Bulletin

Date: December 27, 2010

Time: 11:00 a.m. Pacific Time
To: All Customers
Subject: New Settlement Option, 1031 Drawdown

JHA Payment Processing Solutions (PPS) has enhanced its settlement system by adding a third option for daily
settlement. The new option allows us to process your daily Visa and MasterCard funds settlement via any Federal
Reserve account you choose. This method is called a 1031 drawdown.

A 1031 drawdown is an automated request for funds via the Federal Reserve, which is used to expedite the wiring
of funds between our settlement account and your financial institution’s account. We initiate the funds transfer by
making the 1031 drawdown request to your account. The receiving account must then respond with a 1032 to
move the funds before our settlement deadline of 10:30 a.m. Pacific Time. 

This new option was added to accommodate requests to process outside of a corporate account through U.S.
Central’s Automated Settlement System or by a manual direct wire. We have also had requests to support the
settlement of funds via ACH. Unfortunately, this is not possible. ACH requires a file to be transmitted to the Fed a
day prior to receiving funds. We receive totals from Visa and MasterCard the same day they require funds
returned. Since PPS does not require you to keep funds on deposit for settlement we cannot meet settlement
deadlines without a wire process.  

There is no fee to process daily settlement via a 1031 drawdown. If you would like to participate in this settlement
option, please contact the Implementations Department at 1-800-881-7488 or
PPSImplementations@jackhenry.com.

Contact
If you have any questions, please contact Customer Support at 1-800-881-7488.

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