Agreement with us.
The Clover name and logo are trademarks owned by Clover Network, Inc., an affiliate of First Data Merchant Services LLC, and registered or used in the U.S. and many foreign countries.
Clover devices are subject to availability.
Choose from multiple devices
You can choose from multiple devices that include touch screen functionality, real-time reporting, and access to more than 500 business apps*. The service’s software works seamlessly across all devices and peripherals, so you have flexibility to move, as your business demands, beyond the counter, into the aisles, and on the go. You can use more than one Clover device type and still receive integrated reporting for your transactions.
* Clover devices are subject to availability. Additional fees apply for usage of Clover apps from the Clover App Market. Please refer to the Clover App Market terms and conditions for details.
Compact countertop device
The Clover Mini provides the power of an integrated POS solution in a compact device. You have the functionality to accept payments, print receipts, and manage your business all in one device. It saves space and provides convenience with a built in chip card reader and printer. For expanded functionality, you can add a cash drawer or handheld scanner*. * Additional fees may apply for customizations. Please refer to the Appendix for pricing details.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 63
This small countertop device uses a broadband internet or mobile connection for authorization.
You can connect with a wired Ethernet supported with a DSL or cable modem, or using Wi-Fi supported with a wireless router. You can also use a wireless connection or 4G LTE connection through a cellular data plan.
Completely portable mobile device
Clover Flex is a portable solution used to accept payments in line, at the counter, or on the go.
This device uses wireless internet or mobile capability for authorization. You can use Wi-Fi supported with a wireless router.*
* Clover Flex with 4G LTE connection is subject to availability.
Card reader paired to your mobile device
With Clover Go, you can use your mobile phone or tablet to accept payments wherever you do business. You download an app to your iOS or Android device.
Then, with the use of one card reader, cardholders can dip or tap to pay. The card reader, which connects using Bluetooth, is EMV chip card enabled. The service can capture signatures for card transactions. In addition, you can record cash and check transactions for reporting purposes.
You connect using your device’s cellular data plan or Wi-Fi supported with a wireless router or hotspot.
Security and fraud protection tools
With all devices, encryption and tokenization help protect card data, while EMV chip card technology helps prevent in-person fraudulent transactions.
To help potentially reduce your PCI compliance scope, you can configure the Clover Station Solo, Clover Station Duo, Clover Mini, and Clover Flex devices to provide point-to-point encryption (P2PE) and PCI P2PE-certification at no additional cost.* * Because Clover Go uses a Bluetooth card reader linked to your own mobile device, the solution cannot be PCI P2PE-certified and you cannot accept PIN-debit transactions.
Customize the service with the apps you need
The Clover App Marketplace offers more than 500 apps and is continually growing*. This helps you customize the software to meet your business needs. You can tailor the service to include apps for managing inventory, employee scheduling and time cards, menus, sales tax management, and more.
* Additional fees apply for usage of Clover apps from the Clover App Market. Please refer to the Clover App Market terms and conditions for details.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 64
Accept a variety of payment types
You can potentially help increase sales and customer satisfaction by accepting a variety of payment types, including:
• Credit and signature-debit transactions
• PIN-debit transactions1,2
• EBT cash benefit cards2
• Gift cards2,3
• Mobile payments — Apple Pay, Google Pay, and Samsung Pay2,4 • Checks3
1. PIN-debit transactions are available with the Clover Station Duo, Clover Mini, and Clover Flex devices.
2. Not available with Clover Station Solo and Clover Go.
3. Not available with Clover Go.
4. Mobile payment products are trademarked by their respective owners.
Apple, the Apple logo, Apple Pay, Apple Watch, Face ID, iPad, iPad Pro, iPhone, iTunes, Mac, Safari, and Touch ID are trademarks of Apple Inc., registered in the U.S. and other countries. Apple Wallet is a trademark of Apple Inc. App Store is a service mark of Apple Inc.
Android, Chrome, Google Pay, Google Pixel, Google Play, Wear OS by Google, and the Google Logo are trademarks of Google LLC.
Samsung, Samsung Pay, Galaxy S (and other device names) and Samsung Knox are trademarks or registered trademarks of Samsung Electronics Co., Ltd.
Receive fast funds availability
If you deposit into a Wells Fargo commercial account1 for settlement, you’ll typically receive funds as soon as the next business day2 for Visa, Mastercard, and Discover Network transactions received before the established cutoff time 11:00 p.m. Pacific Time.
If you settle transactions for these cards to another financial institution, your funds are typically available in two business days.3
Funds availability for American Express transactions depends on the City’s contractual arrangements with the card issuer.
1. Deposit products offered by Wells Fargo Bank, N.A. Member FDIC.
Merchant services are provided by Wells Fargo Merchant Services, L.L.C. and Wells Fargo Bank, N.A. Merchant services are not deposit products. Wells Fargo Merchant Services, L.L.C. does not offer deposit products and its services are not guaranteed or insured by the FDIC or any other governmental agency.
2. Please refer to the Merchant Services Terms and Conditions and Operating Rules or Program Guide for additional information.
