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Green Dot Corporation
Company typePublic
IndustryFinancial services
Founded1999(1999)
FounderSteve StreitEdit this on Wikidata
HeadquartersAustin, Texas,U.S.[1]
Key people
George Gresham,CEO
ProductsPrepaidMasterCardandVisacards
BrandsGo2Bank
RevenueIncrease$1.25 billion(2020)
Number of employees
1,200
Websitegreendot.com

TheGreen Dot Corporationis an American financial technology and bank holding company headquartered inAustin, Texas.[1]It is the world's largestprepaid debit cardcompany[2]bymarket capitalization.Green Dot is also a payment platform company and is the technology platform used byApple Cash,[3]Uber,andIntuit.The company was founded in 1999 bySteve Streitas a prepaid debit card for teenagers to shop online. In 2001, the company pivoted to serving the "unbanked"and"underbanked"communities. In 2010, Green Dot Corporation went public[4]with a valuation of $2 billion. Since its inception, Green Dot has acquired a number of companies in the mobile, financial, and tax industries includingLoopt,AccountNow,AchieveCard,UniRush Financial Services,andSanta Barbara Tax Products Group.

Green Dot Corporation is an issuer of prepaid MasterCard and Visa cards in the United States. These products are available at nearly 100,000 retail stores[5]includingCVS,Rite Aid,Walgreens,Dollar Tree;as well as discounted offerings atMeijerandWalmart.Green Dot also transfers individuals' direct deposit funds (such as Social Security payments) from the US government to personal bank accounts. They also provide co-branded card programs toWalmart,Boost Mobile,AT&TandCitibank.In 2007, Green Dot raised $20 million in funding,[6]includingSequoia Capitalas an investor. In 2008, Green Dot ceased to offer prepaidDiscovercards.[7]On July 30, 2019, Green Dot launched the Unlimited Cash Back Bank Account, offering 3% cash back as well as a savings account offering 3% interest[8]known as the Unlimited cashback account.

The cards are normal debit cards, and not a 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'spoint of sale,or in certain cases from theirpaycheck.

History

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Originally known as Next Estate Communications, Green Dot Corporation was founded in 1999 bySteve Streit.Its first debit card, branded as I-GEN and marketed toward teenagers and Internet users, was released in 2000. In 2001 the first I-GENMasterCardwas sold at aRite Aidin Virginia. In 2002, Green Dot debit cards were offered at Rite Aid,CVS Pharmacy,and Pantry Convenience stores and by 2003, in over 18,000 stores nationwide.[citation needed]

In the year 2004, I-GEN officially changed its name to Green Dot and launched the first cash-accepting network for reloading the debit cards.[9]

On July 22, 2010, Green Dot Corporationwent publicand started trading on theNew York Stock Exchange.[10]under the stock ticker:GDOT

In early 2012, Green Dot acquired themobile locationtechnology companyLooptfor $43.4 million, retained Loopt's employees to develop GoBank, the firstbank accountdesigned to be opened and used from amobile device.[11]In 2016,ridesharing companyUberenlisted GoBank to be the principalpayment processorfor its drivers.[12]Green Dot regards this as their pivot from aprepaid debit cardcompany into a platform company.[citation needed]

In 2014, Green Dot Corporation acquiredSanta Barbara Tax Products Group,[13]the largesttax refundprocessor in America.

Green Dot continued its acquisition of competitors in 2015,[14]purchasing Account Now Inc. and Achieve Card.

On September 24, 2014,Walmartannounced it would be partnering with Green Dot Bank to begin offering Walmart customerschecking accounts.[15]

In 2016, GoBank partnered with Uber to launch the Uber Debit Card,[16]enabling Uber drivers to cash out theirride fareimmediately.

