Delivering American Consumers the most
 affordable, easy to use and financially
      responsible banking services
       ...
Think Big Banks don’t
                                               deserve to pocket all
                               ...
© Copyright Plastyc, Inc., 2010


The Cost of Money
The cost of credit card debt to American Consumers is in the hundreds ...
© Copyright Plastyc, Inc., 2010




UPside Visa: the new generation of money management
Plastyc, Inc. operates the UPside ...
© Copyright Plastyc, Inc., 2010




How it works

Everything about the UPside service is online or by phone:
- Signing up:...
© Copyright Plastyc, Inc., 2010




The easiest Prepaid Card to Sponsor

The UPside Card service also offers the most comp...
© Copyright Plastyc, Inc., 2010



Advertise inside online card statements:
A Sponsor can communicate back to its audience...
© Copyright Plastyc, Inc., 2010




Being “in front” of Plastyc’s systems
We offer 2 technical mechanisms for Sponsors to ...
© Copyright Plastyc, Inc., 2010


How Plastyc works with Card Program Sponsors
The diagram below illustrates the interacti...
© Copyright Plastyc, Inc., 2010




Business Roles
Plastyc
Plastyc operates the card program in its entirety:
   - Process...
© Copyright Plastyc, Inc., 2010


Contact
For more information, contact us at:

info@plastyc.com
tel: 646-485-5267

Be sur...
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Using prepaid Visa cards to help consumers manage their money

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Describes how non-financial businesses can help sponsor and distribute Visa prepaid cards to provide their customers a more responsible way to manage their money.

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Using prepaid Visa cards to help consumers manage their money

