Terms & Conditions

Southern Michigan Bank & Trust
Bill Payment Disclosure & Agreement

This Business Bill Payment & Payroll Service Agreement and Disclosure (the “Agreement”) explains the terms and conditions under which Southern Michigan Bank & Trust’s (“SMB&T”) On-Line Bill Payment & Payroll Services (“Services”) are provided.

Section 1 – Definition of Terms
As used in this Agreement, the terms:
o “our” refer to Southern Michigan Bank & Trust’s (SMB&T) headquartered in Coldwater,
Michigan.
o “you” and “your” refer to the person(s) named as applicants on the application or
enrollment form for the Services, l or whoever actually uses the Services.
o “Business Day” means Monday through Friday, excluding Saturday and Sunday and
any Federal Reserve holidays.
o “Payee” means the person, business or entity to which you wish a bill payment to be
directed.
o “Payment Instruction” means the information provided by you to SMB&T for a bill
payment to be made to the Payee (such as, but not limited to, Payee name, Payee
account number and the Payment processing date.)
o “Process Date” is the date that a scheduled payment is to be issued for a particular
payee, assuming that the payment has been properly scheduled before the Cutoff
Time for that day.
o “Cutoff Time” means 4pm Eastern Standard Time (EST) on any Business Day and is
the time by which you must transmit Payment Instructions in order to have then
considered entered on that particular Business Day.

These terms are in addition to the terms and conditions included in the SMB&T’s initial account agreement and disclosures, the Internet Banking Agreement and Disclosure as well as any other agreements or disclosures you have been provided governing the banking products and services you may have with SMB&T, collectively referred to as “Bank Documents”. These “Bank Documents” may have been, and may continue to be, modified from time to time. Your initial and ongoing use of SMB&T’s Bill Payment & Payroll Services constitutes your acceptance and agreement to be bound by all of the terms and conditions of this Agreement and any other Bank Documents related to its use. You also agree that SMB&T may provide future notices and disclosures to you electronically.

Section 2 – General Services
The Services covered by this Agreement are those that SMB&T makes available to you through Business Bill Pay, products of iPay Technologies and Internet Banking, a product of Fiserv. You may use SMB&T’s bill paying service, Business Bill Pay, to direct SMB&T to make payments from your designated checking account at SMB&T to the Payees you choose in accordance with this agreement. The installation, maintenance, operation and use of the computer related equipment (for example, modem, telephone and other telecommunications equipment) and software you use for bill payment are your responsibility. SMB&T will not be responsible for any liability, loss, injury, or damage (whether direct, indirect, special, consequential or punitive) in any way arising out of (a) any failure or malfunction of or a compromise of data sent to SMB&T using any telephone, internet access or other service you use to connect to SMB&T’s website at www.smb-t.com (b) any virus or similar problem resulting from the use of the SMB&T website or Business Bill Pay website, or (c) any error in the installation, maintenance, operation or use, or any configuration problem or incompatibility, of such computer, related equipment or software.

SMB&T strongly recommends review of security procedures along with continuing employee education on the prevention of key logger and phishing attempts.

Section 3 – Bill Payment Services
Following your approval for use of SMB&T’s Business Bill Payment or Payroll Service, you may use the service to make one-time or recurring payments, for variable or fixed amounts, to third parties which are included on your payee list. The payee of any payment to be made from your account and ordered through the service (i) must be located in the United States, (ii) cannot be listed on the Office of Foreign Assets and Controls (OFAC) SDN list. You are responsible for ensuring the accuracy of the information on your payee list. Any changes to the payee list must be made at least 2 business days prior to the process date of any pending and/or future payments. Southern Michigan Bank & Trust reserves the right to refuse the designation of a Payee for any reason.

Any payment from your checking account made through Business Bill Pay will be made by either a check or an electronic transfer of funds to the payee. The remittance (i.e. payer’s) name shown for each payment will be the name pertaining to the person or entity whose Bill Pay login was used at the time of the issuance of that transaction’s Payment Instructions unless otherwise instructed by you. Electronic Bill Payment transactions will be deducted from your account on the Process Date you specify, provided the payment is submitted prior to the daily cut-off time on that date regardless if sufficient funds are available. SMB&T reserves the right to return and charge for any transactions, whether electronic or paper, that results in a Non-Sufficient Funds (NSF) item. Each item, whether returned or paid will be subject to NSF fees in accordance with the fee schedule that is in effect at the time of the NSF occurrence.