On January 30, 2017, it was reported thatUniRush LLCwould be sold to Green Dot Corp. in a deal valued around $147 million. The deal was projected to add around 750,000 cardholders to Green Dot's network.[17]

In early December 2017, Green Dot Corporation announced that it was powering theApple's new Apple Pay CashP2P paymentservice.[18] On May 7, 2021,CNBCreported that "Green Dot, afintechfirm and biggest U.S. provider of prepaid debit cards, is moving its headquarters from Pasadena, California toAustin, Texas."[1]

Awards

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CEOSteve Streitwas nominated for Industry Executive of the Year at LendIt.[19]

Green Dot was nominated for Solving Problems Through Payments during the 2018 Benzinga Fintech Awards.[20]

Prepaid Debit Cards

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Unlimited Cash Back Bank Account

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On July 30, 2019, Green Dot made its debut of asavings accountfor customers through apre-paid debit card,the first in the industry, called theUnlimited cashback account.The card features a 3% cash back[21]return on purchases, as well as a 3%APYtowards a customer's savings account.[21]

Green Dot Prepaid Card & Cash Back Debit Card

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The Cash Back Debit Card is available online and in many stores,[22]includingCVS Pharmacy,Kmart,7-ElevenandWalgreenswhile the prepaid card is only available in stores.[23]Cards bought online are personalized with the customers name and cards bought in store are only a temporary card which does not have the customer's actual name on it; 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 or her name on it. Personalized cards are re-loadable in a variety of ways. There is a monthly charge of $9.95, unless the customer makes more than 30 purchases in a month or loads the card with more than $1000 in that month.

Uber Business Debit

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Green Dot partnered withUberon a business debit card for Uber Drivers to be able to get paid weekly or immediately through Green Dot's instant pay service by depositing earnings on to a debit card.[24]

RushCard

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RushCard is a personalized prepaid debit card offering early direct deposit, money management, and rewards.[25]The card was founded in 2013, with co-founders such as Russell Simmons under the companyUniRush LLCwhich was sold to Green Dot Corp. in a deal valued around $147 million.[26]

Walmart MoneyCard

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Walmartin partnership with Green Dot offers MoneyCard a reloadable prepaid debit card both online and in Walmart stores.[27]

Reloading process

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Card users can also opt to have their payroll transferred directly to the card throughdirect deposit[28]and the card acting as theirchecking account.Additionally, the cards may be re-loaded usingACH transfersonline directly from a bank account and even fromPayPal.[29]MoneyPak can be used to deposit cash onto card, which is available in the same stores GreenDot prepaid is. Most stores charge $5.95 for reloading.

Reputation

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As of December 2023, Green Dot has the following ratings:

Web site Rating (out of 5) Notes
Yelp 1 97% reviews received 1 star (December 2023)[30]
Credit Karma 1.7 81% of reviews received 1 star (December 2023)[31]
Consumer Affairs 1.4 89% of reviews received 1 star (December 2023)[32]
Better Business Bureau 1 7,035 closed complaints in the last 3 years (December 2023)[33]

The majority of unfavorable reviews, listed in the sites above and other review sites, complain of Green Dot limiting access to a positive balance on the card, even though the funds have been added to the card with a cash purchase. The reviews also underscore the unwillingness or incapacity of Green Dot customer service to resolve these issues. The majority of recent positive reviews on Consumer Affairs mention the convenience and speed of automatic direct deposits.[34]

Credit cards

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Green Dot Corporation also issues a secured payment card, the Platinum Visa Secured card. This is a Visa card that is secured by a deposit, and is not a debit card nor is it a prepaid card. It is a credit card.

MoneyPak

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MoneyPak is used to deposit cash to Green Dot prepaid cards but it can also be used to deposit cash onto third party prepaid or bank debit cards. MoneyPak is available in the same stores GreenDot prepaid is and most stores charge $5.95 for reloading.[35]

