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ProfitStars' iPay integrates NACHA's Bill Payment Exception program

Thursday, February 05, 2015 — 10:00:37 (EST)

Monett, Mo., Feb. 5, 2015 -- Jack Henry & Associates, Inc. (NASDAQ:JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Its ProfitStars® division today announced that iPay Solutions™ is offering payments with the NACHA Bill Payment Exception (BPE) Mitigation Opt-In Program. NACHA — The Electronic Payments Association®, developed the program to improve the reliability of online banking bill pay and reduce checks issued in association with bill pay exceptions. The result will improve efficiency both for billers and bill pay originators.

The majority of bill payments made through a bank or credit union are processed electronically and without issue. However, there are instances (typically when customers provide incorrect information) when the process does not flow smoothly. Previously in these cases, the bill pay provider would default to sending a paper check payment, or "drop to check," because electronic routing was reserved for payments with valid account numbers. When billers determined the correct information needed to post a flawed payment, they did not have a means to update the bank or credit union's bill pay provider since the payment had not been delivered electronically.

NACHA's program allows iPay Solutions to electronically send payments with flawed account numbers over the ACH Network to participating billers, eliminating the paper cycle and improving overall efficiencies. iPay Solutions will "tag" these payments, providing billers with additional information (such as the customer's name and address) with which they can correct the account number and proceed with the electronic process. Once the biller determines the correct information, they can electronically update iPay so that future payments do not require research.

Tede Forman, group president of iPay Solutions, explained, "This program corrects the current process of delayed, misdirected and wrongly posted payments. The benefits encountered from eliminating redundant corrections and a laborious paper trail will improve business for billers and address a point of customer frustration. This is one of the many ways that iPay Solutions is working with industry leaders like NACHA to continue to improve the payments industry."

NACHA estimates that bill pay exceptions cost the industry nearly $800 million per year. Robert Unger, senior director, eBilling and payments, NACHA, commented, "iPay's participation in the BPE Mitigation Opt-In Program is an opportunity for billers and financial institutions to solve a growing business problem. As electronic bill pay adoption continues to increase, we are dedicated to improving the processes. We expect this new set of standards to greatly reduce exceptions to bill pay, saving millions of dollars. As a result, billers and processors will be equipped to manage the increasing volumes with ease and efficiency. At NACHA, we hope other providers and billers will follow iPay's lead to help the consumer."

About NACHA Since 1974, NACHA — The Electronic Payments Association has served as trustee of the ACH Network, managing the development, administration and rules for the payment network that universally connects all 12,000 financial institutions in the U.S. The Network, which moves money and information directly from one bank account to another, supports more than 90 percent of the total value of all electronic payments in the U.S. Through its collaborative, self-governing model, education, and inclusive engagement of ACH Network participants, NACHA facilitates the expansion and diversification of electronic payments, supporting Direct Deposit and Direct Payment via ACH transactions, including ACH credit and debit payments, recurring and one-time payments; government, consumer and business transactions; international payments, and payments plus payment-related information. Through NACHA's expertise and leadership, the ACH Network is now one of the largest, safest, and most reliable systems in the world, creating value and enabling innovation for all participants. Additional information is available at nacha.org .

About ProfitStars As a diverse, global division of Jack Henry & Associates, Inc.® (JHA), ProfitStars® combines JHA's solid technology background with the latest breakthroughs in six performance-boosting solution groups - Financial Performance, Imaging, Payment Solutions, Information Security & Risk Management, Retail Delivery, and Online & Mobile. Explore the power of ProfitStars-enhanced performance at www.profitstars.com .

About Jack Henry & Associates, Inc. Jack Henry & Associates, Inc.® (NASDAQ: JKHY) is a leading provider of computer systems and electronic payment solutions primarily for financial services organizations. Its technology solutions serve more than 11,300 customers nationwide, and are marketed and supported through three primary brands. Jack Henry Banking® supports banks ranging from community banks to multi-billion dollar institutions with information processing solutions. Symitar® is the leading provider of information processing solutions for credit unions of all sizes. ProfitStars® provides best-of-breed solutions that enhance the performance of domestic and international financial institutions of all asset sizes and charters using any core processing system, as well as diverse corporate entities. Additional information is available at www.jackhenry.com .

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Source: Company press release.