Green Dot 2013 Annual Report Download - page 9

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Customers in these different segments tend to purchase and use our products for different reasons and in different
ways. For example, we believe never-banked consumers use our products as a safe, controlled way to spend cash
and as a means to access channels of trade, such as online purchases, where cash cannot be used. We believe
previously-banked consumers use our products as a convenient and affordable substitute for a traditional checking
account by depositing payroll checks (via direct or in-store deposit) on a Green Dot GPR card and using our products
to pay bills, shop online, monitor spending and withdraw cash from ATMs.
We believe underbanked consumers use our products in ways similar to those of the never- and previously-banked
segments, but additionally view our products as a credit card and debit card substitute. For example, underbanked
consumers use our products to make purchases at physical and online merchants, pay bills, make travel arrangements
and guarantee reservations.
We believe fully-banked consumers use our products as companion products to their bank checking account,
segregating funds into separate accounts for a variety of uses. For example, fully-banked consumers may use our
cards to shop on the Internet without providing their bank debit card account information online. These consumers
also use our products to control spending, designate funds for specific uses, prevent overdrafts in their checking
accounts, or load funds into specific accounts, such as a PayPal account. As our new GoBank product gains adoption,
we believe that fully-banked consumers will use it in the same way that other fully-banked customers use their bank
checking accounts.
Our Products and Services
Our principal products and services consist of Green Dot-branded GPR cards, co-branded GPR cards and
MoneyPak and point-of-sale, or POS, swipe reload transactions facilitated by the Green Dot Network. We also offer
our recently-introduced GoBank product and we service general purpose gift cards, which have historically represented
only a small percentage of our operating revenues. The Green Dot-branded and Walmart MoneyCard GPR cards and
the GoBank product we offer are issued by Green Dot Bank and certain of our smaller co-branded cards are issued
by third-party banks. Card balances are FDIC-insured and have either Visa or MasterCard zero liability card protection.
Card Products
Green Dot-Branded GPR Cards. Our Green Dot-branded GPR cards provide consumers with an affordable and
convenient way to manage their money and make payments without undergoing a credit check or possessing a pre-
existing bank account. GPR cards are designed for general spending purposes, are reloadable for ongoing long-term
use, and can be used anywhere their applicable payment network, such as Visa or MasterCard, is accepted. In addition
to standard prepaid Visa- or MasterCard-branded GPR cards, we also offer GPR cards positioned for a specific use
or market, such as our Online Shopping card, our Prepaid Student card and our Prepaid NASCAR card.
To purchase a GPR card in a retail store location, consumers typically select the temporary GPR card from an in-
store display and pay the cashier a one-time purchase fee plus the initial amount they would like to load onto their
card. Consumers then go online or call a toll-free number to register their personal information with us so that we can
activate their temporary prepaid card and mail them a personalized GPR card. As explained below, consumers can
then reload their personalized GPR cards using a MoneyPak or, at enabled retailers, via an automated point-of-sale
process, which we refer to as a POS swipe reload transaction. Funds can also be loaded on the card via direct deposit
of various disbursements, such as a customer’s payroll check.
Our GPR cards are issued as Visa- or MasterCard-branded cards and can be used by consumers at the more
than 30 million locations worldwide that accept these brands, including for bill payments, everyday store purchases,
online shopping, ATM withdrawals and electronic payments through mobile devices. Our cardholders can conduct ATM
transactions at approximately 1.9 million Visa PLUS or 2.1 million MasterCard Cirrus ATMs worldwide, including more
than 24,000 MoneyPass fee-free ATMs in all 50 states.
We have instituted a simple fee structure that includes a new card fee (if the card is purchased from one of our
retail distributors), a monthly maintenance fee (which may be waived based on usage), a cash reload fee and an ATM
withdrawal fee for out-of-network ATMs. Most of the features and functions of our cards are provided without surcharges.
Our free services include direct deposit reloads, account management, and balance inquiry services via the Internet,
telephone and mobile applications.
For regulatory compliance, risk management, operational and other reasons, our GPR cards and reload products
have certain limitations and restrictions, including but not limited to maximum dollar reload amounts, maximum numbers
of reloads in a given time period (e.g., per day), and limitations on uses of our temporary cards versus our permanent
personalized cards.