MoneyPak Security Concerns

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  • In June 2011, the Better Business Bureau and the Minnesota Department of Public Safety issued warnings regarding the illegal use of Green Dot's MoneyPak cards to defraud consumers.[36]
  • In January 2012, The office of New York State SenatorMartin Goldenissued an alert fromCon Edisonregarding various scams, including "Green Dot scams."[37]
  • In March 2012,Timemagazine reported on how the419 scamwas now being adapted to the relative anonymity of MoneyPak cards.[38]TheAARPIssued a warning on the rise of MoneyPak fraud in 2012[39]that followed the decline inMoneyGramfraud after MoneyGram was fined 18 million dollars "to settle FTC charges that it allowed its money transfer system to be used for fraud".[40]
  • In August 2012, the FBI also issued a warning that scammers were taking advantage of MoneyPak's untraceability to coerce unwitting victims into paying a "ransom" to unlock their computers infected with malware.[41]AVG Technologiesnotes that in some cases (likethe FBI scam), criminals are using malware to deceive victims into thinking their computer has been flagged for serious crimes, after which the relatively easy anonymity of MoneyPak cards is taken advantage of to allow for "untraceable" extortions.[42]
  • Beginning in mid-2013, Green Dot MoneyPak cards were being used to commit fraud, with persons asking callers under the guise of a customer service agent for a utility company such as a power or gas provider asking for immediate payment under threat of disconnection using a personal card or asking the caller to head to a store selling Green Dot cards and giving them the card number the funds were placed on.[43]Several national chains now have policies of asking the customer to confirm the purpose of their use of the card for these amounts and will refuse to execute the transaction if this type of scam is suspected for the use of the card.
  • In September 2013, severalWalgreensand other large chain drug stores through the United States were evacuated because ofbomb threatscalled into the stores, with the caller asking for a 'ransom' from the stores of multiple Green Dot cards with large amounts activated using store registers which would then be placed in an unmonitored location for the culprits to pick up, or the numbers read through the phone.[44][45]
  • In 2015, scammers were taking advantage of Green Dot cards when filing false income tax returns using compromised Social Security numbers. The criminal opens a Green Dot account in the victim's name, making that account the payee for a refund claimed on the fraudulent tax return. The stolen SSN is used both to file the false tax return and to open the Green Dot account, which is emptied if the refund is paid. The victim receives an unexpected letter containing a permanent (embossed with the victim's name) Green Dot card for the account, a probable indicator of SSN compromise and attempted fraud.[46]

