Datazoid Financial Services
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 Reselling Datazoid
 Stored Value Solutions

Introduction

Datazoid serves the niche market for the design, development and implementation of customized stored value debit card (SVC) Programs, each containing a number of different card products and related services, for these Customer Types:

Employers
Affinity Groups
Merchants — retailers or other corporate entities
Malls / Shopping Centers
Banks and other Financial Institutions
Consumers — particularly the Unbanked, Government Beneficiaries, and Teens
Government Agencies

Each SVC Program is sold in one of three ways:

• Directly, by Datazoid
• Through the Datazoid Reseller Network
• Through Affinity Groups (who themselves are sold to directly by Datazoid or a Datazoid Reseller)

The Datazoid SVC Products page describes our card products and related services, and how those items are used to develop the various SVC Programs that we offer.

The following discussion describes our Reseller Program in more detail, including our proposed revenue sharing scheme.

Program Development vs. Reselling

The development of a stored value card program is complicated, resource intensive and can take a considerable amount of time before cards are available for sale. Marketers interested in developing such a program must locate a card processor and a sponsor bank; the card processor processes card-related transactions and the bank issues the debit cards. Contracts with these entities must then be negotiated. Marketing materials must be developed and approved by the bank and one of the card associations, depending upon which Association is chosen by the Marketer/Bank. Procedures and tools to enroll cardholder must be developed. And a cardholder fee schedule for each of the various types of card transactions must be compiled. A card design must be prepared and approved by both the bank and the applicable Association.

One option for an organization interested in marketing/selling debit cards is to become a reseller of cards/card programs offered by another Entity, such as Datazoid. We already have a “generic” card designed: the Datazoid Digital Money Card. We have marketing and enrollment materials that we can share with our Resellers. And we have a very generous revenue sharing plan that allows an organization to quickly enter into the stored value debit card business with little “up-front” investment in both time and money. And we can co-brand our generic card or develop a unique card design for our Resellers if desired.

Joining the Datazoid Reseller Network

These are the steps that we follow in developing and implementing our Reseller Program:

1) Your Company Signs Letter of Intent with Datazoid to Become a Datazoid Reseller
2) Datazoid Develops a Reseller Program for Your Company
3) Your Company Approves Datazoidís Reseller Services Agreement
4) Your Company Develops an SVC Program Marketing Plan
5) Your Company Becomes a Registered card association MSP/ISO of Datazoid’s Sponsor Bank
6) Datazoid Provides Your Company with Marketing Materials and Sign-Up Kits
7) Your Company Implements Marketing Plan and Markets/Sells Datazoidís SVC Programs
8) Datazoid Processes Enrollment Information Provided by Company and/or Companyís Clients
9) Datazoid Issues Cards to New Cardholders
10) Cardholders Activate Cards and Load Value onto Cards
11) Datazoid Processes Card Transactions and Provides Company with Share of Cardholder Fees

As you can see, becoming a Datazoid Reseller is not very complicated.

Reseller’s Responsibilities

Datazoid Resellers are responsible for the following activities/items:

Program Configuration/Setup
Card Design
Web Site Development and/or Hosting
Web Administration/Enrollment Tool
Card Production & Distribution
Marketing Materials
Enrollment Kits
Insurance
“Good Funds”
Register as a card association MSP/ISO and/or ISA of Datazoid’s Sponsor Bank
Sales/Marketing

The following discussion briefly describes each of the activities/items listed above.

Program Configuration/Setup

For each Reseller, Datazoid needs to configure/setup our system to track card-related activity and cardholder fees collected for those cards sold “through” a particular Reseller. As we have numerous Resellers working with us, each Reseller needs to be separately configured in the Datazoid System. If a Reseller markets/sells our generic Datazoid Digital Money Card these costs would be minimal. However, if the Reseller requires its own unique card design and program we must obtain approval from both our Sponsor Bank and the card association for each program, which increases our configuration costs to somewhere between $5,000 and $15,000 depending upon the complexity of the program developed for that Reseller, i.e. how many SVC Programs/card products that Reseller will be marketing/selling under its name. These are one-time fees and there are no renewal/annual fees unless a Reseller expands its program offerings. During the development of the program for a given Reseller, these costs would be “fleshed out” as we learn more about the specific needs of that Reseller.

Resellers are also responsible for the costs (setup and ongoing) of providing a separate toll free number for their program and any custom prompts to the “generic” IVRU system that we provide.