If the payment is to be paid electronically, you understand and agree that the payee may not receive the payment until 1 to 4 business days after the date the payment is processed. Bill Payment & Payroll transactions paid by check will not be deducted from your account on the Process Date you specify. Instead these types of transactions will use the Process Date you specify to issue and mail a check drawn on your checking account with SMB&T. It will be your responsibility to insure that there are sufficient funds available in your account when the check or electronic payment is subsequently presented for payment. You understand and agree that paper checks are mailed to the payee, the payee may therefore not receive the payments until approximately 1 to 8 business days after the date the payment is processed.

o Single Payments
A single payment will be processed on the business day (except for Federal
Holidays) that you designate as the payment’s process date, provided the
payment is submitted prior to the daily cut-off time on that date.
o Recurring Payments
When a recurring payment is processed, it is automatically rescheduled by the
system based upon your selected frequency settings for the payment. A process
date is calculated for the next occurrence of the payment. If the calculated
process date is a non-business date, it is adjusted based upon the following rules:
o Pay Before Option – The process date for the new occurrence of the
payment is adjusted to the first business date PRIOR to the calculated
process date.
o Pay After Option – The process date for the new occurrence of the
payment is adjusted to the first business date AFTER the calculated
process date.
Note: If your frequency settings for the recurring payment are set to the 29th, 30th or 31st as a particular day of the month for processing and that day does not exist in the month of the calculated process date, then the LAST calendar day of that month is used as the calculated process date.

You must make your payment request and select a payment date with enough time in advance so that your payment will be delivered by its due date. The daily cut-off time, which is controlled by SMB&T, is 4 pm EST. Payments submitted after the cut-off time on the designated process date will be processed on the following business day. SMB&T reserves the right to change the cut-off time at any time. SMB&T is not responsible for any late payments or fees you may incur due to late submission of your payment request or failure to be received by the payee you designate.

Regardless of whether a payment is made electronically or by check, you understand and agree that SMB&T is not responsible for the timely delivery of mail or the improper transmission or handling of payments by a third-party, such as but not limited to, the failure of the payment payee to post a payment in a proper or timely manner to your account. SMB&T shall incur no liability if SMB&T is unable to complete any payment requests initiated by you through our Bill Payment or Payroll Service due to but not limited to any of the following: 1) if, through no fault of SMB&T, your bill payment deposit account does not contain sufficient funds to complete the transaction when payment is due; 2) the bill payment and/or Internet Banking services are not working properly, and you have been advised by SMB&T about the problem before you attempt to execute the transaction; 3) the Payee mishandles or delays a payment sent by SMB&T; 4) you have provided SMB&T with incorrect or incomplete Payee information and/or Payment Instructions, or with inaccurate or incomplete personal or account information at the time of application for the Services; or 5) circumstances beyond our control prevent the proper execution of the transaction (such as, but not limited to: fire, flood or interference from an outside force.

Any bill or payroll payment can be changed or canceled, provided you access the Business Bill Pay Service prior to the cut-off time on the business day the payment is to be initiated. You agree to have available and collected funds on deposit in the account you designate in amounts sufficient to pay for all payments requested, as well as any other payment obligations you have to SMB&T. SMB&T reserves the right, without liability, to reject or reverse a payment if you fail to comply with this requirement or any other terms of this agreement. If you do not have sufficient funds in the account and SMB&T has not exercised its right to reverse or reject a bill payment, you agree to pay for such payment obligations on demand. You further agree SMB&T at its option, may charge any of your accounts with SMB&T to cover such payment obligations.

