NetSpend 2011 Annual Report Download - page 9

Table of Contents
cards include Kohl's, Macy's, TravelCenters of America, Church's Chicken, Starwood Hotels & Resorts Worldwide, Hospital Corporation of
America and Big Lots.
We also market our cards directly to consumers through direct-to-consumer and online marketing programs. We have developed
proprietary systems for optimizing the placement of information regarding our products on the Internet through affiliate marketing and search
optimization and for identifying consumers likely to be receptive to offers to apply for our GPR cards.
Sales and Marketing
Our marketing and promotional efforts are targeted at consumers as well as our retail distributors and corporate employers. Our sales force
is comprised of approximately 70 business development and key account management professionals who are responsible for developing and
maintaining our relationships with our retail distributors, online marketers and corporate employers. We principally market our cards under the
NetSpend and Skylight brands and in many cases have co
-branding relationships with our retail distributors. We have also commenced
marketing cards under the PayPal brand and we are promoting a card branded "Control" through our relationship with BET Consumer
Services, Inc. ("BET"). Our marketing programs focus principally on direct deposit enrollment and cardholder lifetime value optimization.
Operations
Customer Acquisition and Account Activation. Customers that acquire cards through our retail distributors and corporate employers are
typically issued a temporary "Instant Issue" card with funds immediately available at reduced load and transaction limits. A customer may
activate a temporary card either online or by telephone. Upon the approval of the application, the account is established and a permanent card
embossed and personalized with the customer's name is sent to the customer within ten business days. Customers that acquire a card through
our direct-to-
consumer or online marketing campaigns submit a card application to us directly, either online or by telephone, and upon approval
of the application the card is activated and, if not included in the original solicitation, a permanent card is sent to the customer. We accept or
decline card applications based on a review of the personal data included in each customer's application against our own and third party
databases, in accordance with procedures designed to comply with applicable law.
Customer Service and Support. We provide a comprehensive set of services to cardholders for account and balance information,
budgeting tools, person-to-person payments, dispute resolution, bill payment and similar services. Customer support is provided through a
combination of live service agents, as well as 24 hours a day, seven days a week access to our interactive voice response systems, our websites
and other online and mobile phone based services. Our customer service team includes employees at our Austin, Texas and Atlanta, Georgia
facilities (we are in the process of consolidating these activities at our Austin, Texas offices) and outsourced services through facilities in the
Philippines and Guatemala (we recently terminated an outsourcing relationship in Mexico). We provide certain of our large distributors with
private-label customer support interfaces.
Risk Management and Regulatory Compliance. We maintain substantially all aspects of portfolio and customer risk management, fraud
exposure, chargeback recovery and transaction and distributor monitoring on behalf of our Issuing Banks. We also support the anti-money
laundering and OFAC compliance efforts of our Issuing Banks.
Transaction Processing. A transaction begins with an electronic message from a merchant or an ATM requesting funds from a
cardholder's account followed by a response from us authorizing or denying the transaction. In the case of an authorization, the cardholder's
account is updated to reduce the funds available in the cardholder's account. We electronically receive and respond to an
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