Card Design

As we stated earlier, we have a generic card design — the Datazoid Digital Money Card — approved by the Card Association and our Sponsor Bank. If a Reseller decides to market/sell our generic card, then there are no card design costs. However, if a Reseller would like to market/sell its own unique card design, then the Reseller is responsible for those costs, which vary depending upon the complexity of the design chosen, but typically would somewhere between $1,000 to $2,000; Datazoid can work with our Resellers to develop a new card design or a Reseller can use its own graphic artist. Datazoid can provide the card design specifications to ensure a timely approval by the bank and the card association.

Both our generic card and any unique card design developed by a Reseller can also be co-branded with the name of a Merchant/Retailer or Affinity Group. Or in certain instances, a Merchant/Retailer or Affinity Group, or even an Employer, may want to use their own unique card design. There will be additional costs involved for each co-branded design of about $1,000. The costs for each new card design are listed above.

Web Site Develop and/or Hosting

Datazoid has developed a Web site that describes our SVC Programs/card products and services. Our Resellers may link to this site and we can develop a Web page for that Reseller if desired. Our site provides both informational material, but also allows applicants to purchase cards online. There would be no additional charge for providing this service.

However, if a Reseller would like its own Web site, then the Reseller is responsible for the costs to develop that site. Datazoid can provide the required Web site development services or the Reseller can use its own Web site designers/developers. The Reseller would also be responsible for hosting their own site if they take that tack. We estimate that a typical Web site that would be adequate for the purposes described herein would cost about $5,000; further we can host that site for $75/mo or the Reseller can secure its own hosting services.

Web Administration/Enrollment Tool

If the Reseller also wants to enroll applicants via the Web, then the Reseller will be required to obtain a 128-bit SSL Security Certificate (per certificate) and pay a monthly user access fee of $50 to access the Web Administration/Enrollment Tool.

Card Production & Distribution

The Reseller is responsible for the costs related to producing and distributing its cards to its cardholders. This includes printing the “blank plastic”, thermal printing a message and/or graphic required for co-branding, and printing the card carrier, card activation label, cardholder Terms & Conditions, Bank Privacy Policy and any other desired/required inserts. These costs are a function of the number of cards ordered but would typically cost the Reseller about $1 to $2 per card.

Marketing Materials

Marketing materials are used to help a Reseller market/sell a particular SVC Program that we offer. Datazoid has generic marketing materials that can be “customized” for a particular Reseller; we do not charge for these materials but the Reseller is responsible for all printing and distribution costs. These cost depend upon the number of items printed and these costs would be fleshed out when we developed the program for a given Reseller. But expect to spend somewhere between $5,000 and $10,000/yr for marketing materials.
Further a Reseller can develop its own marketing materials, subject to the approval of Datazoid, our Sponsor Bank and the Card Association. If the Reseller takes that tack, it would be responsible for the design (and subsequent printing and distribution) of those materials.

Enrollment Kits

Enrollment kits include the enrollment forms required for different types of cardholders, e.g. employees, government beneficiaries, etc. We have developed generic enrollment forms that can be used by our Resellers; these forms are provided at no cost; however, the Reseller is responsible for the printing/distribution of these forms. (Sample employee enrollment and government beneficiary enrollment forms, and a sample LOI between the Employer & Reseller (CCI is a Datazoid Reseller) and an Employer Agreement are available here).

In addition, we provide online enrollment tools that can be used by a Reseller or any company/organization that enters into an SVC Program with a given Reseller; these tools are available from our Web site or we can provide a link to these tools to a Reseller’s Web site.

Insurance

We have minimal insurance requirements that a Reseller must carry; these costs should be less than $5,000/yr and a Reseller may already have the requisite insurance. We would determine what if any insurance is required during the development of a particular Reseller Program.

“Good Funds”

Resellers are responsible for ensuring that all funds loaded onto a card by their cardholders or any other deposits or any other funds transferred or payments made a cardholder, client or the Reseller shall be “Good Funds”, i.e. funds immediately available in cash with no sovereign or other governmental impediments or restrictions to the exchange or transfer of such funds unless the Reseller Services and Marketing Agreement specify otherwise.

Register as a Card Association MSP/ISO and/or ISA of Datazoid’s Sponsor Bank

Each Reseller is required to register as a Card Association Member Service Provider/Independent Sales Organization (MSP/ISO) of Datazoid’s Sponsor Bank. Registration costs approximately $5,000 and must be renewed each year at a cost of approximately $2,000. In addition, if a Reseller employs any independent contractors to assist in the marketing/sales of a particular SVC Program, then it is possible that the person might have to register as a Card Association Independent Sales Agent (ISA) at a cost of approximately $1,500, which also must be renewed each year at a cost of approximately $500. These costs are estimates; the actual costs are set by the Card Association and are subject to change.