Section 4 – Bill Payment & Payroll Service Limitations/Provisions
The following limitations apply to transactions ordered through Business Bill Pay: a) no payment from an account can be ordered through the service if you do not have an unrestricted right to withdraw funds from the account (for example, if 2 or more persons are required to sign a check written on the account or withdrawal form from the account); b) any payment from your bill payment account ordered through Business Bill Pay will be subject to the funds being available for withdrawal from the account when the electronic payment is processed or the paper check is presented for payment against the account. Notwithstanding anything to the contrary, failure to maintain adequate available funds may result in the cancellation of any or all of your Internet Banking and/or Business Bill Pay Services.; c) if, when any order to SMB&T to make a payment from any of your deposit accounts given through the service is to be charged against the account, the amount of the payment exceeds the amount of money available for withdrawal from the account SMB&T can either (i) authorize payment to be made, in which case you will be liable for the excess, or (ii) refuse to authorize the payment. In either case, you will be liable for any fee applicable to the withdrawal or attempted withdrawal of money from the account, even if that fee is in excess of the amount of money available for withdrawal from the account.; d) payments from your account ordered through Bill Payment may be subject to minimum and maximum amount limits that SMB&T may establish for bill payment transactions.

SMB&T, for reasons of security or other reasons determined by SMB&T, at any time and without giving any notice can: a) refuse to honor any order made to SMB&T to make a payment from your account requested through Bill Payment. For example, SMB&T can do so if for reasons of security, believe that it is advisable to limit the dollar amount or frequency of payments from your bill payment account ordered through Bill Payment.; b) refuse to honor any order to SMB&T given through Business Bill Pay if the order reasonably appears to SMB&T to be a duplication of another payment, fraudulent or erroneous. However, SMB&T has no obligation to determine, before honoring an order given through Business Bill Pay, whether the order is duplication, fraudulent or erroneous. You will be responsible for any request you make that contains an error or is a duplicate of another payment; c) change the cut-off time with a 10 day notice before a change is made.

Section 5 – Setup, Modification or Cancellation of a Bill or Payroll Payment
To modify or cancel a payment that you have scheduled and is still pending, you must edit or delete the payment before the cut-off time on the date the payment is scheduled to process. You can accomplish this from the “Scheduled Payments” screen. In order to determine if a certain payment can still be modified or canceled after it has been issued or mailed, you must speak with a Customer Service Representative as soon as possible at (866) 370-9435. In most instances, changes or stop payment requests will be handled in accordance with IPay Technologies and/or SMB&T’s procedures and guidelines for processing such requests.

Section 6 – Customer Support
Although e-mail services are available for SMB&T customers, SMB&T strongly recommends that LiveChat option within the Bill Payment Service be used whenever possible. E-mail should only be used for general communications. In order to best meet your urgent needs for time-sensitive information pertaining to transactions, transfers from your accounts or stop payment requests, please contact our IPay Technologies Customer Support at (866) 370-9435. Telephone calls placed or received outside the hours of 7:00am to 7:00pm CST Monday through Friday or on Federal Holidays or other non-business days, will be handled as soon as possible on the following Business Day.

Section 7 – Enrollment
Enrollment for the Business Bill Payment or Payroll Service must be done through the SMB&T website via the Cash Management Bill Pay Link. All enrollments for Business Bill Pay or Payroll Services are submitted for approval to the Operations department prior to the initial login. You will be contacted via email when the approval has been made for your business application. Business Bill Pay can be accessed and kept active without an active Internet Banking or Cash Management login. Businesses may select additional “users” to submit payments on behalf of the company. Original User ID and Personal Identification Number (PIN) for the business is created by SMB&T. SMB&T will make every effort to accommodate the businesses preferences to the user information. Business Bill Pay is accessed through SMB&T’s website at www.smb-t.com and clicking on the “Cash Management Business Bill Pay Login” link.

Section 8 – Fees
SMB&T’s Business Bill Payment & Payroll Services are offered at an additional cost.

Business Bill Payment Service Only

o Monthly Fee $5.95
o Personalized Training is available at an additional cost. Training includes payee setup,
payments and subuser management. Contact your Financial Institution for details.

Business Bill Payment with Payroll Service

o Fees vary and are contingent upon proposal provided by the eServices Representative.


With prior notification to you, iPay Technologies, LLC has the right to charge for the following fees:
$10.00 per standard proof of payment delivered to Payee and not necessitated by dispute.
$7.50 per cancellation of each request for payment BEFORE disbursement after the business day Cut-off time.
$5.00 per payment returned due to customer error.
(There will be NO CHARGE for any item if needed to correct a SMB&T error.)
$10.00 ACH return item fee.
$15.00 per letter mailed Express Mail.
$10.00 per letter to recipient of payment.

