4 RECOGNIZED LEADER 2014 Sam’s Club Supplier of the Year 2014 Walmart Service Product of the YearRapid Reload & Vanilla Reload2013 WalmartSupplier of the Year2013 Target Vendor of the Year2012 CVSIndustry AchievementBROOKS SMITHBest Network BrandedGift Card ProgramONEVANILLABest Prepaid Card or Packaging DesignVANILLA MASTERCARD GIFT 3-CARD MULTIPACK FOR SAM’S CLUBBest in Category–Most Effective Closed-Loop or RAN Prepaid Card Program Gift CardDO IT YOURSELF HOME IMPROVEMENT GIFT CARDBest Retail-Based Prepaid Card ProgramSPEEDWAY LOYALTY PROGRAMBest Marketing CampaignGIFT CARD WEEK AT SHOPPERS DRUG MART4Confidential and Proprietary
5 LEADING THROUGH THE YEARS 1992199419951999200020012003200420052006200720082010201220132014Founded in Atlanta, GA, offering long-distance service & technologyDevelops first technology to allow POS activation at checkoutFirst to host POSAIntroduces first prepaid wireless cards Becomes a member of the Visa network, enabling card activationsCable & wireless acquisitionCarrier value insertion beginsLaunches first music download prepaid card with NapsterFirst financial services gift card AMEX First iTunes gift cards Develops lock/unlock technologyFull prepaid mall program launchIntroduces Vanilla Gift CardsAcquires PRE Holdings, Kwik Systems, Prepaid Enterprises and AirTIME TechnologiesEnters Canada and UKEnters JapanAcquires Zeevex, GroupCard, Coinstar’s EPay and QPayDevelops first alternate toll & transit payment programsAcquires Medagate, Adility, OLS and GiftangoLaunches MyVanilla GPR card, Vanilla Reload networkSignificant APAC expansion–footprint now over 30 countriesLaunches in-store digital sales, Cashtie, mobile commerce, incentives/loyalty programs, switching payment platformAcquires Siras – Retailer Loss Prevention Services5Confidential and Proprietary
6 FINANCIAL SERVICESDriving 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.6Confidential and Proprietary
10 FINANCIAL SERVICES products Confidential and Proprietary
11 VANILLA® PRODUCT SUITE Prepaid Gift CardPrepaid Self UsePrepaid Debit CardCash-In SolutionThe 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 YOYVanilla® 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 everydayfor online shopping, bill pay, travel and more.There are no fees after purchase, no registrationis 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 ownershipCustomers have a clear understanding of fee schedules by offering a simplified fee planGreat for budgeting, pay per use vs. monthly payment requirementsMoney management tools that put customers in control of their spendingConfidential 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 locationsAvailable in all major channels including pharmacy, convenience, and discount storesConversion To ‘Swipe Reload’ POS 4/15Confidential and Proprietary
18 completely integrated processing platform BENEFITS:Secure, nimble, scalableCustomizable product featuresCustomizable activation processHouses cardholder and account level informationPCI compliantRisk and compliance controls and real-time notification systemCustomized user experience, Web API, IVR API, marketing communications and social mediaVMS Customer Care Desktop access for your service representativesSettlement, reconciliation reporting18Confidential and Proprietary
19 FEATURE-RICH, FLEXIBLE PROCESSING PLATFORM FEATURES:Multiple, Account Origination OptionsOnline RegistrationGPR Go / Instant Issuance – turn-key web enabledSecure package activationMobile App registrationReal-time card replacementReal-time, and SMS Alerts, Bill Pay, Direct Deposit, Remote Deposit CaptureVanilla Reload access to 15 million customersCardholder Web Site & Mobile App24x7x365 Support ServicesMulti-lingual Support – English, Spanish, Canadian FrenchAnalytics Reporting Catalog19Confidential and Proprietary
20 CUSTOMIZED REPORTING & ANALYTICS Program reporting focused on tracking resultsCard Summary ReportTransaction Summary by Merchant and LocationRemittance Summary ReportTransaction Detail ReportSpend Analysis ReportCustomized reporting to support back-office systemsDaily detailed extracts that provide transactional and cardholder information for reconciliation and compliance required by auditors20Confidential and Proprietary
21 ENHANCED PAYMENT PLATFORM Using defined spend to strengthen customer relationships and drive revenueFEATURES:Delivers Discount OffersPoints AccumulatorsMultiple PursesIntegration to PharmacyReal-Time Access to ValueAbility to create custom offer triggersExtensive Reporting & AnalyticsOFFER TYPES:$ Discount% DiscountBOGOPoint RedemptionAccumulated Discounts (Ex. Buy 3 X get 1 Y at 50% off)21Confidential and Proprietary