References

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  1. ^abcSon, Hugh (May 7, 2021)."Green Dot joins corporate exodus from California as fintech firm moves to Austin".CNBC.
  2. ^Surane, Jennifer (February 12, 2018)."Author".Bloomberg.Bloomberg News.RetrievedFebruary 14,2018.
  3. ^Surane, Jennifer (February 12, 2018)."The Inventor of Prepaid Debit Cards Is Going Mobile".Bloomberg.RetrievedFebruary 14,2018.
  4. ^Arington, Michael (September 28, 2010)."Green Dot: The $2 Billion IPO You've Never Heard Of".TechCrunch.RetrievedSeptember 28,2010.
  5. ^White, Ronald."Green Dot is targeting the 'unhappily banked' for its prepaid cards".Los Angeles Times.RetrievedFebruary 22,2015.
  6. ^"Green Dot Gets $20M - socaltech.com".www.socaltech.com.
  7. ^"Discover Shutdown Page".Archived fromthe originalon December 30, 2010.RetrievedJanuary 3,2011.
  8. ^"Online bank Green Dot reveals savings account with a rate 30 times the national average".CNBC.July 30, 2019.
  9. ^"Green Dot is targeting the 'unhappily banked' for its prepaid cards".Los Angeles Times.February 23, 2015.RetrievedMay 27,2020.
  10. ^"Sv1za".www.sec.gov.SEC.
  11. ^"Pay-what-you-want GoBank puts mobile users first".USA Today.RetrievedJune 17,2013.
  12. ^"Uber unveils host of features to appease drivers".Vator.tv.Vator. June 6, 2016.RetrievedJune 16,2016.
  13. ^Beckerman, Josh (June 22, 2015)."Green Dot Retains Wal-Mart MoneyCard Account".Wall Street Journal.RetrievedJune 22,2015.
  14. ^Mercator."Green Dot Buying AccountNow and Achieve Card Solidifies Its Position as Number One".www.mercatoradvisorygroup.com.Mercator Advisory Group.RetrievedMarch 14,2015.
  15. ^Davidson, Jacob (September 24, 2014)."Walmart to Begin Offering Checking Accounts".Money.com.
  16. ^Kar, Ian (March 16, 2016)."Uber is offering a new debit card that will help its drivers get paid instantly".Qz.com.QZ.
  17. ^Armental, Maria (January 30, 2017),"Green Dot to Buy UniRush For $147 Million",Wall Street Journal,retrievedJanuary 31,2017
  18. ^Ryan, Phillip (November 8, 2017)."Green Dot's Bank-as-a-Service Scores Deals with Apple, Intuit".bankinnovation.net.Bank Innovation.RetrievedNovember 8,2017.
  19. ^"Green Dot".Benzinga Fintech Awards.RetrievedJune 12,2019.
  20. ^"Green Dot".Benzinga Fintech Awards.RetrievedJune 12,2019.
  21. ^abHardekopf, Bill (August 5, 2019)."Contributor".Forbes.No. n/a. Forbes.RetrievedAugust 5,2019.
  22. ^"5% Cash Back Visa Debit Card | Green Dot".www.greendot.com.RetrievedMay 1,2019.
  23. ^"Green Dot products are available at over 50,000 retailers nationwide".Archived fromthe originalon December 28, 2010.RetrievedMarch 9,2010.
  24. ^"Its IPO Document Shows the Massive Extent of Uber's Card Business".Digital Transactions.RetrievedJune 12,2019.
  25. ^"Prepaid Debit Cards & Plans | Visa Debit Card | RushCard".www.rushcard.com.RetrievedMay 1,2019.
  26. ^"Russell Simmons Sells RushCard to Green Dot for $147 Mil".Billboard.RetrievedMay 1,2019.
  27. ^"Features – Walmart MoneyCard | Prepaid Debit Cards | Walmart".www.walmartmoneycard.com.RetrievedMay 1,2019.
  28. ^"Green Dot – Add Funds-Direct Deposit".[permanent dead link]
  29. ^"Green Dot – Online reload from a bank account".Archived fromthe originalon December 28, 2010.RetrievedJune 5,2019.
  30. ^"Green Dot Corporation".Yelp.RetrievedDecember 16,2023.
  31. ^"Green Dot® Gold Prepaid Visa Card Reviews".Credit Karma.RetrievedDecember 16,2023.
  32. ^"Green Dot Prepaid Cards".Consumer Affairs.RetrievedDecember 16,2023.
  33. ^"Green Dot Prepaid Cards".Better Business Bureau.RetrievedDecember 16,2023.
  34. ^"Recent 5 Star Reviews for Green Dot Prepaid Cards".Consumer Affairs.RetrievedDecember 16,2017.
  35. ^"Reload with MoneyPak".Archived fromthe originalon December 28, 2010.RetrievedMarch 9,2010.
  36. ^"BBB, DPS warn of MoneyPak scams – BBB News Center".Archived fromthe originalon August 12, 2012.RetrievedAugust 14,2012.
  37. ^"Con Edison Warns Public to Beware of Scammers".January 26, 2012.
  38. ^White, Martha C."Old 'Nigerian Lottery' Scam Gets a New Twist".Time– via business.time.com.
  39. ^Kirchheimer, Sid."Green Dot MoneyPak Card Scams – Wire Transfer, Prepaid Debit".
  40. ^"MoneyGram to Pay $18 Million to Settle FTC Charges That it Allowed its Money Transfer System To Be Used for Fraud".October 20, 2009.
  41. ^"New Internet Scam".Federal Bureau of Investigation.
  42. ^"New Blackhole ransomware graphic mimics the FBI".Archived fromthe originalon July 17, 2012.RetrievedAugust 14,2012.
  43. ^"Con Edison Warns Public to Beware of 'Green Dot' Scams"(Press release).New York State Public Service Commission.June 25, 2012.RetrievedSeptember 20,2013.
  44. ^Matesic, Emily (September 16, 2013)."FBI Investigating Walgreens Bomb Threats".WBAY-TV.Archived fromthe originalon September 21, 2013.RetrievedSeptember 20,2013.
  45. ^Connolly, Caroline (September 18, 2013)."Bomb threats in Utah could be part of national scam".KSTU-TV.RetrievedSeptember 20,2013.
  46. ^"Oak Creek Police Warns Residents to be Aware of Fraudulent Tax Returns"(Press release). City of Oak Creek, Wisconsin. March 20, 2015.RetrievedMay 23,2015.
[edit]
  • Green Dot Corporationwebsite
  • Business data for Green Dot Corporation:
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