WESTERN STATES EBT ALLIANCE AWARDS PROJECT TO CITIBANK, DELUXE DATA, LOCKHEED MARTIN
deluxe.com
St. Paul, Minn. -- Deluxe Corporation (NYSE: DLX) confirmed today that its Deluxe Data subsidiary, in partnership with Citibank and Lockheed Martin, has been selected by the Western States EBT Alliance (WSEA) to develop and operate a program to issue food stamps and public assistance benefits electronically.
Electronic benefit transfer, or EBT, uses plastic debit cards for cash withdrawals from automated teller machines (ATMs) and point-of-sale (POS) terminals. WSEA is composed of Colorado, Alaska, Arizona, Hawaii, Idaho, and Washington.
Deluxe Data, one of the nation's largest ATM and POS processors, is contractor for EBT projects in Kansas, Maryland, New Jersey, and Utah. Deluxe Data is also partnered with Citibank to serve EBT projects covering the Southern Alliance of States (Alabama, Arkansas, Florida, Georgia, Missouri, North Carolina, and Tennessee) and the Northeastern Alliance of States (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont).
Tom McLaughlin, Deluxe Data Vice President of Government Services, said EBT has been shown to reduce costs and fraud opportunities, while improving convenience and delivery of benefits to recipients.
"We look forward to implementing a successful program that features proven technology and the most experienced EBT project management staff in the country," McLaughlin said.
I would like to thank Kevin for talking with Ken Klotz of Columbia Capital. I would also like to reprint what he found out:
1.The $3.50/per month statement fee is per LOCATION---say the company signs up 7-11 with say 25,000 locations----that's 5,000x$3.50/month!!!! Then add the .02/transaction on top!!!!
2. FiScrip deal with Citibank(the largest credit card issuer in the U.S.) is for ALL their entitlements.
3. The company has already signed up "several thousand" locations on the EBT program, in fact according to Ken, they feel that they have the Southeast U.S. pretty well tied up!!!!
Is that light on yet?
CLCK on Columbia Capital!
Regards, Jeff
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