1. Overview – ETA University ~ March 19th, 2015
Financial services
Overview – ETA University ~ March 19th, 2015

2. Eta university ~ Agenda -- incomm
About InComm
InComm Financial Services Overview
InComm -- Financial Services Products
InComm -- Financial Services Platform & Capabilities
Overview of Financial Services Prepaid Products/Programs
Glossary Of Terms – Financial Services
Confidential and Proprietary

4. RECOGNIZED LEADER 2014 Sam’s Club Supplier of the Year
2014 Walmart Service Product of the Year
Rapid Reload & Vanilla Reload
2013 Walmart
Supplier of the Year
2013 Target Vendor of the Year
2012 CVS
Industry Achievement
BROOKS SMITH
Best Network Branded
Gift Card Program
ONEVANILLA
Best Prepaid Card or Packaging Design
VANILLA MASTERCARD GIFT 3-CARD MULTIPACK FOR SAM’S CLUB
Best in Category–Most Effective Closed-Loop or RAN Prepaid Card Program Gift Card
DO IT YOURSELF HOME IMPROVEMENT GIFT CARD
Best Retail-Based Prepaid Card Program
SPEEDWAY LOYALTY PROGRAM
Best Marketing Campaign
GIFT CARD WEEK AT SHOPPERS DRUG MART 4
Confidential and Proprietary

5. LEADING THROUGH THE YEARS
1992
1994
1995
1999
2000
2001
2003
2004
2005
2006
2007
2008
2010
2012
2013
2014
Founded in Atlanta, GA, offering long-distance service & technology
Develops first technology to allow POS activation at checkout
First to host POSA
Introduces first prepaid wireless cards Becomes a member of the Visa network, enabling card activations
Cable & wireless acquisition
Carrier value insertion begins
Launches first music download prepaid card with Napster
First financial services gift card AMEX First iTunes gift cards Develops lock/unlock technology
Full prepaid mall program launch
Introduces Vanilla Gift Cards
Acquires PRE Holdings, Kwik Systems, Prepaid Enterprises and AirTIME Technologies
Enters Canada and UK
Enters Japan
Acquires Zeevex, GroupCard, Coinstar’s EPay and QPay
Develops first alternate toll & transit payment programs
Acquires Medagate, Adility, OLS and Giftango
Launches MyVanilla GPR card, Vanilla Reload network
Significant APAC expansion–footprint now over 30 countries
Launches in-store digital sales, Cashtie, mobile commerce, incentives/loyalty programs, switching payment platform
Acquires Siras – Retailer Loss Prevention Services 5
Confidential and Proprietary

6. FINANCIAL SERVICES
Driving innovation and revolutionizing payments by delivering solutions that empower consumers and promote financial inclusion.
Leveraging a global platform, go-to-market expertise and extensive relationships, InComm is directly at the epicenter of new commerce.
Delivering turnkey end-to-end solutions founded upon decades of expertise and cutting-edge technologies. 6
Confidential and Proprietary

7. Financial Services Organization
Account
Management
Sales & Business Development
Project
Management
Finance
Technology & IT
Legal & Compliance
Operations
Channel Management
Marketing
Network & Issuing Banks
Product Group
Fraud & Reconciliation
Mobile
Customer Service
Card Production 7
Confidential and Proprietary

8. Financial Services & INNOVATION
Digitizing Cash into Accounts
OLS Payment Switch
Enhanced Payment Platform
Swipe Reload
Mobile Solutions
POS Integration 8
Confidential and Proprietary

9. Program Management & Processing
end-to-end SOLUTIONS
POS Technical Integration
Product Design
& innovation
Product/Category Management
Card Production & Distribution
Marketing Merchandising & Promotions
Program Management & Processing
Website & App Design & Development
Digital Delivery & Social Media
Merchant & Customer Care
Legal, Regulatory & Compliance
Processing & Reporting Platform 9
Confidential and Proprietary

