Post on 16-Dec-2015
FINANCIAL SERVICESOverview – ETA University ~ March 19th, 2015
2 CONFIDENTIAL AND PROPRIETARY
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 Proprietary4
2013 WalmartSupplier of the Year
2013 TargetVendor of the Year
2012 CVS Supplier of the Year
Industry AchievementBROOKS SMITH
Best Network BrandedGift Card ProgramONEVANILLA
Best Prepaid Card or Packaging DesignVANILLA MASTERCARD GIFT 3-CARD MULTIPACK FOR SAM’S CLUB
Best in Category–Most Effective Closed-Loop or RAN Prepaid Card Program Gift CardDO IT YOURSELF HOME IMPROVEMENT GIFT CARD
Best Retail-Based Prepaid Card ProgramSPEEDWAY LOYALTY PROGRAM
Best Marketing CampaignGIFT CARD WEEK AT SHOPPERS DRUG MART
2014 Sam’s ClubSupplier of the Year
2014 Walmart Service Product of the YearRapid Reload & Vanilla Reload
RECOGNIZED LEADER
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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 AMEXFirst iTunes gift cardsDevelops 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 programsAcquires Medagate, Adility, OLS and GiftangoLaunches MyVanilla GPR card, Vanilla Reload network
Significant APAC expansion–footprint now over 30 countriesLaunches in-store digital sales, Cashtie, mobile commerce, incentives/loyalty programs, switching payment platform
Acquires Siras – Retailer Loss Prevention Services
LEADING THROUGH THE YEARS
Confidential and Proprietary5
FINANCIAL SERVICES
Confidential and Proprietary6
• 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.
FINANCIAL SERVICES ORGANIZATION
Sales & Business Development
AccountManagement Project
Management
Technology & IT
Operations
Marketing
Product Group
Mobile
Card Production
Customer Service
Fraud & Reconciliation
Network & Issuing Banks
ChannelManagement
Legal & Compliance
Finance
Confidential and Proprietary7
FINANCIAL SERVICES & INNOVATION
OLS Payment Switch
Swipe Reload
Enhanced PaymentPlatform
Mobile Solutions
Digitizing Cashinto Accounts
POS Integration
Confidential and Proprietary8
POS TechnicalIntegration
Product Design& innovation
Product/CategoryManagement
Card Production& Distribution
MarketingMerchandising &
Promotions
Website & App Design
& Development
Digital Delivery& Social Media
Merchant &Customer Care
Legal, Regulatory& Compliance
Processing &Reporting Platform
Program Management & Processing
Confidential and Proprietary9
END-TO-END SOLUTIONS
10 CONFIDENTIAL AND PROPRIETARY
FINANCIAL SERVICES PRODUCTS
11 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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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.
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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 email, SMS and direct connect to a mobile application.
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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.
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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.
• 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
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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
17 CONFIDENTIAL AND PROPRIETARY
INCOMM -- FINANCIAL SERVICES PLATFORM & CAPABILITIES
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
Confidential and Proprietary18
• 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: • 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
• 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
Confidential and Proprietary19
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
Confidential and Proprietary20
Confidential and Proprietary21
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)
Using defined spend to strengthen customer relationships and drive revenue
ENHANCED PAYMENT PLATFORM
Confidential and Proprietary22
REBATE CARDthat drives spend back to your locations
LOYALTY & REWARDSprograms that drive retail sales in-store
GIFTING EXPERIENCEwithout POS upgrade for small chain or franchisees
PARTNERSHIP OPPORTUNITIESthat deliver additionalcustomer value
RAN – RESTRICTED SPENDING SOLUTION
CUSTOMER SERVICEFOR YOUR PROGRAM
InComm’s Customer Care Representatives are highly trained employees who excel and have high call standards
Confidential and Proprietary23
• The Jacksonville center annually handlesover 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
PROVEN PROTECTION FOR THE YOUR PROGRAM
Fraud protection backed by our proactive risk and compliance team
Confidential and Proprietary24
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.
Partner Merchant Monitoring
• Monitor over 400k unique partner locations with multiple portals per location
• Configurable system to support any location(s)
Card Monitoring• Monitor millions of cards
• 24/7/365 coverage
FRAUD PROTECTIONAND 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
Confidential and Proprietary25
EXPERIENCEDCARD PRODUCTION
InComm has the ability to meet specific partner needs for GPR card production and volume expectations.
Confidential and Proprietary26
• 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
CONFIDENTIAL AND PROPRIETARY27
• INCREASE SALESone store at a time
• ENSURE RETAILERSare viewed as prepaid destination by their consumers
• OPTIMIZE SALES by finding lost sales opportunities
• IMPROVE ROIof all business decisions
Did You Know?
MERCHANDISING
28 CONFIDENTIAL AND PROPRIETARY
What Is Prepaid? ~ An Industry Overview
Prepaid products are among the fastest growing types of payment instruments in the U.S.
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: 2003-2012, Detailed Report and Updated Data Release (2014), available at https://.frbservices.org/files/communications/pdf/general/2013_fed_res_paymt_study_detailed_rpt.pdf
are reloadable – others are not.
Some prepaid cards
Some prepaid cards
are closed-loop – others are not.
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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
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CONSUMER
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
NETWORK BRANDED PREPAID VALUE CHAININCLUDES THOSE OUTSIDE OF TRADITIONAL CREDIT/DEBIT PARTNER NETWORK
Load/ Reload S Sites &
Networks
Seller/ Distributor
Acquiring
Processor Network Program
Manager Issuer
ProcessorCard Issuer/
BIN Sponsor
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.
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What Is Prepaid? ~ An Industry Overview
Who Makes GPR Cards Available?
The issuing bank is not alone.
Retail Outlets
Distributors
Program Managers
Processors
Issuer Bank
Payment Network
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What Is Prepaid? ~ An Industry Overview
Who Uses GPR Cards and Where Do They Get Them?
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)
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.
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What Is Prepaid? ~ An Industry Overview
How Are GPR Cards Used?
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:
• Customer loyalty programs• Purchase cushion protection• Optional overdraft protection• Discount programs• Optional savings account
44 CONFIDENTIAL AND PROPRIETARY
What Is Prepaid? ~ An Industry Overview
Oversight and Regulation
Oversight
The issuing bank oversees its third-party relationships – including those with program managers.
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 CONFIDENTIAL AND PROPRIETARY
Prepaid ~ Glossary of TermsFinCEN: 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