Sales/Marketing

Each Reseller is responsible for the costs of selling/marketing our SVC Programs, including office space, phone charges, and any sales and administrative staff required to support its business.

Datazoid’s Responsibilities

Datazoid is responsible for the following activities/items:

• Development of Reseller Program
• Reseller Program Configuration/Setup
• Generic Datazoid Digital Money Card Design
• Generic Marketing Materials
• Generic Enrollment Kits
• Training Materials
• Card Transaction Processing
• Program Management
• Collection of Cardholder Fees
• Distribution of Revenue to Reseller per Revenue Sharing Plan

The following discussion briefly describes each of the activities/items listed above.

Development of Reseller Program

After we sign a Letter of Intent (LOI) with a Reseller, then we would develop a “custom” program for that Reseller, based upon how the Reseller intends to market/sell our SVC Programs. We would also review the Reseller’s Marketing Plan.

Reseller Program Configuration/Setup

Datazoid will configure the Datazoid system to ensure that we can implement the SVC Programs that will be marketed/sold by the Reseller, and to ensure that we can properly track card transaction activity (and the related cardholder fees) for the cards sold through a particular Reseller.

Generic Datazoid Digital Money Card Design

The Datazoid Digital Money Card has been approved by our Sponsor Bank and the Card Association and we have blank plastic immediately available for personalization/encoding. Resellers can market/sell this card upon execution of a Reseller Marketing and Services Agreement. If a Reseller decides to develop its own card design, then it may take at least two to three months before such a card would be ready for the marketplace.

Generic Marketing Materials

Datazoid has developed generic marketing materials to support our various SVC Programs that can be quickly “customized”, i.e. replace our name with the name of the Reseller. Our Sponsor Bank and the Card Associationhave already approved these materials. If a Reseller develops its own marketing/sales materials from “scratch” then the time it will take to obtain the approval of our Sponsor Bank and the Card Association, i.e. two to three months or longer, can delay the launch of the Reseller’s program.

Generic Enrollment Kits

Datazoid has also developed generic enrollment kits to support our various SVC Programs that can be quickly “customized”, i.e. replace our name with the name of the Reseller. Our Sponsor Bank and the Card Association have already approved these materials. If a Reseller develops its own enrollment kits from “scratch” then the time it will take to obtain the approval of our Sponsor Bank and the Card Association, i.e. two to three months or longer, can delay the launch of the Reseller’s program.

Training Materials

Datazoid has also developed training materials to support certain SVC Program, e.g. the SVC Employer Program. We offer these materials to our Resellers at no cost; however, the Resellers are responsible for all printing and distribution costs.

Card Transaction Processing

Datazoid provides all card-related processing, and related customer service, for all of our SVC Programs. The costs for these services are paid for from the cardholder fees that we collect and not directly from our Resellers.

Program Management

Datazoid provides program management services for all of our SVC Programs. The costs for these services are paid for from the cardholder fees that we collect and not directly from our Resellers.

Collection of Cardholder Fees

Datazoid is responsible for collecting all cardholder fees from any cardholder who obtained his or her card through the Reseller.

Distribution of Revenue to Reseller Per Revenue Sharing Plan

Datazoid is responsible for providing Reseller with the portion of the cardholder fees and any other monies related to the marketing/sales of a Datazoid SVC Program as delineated in the Revenue Sharing Plan per an agreed upon schedule, all of which is incorporated into the Reseller Marketing and Services Agreement between Reseller and Datazoid.

Ready to Take the Next Step?

If you’d like more information on becoming a Datazoid SVC Reseller, visit our Contact Page and get in touch with us today.

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Note: While Datazoid makes every effort to keep this page up-to-date and complete, the description above is provided only as an overview of the Datazoid Reseller Program. Please contact us for complete details, including current program offerings and reseller requirements.

 



Account Access:
Employers
Marketing Partners
Resellers

Frequently Asked Questions:

What is a Stored Value Card?
How does a payroll card work?
How do I manage my accounts?
Do you provide support?

Datazoid Stored Value Cards are marketed by Datazoid Enterprises, LLC Series B dba Datazoid Financial Services (DFS), a Delaware Series Limited Liability Company. Read more About Us...

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