3. For ACH deposits, projected funding may vary. The actual time could be longer depending on the financial institution’s status with the Federal Reserve.
9. Emergency Preparedness and Disaster Recovery: The Firm must have a fully developed disaster recovery plan, including remote sites for currency acquisition and recovery of record.
Our recovery procedures consist of multiple strategies for each business, function, product, and service. If a disruption occurs, we attempt to restore and maintain normal service levels as soon as possible.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 65
Our core recovery procedures are consistent for a wide variety of system failures or disasters.
However, components of our plan may vary based on the nature of an event. Below, we identify the areas most commonly affected and describe our general approach to each.
Critical functions
After a disruption, we prioritize restoring and maintaining normal service levels for our critical functions. We have teams on call 24 hours a day, seven days a week, ready to respond disruptions.
Components of our recovery plans vary based on the potential business disruption, such as a loss of facility, loss of technology, or significant reduction to our staff. For example, we’ve dispersed our data and operation centers strategically across multiple locations to minimize potential disruption within a specific geographic region.
Data centers
We engage our technology teams quickly when we detect a disruption at a primary data center.
Our technology teams assess the situation and determine next steps based on the nature of the disruption. If we need to shift processing to an alternate data center, we can because we maintain redundant platforms for our business critical services. All alternate sites have sufficient capacity to maintain processing for an extended period.
In most situations, we can restore service at a primary data center for critical services within 12 hours.*
* This zero to 12 hour goal does not guarantee that certain events will not affect Wells Fargo systems or that we will achieve specific recovery times in the event of a disruption.
Operation centers
If a disruption occurs at one of our primary operation centers, we use an identified backup site to take over day-to-day processing and support. We use our backup site until the primary site returns to normal conditions.
Program elements specific to treasury management
In addition to our enterprise recovery program elements, we’ve incorporated the following elements into our business continuity resiliency plans for our treasury management services.
Communication
Notification methods to inform you of a service disruption include:
• Recorded messages from our Customer Care for Businesses Service Office advising the City about system issues when you contact us through our toll-free number • System status alerts displayed on the homepage of our online banking portal The method we use to communicate with you depends on the nature of a disruption.
If a disruption prevents you from accessing your information, your relationship team can help.
They have access to bank systems and can provide the account information, balances, and other data you need to continue operating.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 66
10. Conversion Plan: The Firm must provide for a smooth transition. The Firm must also provide on-site training to City personnel for the operation and use of the Firm's services and automated systems.
Our implementation team is able to assist in real time virtually, and also can provide additional group training sessions. Your relationship manager, Jamie O’Connell, also can assist in-person if the City is comfortable with in-person visits. Wells Fargo is offering a $5,000 conversion allowance to be used in the first 12 months of transition. This can be applied to account analysis fees, set-up fees for new services you would like to implement, or any Wells Fargo-related fees that are applied to analysis as you transition. (Merchant services-related feeds are excluded.) Transition
We assign an implementation consultant to oversee the implementation, help ensure the services will operate correctly, and help your staff develop confidence in your new services from the very first day. They will work with you and manage the entire implementation process. They will be your single point-of-contact throughout the implementation and will help determine timelines and responsibilities. The implementation team will partner with your staff to develop the implementation schedule and document the process from kickoff to go-live. Regular communication will help develop the partnership that is required to achieve a smooth transition to your services.
In addition, your dedicated relationship, sales, and service teams will engage throughout the implementation process.
Together, we’ll discuss the process, set expectations, and document any potential issues that the team may encounter during the transition. In addition, we’ll conduct follow-up meetings as necessary.
Training
We provide several complimentary virtual training options so on-site training is usually not necessary.
During implementation, we’ll work with you to determine your training needs. Based on your needs, we can create a customized plan that consists of a variety of solutions. We offer training for your administrators and users. In the following paragraphs, we describe the training options available to you.
Online learning resources
Training for services provided through our online banking portal is available to the City during all phases of your implementation. You will also have access to these tools on an ongoing basis once implementation is completed. Training includes on-demand modules and a variety of self-paced learning tools.
On-demand modules
We provide on-demand training modules that are available through our online banking portal 24 hours a day, seven days a week. This approach offers greater flexibility so that your users can train when it is most convenient for them.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 67
Self-paced learning tools
If you prefer to learn at your own pace, we offer the following resources:
• User guides — Provide an overview of your services, along with detailed information about your services
• Quick reference guides — Offer you at-a-glance information about specific tasks related to your services
• Online demo tool — Allows you to become familiar with and practice navigating our online banking portal
Training with your implementation consultant
Your implementation consultant can provide additional training, as needed, and will supplement online learning solutions so you receive full training support.
Additionally, we are able to assist in real time virtually, and can also provide additional training sessions in groups. Your relationship manager, Jamie O’Connell, can also assist in-person if the City is comfortable with in-person visits.
Post-implementation training
After your implementation is complete, you can call or email our Customer Care for Businesses Service Office, which can help you and your staff with questions about your new banking services.
Our representatives are available Monday through Friday from 4:00 a.m. to 7:00 p.m. Pacific Time and Saturday from 6:00 a.m. to 12:30 p.m. Pacific Time.