22 RAN – Restricted SPENDING SOLUTION REBATE CARDthat drives spend back to your locationsLOYALTY & REWARDSprograms thatdrive retail sales in-storeGIFTING EXPERIENCEwithout POS upgrade for small chain or franchiseesPARTNERSHIP OPPORTUNITIESthat deliver additionalcustomer value22Confidential and Proprietary
23 CUSTOMER SERVICE FOR your program InComm’s Customer Care Representatives are highly trained employees who excel and have high call standardsThe Jacksonville center annually handles over 2.6 million calls for Financial Service ProductsOur 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 seconds23Confidential and Proprietary
24 PROVEN PROTECTION FOR THE YOUR PROGRAM Fraud protection backed by our proactive risk and compliance teamPartner Merchant MonitoringMonitor over 400k unique partner locations with multiple portals per locationConfigurable system to support any location(s)Fully Compliant and LicensedLicensed to operate in 50 states, District of Columbia, Puerto Rico and USVIAll licenses are current and in good standingProgram deemed fully compliant by all examining states programs for agents and employeesTraining 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 MonitoringMonitor millions of cards24/7/365 coverage24Confidential 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 includes450,000 total retail locationsOf which 100,000 retail locations sell financial services productsFraud Team monitors fraud for both the activation and redemption transactionsTo offer the best coverage we use both proprietary and commercially available software packages to monitor high risk activity across multiple time zonesOur team uses a sophisticated Fraud Lab to replicate fraud schemes to facilitate solutions25Confidential 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 runExperienced in production of open loop EMV and Smart Cards for both US and International marketsInComm manages both secure open loop card packages and personalized card carriers.Able to customize the carriers specifically for increasing temp to perm conversion26Confidential and Proprietary
27 MERCHANDISING INCREASE SALES one store at a time ENSURE RETAILERS are viewed as prepaid destination by their consumersOPTIMIZE SALES by finding lost sales opportunitiesIMPROVE ROI of all business decisionsDid 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 https://.frbservices.org/files/communications/pdf/general/2013_fed_res_paymt_study_detailed_rpt.pdf
30 are reloadable – others are not. Some prepaid cardsare reloadable – others are not.
31 are closed-loop – others are not. Some prepaid cardsare 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 MSBsMost reloadable prepaid card programs are fully Reg. E compliant USA PATRIOT Act compliantOFAC CompliantCompliant with Provider and Seller of Prepaid Access RulesRequired to report with SARs and CTRsNot the same as closed loop cards
33 Network Branded Prepaid Value Chain Includes those outside of traditional credit/debit partner networkCONSUMERCard Issuer/BIN SponsorIssuer ProcessorProgram ManagerNetworkAcquiring ProcessorSeller/ DistributorLoad/Reload S Sites &NetworksFinancial Institution member of a card networkSystem 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 issuerSwitches transactions, provides risk management and strict operating rules and regulationsEndpoints where prepaid cards are sold to consumers:Online, Retailers or Malls, Financial Institution BranchesProvides transaction processing and customer support for merchants; typically provides POS terminals used in retail settingA 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) Cardis 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 tonearly $65 billion in 2102,and was estimated toexceed $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 OutletsDistributorsProgram ManagersProcessorsBankIssuerPayment 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 Cardget cashmake purchasespay billsbenefit from protections of Regulation Ehave the availability of FDIC pass-through insurance coverage
43 GPR Card Features Some GPR Card programs offer features such as: Customer loyalty programsPurchase cushion protectionOptional overdraft protectionDiscount programsOptional savings account
44 What Is Prepaid? ~ An Industry Overview Oversight and RegulationConfidential and Proprietary
45 OversightThe issuing bank oversees its third-party relationships – including those with program managers.
46 Regulation Electronic Funds Transfer Act Treasury’s Financial Management Service ruleRegulation IIFinCEN prepaid access ruleState 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’ --- FinCENMoney Services Businesses --- ‘MSBs’ – FinCENOffice of Foreign Assets Control – ‘OFAC’ – U.S. TreasuryCurrency Transaction Report – ‘CTRs’ – FinCENSuspicious Activity Report – ‘S.A.R.s’ -- FINCENConfidential and Proprietary