  1. 1. Delivering American Consumers the most affordable, easy to use and financially responsible banking services for a better future .
  2. 2. Think Big Banks don’t deserve to pocket all these credit card and checking account fees? So do we… Plastyc Inc. is a privately held US corporation with the mission providing Americans with the most affordable, easy to use and financially responsible banking services for a better future. We address consumers of all ages, including teenagers (13-17), provided that an adult is involved in their enrollment to our services. The next few pages explain: - How Plastyc’s UPside Visa Cards are optimized for consumers instead of for the issuing bank, and have the most flexibility and options for sponsorship - How Plastyc works with Sponsors, who does what and who gets which money Unlike other companies, Plastyc is not doing prepaid card accounts “on the side”. We do ONLY money management based on prepaid cards. We are not trying to stretch pre-existing products intended for other markets. We are not trying to lure users into a life-long relationship to sell them other services in the future. Summary / Table of Content
  3. 3. © Copyright Plastyc, Inc., 2010 The Cost of Money The cost of credit card debt to American Consumers is in the hundreds of billions of dollars. Renowned personal finance advisors like Suze Orman are now advising their audiences to simply stay away from credit cards for their everyday payment needs. But eliminating debt is not enough. Even the basics of earning money and spending it using a standard checking account can cost a lot. A recent study by management advisory firm Bretton Woods, Inc. measures the yearly cost of bank checking accounts between $200 and $350 based on basic usage patterns mentioned by the Office of the Comptroller of the Currency and by a Consumer Union Report in prior surveys. One alternative is to use cash for everything. But if you’re cash-based, chances are that on payday your employer will give you a paper check that you will have to cash at some check- cashing place, where you will pay a substantial fee for the service. The same Bretton Woods study shows the cost of cash-only living to be between $165 and $315 per year. That’s not much of an improvement compared to basic bank accounts. Plastyc Inc. has introduced a new generation of prepaid card accounts which offer many of the same services as a traditional checking account but with fewer fees and constraints. Since the service is covered by FDIC insurance, consumers get the same level of safety as a traditional bank checking account. There’s no retail bank to visit: users can log-in anytime via any Internet-connected PC or cell phone, and get email support at no cost. The result is a yearly saving or about $220/ year on average, compared to a basic checking account. UPside Visa $51 $60 Cash $167 $313 Bank Checking Account $204 $353 Low High 3
  4. 4. © Copyright Plastyc, Inc., 2010 UPside Visa: the new generation of money management Plastyc, Inc. operates the UPside Visa Prepaid Cards, the lowest cost and most advanced from of prepaid cards available today: - Employers: direct deposit - Friends: card to card More sources of funding - Parents: bank transfers or remote cash crucial during financially loads vie Green Dot® MoneyPaks® challenging times - Schools & communities: direct-to-card payouts - Self: cash via GreenDot MoneyPaks - Less fees than any other card More buying power - Includes the option of zero fees when for the usually cash-strapped $400 are circulated in the card during any given month More rewarding Get points or cash back for: because gratification is even - referring friends more important when young - buying online through the UPside Mall More interesting Choose among an increasing choice of than your average credit card card graphics Access the card account via: More connected - An Ajax-based web site for the “always-on” generation - A Facebook Application - Any web-enabled cell phone - Share money with friends by just knowing their email address More social - Receive money from online because buying things is a communities shared activity - Become an ambassador and earn cash directly in the card - Visa’s zero-liability policy in case of loss or theft More responsible - Manage your budget online than cash or credit cards - Never get into debt - Freeze the card from cell-phones when misplaced or possibly stolen 4
  5. 5. © Copyright Plastyc, Inc., 2010 How it works Everything about the UPside service is online or by phone: - Signing up: consumers with a valid SSN and US address can enroll in a few minutes; no credit check involved - Managing the card: the balance, and latest transactions are available from any PC, web-enabled cell phone, and from within a FaceBook profile. - Funding the card: sending the direct deposit information to an employer or parent, sharing money with friends, redeeming a MoneyPak purchased with cash Note: enrollment by phone is not done by Plastyc itself, but can be done by a partner, using our Web Services APIs to develop an enrollment console for phone agents to use. Jobs Parents Bank Collect from Friends Credit/Debit Transfers Salary Online marketplaces Cards Deposits & communities Cash Medium-term Save for tangibles Scholarships 24x7 Anywhere Access Subsistence Entertainment Cash Pay for Car Checks Rent 4000 0000 0000 0000 4000 0000 0000 0000 4000 GOOD THRU 03/10 03/10 DEBIT Online bill pay CARDHOLDER NAME CARDHOLDER NAME Card The UPside Visa card is the most responsible way to buy: - it is safer than cash or debit cards, - it is cheaper than checks, - it imposes the discipline of having the money available before you buy - it can be controlled more easily than any other payment instrument, through the web, cell phones and Facebook - it offers discounts at hundreds of online stores inside the UPside Mall - it allows parents of minors to monitor expenses and control card privileges 5
  6. 6. © Copyright Plastyc, Inc., 2010 The easiest Prepaid Card to Sponsor The UPside Card service also offers the most comprehensive set of possible interactions with Sponsors. Who can be a Card Program Sponsor? Any legal entity with a legitimate and reputable reason to interact with US-residing consumers in the course of its everyday business can become a Card Program Sponsor, subject to approval by MetaBank, the card issuing bank.. For example, a Card Program Sponsor can be: - A business or a non-for-profit organization set up to help communities of people with every-day life matters; - A business set up for the purpose of selling educational tools and services to young users or their parents; - A business selling life-style services “adjacent” to banking, like tax preparation, payroll management; - A business controlled by a individual sportsman, musician, artist, or by a group of such notable individuals. providing information to fans and audiences, selling them event tickets, media content or merchandise; How can a Sponsor interact with the UPside Card Programs? Define target card demographics: Different segment of the Sponsor’s audience may be offered a card selectively: - Adults (above the age of 18) - Parents of teenagers who want to sign up their kids Define choice of card plans: If teenagers are part of the target audience, then there is a choice of different card plans, as a function of the target income profile of the audience: - “free” cards with no activation, monthly or yearly fee - “pay-as-you-go” cards, with a monthly fee - “premium” cards with a yearly fee The items above with the grey background are the only two mandatory elements of a sponsored campaign; all other elements below are optional Customize enrollment pages: If a Sponsor wants to re-use the existing Plastyc-operated web pages to initiate the online enrollment of cardholders, then such pages can be customized with Sponsor-specific text and logos, subject to some limitations imposed by Visa. Alternatively, the Sponsor can develop its own proprietary enrollment pages on its own servers, and interface with the Plastyc—operated enrollment servers are the back-end by using the Web Services APIs. 6
