DeluxeCard Programs and The Credit CARD Act Impact

1. Presented by: Deluxe Corporation, The Bancorp Bank, and FIS Global May 20, 2010 DeluxeCard Programs and The Credit CARD Act Impact 1

2. Your Panel For Today’s Discussion Cindy Mattson Vice President of Prepaid Implementations FIS Global Paul Landry Senior Vice President The Bancorp Bank Deb Rodgers Senior Product Manager -DeluxeCard Becky Frederick Regulatory Compliance Therese Jerrard Senior Training Specialist 2

3. Our Trusted Partners 3

4. What We’ll Share With You Today What’s at Stake? Protecting Fee Income for Financial Institutions Regulatory Changes Becky Frederick, Esq. Regulatory Compliance Paul Landry, Senior Vice President, The Bancorp Bank Cindy Mattson, Vice President of Prepaid Implementations, FIS Global DeluxeCard Compliance Prepaid Card Program Let’s Get Started! 4

5. Credit CARD Act & Regulation Changes Overview Interview with Becky Frederick, Paul Landry and Cindy Mattson This presentation is provided for informational purposes only with the understanding that Deluxe Corporation, FIS Global and The Bancorp Bank are not rendering legal advice and that this presentation is not to be used as a substitute for legal counsel. 5

6. Key Dates & Background Credit CARD Act of 2009 Prepaid Card provisions affect expiration dates and restrict ability to charge certain types of fees. Signed into law Federal Reserve issues final rules for gift cards Law takes effect May 22nd, 2009 Mar. 23nd, 2010 Aug. 22nd, 2010 Jan. 12th, 2010 Federal Reserve issues final rules for credit cards 6

7. What Do The New Rules Cover? • Cardholder fees • – Cannot charge inactivity, dormancy or service fee until 12 months of inactivity • – Can only charge one fee per month • – Fees must be properly disclosed • Expiration – cards & funds • Cards must have five years remaining life at time of sale • Funds cannot expire less than five years from time of sale • Disclosure requirements • New disclosures available to purchaser prior to sale • New disclosures on the card • Fee disclosures available via toll-free number 7 7

8. Which Programs Are Affected? All Open Loop General Purpose Prepaid Programs Gift Cards Loyalty, Promo, Award Reloadable Prepaid (not marketed as gift) IN SCOPE IN SCOPE OUT OF SCOPE Included – all provisions apply New disclosure rules apply Excluded – no provisions apply For all gift cards issued on or after August 22nd, 2010 8 8

9. Service Fee Changes No service fee can be charged unless there has been at least 12 months of no activity on the gift card Deluxe currently charges a monthly service fee of $2.50 commencing in 7th month and will implement this change for gift cards issued on or after August 22, 2010 • Cannot charge more than one fee per month 9

10. Expiration Date Rules • Systemic controls that require a minimum 5-year life meets standard • Stocking cards on shelf with 5 1/2 years remaining life meets standard • Safe Harbor rule for cards created with 7-year life (Sec. 205. 20(e)(3)(iii)) 10 10

11. DeluxeCard Fee Compliance • FIS Inactivity Fee meets compliance requirements • Monthly fee • DeluxeCard has configured the minimum number of months of inactivity • Activity based on financial transactions, excluding cardholder fees • DeluxeCard has reviewed Final Rules carefully to determine what fees can be assessed • DeluxeCard has reviewed policy for foreign currency transactions 11 11

12. Expiration Date Changes All expiration dates must be at least five years after the date the gift card is issued DeluxeCard Visa Gift Cards currently expire two years after the date the gift card is issued Gift cards issued on or after August 22, 2010, DeluxeCard Visa Gift Cards will expire seven years after the gift card is issued Expiration date must be disclosed on the face of the Gift Card DeluxeCard Visa Gift Cards currently disclosure the expiration month and year on the face of the gift card 12

13. DeluxeCard Expiration Date Compliance • New, longer card expiration dates • DeluxeCard has configured the number of months for card expiration • Network rules are being modified to allow the longer required expiration dates 13 13

14. DeluxeCard Expiration Date Compliance • Provide consumers with a reasonable opportunity to purchase a card with a minimum of 5 years remaining life • 7 year expiration of DeluxeCard Visa Gift Cards gives financial institutions 2 years of additional shelf-life • Stocking cards on shelf with 5 ½ years remaining life (minimum) • Meets Safe Harbor rule Polling question: What promotions are you considering to deplete your existing gift card stock? a. Moms, Dads and Grads Promotion b. Employee recognition c. Email capture incentives d. Online banking enrollment incentives e. E Statement enrollment incentives f. All of the above 14 14

15. Disclosure Changes All fees must be disclosed on the back of the gift card Deluxe has opted for the 7 year expiration date Expiration date must be disclosed on the face of the gift card These changes require new card stock Bancorp needs a record of destruction of existing card stock 15

16. DeluxeCard Disclosure Compliance • In-Branch • DeluxeCard will design packaging and/or other materials to address pre-sale disclosure requirements • On-Card Disclosures • DeluxeCard will include the required disclosures on new card designs • Telephone Disclosures • DeluxeCard will continue to provide a toll-free phone number on the card • FIS CSRs will provide fee information via the CMSe application 16 16

17. Compliance Support • Financial institutions will take advantage of grandfathering cards sold prior to August 22nd, 2010 • To create compliant programs, DeluxeCard will modify BIN extension configurations for cardholder fees and expiration dates • To create compliant cards, DeluxeCard will modify card package • components to incorporate new disclosure requirements on the • cards, on packaging and for new cardholder terms & conditions 17 17

