Small Business Remote Deposit Service Manual

Small Business Banking

REMOTE DEPOSIT

TABLE OF CONTENTS

TABLE OF CONTENTS

Service Overview .................................................................................................................................... 3 The Remote Deposit Process....................................................................................................................................... 3 Using a Desktop Scanner .............................................................................................................................................. 3 Deposits ........................................................................................................................................................................... 3 Check Processing............................................................................................................................................................ 4 Deadlines ......................................................................................................................................................................... 4 Internal Controls ............................................................................................................................................................ 5 Service Review ................................................................................................................................................................ 5 Reporting Options.......................................................................................................................................................... 5 Authorized Users of Remote Deposit ........................................................................................................................ 5 User Documentation ..................................................................................................................................................... 6 Required Equipment ..................................................................................................................................................... 6 Hardware and Software requirements ..................................................................................................................... 6 Pricing ............................................................................................................................................................................... 7 Returned Items ............................................................................................................................................................... 7 Deposit Limits ................................................................................................................................................................. 7 Termination ..................................................................................................................................................................... 7 Customer Service ........................................................................................................................................................... 8

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Commerce Bank

Rev 02/2013

Remote Deposit

Service Manual

Service Overview Commerce Banks Small Business Remote Deposit service provides the ability to make check deposits from the convenience of a companys own office/location and integrate with financial accounting software. Using a desktop scanner, the check image and transaction data are collected and transmitted directly to Commerce Bank, providing extended cut-off times for end-of-day processing. Checks are processed and deposited electronically as checks. With Remote Deposit from Commerce Bank, your company can benefit from: Flexibility in your collection strategy. Improved funds availability. Reduced time and expenses associated with making trips to the bank. Improved timeliness and accuracy of posting and financial reporting through automation of the posting process.

The Remote Deposit Process Implementing the Commerce Bank Remote Deposit Service requires the installation and use of a Webbased application, a desktop scanner as well as an Internet connection to transmit check images and related check information. Companys instructions and the information Commerce Bank needs to implement the Service are defined and detailed in the Small Business Remote Deposit Service Agreement and the Getting Started Guide. Using a Desktop Scanner Company will use a desktop scanner and a Web-based application to scan, verify and prepare check transactions for deposit. Once scanning is complete, check amounts are verified, entries to receivables and cash are made through the accounting software (if applicable), and batches are balanced and transmitted securely to a Host system where they are decisioned and properly formatted for processing as a check. All checks submitted for deposit must be payable in U.S. $ currency (USD). Company may verify each days deposit amounts and transaction details, and has the capability to view and download on-line transaction reports. Check images are also made available for Company to view on-line. Deposits Checks will be deposited into the Account designated by the Company. Commerce Bank prepares deposit files at the end of each business day which include deposits successfully transmitted by Company before 7:00 p.m. CT. Each deposit file must not exceed 50 items. Commerce will not be responsible for failure to deposit funds contained in deposits files of more than 50 items. Company may submit multiple deposit files, as necessary. Company is responsible for applying an endorsement on deposited checks as appropriate. Please refer to the Commerce Bank Deposit Agreement (provided to you when your checking account was opened) for Company responsibilities regarding the endorsement of items submitted for deposit. Please Note: Paid in Full or other restrictive endorsements marked on the back of a check will not be reviewed by Commerce Bank. Commerce Bank will not be liable to Company for losses it suffers based Page 3 of 8 Commerce Bank Rev 02/2013

Remote Deposit upon checks bearing such notations.

Service Manual

Commerce Bank shall not be responsible or liable if any of the associated transaction information is incorrect or inaccurate, or in the event that associated transaction information is unable to be processed for any reason beyond the control of Commerce Bank. Commerce Bank will attempt to contact Company promptly upon discovery of rejected files and provide instruction for resolution. Company may be asked to re-scan and re-transmit rejected transactions or present the original item at a Commerce Bank branch location. Commerce Bank will provide to Company a periodic account statement. Company must promptly review each advice of deposit and account statement and notify Commerce Bank of any error, dispute, difference of account for any reason, or other irregularity. Company must notify Commerce Bank of any such error promptly, and in no event later than 30 days after the statement was received or otherwise made available to Company. (Company will be deemed to have received the statement five (5) business days after its date absent proof of an earlier or later actual delivery date.) Refer to the Commerce Bank Deposit Agreement for additional information regarding prompt review of account documents and notice to Commerce Bank. Check Processing Items deposited through Commerce Banks Remote Deposit service as paper items are truncated into an electronic format for digital image processing, or, if needed, as substitute checks. A substitute check is a specific formatted paper reproduction document of the digital image check and legal equivalent of the original check. With the Remote Deposit service, the original check is image captured and truncated by Company and presented through Commerce Banks forward collection process to the paying bank. Refer to the Commerce Bank Remote Deposit Service Agreement for additional information concerning the requirements, legal equivalency, as well as the associated warranties of Company with check truncation. Deadlines The End-of-Day deadline for delivery of transaction files for deposit is 7:00 p.m. (CT) every banking business day. Deposit files completely and successfully transmitted by 7:00 p.m. (CT) will be processed by Commerce Bank that business day, are credited to the Company account that evening, and are reflected in the available balance the next business day. Deposit files can be transmitted for deposit anytime throughout the day, however, deposit transmissions received after the end-of-day deadline will be processed the next banking business day. Commerce may limit funds availability on checks deposited via the Remote Deposit System in any manner allowed by applicable law or deposit agreement if the original check had been deposited with Commerce. On-Line Image Access The front and back of check images scanned and processed for deposit are available to view in the remote deposit system. Images are available throughout the day as items are transmitted for deposit. A history of check images will be retained on-line for (2) years. Page 4 of 8 Commerce Bank Rev 02/2013

