Green Dot Corporation
| File:Green Dot Corporation.png | |
| Company type | Public (NYSE: GDOT) |
|---|---|
| Industry | Financial Services |
| Founded | 1999 |
| Founder | Steve Streit  |
| Headquarters | Monrovia, California |
Key people | Steve Streit, CEO |
| Products | Prepaid MasterCard and Visa cards |
| Website | greendot.com |
Green Dot Corporation is an issuer of prepaid MasterCard and Visa cards in the United States. These products are available at nearly 50,000 retail stores, including CVS, Rite Aid, Walgreens, and RadioShack; as well as with discounted offerings at Meijer and Wal-Mart.
The cards may be used like normal debit or credit cards, but they are not backed by a checking account or line of credit. Purchases are deducted from the balance stored on the card. The user can add more money to the card by paying cash at a retail store's point of sale, or in certain cases from their paycheck. In this sense, these cards have some of the features of a bank account.
Green Dot is headquartered in Monrovia, California, and it was formerly known as Next Estate Communications. The company provides co-branded card programs to Wal-Mart, Boost Mobile, AT&T and Citibank. In 2007, it is reported that Green Dot raised $20M in funding,[1] including Sequoia Capital as an investor. In 2008, Green Dot ceased to offer prepaid Discover cards. [2]
History
The Green Dot corporation was founded in 1999 by Steve Streit. Green Dot was formerly known as Next Estate Communications. The first debit card to be sold was I-GEN in the year 2000. It was geared toward teenagers and Internet users. In 2001 the first I-GEN MasterCard was sold at a Rite Aid in Virginia. In 2002 the first Green Dot debit cards were sold at more Rite Aid stores as well as CVS Pharmacy, and Pantry Convenience stores. In 2003, the I-GEN card was sold in over 18,000 stores nationwide and geared toward adults. In the year 2004, I-GEN officially changed its name to Green Dot and started the first cash-accepting network for reloading the debit cards. In 2005, Green Dot created additional debit cards for everyone's needs. Finally, by May 2006, Green Dot sold more than two million cards nationwide and opened more retailers to issue more cards internationally. On July 9, 2010, Green Dot Corporation announced terms for its IPO saying it plans to raise $129 million by offering 3.85 million shares at a price range of $32–$35 with all shares to be sold by insiders.[3]
Cards
Green Dot debit cards are available in many stores, including CVS/pharmacy, Kmart, 7-Eleven and Walgreens.[4] This is only a temporary and does not come with customer's name on it, and instead it says "Valued Customer". Temporary cards are not re-loadable. However if the customer opts in to receive a personalized card, which is free of cost, in 7 to 10 business days it will arrive in mail with his name on it. Personalized cards are re-loadable in a variety of ways. There is a monthly charge of $5.95, unless the customer makes more than 30 purchases in a month or loads the card with more than $1000 in that month.
Reloading process
The personalized card can be reloaded using MoneyPak, which is available in the same stores GreenDot prepaid is. Most stores charge $4.95 for reloading.[5] Card users can also opt to have their payroll transferred directly to the card through direct deposit[6] and the card acting as their checking account. Additionally, the cards may be re-loaded using ACH Transfers online directly from a bank account and even from PayPal.[7]
Reputation
November 2009 - Green Dot currently has an A+ rating with the BBB.[8]
References
- ^ "Green Dot Gets $20M".
- ^ "Discover Shutdown Page".
- ^ http://www.renaissancecapital.com/ipohome/news/Prepaid-financial-services-company-Green-Dot-sets-IPO-terms-8245.html
- ^ "Green Dot products are available at over 50,000 retailers nationwide".
- ^ "Reload with MoneyPak".
- ^ "Green Dot - Add Funds-Direct Deposit".
- ^ "Green Dot - Online reload from a bank account".
- ^ "Green Dot BBB Report".