NetSpend 2010 Annual Report Download - page 10

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Table of Contents
that participates in the MasterCard, Visa or PULSE network and withdraw funds at participating ATMs.
Funds may be loaded onto the GPR cards we market through our retail distributors and our direct-to-consumer and online marketing
programs by:
• a cardholder reloading his or her GPR card at a retail location within our distribution and reload network;
• direct deposit of wages, government benefits or tax refunds;
• a cardholder from his or her bank debit card through our online banking portal; or
• electronic transfer by a third party.
The GPR cards we market through corporate employers are promoted to their employees as an alternative method of wage payment and
are designed to be compliant with state wage and hour laws governing payroll cards. Similar to the GPR cards we market through our retail
distributors, cardholders may load their wages onto our employer-marketed GPR cards through direct deposit. Although our employer-
marketed GPR cards currently may not be reloaded through our reload network, they may be reloaded at all MoneyGram agent locations.
Additional Products and Services
We provide a feature rich suite of products and services to our cardholders, including direct deposit, overdraft protection through our
issuing banks, complimentary insurance coverage, and a variety of bill payment options. Our cardholders also have the ability to transfer funds
to other cardholders and deposit a portion of their funds into an interest-bearing savings account linked to their GPR cards. We also provide
certain cardholders with a "cushion" which allows them to overdraw their card accounts without a fee. Our website allows our cardholders to
access their account information and effectively manage their budgets through our personal finance management tools. Our interactive voice
response systems also provide account information and allow cardholders to activate their accounts and perform a range of transaction
activities such as card-to-card transfers of funds. We also provide our cardholders with a text message service that automatically sends balance
and transaction information to enrolled cardholders' mobile phones, and also allows them to interact with their account by sending text
messages to NetSpend. We believe we were the first prepaid debit card provider to provide text message services to cardholders.
In addition to GPR cards, we were also a provider of gift cards. Beginning in 2008, we decided to focus primarily on our GPR cards, and
ceased marketing gift cards entirely as of August 21, 2010.
Distribution
We have built distribution and reload network throughout the U.S. comprised of diverse categories of retailers, corporate employers and
our own direct-to-consumer and online marketing programs.
Retail Distribution
As of December 31, 2010, we marketed our GPR cards through approximately 750 retail distributors at over 39,000 locations in the U.S.
The majority of our agreements with our retail distributors require our retail distributors to exclusively market our GPR cards for a period of
three to five years. Our long-term relationships include leading alternative financial services providers, such as ACE Cash Express, Advance
America, Cash America International, Community Financial Service Center and Check City, leading grocery and convenience stores, such as
H-E-B, Speedway, Murphy Oil and Winn-Dixie, and leading tax preparation service providers, such as Liberty Tax Service. Our largest retail
distributor is ACE Cash Express Inc., or ACE, with whom we have an exclusive distribution
6