18. Compliance Resources • www.deluxe.com/dcprogram • Terms and conditions, card handling instructions, and compliance overview will be posted • Inventory log matrix will be available for download 18 18

19. Next Steps • Deplete existing inventory • Order new cards (late June) • Complete form to log obsolete cards • Provide Bancorp Bank with log of obsolete cards • Destroy any old cards, carriers & cardholder agreements on August 22nd, 2010 19 19

20. DeluxeCard® Prepaid Visa® Card Program The final rule affects only our DeluxeCard® Visa® Gift Card Program and not our DeluxeCard Prepaid Visa Card Program As long as the reloadable prepaid card is not marketed as a gift card, changes to gift cards are not required for the prepaid card program 20

21. Financial Institutions that currently pay ATM and one-time debit transactions could realize a 40-60% decrease in NSF fee income due to Reg E The DeluxeCard® Prepaid Visa® Card can help FIs generate fee income and reach new customers to meet your target Grow Revenue and Reach New Customers Polling question: What has your financial institution considered to generate additional fee income? a. Expansion of gift card program b. Adding reloadable card program c. Pursuit of opt-ins for Reg E d. Adding identity theft solution e. Other f. All of the above 21

22. Increase fee income Reach new customers Expand financial institution product suite Complete turnkey reloadable program No annual administration fees Free financial institution support Free personalized marketing tools Value to You 22

23. Budget-friendly Easy to manage Easy to re-load Less risky than cash Controlled means to provide funds Several Reasons Consumers Value Reloadable Cards 23

24. Targeting Customers College students Seniors on a budget Bridal budget Potential customers that don’t qualify for a traditional account 24

25. Flexible Convenient Loading Money Management Safer Easier $5,000 Maximum Load Reloadable Card Features 25

26. Setup Fee = $600 Card Fee = $2.60 Most FIs charge $4.95-$7.95 per card FIs can charge $2.95-$4.95 to reload card Minimum card order is 50 cards One card design Card is adhered on UltraForm and comes with Card Holder Agreement in #10 Envelope Card Details – Financial Institution 26

27. Card Details – Consumer Experience Customer does not pass CIP screen Bancorp Bank sends letter to customer to obtain necessary info Customer Identification Process screen is batched and sent to The Bancorp Bank Customer passes CIP screen and personalized card is created and mailed to the customer The Bancorp Bank receives updated information Customer receives personalized card and activates via IVR or website Customer does not pass CIP screen. Customer keeps instant issue card Card expires after two years Instant Issue card is deactivated Customer purchases instant issue card at financial institution branch 27

28. Card Details – Consumer Card Fees 28

29. Maximum load value = $5,000 Maximum spent on a Card per day = $2,500 Minimum initial value load = $20.00 Direct Deposit form to fund card from employer or other account Card Details – Consumer Purchase 29

30. Card Details – Consumer Reloads Minimum value reload = $1.00 Maximum value reload = $950 cash reloading OR $5,000 via direct deposit Maximum reloads per day = two (2) Add value or load Card via direct deposit retail load networks (Green Dot®, MoneyGram®and Visa ReadyLink®) and at bank branch Funds may be added to a Card (“value loading”) at any time 30

31. Financial Institution required to integrate into existing BSA/AML policy May require Board of Directors approval Compliance Overview and FAQs available Compliance 31

32. Prepaid Card Gift Card Sales Process Allow time to discuss compliance requirements; may need board approval Shorter lead time due to less compliance complexity Reloadable Yes No Cost per card to the FI $2.60 $2.60 Co-branding available Yes Yes Card Carrier In Envelope Yes Minimum Order Quantity 50 50 Setup Time 4 Weeks for FIs on Gift Card; 6-8 Weeks for new FIs 6-8 Weeks Web based Platform CMSe CMSe User ID and Password Same as Gift Card Same as Prepaid 32

33. Training and Marketing Materials • Same web portal as gift cards: • www.deluxe.com/dcprogram • Training Modules • Marketing Materials 33

34. Program Implementation of 6-8 Weeks Execution of Letter of Participation (LOP) Completion of paperwork in FI Executive Kit Set-up form, Visa application, Agent Marketing and Distribution Agreement, Visa Member Applicant Risk Review Survey, Self audit checklist, Send in logo for co-branding Enter into Implementation Wave and Receive Card Management Access (CMSe) Training of Tellers Order Marketing Materials Access to Reporting Portal 34

35. Exit Poll • 1. On a scale of 1-5, how prepared are you for the Credit CARD Act and final rule changes to your customers? • 4 – Very Prepared • 3 – Almost there • 2 – Somewhat • 1 – Not Very • 3. Are you interested in learning more about the DeluxeCard Prepaid Visa Card Program? • Yes • Not at this time • 2. How did you hear about this session: • E-mail invite • Postcard invite • Call from Deluxe • Association • Forwarded to me by colleague • Other 35

36. Additional Resources DeluxeCard Visa Gift Card Program Compliance Overview DeluxeCard Visa Gift Card Program Compliance FAQs DeluxeCard Prepaid Visa Card Program Compliance Overview DeluxeCard Prepaid Visa Card Program Compliance FAQs Visit www.mydeluxecard.com Submit outstanding questions – will respond electronically 36

37. Thank You for joining the web seminar. We look forward to working with you on this and other marketing initiatives. A recorded copy of this web seminar will be posted on www.deluxe.com/deluxecard in one week. 37