10. FINANCIAL SERVICES products
Confidential and Proprietary

11. VANILLA® PRODUCT SUITE
Prepaid Gift Card
Prepaid Self Use
Prepaid Debit Card
Cash-In Solution
The best selling prepaid brand worldwide – a suite of prepaid products offering non-reload and reload options that are safe and secure, giving consumers what they expect – convenience, reliability and flexibility.
Confidential and Proprietary

12. Phenomenal Growth YOY
Vanilla® Gift Cards come in many denominations and a variety of themes.
Vanilla Gift is the #1 selling Visa gift card in the United States.
Available in $25, $50, $100, and $200 denominations and $20-$500 variable load (purchase fee applies).
Multipacks available providing three or five great gift cards with one low purchase fee.
Licensed art available for exclusive gift card programs including: Man of Steele, Duck Dynasty, Skylander and more.
Confidential and Proprietary

13. InComm's virtual open loop products can be redeemed to conduct purchases online, over the phone and on-the-go.
InComm's digital delivery platform enables several options for a consumer to choose from including , SMS and direct connect to a mobile application.
Confidential and Proprietary

14. For simple and practical everyday spending…
OneVanilla is convenient to use everyday
for online shopping, bill pay, travel and more.
There are no fees after purchase, no registration
is required and funds never expire.
Vanilla products are safe,
reliable and easy to use.
Confidential and Proprietary

15. No credit check or bank account required.
MyVanilla is a reloadable debit card with features consumers want – text and alerts, direct deposit and more.
No credit check or bank account required.
MyVanilla’s competitive advantage is we offer a high value product with a low cost of ownership
Customers have a clear understanding of fee schedules by offering a simplified fee plan
Great for budgeting, pay per use vs. monthly payment requirements
Money management tools that put customers in control of their spending
Confidential and Proprietary

16. Conversion To ‘Swipe Reload’ POS 4/15
Industry’s most comprehensive cash-in network for loading money at thousands of US-based retail locations
Available in all major channels including pharmacy, convenience, and discount stores
Conversion To ‘Swipe Reload’ POS 4/15
Confidential and Proprietary

17. Incomm -- FINANCIAL SERVICES PLATFORM & CAPABILITIES
Confidential and Proprietary

18. completely integrated processing platform
BENEFITS:
Secure, nimble, scalable
Customizable product features
Customizable activation process
Houses cardholder and account level information
PCI compliant
Risk and compliance controls and real-time notification system
Customized user experience, Web API, IVR API, marketing communications and social media
VMS Customer Care Desktop access for your service representatives
Settlement, reconciliation reporting 18
Confidential and Proprietary

19. FEATURE-RICH, FLEXIBLE PROCESSING PLATFORM
FEATURES:
Multiple, Account Origination Options
Online Registration
GPR Go / Instant Issuance – turn-key web enabled
Secure package activation
Mobile App registration
Real-time card replacement
Real-time, and SMS Alerts, Bill Pay, Direct Deposit, Remote Deposit Capture
Vanilla Reload access to 15 million customers
Cardholder Web Site & Mobile App
24x7x365 Support Services
Multi-lingual Support – English, Spanish, Canadian French
Analytics Reporting Catalog 19
Confidential and Proprietary

20. CUSTOMIZED REPORTING & ANALYTICS
Program reporting focused on tracking results
Card Summary Report
Transaction Summary by Merchant and Location
Remittance Summary Report
Transaction Detail Report
Spend Analysis Report
Customized reporting to support back-office systems
Daily detailed extracts that provide transactional and cardholder information for reconciliation and compliance required by auditors 20
Confidential and Proprietary

21. ENHANCED PAYMENT PLATFORM
Using defined spend to strengthen customer relationships and drive revenue
FEATURES:
Delivers Discount Offers
Points Accumulators
Multiple Purses
Integration to Pharmacy
Real-Time Access to Value
Ability to create custom offer triggers
Extensive Reporting & Analytics
OFFER TYPES:
$ Discount
% Discount
BOGO
Point Redemption
Accumulated Discounts (Ex. Buy 3 X get 1 Y at 50% off) 21
Confidential and Proprietary

