JACK HENRY & ASSOCIATES INC (JKHY) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that JACK HENRY & ASSOCIATES INC surfaced in its latest filing.

• Processes debit card, credit card, electronic bill payment, ACH, real-time payments through Zelle, RTP, and FedNow, and check clearing transactions.
• Ongoing supervision and examination by the Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Consumer Financial Protection Bureau.
• The GENIUS Act brings increased oversight and compliance obligations for crypto assets, stablecoins, and digital currencies.
• Subject to compliance rules of Visa, MasterCard, Zelle, FedNow, and The Clearing House's RTP network.
• Obligations under Payment Card Industry Data Security Standards including cybersecurity standards and audits.
• We are a party to client contracts that generally run for six years, with a significant number coming up for renewal each year; renegotiations have resulted in price compression.
• We have agreed to indemnify many of our clients against claims that our products and services infringe on the proprietary rights of others.
• We have experienced phishing attacks, social engineering attempts, and other cybersecurity incidents targeting our associates, clients, and systems.
• Our current credit facilities bear interest at variable rates, exposing us to interest rate risk.