FINANCIAL SERVICES
Overview – ETA University ~ March 19th, 2015
ETA UNIVERSITY ~ AGENDA -- INCOMM
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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
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CONFIDENTIAL AND PROPRIETARY
RECOGNIZED LEADER
2014 Sam’s Club
Supplier of the Year
2014 Walmart
Service Product of the Year
Rapid Reload & Vanilla Reload
Industry Achievement
2013 Walmart
Supplier of the Year
2013 Target
Vendor of the Year
2012 CVS
Supplier of the Year
BROOKS SMITH
Best in Category–Most Effective
Closed-Loop or RAN Prepaid Card
Program Gift Card
Best Network Branded
Gift Card Program
DO IT YOURSELF HOME IMPROVEMENT
GIFT CARD
ONEVANILLA
Best Prepaid Card or
Packaging Design
VANILLA MASTERCARD GIFT 3-CARD
MULTIPACK FOR SAM’S CLUB
Best Marketing Campaign
GIFT CARD WEEK AT SHOPPERS DRUG MART
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Confidential and Proprietary
Best Retail-Based
Prepaid Card Program
SPEEDWAY LOYALTY PROGRAM
LEADING THROUGH THE YEARS
1992
Founded in Atlanta, GA, offering long-distance service & technology
1994
Develops first technology to allow POS activation at checkout
1995
First to host POSA
1999
Introduces first prepaid wireless cards
Becomes a member of the Visa network, enabling card activations
2000
Cable & wireless acquisition
2001
Carrier value insertion begins
2003
Launches first music download prepaid card with Napster
2004
First financial services gift card AMEX
First iTunes gift cards
Develops lock/unlock technology
2005
Full prepaid mall program launch
Introduces Vanilla Gift Cards
2006
Acquires PRE Holdings, Kwik Systems, Prepaid Enterprises and AirTIME Technologies
2007
Enters Canada and UK
2008
Enters Japan
2010
Acquires Zeevex, GroupCard, Coinstar’s EPay and QPay
2012
Develops first alternate toll & transit payment programs
Acquires Medagate, Adility, OLS and Giftango
Launches MyVanilla GPR card, Vanilla Reload network
2013
Significant APAC expansion–footprint now over 30 countries
Launches in-store digital sales, Cashtie, mobile commerce, incentives/loyalty programs, switching payment platform
2014
Acquires Siras – Retailer Loss Prevention Services
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Confidential and Proprietary
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.
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Confidential and Proprietary
FINANCIAL SERVICES ORGANIZATION
Sales & Business
Development
Account
Management
Project
Management
Finance
Technology & IT
Legal &
Compliance
Operations
Channel
Management
Marketing
Network &
Issuing Banks
Product Group
Fraud &
Reconciliation
Mobile
Customer Service
Card Production
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Confidential and Proprietary
FINANCIAL SERVICES & INNOVATION
Digitizing Cash
into Accounts
OLS Payment Switch
Enhanced Payment
Platform
Swipe Reload
Mobile Solutions
POS Integration
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Confidential and Proprietary
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
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Confidential and Proprietary
Digital Delivery
& Social Media
Merchant &
Customer Care
Legal, Regulatory
& Compliance
Processing &
Reporting Platform
FINANCIAL SERVICES PRODUCTS
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CONFIDENTIAL AND PROPRIETARY
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.
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CONFIDENTIAL AND PROPRIETARY
Phenomenal Growth YOY
Vanilla® Gift Cards come in
many denominations and a variety of themes.
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Vanilla Gift is the #1 selling Visa gift card
in the United States.
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Available in $25, $50, $100, and $200 denominations
and $20-$500 variable load (purchase fee applies).
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Multipacks available providing three or
five great gift cards with one low purchase fee.
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Licensed art available for exclusive gift
card programs including: Man of Steele,
Duck Dynasty, Skylander and more.
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CONFIDENTIAL AND PROPRIETARY
InComm's virtual open loop products
can be redeemed to conduct purchases
online, over the phone and on-the-go.
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InComm's digital delivery platform
enables several options for a consumer
to choose from including email, SMS and
direct connect to a mobile application.
CONFIDENTIAL AND PROPRIETARY
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.
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CONFIDENTIAL AND PROPRIETARY
MyVanilla is a reloadable debit card
with features consumers want – text
and email alerts, direct deposit and more.
