NetSpend Card Introduction Hits Positive Chord with Consumers; Check Cashers Association of New York Program Attracts Thousands of Users.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 23, 2003

It is extremely difficult to function in today's world without a credit card. Making a hotel, airline or rental car reservation is virtually impossible. Many businesses will not accept personal checks. Carrying large sums of cash can be dangerous. Having instant electronic access to cash is more than a convenience; it is a necessity in many instances.

Unfortunately, many New Yorkers do not qualify for credit cards because of poor or no credit histories. Others do not want to carry debt and would rather avoid traditional credit cards. To meet the needs of these consumers and others who want additional financial flexibility, more than 200 members of the Check Cashers Association of New York (CCANY) started offering the NetSpend All-Access MasterCard Card in October 2002. The program has been an instant hit.

"The reception among our customers has been fantastic. The NetSpend Card is a product that really meets the needs of a significant percentage of consumers," said Matt Bardach, president of David's Financial Corp. and president of CCANY.

The NetSpend Card, which is a prepaid debit card that carries the MasterCard logo, is accepted by more than 30 million merchants and can be used in more than one million automatic teller machines around the world. The NetSpend card offers holders choice, control, security, instant access to cash and economic empowerment.

"NetSpend Cards marketed through CCANY member locations are already in the hands of several thousand New Yorkers and the number is growing daily. It is a convenient alternative to credit cards and is even an option for people who do not want to pay high bank fees for maintaining a checking account," Bardach said. "Customers can recharge their NetSpend Card whenever they want and have control over where and when they spend their money. Another great benefit is that the NetSpend card offers CredAbility, a program designed to help consumers build a positive payment history as part of their credit report."

Typically consumers can purchase a NetSpend card for $19.50. Each time they use the card they usually pay a fee of $1 to $1.50, similar to what is charged to use many bank debit cards. A $1.50 fee is collected each time consumers want to add funds to recharge the card. In contrast, a Bankrate.com national survey indicated that it costs the average consumer $360 annually to maintain a checking account. The average fee for a bounced check is $32. Nationwide, more than 250,000 All-Access MasterCard Cards have been issued since the product became available.

The Check Cashers Association of New York is a trade organization with more than 500 members representing non-bank financial service centers across New York State. CCANY was founded in 1947 and is the leading voice for the industry in the state. CCANY members provide vital access to essential financial products and services in many neighborhoods. Customers count on CCANY members for check cashing services, money orders, electronic bill payments, money wire transfers, automatic teller machine access, payroll payments, electronic tax preparation, prepaid debit cards, public transportation fare and token sales, postage stamp sales and numerous other services. According to the New York State Banking Department, CCANY members cashed $14 billion in checks last year. In 2001, CCANY and its members were recognized as the "Check Cashers of the Year" by Cheklist magazine and the Financial Service Centers of America for the many community service programs the group provides.