22. RAN – Restricted SPENDING SOLUTION
REBATE CARD
that drives spend back to your locations
LOYALTY & REWARDS
programs that
drive retail sales in-store
GIFTING EXPERIENCE
without POS upgrade for small chain or franchisees
PARTNERSHIP OPPORTUNITIES
that deliver additional
customer value 22
Confidential and Proprietary

23. CUSTOMER SERVICE FOR your program
InComm’s Customer Care Representatives are highly trained employees who excel and have high call standards
The Jacksonville center annually handles over 2.6 million calls for Financial Service Products
Our service levels make InComm one of the finest consumer support organizations in our industry.
Calls are normally answered in less than one minute with abandonment rates typically in the 5% range.
We typically exceed our objective of 80% of calls answered in 30 seconds 23
Confidential and Proprietary

24. PROVEN PROTECTION FOR THE YOUR PROGRAM
Fraud protection backed by our proactive risk and compliance team
Partner Merchant Monitoring
Monitor over 400k unique partner locations with multiple portals per location
Configurable system to support any location(s)
Fully Compliant and Licensed
Licensed to operate in 50 states, District of Columbia, Puerto Rico and USVI
All licenses are current and in good standing
Program deemed fully compliant by all examining states programs for agents and employees
Training programs and toolkit cover basic AML requirements, specifics related to prepaid cards, how to file SARs and CTRs, best practices, etc. In addition, we also provide in-store training posters with employee sign-off acknowledgement of understanding.
Card Monitoring
Monitor millions of cards
24/7/365 coverage 24
Confidential and Proprietary

25. FRAUD PROTECTION AND RISK MANAGEMENT
InComm’s industry leading Fraud Prevention and Risk Management team is comprised of 60 employees located in Columbus and Atlanta Georgia.
The team is responsible for monitoring and managing fraud and risk for InComm employees worldwide which includes
450,000 total retail locations
Of which 100,000 retail locations sell financial services products
Fraud Team monitors fraud for both the activation and redemption transactions
To offer the best coverage we use both proprietary and commercially available software packages to monitor high risk activity across multiple time zones
Our team uses a sophisticated Fraud Lab to replicate fraud schemes to facilitate solutions 25
Confidential and Proprietary

26. EXPERIENCED Card Production
InComm has the ability to meet specific partner needs for GPR card production and volume expectations.
InComm managed nearly 700 million cards last year over 30 quality milestones per print run
Experienced in production of open loop EMV and Smart Cards for both US and International markets
InComm manages both secure open loop card packages and personalized card carriers.
Able to customize the carriers specifically for increasing temp to perm conversion 26
Confidential and Proprietary

27. MERCHANDISING INCREASE SALES one store at a time
ENSURE RETAILERS are viewed as prepaid destination by their consumers
OPTIMIZE SALES by finding lost sales opportunities
IMPROVE ROI of all business decisions
Did You Know?
Confidential and Proprietary

28. What Is Prepaid? ~ An Industry Overview
Prepaid products are among the fastest growing types of payment instruments in the U.S.
Confidential and Proprietary

29. According to the 2013 FRB study, the number of prepaid card transactions reached 9.2 billion in 2012, up from 5.9 billion in 2009.*
* Fed. Reserve Sys., The 2013 Federal Reserve Payments Study, Recent and Long-Term Payment Trends in the United States: , Detailed Report and Updated Data Release (2014), available at

30. are reloadable – others are not.
Some prepaid cards
are reloadable – others are not.

31. are closed-loop – others are not.
Some prepaid cards
are closed-loop – others are not.