No credit check or bank account required.
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MyVanilla’s competitive advantage is
we offer a high value product with
a low cost of ownership
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Customers have a clear understanding of fee
schedules by offering a simplified fee plan
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Great for budgeting, pay per use vs.
monthly payment requirements
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Money management tools that put customers
in control of their spending
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CONFIDENTIAL AND PROPRIETARY
Industry’s most comprehensive
cash-in network for loading money
at thousands of US-based
retail locations
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Available in all major channels
including pharmacy, convenience,
and discount stores
Conversion To ‘Swipe Reload’ POS 4/15
CONFIDENTIAL AND PROPRIETARY
INCOMM -- FINANCIAL SERVICES
PLATFORM & CAPABILITIES
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CONFIDENTIAL AND PROPRIETARY
COMPLETELY INTEGRATED
PROCESSING PLATFORM
BENEFITS:
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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
Confidential and Proprietary
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Customized user
experience, Web API,
IVR API, marketing
communications
and social media
VMS Customer Care Desktop
access for your service representatives
Settlement, reconciliation reporting
FEATURE-RICH, FLEXIBLE
PROCESSING PLATFORM
FEATURES:
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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, Email and SMS Alerts, Bill Pay,
Direct Deposit, Remote Deposit Capture
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Confidential and Proprietary
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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
CUSTOMIZED
REPORTING & ANALYTICS
Program reporting focused on tracking results
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Card Summary Report
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Transaction Summary by Merchant and Location
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Remittance Summary Report
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Transaction Detail Report
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Spend Analysis Report
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Customized reporting to support back-office systems
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Daily detailed extracts that provide transactional
and cardholder information for reconciliation and
compliance required by auditors
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Confidential and Proprietary
ENHANCED PAYMENT PLATFORM
Using defined spend to strengthen customer
relationships and drive revenue
FEATURES:
OFFER TYPES:
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Delivers Discount Offers
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Points Accumulators
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Multiple Purses
Integration to Pharmacy
Real-Time Access to Value
Ability to create custom offer triggers
Extensive Reporting & Analytics
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Confidential and Proprietary
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$ Discount
% Discount
BOGO
Point Redemption
Accumulated Discounts
(Ex. Buy 3 X get 1 Y at 50% off)
RAN – RESTRICTED SPENDING SOLUTION
REBATE CARD
that drives spend
back to your
locations
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Confidential and Proprietary
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
CUSTOMER SERVICE
FOR YOUR PROGRAM
InComm’s Customer Care Representatives
are highly trained employees who excel
and have high call standards
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The Jacksonville center annually handles
over 2.6 million calls for Financial Service Products
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Our service levels make InComm one of the finest
consumer support organizations in our industry.
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Calls are normally answered in less than one minute
with abandonment rates typically in the 5% range.
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We typically exceed our objective of 80% of calls
answered in 30 seconds
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Confidential and Proprietary
PROVEN PROTECTION
FOR THE YOUR PROGRAM
Fraud protection backed by our proactive risk
and compliance team
Partner Merchant Monitoring
Fully Compliant and Licensed
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Monitor over 400k unique partner
locations with multiple portals
per location
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Configurable system to
support any location(s)
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Card Monitoring
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Monitor millions of cards
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24/7/365 coverage
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Confidential and Proprietary
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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.
FRAUD PROTECTION
AND RISK MANAGEMENT
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InComm’s industry leading Fraud Prevention
and Risk Management team is comprised of
60 employees located in Columbus and Atlanta Georgia.
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The team is responsible for monitoring and managing fraud
and risk for InComm employees worldwide which includes
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450,000 total retail locations
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Of which 100,000 retail locations sell financial services products
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Fraud Team monitors fraud for both the activation and
redemption transactions
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To offer the best coverage we use both proprietary and commercially available
software packages to monitor high risk activity across multiple time zones
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Our team uses a sophisticated Fraud Lab to replicate fraud schemes
to facilitate solutions
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Confidential and Proprietary
EXPERIENCED
CARD PRODUCTION
InComm has the ability to meet specific partner needs
for GPR card production and volume expectations.
