The CFR Prepaid

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• The CFR Prepaid
• Debit Card for the
• Under-banked

Presented by Lauren Leimbach October, 2008
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CFRs Mission

• Provide financial tools to economically
  disadvantaged families
• Build the capacity of community-based
  organizations to provide asset-building
  strategies to their constituents.
• Assist financial services providers in offering
  consumer friendly products.

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What is Underbanked?

• Almost 50 million households in the U.S. either
  dont have a bank account or have unmet financial
  service needs.
• CFR survey of 480 low-wage workers
• 50 unbanked and 50 banked
• Of the banked workers
• Only 12 used their bank to send money
• Over 1/3 still used check-cashers
• Over 1/4 still bought money orders
• Major issue resolving service problems
• Avg. cost for financial services 12 - 39/mo.

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Overcoming Obstacles

• Language
• Cultural experience
• Location and Hours
• ID Requirements
• Variable cash flow/ penalty fees
• Product complexity

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Examples of CFRs Work To-date

• Low-cost high value prepaid debit card program
• Emergency loan program
• Technical assistance to economic empowerment
  programs

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How Prepaid Debit Cards Work
Load Cash
Remittances
Functions like any bank Visa Check Card
Purchasing Bill Payment ATM Write Checks
Use
Add Value
Payroll Direct Deposit or Electronic Deposit of
Benefits
Virtual Saving
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A Consumer Friendly Pre-Paid Debit Card

• The CFR Money Network Card is
• A reloadable prepaid Visa card
• A purchasing and bill payment card
• A money transfer card
• A virtual savings account
• And a financial management tool
• Card Conveniences
• No credit or Chex system check to obtain
• Flexible ID requirements
• Deposit paychecks, tax refunds, benefits, or
  cash to card
• Portable banking relationship
• Make purchases in person, online, mail-order,
  or by phone
• Pay bills

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Card Features
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Card Safeguards

• No risk of negative balance
• No overdraft, NSF, or penalty fees
• No retroactive fees
• No fees for being inactive
• No minimum balance but if Card has a 0 balance
  for 90 days it will be closed.

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Getting the Card

• Assisted application through Internet
• One Form of Government ID Required
• Social Security Number, Drivers License, State
  ID, Income Tax Identification Number (ITIN),
  Passport, Immigration Card, Matricula Consular,
  Cedula
• Instant Star Card can be issued at time of
  enrollment
• Account information available immediately to
  set-up direct deposit
• and/ or regular payments
• Permanent personalized Visa Card arrives in the
  mail
• in 7-10 business days
• Can be used anywhere Visa is accepted

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Writing Checks

• Write a Money Network check
• Call Customer Service for the check
  authorization code (This will freeze funds to
  cover the check)
• The recipient of the check can verify the
  guaranteed funds by calling customer service
• Additional checks can be ordered at no charge
  through Customer Service

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Fees

• Account Opening Fee Optional
• ?Revenue for CBO
• Monthly Fee
• Primary/Secondary Card 2.95/2.50
• ATM Withdrawal US/Intl 1.00/2.00
• Signature and PIN Purchases FREE
• Cash back with Purchase FREE
• Direct Deposit Loading FREE
• Cash Loading Fee 2.50 - 4.95
• Card-Card Money Transfer FREE
• Local bank ATM fees apply to withdraw funds
• Money Transfer via Orlandi Valuta 8.95
• Flat fee for any amount

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Current Card Program Applications

• VITA sitesallows tax refund direct deposit
• Consumer credit counseling services
• Unions
• Worker Centers
• Workforce development programs
• Social service agencies

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Next Steps Creating Partnerships

• Contact
• Lauren Leimbach, CFR Executive Director
• Phone [phone]
• E-mail Lauren_at_CommunityFinancialResources.net