32. Prepaid Cards are Issued by Highly Regulated Financial Institutions
Regulated by OCC, FDIC or FRB; or by state banking regulators in case of MSBs
Most reloadable prepaid card programs are fully Reg. E compliant USA PATRIOT Act compliant
OFAC Compliant
Compliant with Provider and Seller of Prepaid Access Rules
Required to report with SARs and CTRs
Not the same as closed loop cards

33. Network Branded Prepaid Value Chain Includes those outside of traditional credit/debit partner network
CONSUMER
Card Issuer/
BIN Sponsor
Issuer Processor
Program Manager
Network
Acquiring Processor
Seller/ Distributor
Load/
Reload S Sites &
Networks
Financial Institution member of a card network
System of record & transaction processing. May provide or direct customer care, risk mgmt, & report disputes.
Under direct supervision of/ contract with Card Issuer/BIN Sponsor, designs & runs the card program, may provide functions on behalf of card issuer
Switches transactions, provides risk management and strict operating rules and regulations
Endpoints where prepaid cards are sold to consumers:
Online, Retailers or Malls, Financial Institution Branches
Provides transaction processing and customer support for merchants; typically provides POS terminals used in retail setting
A merchant accepting value loads OR a MSB operating a network to provide reload services to cardholders through reload sites

34. is an open-loop prepaid card
The General Purpose Reloadable (GPR) Card
is an open-loop prepaid card

35. According to the Mercator Advisory Group, the amount loaded onto GPR Cards grew from less than $1 billion in 2003 to
nearly $65 billion in 2102,
and was estimated to
exceed $98 billion in 2014.

36. What Is Prepaid? ~ An Industry Overview
Who Makes GPR Cards Available?
Confidential and Proprietary

37. The issuing bank is not alone.
Retail Outlets
Distributors
Program Managers
Processors
Bank
Issuer
Payment Network

38. What Is Prepaid? ~ An Industry Overview
Who Uses GPR Cards and Where Do They Get Them?
Confidential and Proprietary

39. Why GPR Cards?
Are considered safer than carrying cash and equipped with fraud protection.
Are used by a wide range of consumers to make purchases, pay bills, get ‘ready’ cash, set and stick with a budget, and avoid debt.
A recent FRB of Philadelphia study found that the use of prepaid cards has moved beyond the unbanked or lower-income consumer to encompass fully banked individuals of average to above-average incomes.**
**Susan Herbst Murphy, Federal Reserve Bank of Philadelphia, Millennial with Money: A New Look at Who Uses GPR Prepaid Cards (September 2014)

40. Where can GPR Cards be obtained?
GPR Cards can be obtained at retail locations, by phone, direct mail, or online – for a purchase fee, or not, depending on the structure of the program.

41. What Is Prepaid? ~ An Industry Overview
How Are GPR Cards Used?
Confidential and Proprietary

42. A Fully Functional GPR Card Program
Allows the Cardholder to:
reload the Card
get cash
make purchases
pay bills
benefit from protections of Regulation E
have the availability of FDIC pass-through insurance coverage

43. GPR Card Features Some GPR Card programs offer features such as:
Customer loyalty programs
Purchase cushion protection
Optional overdraft protection
Discount programs
Optional savings account

44. What Is Prepaid? ~ An Industry Overview
Oversight and Regulation
Confidential and Proprietary

45. Oversight
The issuing bank oversees its third-party relationships – including those with program managers.

46. Regulation Electronic Funds Transfer Act
Treasury’s Financial Management Service rule
Regulation II
FinCEN prepaid access rule
State consumer protection laws and regulations specific to prepaid products including State Money Transmitter laws and regulations

47. Prepaid ~ Glossary of Terms FinCEN: Financial Crimes Enforcement Network & U.S. Treasury
Bank Secrecy Act – ‘BSA’ --- FinCEN
Money Services Businesses --- ‘MSBs’ – FinCEN
Office of Foreign Assets Control – ‘OFAC’ – U.S. Treasury
Currency Transaction Report – ‘CTRs’ – FinCEN
Suspicious Activity Report – ‘S.A.R.s’ -- FINCEN
Confidential and Proprietary