Becoming an NCP: The Value of NCP Certification and Information on the NCP Program

1. Becoming an NCP The Value of NCP Certification And Information on the NCP Program

2. Disclaimer This session provides an overview of various aspects of the check payments systems including legal and rules framework for check image exchange. Responsibility for compliance with image exchange rules and/or legal, operational and regulatory requirements applicable to check image exchange remains at all times with the financial institution participating in check image exchange and/or the individual or company using a check image exchange service. This presentation and the information contained herein is not intended as legal or compliance advice or recommendation to any person or company. This document could include technical inaccuracies or typographical errors and individual users are responsible for verifying any information found in this presentation. Financial institutions should consult with their legal counsel regarding legal and operational requirements applicable to any check image exchange program they may offer or in which they participate.

3. Agenda • Benefits NCPIndustry Certification • Background of NCP • Exam Details • Training and Study Information • Continuing Education • Importance of Certification

4. Benefits of NCP Certification • Provides a valuable learning experience • Supports a continuing education process • Delivers proven expertise that auditors appreciate • Demonstrates expertise to customers • Improves products & services for customers • Provides recognition • Improves FIs’ support of the payment system

5. Candidates for NCP • 2+ years related experience • Commitment to studying and really learning the subject matter • Interested in becoming an expert

6. What is an NCP? • National Check Professional (NCP) • Person with proven expertise in all aspects of the check payment system including: • Rules and regulations • Operations • Fraud and risk mitigation • Check products

7. Background of NCP • Why NCP? • So many changes in last few years • So much to know • Security of the payment system • Customers deserve the best • Partners brought the idea to ECCHO • Pilot in November 2011 • Fifth test window just wrapping up • 519 NCPs; Over 1,000 have registered for NCP

8. Preparing for Certification • Must study to pass the exam, regardless of experience • Amount of time depends on your: • Expertise and tenure • Breadth of experience • Familiarity – looking up versus knowing answer • Ability to take tests • Need to study more/less than others • Suggest 60+ hours study time or however long it takes to know the material and be able to apply it to story problems/business scenarios

9. NCP References Regulation CC (Reg CC) - Availability of Funds and Collection of CheckUniform Commercial Code (UCC) Article 3Uniform Commercial Code (UCC) Article 4Universal Companion Document - UCD Federal Reserve Operating CircularECCHOTM RulesFFIEC - Supervisory Guidance for Remote Deposit CaptureFFIEC: Authentication in an Internet Banking Environment FFIEC: Supplement to Authentication in an Internet Banking Environment FFIEC: Information SecurityFFIEC: Retail Payment SystemsFinCEN Advisory–FIN-2012-A010 Regulation E (Reg E) - Electronic Fund TransfersRegulation J (Reg J) - Collection of Checks and Other Items by Federal Reserve Treasury Securities & ProgramsBank Secrecy Act/Anti-Money Laundering (BSA/AML)

10. NCP Exam Content Blueprint 34% - Rules, Laws, and Regulations Demonstrate working knowledge of Reg CC, Reg J, UCC Articles 3 & 4, ECCHO Rules, Fed OC3 and sections of NACHA Rules and Regulation E. Eligible itemsMICR line repairWarrantiesIndemnificationsError resolution, returns, adjustmentsImperfect/Non-imageable itemsIndorsementsPresentmentRepresentmentDisclosuresFunds availabilityBank settlement & finality

11. NCP Exam Content Blueprint 33% - Check Operations Demonstrate a comprehensive understanding of all aspects of check operations and key standards. Item processingFile controlException handlingRetention, retrieval, and destruction Account StatementsCheck conversionANSI Standards

12. NCP Exam Content Blueprint 25% - Fraud and Risk Mitigation Demonstrate knowledge required to identify fraud and mitigate risk associated with check products and services and to comply with the regulatory requirements, including the UCC Articles 3 and 4, BSA/AML, and FFIEC guidance. Key provisions of laws, regulations and guidanceDefinitions of types of fraud and riskAllocation of riskConsumer, bank, and commercial agreementsRisks associated with RDC and RCCsRisk mitigation techniquesData security and data breach Business continuity/disaster recovery

13. NCP Exam Content Blueprint 8% - Products Demonstrate a basic knowledge of the types, benefits, and purpose of correspondent, commercial and consumer products. Types of checks                 Check conversion                  Account reconciliation products   Positive PayControlled disbursementLockbox Image cash letterRemote deposit captureFloatStatementsImage retrievalOnline and mobile banking