  7. 7. © Copyright Plastyc, Inc., 2010 Advertise inside online card statements: A Sponsor can communicate back to its audience by inserting promotions, news and ads inside the cardholders’ “dashboard”, which is the online equivalent of the card statement. To this effect, a sub-window built with Ajax technology is made available to Sponsor for free. Reward cardholders with Loyalty Points: Much like adults may choose a credit card that earns air- miles, UPside cards can earn “points” that can be redeemed against a choice of rewards. By default, UPside Card rewards available today are either cash back or Amazon e-certificates. A Sponsor may choose to add its own rewards Reward cardholders with money: Sometimes, contest winners, or most active users need to be rewarded with cash. UPside cards have a no-fee direct-to-card payout interface which allows a Sponsor to “inject” money into any number of cards. This can be used for example to pay out commissions to contributing members like sales representatives. Contribute directly to financial literacy programs: Plastyc operates the “Spend Responsibly” website, which can host Sponsor content for free, if a Sponsor has educational material that it wants to contribute to young users. The SpendResponsibly.com website already contains material contributed by Visa itself. ; 7
  8. 8. © Copyright Plastyc, Inc., 2010 Being “in front” of Plastyc’s systems We offer 2 technical mechanisms for Sponsors to create a front-end to Plastyc’s card management systems: Method Suitable for Pre-requisites Traceable Internet Anyone operating a consumer- - Materials where the Internet links inserted in facing website or communicating links are inserted must be Sponsor’s with consumers primarily through approved by issuing bank. publications (web online or printed media - Web sites must be compliant site, emails, with COPPA. newsletters, fliers, - Email communications must posters, etc.) be compliant with CAN- Spam act. Web Services APIs - Sponsors which want to keep - Sponsor must take liability which can be used by consumers on their own site and for the safeguard of sensitive the Sponsor to have enough technical consumer data captured develop its own sophistication to implement their during enrollment. enrollment service own user interface for card- - Sponsor must prevent and also provide related services, using our robotic enrollment attempts basic card account XML/SOAP APIs - The resulting interfaces to consultation to - Also suitable for Sponsors who consumers developed by the consumers want to enroll cardholders through Sponsor using the APIs other means than a website, e.g. must be approved by the via phone. issuing bank. Using Traceable Internet Links Fliers Email website newsletters First Name Plastyc Last Name enrollment Address 1 Address 2 Sponsor’s publications website ZIP Code City Date of Birth SSN Gender Using the APIs Plastyc Cardholder Sponsor’s Management Server Systems SOAP/XML APIs over https Call Center Sponsor’s website and Graphical User Processing Interface Platform Card Accounts User Database 8
  9. 9. © Copyright Plastyc, Inc., 2010 How Plastyc works with Card Program Sponsors The diagram below illustrates the interactions between a Card program Sponsor and Plastyc: Sponsor Back-end Systems Enrollment Tracking Payment-enabled Payment-enabled Users Users Payout Engine Sponsorship Sponsorship Users to Users to Agreement Cardholders be paid out Agreement be paid out Online statements News News & Promos & Promos Incentive Engine Incentives Incentives Enrollment & Access Issuing ts ren Advertising Advertising Bank Us of the card ser of the card Pa rs Transaction Transaction Web Site Processing Shopping Processing Shopping Standard Engine Engine Cart (if Sponsor Cart (if Sponsor Payment does e-commerce) does e-commerce) Protocol All interactions between the Sponsor and Plastyc are documented in a “Card Sponsorhip Agreement”, which is a short (6-7 pages) document structured as follows: Preamble, Definitions, etc. Suitability of Sponsor’s Site & Communications for promoting UPside Visa Prepaid Cards Definition of UPside Link and Tracking Codes OR Definition of APIs and pre-requisites for using such APIs Enrollment processing by Plastyc Ongoing interactions with cardholders (promotions via website, payouts, etc) Commissions or Revenue Sharing with Sponsor Payment Terms Licenses to logos and trademarks Term, relationship of parties, confidentiality, liability, etc. Appendix: Card Commissions or Revenue Shares Schedule as a function of Card Plans 9
  10. 10. © Copyright Plastyc, Inc., 2010 Business Roles Plastyc Plastyc operates the card program in its entirety: - Processes the Enrollment of new users, including the verification of identity and compliance with the USA Patriot Act - Handles the card production and shipment - Manages all card transactions (reloads, purchases) - Provides ongoing customer support to cardholders (web and phone) Plastyc also handles the operations of subsequent interactions that may be required between the Sponsor and Cardholders: - insertion of ads and promos inside online statements - distribution of payouts into cards - making rewards from Sponsor available to cardholders as part of the loyalty program Sponsor The Sponsor “advertises” the card to its audience through any combination of means it finds suitable: - Web sites - Emails and electronic newsletters - Flyers and brochures distributed by postal mail or at events, or inserted into the packaging of other merchandise - Posters, etc. If the Sponsor chooses to use the Plastyc-provided APIs, then it can also operate its own interactions with cardholders out of its own systems: - at enrollment time: for example, the Sponsor can include an enrollment form on its own website or provide an enrollment console to phone agents in a call center - post-issuance, the Sponsor can provide a card consultation service out of its own website, or via an IVR system Money flows The financials of a partnership between Plastyc and a Sponsor are: Costs Revenues Interchange fees from Visa All card operational and Plastyc pays Plastyc gets and consumer fees from processing costs cardholders Initial set up fees for A commission for each customizing the enrollment activated card, or an ongoing Sponsor pays Sponsor gets landing pages, or for setting revenue share for as long as up the APIs the card is active Any ongoing interactions with cardholders: advertising inside their online statements, payouts of monetary rewards, handling of loyalty points, are free to Sponsor. 10
  11. 11. © Copyright Plastyc, Inc., 2010 Contact For more information, contact us at: info@plastyc.com tel: 646-485-5267 Be sure to visit: Plastyc’s corporate website http://www.plastyc.com Adults enrollment site http://www.upsidecard.com Mobile WAP site https://wap.upsidecard.com Parents of teens enrollment site http://www.upsidevisa.com UPside Mall http://www.upsidemall.com Spend Responsibly site http://www.spendresponsibly.com Facebook application page http://apps.facebook.com/upsidecard Facebook fan page http://www.facebook.com/UPsideCard Download the API Specificiation http://www.plastyc.com/partner-with-plastyc.htm 11

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