Green Dot 2015 Annual Report Download - page 40

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Gross Dollar Volume — represents the total dollar volume of funds processed and settled by our consolidated
enterprise, excluding tax refunds processed. Our gross dollar volume was $22.0 billion, $19.8 billion, and $18.7 billion
for the years ended December 31, 2015, 2014, and 2013, respectively. We review this metric as a measure of the size
and scale of our processing infrastructure and as an indicator of customer engagement and usage of our products and
services.
Purchase Volume — represents the total dollar volume of purchase transactions made by customers using our
GPR, checking account and gift card products. This metric excludes the dollar volume of ATM withdrawals. Our purchase
volume was $16.1 billion, $14.2 billion, and $13.4 billion for the years ended December 31, 2015, 2014, and 2013,
respectively. We use this metric to analyze interchange revenue, which is a key component of our financial performance.
Key components of our results of operations
Operating Revenues
We classify our operating revenues into the following four categories:
Card Revenues and Other Fees — Card revenues consist of monthly maintenance fees, ATM fees, new card fees
and other revenues. We charge maintenance fees on GPR cards and checking accounts, such as GoBank, to
cardholders on a monthly basis pursuant to the terms and conditions in our cardholder agreements. We charge ATM
fees to cardholders when they withdraw money at certain ATMs in accordance with the terms and conditions in our
cardholder agreements. We charge new card fees, if applicable, when a consumer purchases a GPR card, gift card,
or a checking account product. Other revenues consist primarily of revenue associated with our gift card program,
transaction-based fees and fees associated with optional products or services, which we offer to cardholders from time
to time.
Our aggregate monthly maintenance fee revenues vary primarily based upon the number of active cards in our
portfolio and the average fee assessed per account. Our average monthly maintenance fee per active account depends
upon the mix of products in our portfolio at any given point in time and upon the extent to which fees are waived based
on various incentives provided to customers in an effort to encourage higher usage and retention. Our aggregate ATM
fee revenues vary based upon the number of cardholder ATM transactions and the average fee per ATM transaction.
The average fee per ATM transaction depends upon the mix of products in our portfolio at any given point in time and
the extent to which cardholders use ATMs within our free network that carry no fee for cash withdrawal transactions.
Our aggregate new card fee revenues vary based upon the number of GPR cards and checking accounts activated
and the average new card fee. The average new card fee depends primarily upon the mix of products that we sell
since there are variations in new account fees based on the product and/or the location or source where our products
are purchased. Our aggregate other fees vary primarily based upon account sales of all types, gift card sales, purchase
transactions and the number of active accounts in our portfolio.
Processing and Settlement Service Revenues — Processing and settlement service revenues consist of cash
transfer revenues and tax refund processing service revenues. We earn cash transfer revenues when consumers fund
their cards through a reload transaction at a Green Dot Network retail location. Our aggregate cash transfer revenues
vary based upon the mix of locations where reload transactions occur, since reload fees vary by location. We earn tax
refund processing service revenues when a customer of a third party tax preparation company chooses to pay their
tax preparation fee through the use of our tax refund processing services.
Interchange Revenues — We earn interchange revenues from fees remitted by the merchant’s bank, which are
based on rates established by the payment networks, when customers make purchase transactions using our products.
Our aggregate interchange revenues vary based primarily on the number of active cards in our portfolio, the average
transactional volume of the active cards in our portfolio and on the mix of cardholder purchases between those using
signature identification technologies and those using personal identification numbers and the corresponding rates.
Stock-based retailer incentive compensation — In May 2010, we issued to Walmart 2,208,552 shares of our Class A
common stock, subject to our right to repurchase them at $0.01 per share upon a qualifying termination of our prepaid
card program agreement with Walmart. Prior to May 2015, we recognized each month the fair value of the 36,810
shares issued to Walmart as to which our right to repurchase lapsed using the then-current fair market value of our
Class A common stock. We recorded the fair value recognized as stock-based retailer incentive compensation, a
contra-revenue component of our total operating revenues. Beginning in May 2015, we no longer record stock-based
retailer compensation as a result of our repurchase right lapsing completely. There is no additional stock-based retailer
compensation under the terms of the renewed Walmart MoneyCard agreement.