14. NCP Exam • 120 questions, multiple choice • 20 Pilot questions • Not scored • Not determined until Editorial Board meets • Many scenario-based questions • Must apply your knowledge • Fact based questions • 3 hours to take the exam • Pass/fail score received via email in June • Email contains bar charts for each section • NCP certificate and NCP pin by mail • ½ price special to retake exam

15. NCP Exam Prep Training Course 11 Sessions plus review(s)—typically webinars: Check Fundamentals and Check Processing Regulations - Uniform Commercial CodeRegulations - Regulation CCStandards and FormatsImage Exchange: Rules and Agreements - Part IImage Exchange: Rules and Agreements - Part IIImage Exchange: ProcessesExceptions - Returns and AdjustmentsCheck ProductsFraud, Risk, and Risk Mitigation - Part IFraud, Risk, and Risk Mitigation - Part IIExam Review Session(s)

16. NCP Training Partners • EastPay • EPCOR • MACHA • NEACH • PaymentsFirst • Southern Financial Exchange • SWACHA • The Clearing House • The Payments Authority • UMACHA • WACHA • WesPay

17. ECCHO Study Aids • Free When Register for the Exam: • NCP Roadmap • PREP Guide • Question of the Day • JumpStart Reading Program • Links to Check References • 3 Pre-recorded webinars (register by Dec 15th) • NCP Guide handbook and program (optional participation) For more info on ECCHO study aids contact Jenny Johnson at jjohnson@eccho.org or 770.452.0961

18. NCPStudy Aids • NCP exam prep training course • Check training options • ECCHO website (www.eccho.org/ncpc) • EPCOR’s Check 101 Flash Cards • Coming soon: NEACH’s online testing tool

19. Study Suggestions • Start early • Sign up for exam prep training class • Don’t multi-task • Turn off emails and phones • Ask questions • Read all suggested materials • Highlight important points • Re-write/restate important points • Make notebooks • Buy/make flashcards and review often • Study with others

20. Testing Information

21. Exam Info • Annual NCP exam cycle • Next exam window: April 16 – May 7, 2016 • Testing at PSI Centers around the US • Exam Fees • $400/person – ECCHO members • $500/person – Non-members • Find out if you’re an ECCHO member http://www.eccho.org/memberships and key in bank/credit union name in Search Members • Online registration process at www.eccho.org/ncpc

22. NCP Continuing Education • Accreditation for 5 years • Continuing Education Requirements • 50 credit hours in 5 years (cycle a little over 5 years) • Three 90-minute ECCHO workshop webinars • Max of 30 credits each year

23. NCP is Important • Critical for payments to be accurate and exceptions processed correctly to avoid risk • There are so many things to know in check: • Did you know that no regulation governs the exchange of check images? Two sets of rules? • Do you know which bank you should return a duplicate to? Do you know which warranty applies to duplicates? • Are you comfortable with handling exceptions? • Do you know where to find the answers? • To help you become a check expert

24. Value of NCP – Knowledge is Power • It’s good for the payments industry • Security and accuracy • It’s good for your organization • Reduced risk—tangible examples reported • Respected by auditors • Appreciated by customers • It’s good for you • Be recognized for your expertise • Be knowledgeable—getting learning opportunity • Advance your career

25. But Don’t Take Our Word for it…

26. NCP Testimonial “I have been in Check Processing for 20 years and within three months of receiving my NCP Certification I was promoted to Vice President. It makes me proud to be recognized as a check professional. I have updated procedures and  bank policies to make sure the process is following the rules and regulations. I am now doing all the training/updates within my bank to all employee’s concerning Check/Image Rules and ACH.  If you are up to the challenge and are ready to take it to the next level--Become an NCP!”Brenda Truett, NCPVice PresidentRedding Bank of Commerce

27. NCP Testimonial “I’ve been in the financial services industry for nearly 22 years and it’s astonishing how much the payments industry has changed since the introduction of Check 21. The NCP program has been a great way to broaden my business acumen on a variety of topics and trends and keep me abreast of industry rules and regulations as well as fraud and risk mitigation. I really enjoyed the learning experience and have already recommended it to my peers!” Bev Federico, NCP, Sr. Ops Manager, Bank of America

28. NCP Testimonial “As a compliance professional, studying for the NCP prepared me not only for the exam but provided me with excellent materials and information that I continue to use today. I would suggest this certification to anyone who has an interest in developing a greater understanding of check payment systems.” Charla Tompkins, NCCO, AAP, NCP Navy Federal Credit Union

29. Next Steps • Register early for the exam • To get study aids • To begin study program early www.eccho.org/ncpc

30. Thanks for Your Time • For More Info: Jenny Johnson, NCP, ECCHO jjohnson@eccho.org or 770.452.0961