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Daily transaction detail and summary reports (See the Remote Deposit User Guide) are available to view and download on-line. CD-ROM delivery can be made available to maintain a long-term archive of deposited check images. Please note an additional charge will apply for this service. Internal Controls Since Company retains the original checks scanned and transmitted for deposit; Company is responsible for the appropriate and timely destruction (shredding or other similar method) and disposal of such items. The Remote Deposit Service Agreement requires destruction of original checks no later than sixty (60) days from Companys receipt of the account statement indicating deposit of the check in question. Currently there is not a defined retention period for retaining original items processed through Remote Deposit; however Commerce Bank suggests retaining an original item at least until Company has verified proper settlement has been received of such items. Company should verify proper deposit of items by reviewing its deposit account statement or its deposit activity through Small Business Online Banking. For the protection of the interests of Commerce Bank, Company, and Companys customers, it is critical for Company to implement and document proper internal security procedures preventing the potential misuse of, redeposit of, or unauthorized access to the original checks received by Company and equipment used for the service. Controls concerning training users on the service and protection of passwords are functions that need to be understood and implemented by Company prior to the use of the application. Company warrants to Commerce Bank that it will take no action that will result in payment being requested based upon a check that has already been paid. Service Review To verify Companys compliance with the security measures suggested in this Service Manual, Commerce Bank may perform an onsite review and inspection of Compa nys documentation and internal operations. Reporting Options The Remote Deposit Web-based application can generate reports based on Company-defined criteria. Details of how to generate these reports are available in the User Guide that was provided to Company when the Remote Deposit service was activated. For those using Accounting Software integration with QuickBooks, reporting is also available through the accounting software application. Authorized Users of Remote Deposit After the Service Agreement has been signed and returned to Commerce Bank; Commerce Bank will send to the Remote Deposit Administrator a username (via email) and a password (via the United States Postal Service). Company Administrators must have permission to access customer information and movement of funds. Administrators are responsible for keeping their usernames and passwords confidential these should not be shared with anyone. Page 5 of 8 Commerce Bank Rev 02/2013

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User Documentation User documentation, including a Getting Started Guide, will be provided by Commerce Bank after Company has been approved for the Remote Deposit service. Adobe Reader is required to open and print the documentation. The Adobe Reader can be downloaded free at www.adobe.com. Required Equipment Within five (5) business days after the Service Agreement has been signed and returned to Commerce Bank, Company will receive a desktop scanner for the Remote Deposit service. A certified scanner must be used with the Small Business Remote Deposit service. Company is responsible for keeping the scanner in a secure location and allowing only authorized users to access the scanner and the Remote Deposit application. Instructions to download the remote deposit software via the Internet are included in the Getting Started Guide and will be provided by Commerce Bank to Company. Company is responsible for making available a personal computer with the following minimum system configuration (subject to change without notice): Hardware and Software requirements Windows XP

Processor Speed: 500 MHz P3 Processor RAM: 256 MB of system memory Hard Disk Space: 50 MB free space Web Browser: Internet Explorer 6.0-8.0 Windows: Windows XP (Service Pack 3) or above USB: 2.0 DSL or better internet access preferred

For Remote Deposit Accounts Receivable only: QuickBooks 2008-2012 Professional and Premier Editions Peachtree 2010 Complete Windows Vista Business or Ultimate Editions: Processor: 1 GHz 32-bit or 64-bitProcessor RAM: 2 GB of system memory Hard Disk Space: 200 MB free space Web Browser: Internet Explorer 8.0 or above Windows: Windows Vista Business or Ultimate USB: 2.0 DSL or better internet access preferred

For Remote Deposit Accounts Receivable only: QuickBooks 2008 - 2012 Professional and Premier Editions Peachtree 2010 Complete Page 6 of 8 Commerce Bank Rev 02/2013

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Windows 7: Processor: 1.6 GHz 32-bit or 64-bit Processor RAM: 2 GB of system memory Hard Disk Space: 200 MB free space Web Browser: Internet Explorer 8.0 or above USB: 2.0 DSL or better internet access preferred

For Remote Deposit Accounts Receivable only: QuickBooks 2010 2012 Professional and Premier Editions Peachtree 2010 Complete Mac O/S is not compatible with Commerce Banks Remote Deposit, and we do not support the use of any emulators. Pricing Small Business Options Checking Scanner (CX30) Monthly Fee Per Item Fee Additional Accounts FREE FREE FREE $10 per additional account All Other Business Checking (Non-Analyzed) FREE $50 FREE 2 included in the monthly fee, $10 per additional account thereafter.

Returned Items The Remote Deposit system will not notify the Company of any returned items. Commerce Bank will mail any returned items to the Company via United States Postal Service. The items must be redeposited at a Commerce Bank branch.

Deposit Limits Commerce Banks Remote Deposit has deposit limits as follows: $25,000 per item $200,000 total per Company per rolling 20 Business Days

Commerce Bank reserves the right to change these limits. If you have questions about deposit limits, please contact your Commerce Bank relationship manager. Termination Upon termination or closure, Company must remove and cease to use all software installed for this service. Any unpaid equipment installed for this service is to be returned to Commerce Bank. Commerce Page 7 of 8 Commerce Bank Rev 02/2013

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Bank has the right to debit customers accounts if the equipment is not returned within 30 days after the termination of the service. All usernames and passwords will be removed for on-line viewing capabilities, and transaction communications will be terminated. Customer Service If Company has questions regarding Commerce Banks Remote De posit Services, please call Small Business Remote Deposit Customer Service at 1-866-365-9346. Knowledgeable and helpful professionals are available from 7:00 a.m. to 7:00 p.m. (CT), Monday Friday.

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Commerce Bank

Rev 02/2013