Green Dot Corporation
Encyclopedia
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, including Sequoia Capital
as an investor. In 2008, Green Dot ceased to offer prepaid Discover
cards.
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.
, 7-Eleven
and Walgreens
. 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.
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
.
External links=
MasterCard
Mastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
and Visa cards in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. These products are available at nearly 50,000 retail stores, including CVS, Rite Aid
Rite Aid
Rite Aid is a drugstore chain in the United States and a Fortune 500 company headquartered in East Pennsboro Township, Pennsylvania, near Camp Hill. Rite Aid is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S....
, Walgreens
Walgreens
Walgreen Co. , doing business as Walgreens , is the largest drugstore chain in the United States of America. As of August 31st, the company operates 8,210 locations across all 50 states, the District of Columbia and Puerto Rico. Founded in Chicago, Illinois in 1901, and has since expanded...
, and RadioShack
RadioShack
RadioShack Corporation is an American franchise of electronics retail stores in the United States, as well as parts of Europe, South America and Africa. As of 2008, RadioShack reported net sales and operating revenues of $4.81 billion. The headquarters of RadioShack is located in Downtown...
; as well as with discounted offerings at Meijer
Meijer
Meijer, Inc. is a regional American hypermarket chain based in Grand Rapids, Michigan. Founded in 1934 as a supermarket chain, Meijer is credited with pioneering the modern supercenter concept in 1962. About half of the company's 196 stores are located in Michigan, with additional locations in...
and Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
.
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
Point of sale
Point of sale or checkout is the location where a transaction occurs...
, or in certain cases from their paycheck
Payroll
In a company, payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons...
. In this sense, these cards have some of the features of a bank account
Bank account
A Bank account is a financial account recording the financial transactions between the customer and the bank and the resulting financial position of the customer with the bank .-Account types:...
.
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
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
, Boost Mobile
Boost Mobile
Boost Mobile is a brand of wireless prepay service run by Sprint Nextel, operating within the Sprint Prepaid Group along with Virgin Mobile USA, Assurance Wireless, and payLo by Virgin Mobile. Boost Mobile uses GSMand iDEN networks...
, AT&T and Citibank
Citibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...
. In 2007, it is reported that Green Dot raised $20M in funding, including Sequoia Capital
Sequoia Capital
Sequoia Capital is a Californian venture capital firm located on Sand Hill Road in Menlo Park, California. The Wall Street Journal has called Sequoia Capital "one of the highest-caliber venture firms", and noted that it is "one of Silicon Valley's most influential venture-capital firms"...
as an investor. In 2008, Green Dot ceased to offer prepaid Discover
Discover Card
The Discover Card is a major credit card, issued primarily in the United States. It was originally introduced by Sears in 1985, and was part of Dean Witter, and then Morgan Stanley, until 2007, when Discover Financial Services became an independent company. Novus, a major processing center, used to...
cards.
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.
Cards
Green Dot debit cards are available in many stores, including CVS/pharmacy, KmartKmart
Kmart, sometimes styled as "K-Mart," is a chain of discount department stores. The chain acquired Sears in 2005, forming a new corporation under the name Sears Holdings Corporation. The company was founded in 1962 and is the third largest discount store chain in the world, behind Wal-Mart and...
, 7-Eleven
7-Eleven
7-Eleven is part of an international chain of convenience stores, operating under Seven-Eleven Japan Co. Ltd, which in turn is owned by Seven & I Holdings Co...
and Walgreens
Walgreens
Walgreen Co. , doing business as Walgreens , is the largest drugstore chain in the United States of America. As of August 31st, the company operates 8,210 locations across all 50 states, the District of Columbia and Puerto Rico. Founded in Chicago, Illinois in 1901, and has since expanded...
. 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. Card users can also opt to have their payroll transferred directly to the card through direct depositAutomated Clearing House
Automated Clearing House is an electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit payroll and vendor payments. ACH direct debit transfers include consumer payments...
and the card acting as their checking account. Additionally, the cards may be re-loaded using ACH Transfers
Automated Clearing House
Automated Clearing House is an electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit payroll and vendor payments. ACH direct debit transfers include consumer payments...
online directly from a bank account and even from PayPal
PayPal
PayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders....
.
External links=