SMB&T reserves the right to charge you for research time involving payments no longer available in your screen history. You will be informed of any such charges before they are incurred. With prior notification to you, SMB&T has the right to charge for the following fees in addition to fees that may have been assessed by iPay Technologies:

$32.00 per stop payment requests for bill payments sent via check. (requested via telephone)
$25.00 per stop payment requests for bill payments sent via check if requested within Internet Banking.
$2.00 per account activity printout
$3.00 per check image printout (first three per month are free)
$32.00 per non-sufficient funds item posted to account
Any other fees disclosed with your account opening disclosures that may apply.

Accordingly, you agree to be responsible for paying any fees associated with the use of Internet Banking and Bill Payment or Payroll Services, as well as any additional fees that may be assessed by your Internet Service Provider (ISP). In addition, you are responsible for any telephone charges or fees incurred by accessing Internet Banking and/or Business Bill Pay Services. Fees imposed by SMB&T will show on your monthly bank statement.

Section 9 – Transaction Authorization
SMB&T is entitled to act on instructions received through Internet Banking and Business Bill Pay service under your Access ID/User ID and Password/PIN and without inquiring into the identity of the person using that information. DO NOT DISCLOSE YOUR PASSWORD/PIN under any circumstance to anyone, either by telephone or other means, including anyone claiming to represent the Bank or a bank-related agency or entity. You are liable for all transactions made or authorized using your password/PIN. If you give your password/PIN to anyone, you do so at your own risk. Anyone to whom you give your Internet Banking password/PIN or other means of access will have full access to your accounts, including access to your Bill Payment functionality, even if you attempt to limit that person’s authority. You must notify the Bank to disable your password/PIN if you become aware that your password/PIN or other access information has been lost, stolen or otherwise compromised and that it should not be honored.

You are liable for all transactions that you (or if you are using a joint account, any of you) make or authorize, even if a person you authorized exceeds your authority. You hereby release SMB&T from any liability and agree not to make any claim or bring any action against SMB&T for honoring or allowing any actions or transactions where you have authorized the person performing the action or transaction to use your account(s) and/or you have given your password/PIN to such person, or in the case of a jointly held account, such person is one of the owners of the account. You agree to indemnify SMB&T and hold it harmless from and against any and all liability, including but not limited to reasonable attorney fees arising from any such claims or actions.

SMB&T is not responsible for a bill or payroll payment(s) that is not made if you did not properly follow the instructions to make a payment. SMB&T is not liable for any failure to make a bill or payroll payment if you fail to promptly notify SMB&T after you learn that you have not received credit from a Payee for a bill payment. SMB&T is not responsible for your acts or omissions or those of any other person, including, without limitation, any transmission or communication facility, and no such party shall be deemed to be SMB&T’s agent. In any event, SMB&T will not be liable for any special, consequential, incidental, or punitive losses, damages, or expenses in connection with this Agreement or the Service, even if SMB&T has knowledge of the possibility of them. SMB&T is not liable for any act, failure to act or delay in acting if it is caused, in whole or in part by any cause beyond SMB&T‘s reasonable control.

Section 10 – Agreement Modification/Termination
SMB&T reserves the right to suspend or terminate services at our discretion, in whole or in part, at any time without prior notice. SMB&T also has the right to modify the terms of this agreement and related fees at any time, including termination of this agreement. SMB&T will comply with any notice requirements under applicable laws for such changes or termination. If SMB&T modifies this Agreement, your continued use of our Internet Banking Services and Business Bill Pay or Payroll Services will constitute your acceptance of such changes in each instance. If SMB&T terminates this agreement, no further payment transfers or payments will be made, including but not limited to any payments or transfers scheduled in advance or any preauthorized recurring payments or transfers. You may terminate this Agreement by written notice to SMB&T. SMB&T is not responsible for any fixed payment made before SMB&T has a reasonable opportunity to act on your termination notice. You remain obligated for any payments made by SMB&T on your behalf.

Section 11– More Information
More information on your rights and responsibilities regarding Electronic Fund Transfers (EFT) can be found on the copy of the Electronic Fund Transfers disclosure that was provided to you at the time of, or subsequent to, your deposit account opening. If you would like another copy of that disclosure, please contact a Customer Service Representative or your local branch.