Initial new merchant training
Once the setup is complete, your eReceivables consultant, Todd Reed, can provide you with phone numbers you can call to arrange any training required.
Standalone terminal
Once you receive your devices, we recommend you call our Wells Fargo Activation Group for training and tips.
Ongoing training
Our service center is available to help you any questions, including those related to processing, pricing, product, and enhancement questions. You can contact the service center as often as you need. If you have additional training needs, the service center will coordinate training for you.
There are no costs associated with ongoing training through our service center.
Industry rule and regulatory changes
To help you stay informed, we send emails and letters providing timely updates about card network rules and regulations.
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 68
Implementation
Banking services implementation schedules
Your implementation consultant collaborates with you and your staff to develop the schedule and document the process we will follow. A sample schedule for our product implementation follows.
While the sample schedule shows many crucial tasks, it is not comprehensive. After we meet with you to discuss your needs, we’ll customize it.
The implementation lead time represents the length of time it takes to make the service available to the City once:
• Your relationship team completes all required know your customer due diligence processes*
• Your implementation consultant gathers all necessary information from you and our internal sources needed to implement your services
• The City completes the required agreements and returns them to Wells Fargo * Due diligence processes can take up to 30 days to complete.
We provide a sample implementation schedule for treasury management services in the Appendix section of our response.
Merchant card services implementation
To successfully implement your merchant services, several important tasks need to take place in a timely manner. Prior to implementation, we’ll create a plan customized for the City. Without detailed information, we can only provide an overview of the steps and responsibilities in the merchant implementation process.
Wells Fargo steps and responsibilities
Pre-implementation phase
During strategic discovery discussions, your eReceivables consultant, Todd Reed, will work with you to identify the solutions and setup that best address your goals and pain points. Todd will document your requirements based on discussions that include topics, such as the following:
• Product features
• Payment types
• Number of merchant IDs (MIDs)
• Reporting and reconciliation
• Risk appetite and PCI
• Integration options
• ERP interface
• Fraud management tools
Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 69
Before conducting a warm handoff to Darcy Stull, your implementation project manager, Todd will complete the following steps:
• Finalize your solution requirements
• Complete documentation and request your signature
• Set up your MIDs (if needed)
Implementation phase
Darcy will guide you through the implementation process and serve as your main point of contact.
She will:
• Guide you through the gateway activation process
• Assist in configuring your solution features
• Incoming and outgoing file development and delivery channel Training
Darcy will coordinate training based on your new merchant solution.
Start date and monitoring
You and Darcy will establish a go-live date for your new services. We will monitor your account for the first 30 days to help confirm transactions are processing correctly.
Interchange optimization
To help you achieve cost-effective processing, your implementation project manager sends a request to our interchange analysts who will review your transaction clearing. Based on this this review, Darcy will recommend adjustments you can make to help clear transactions at optimal rates.
Statement review
Upon receipt of your first monthly merchant account statement Darcy will conduct a statement review.
Transition to ongoing support
Darcy will also introduce you to your ongoing support team.
Your steps and responsibilities
The quality and quantity of information you provide is crucial to the success of your implementation. Based on this information, our sales and implementation teams develop a customized implementation process and timeline. We’ll depend on you before and during the implementation process to do the following:
• Provide detailed information needed to complete the implementation as requested • Provide resources, such as technical and financial staff, as well as decision-makers • Understand and share your reporting and reconciliation requirements • Partner with Darcy to coordinate your setup, training, test transactions, and go-live date Item Number: 10.
Wells Fargo Treasury Management
City of Desert Hot Springs | 70
Timeframes
We provide a sample implementation schedule for merchant services solutions in the Appendix section of our response.
11. Data Equipment Compatibility: The City is interested in equipment and data compatibility and therefore request the specifications needed for an automated wire transfer, ACH debit and credit, credit card, balance reporting and any other automated system be included in this proposal. Any cost associated with the automated data and equipment should be identified on the bid.
Online reporting
Our online reporting service is internet based and operates within a web browser through our online banking portal. The system requires a web browser that supports 256-bit Secure Hash Algorithm (SHA) encryption. No proprietary software is required.
Hardware requirements are specific to the operating system and browser you are using and specific services such as Autolink and Desktop Deposit.
We support all operating systems that meet our current browser and plug-in requirements, as listed in the following table.
Systems requirements
Supported operating
systems
• Windows 10
• macOS High Sierra 10.13
• macOS Mojave 10.14
Supported browsers • Google Chrome
• Microsoft Edge
• Mozilla Firefox (only on Windows)
• Safari (only on Mac)
Browser plug-ins and
settings
• Adobe Reader 7 (for viewing reports)
• Adobe Flash Player 7 (for viewing tutorials)
• JavaScript-enabled
• Session cookies enabled
• XHR-enabled
User level • Administrative rights to the computer where Autolink will be installed
* System requirements are subject to change and may vary among online applications. For the most current requirements, go to wellsfargo.com/ceosystemrequirements.
Support for other operating systems and browsers
While our services may work with older versions of the operating systems and browsers listed in the previous table, we do not formally support them.
Item Number: 10.