September 24, 2017 11:18 PM ET

Consumer Finance

Company Overview of NetSpend Corporation

Company Overview

NetSpend Corporation provides reloadable prepaid cards and related financial services to underbanked consumers who do not have a traditional bank account or who rely on alternative financial services in the United States. It offers FDIC-insured Visa and MasterCard prepaid cards to make purchases, pay bills, and manage their money without the need for a checking account or credit history. The company also provides corporate payroll card solutions that help employers offer employees with a direct deposit option. It offers its solutions via its direct distribution channel and online portal, as well as through a network of distribution locations and reloads points, such as neighborhood retailers...

701 Brazos Street

Suite 1200

Austin, TX 78701

United States

Founded in 1999

Phone:

512-531-8693

Fax:

855-439-6488

Key Executives for NetSpend Corporation

President
Age: 54
Executive Vice President of Direct Channel
Senior Vice President of Partner Channel
Senior Vice President for Commercial Prepaid
General Manager of Retail Channel
Compensation as of Fiscal Year 2017.

NetSpend Corporation Key Developments

Netspend and United Airlines Announce the MileagePlus Go Visa Prepaid Card

Netspend and United Airlines announced the MileagePlus GO Visa Prepaid Card is now available for order online. Cardholders will be able to earn one United MileagePlus award mile for every $1 spent on qualifying signature purchases, and award miles can be redeemed through United’s MileagePlus loyalty program. Key Benefits of the MileagePlus GO Prepaid Card are earn one mile for every $1 of qualifying signature purchases made in-store and online, earn up to 2,500 miles per month, Miles earned will be deposited to cardholder’s United MileagePlus account each month, No credit check requirement, and no late fees or interest payments, the card is reloadable and can be used anywhere Visa® debit cards are accepted, the card features a powerful mobile app that makes it easy for cardholders to track spending and miles earned, load checks and find the nearest reload locations. An annual fee of $85 is applied and deducted after the first load to the cardholder’s account.

Netspend Partners with United Airlines to Launch its First Prepaid Card, MileagePlus Go Visa Prepaid Card, in the US

Netspend has partnered with United Airlines to launch its first prepaid card, MileagePlus GO Visa Prepaid Card, in the US. The new offering, which will be available from summer 2017, will allow US consumers to directly earn miles for qualifying purchases made with a prepaid card. It will also enable cardholders to redeem award miles through the airline's MileagePlus loyalty programme. The new card will be issued by Republic Bank, and will be FDIC-insured on a pass through basis. It will also offer electronic anytime alerts to help cardholders monitor spending.

NetSpend Corp. Settles with Federal Trade Commission over Alleged Deceptive Marketing

NetSpend Corp. reached an agreement with the Federal Trade Commission to resolve allegations over deceptive marketing. The Federal Trade Commission had filed a complaint against the company charging it with deceiving consumers about access to funds deposited on NetSpend debit cards. The Federal Trade Commission announced that NetSpend's marketing messages did not clearly communicate the company's obligations to verify consumers' identities before activating their accounts. NetSpend responded with a motion to dismiss the complaint in December 2016. The company said it did not admit any wrongdoing but it agreed to settle in order to avoid the significant costs associated with protracted litigation. The settlement applies to some individuals who purchased Netspend prepaid cards between Jan. 1, 2010, and Aug. 31, 2016, but never completed the required identity verification steps to activate the card. The company has agreed to continue to assist these individuals in accessing their funds, which totaled nearly $40 million. Almost $8 million of the $40 million has been accessed by cardholders since Sept. 1, 2016. The company will refund $13 million in fees charged prior to Aug. 31, 2016, and refund any fees charged to inactivated accounts after that date.

Similar Private Companies By Industry

Company Name Region
1031 Corp. United States
1800Pay, Inc. United States
1st Franklin Financial Corporation United States
2011-SIP-2 Venture, LLC United States
2262011 Ontario-Delaware Inc. United States

Recent Private Companies Transactions

Type
Date
Target
No transactions available in the past 12 months.
\
 

The information and data displayed in this profile are created and managed by S&P Global Market Intelligence, a division of S&P Global. Bloomberg.com does not create or control the content. For inquiries, please contact S&P Global Market Intelligence directly by clicking here.

Stock Quotes

Market data is delayed at least 15 minutes.

Company Lookup

Most Searched Private Companies

Company Name Geographic Region
Lawyers Committee for Civil Rights Under Law United States
The Advertising Council, Inc. United States
NYC2012, Inc. United States
Tax Management Inc United States
Bertelsmann AG Europe

Sponsored Financial Commentaries

Sponsored Links

Request Profile Update

Only a company representative may request an update for the company profile. Documentation will be required.

To contact NetSpend Corporation, please visit --. Company data is provided by S&P Global Market Intelligence. Please use this form to report any data issues.

Please enter your information in the following field(s):
Update Needed*

All data changes require verification from public sources. Please include the correct value or values and a source where we can verify.

Your requested update has been submitted

Our data partners will research the update request and update the information on this page if necessary. Research and follow-up could take several weeks. If you have questions, you can contact them at bwwebmaster@businessweek.com.