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InComm managed nearly 700 million cards
last year over 30 quality milestones per print run
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Experienced in production of open loop
EMV and Smart Cards for both US and
International markets
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InComm manages both secure open loop card
packages and personalized card carriers.
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Able to customize the carriers specifically
for increasing temp to perm conversion
Confidential and Proprietary
MERCHANDISING
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INCREASE SALES
one store at a time
Did You Know?
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ENSURE RETAILERS
are viewed as prepaid destination
by their consumers
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OPTIMIZE SALES
by finding lost sales opportunities
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IMPROVE ROI
of all business decisions
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CONFIDENTIAL AND PROPRIETARY
What Is Prepaid? ~ An Industry Overview
Prepaid products are among the fastest growing types
of payment instruments in the U.S.
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CONFIDENTIAL AND PROPRIETARY
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: 20032012, Detailed Report and Updated Data Release (2014), available at
https://.frbservices.org/files/communications/pdf/general/2013_fed_res_paymt_study_detailed_rpt.pdf
Some prepaid cards
are reloadable – others are not.
Some prepaid cards
are closed-loop – others are
not.
PREPAID CARDS ARE ISSUED BY HIGHLY
REGULATED FINANCIAL INSTITUTIONS
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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
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NETWORK BRANDED PREPAID VALUE CHAIN
INCLUDES THOSE OUTSIDE OF TRADITIONAL CREDIT/DEBIT PARTNER NETWORK
CONSUMER
Card Issuer/
BIN Sponsor
Financial
Institution
member
of a card
network
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Issuer
Processor
System of
record &
transaction
processing.
May provide
or direct
customer
care, risk
mgmt, &
report
disputes.
Program
Manager
Under direct
supervision of/
contract with
Card
Issuer/BIN
Sponsor,
designs &
runs the card
program, may
provide
functions on
behalf of card
issuer
Network
Acquiring
Processor
Switches
Provides
transactions, transaction
provides risk processing
management and
customer
and strict
support for
operating
merchants;
rules and
typically
regulations provides
POS
terminals
used in
retail setting
Load/
Reload
Seller/
S
Sites &
Distributor
Networks
Endpoints
where prepaid
cards are sold
to consumers:
Online,
Retailers or
Malls, Financial
Institution
Branches
A merchant
accepting
value loads
OR a MSB
operating a
network to
provide reload
services to
cardholders
through reload
sites
The General Purpose Reloadable (GPR) Card
is an open-loop prepaid card
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.
What Is Prepaid? ~ An Industry Overview
Who Makes GPR Cards Available?
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CONFIDENTIAL AND PROPRIETARY
The issuing bank is not alone.
Retail
Outlets
Payment
Network
Distributors
Issuer
Bank
Program
Managers
Processors
What Is Prepaid? ~ An Industry Overview
Who Uses GPR Cards and Where Do They Get Them?
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CONFIDENTIAL AND PROPRIETARY
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 lowerincome 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)
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.
What Is Prepaid? ~ An Industry Overview
How Are GPR Cards Used?
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CONFIDENTIAL AND PROPRIETARY
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
GPR Card Features
Some GPR Card programs offer features such as:
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Customer loyalty programs
Purchase cushion protection
Optional overdraft protection
Discount programs
Optional savings account
What Is Prepaid? ~ An Industry Overview
Oversight and Regulation
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CONFIDENTIAL AND PROPRIETARY
Oversight
The issuing bank oversees its third-party relationships
– including those with program managers.
Regulation
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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
Prepaid ~ Glossary of Terms
FinCEN: Financial Crimes Enforcement Network & U.S. Treasury
Bank Secrecy Act – ‘BSA’ --- FinCEN
• http://www.fincen.gov/statutes_regs/bsa/
Money Services Businesses --- ‘MSBs’ – FinCEN
• http://www.fincen.gov/financial_institutions/msb/
Office of Foreign Assets Control – ‘OFAC’ – U.S. Treasury
• http://www.treasury.gov/resource-center/sanctions/Pages/default.aspx
Currency Transaction Report – ‘CTRs’ – FinCEN
• http://www.fincen.gov/statutes_regs/guidance/html/FIN-2012-G002.html
Suspicious Activity Report – ‘S.A.R.s’ -- FINCEN
• http://www.fincen.gov/whatsnew/html/sar_faqs.html
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CONFIDENTIAL AND PROPRIETARY