CLCK Will Benefit From The Expanding Use Of Electronic Benefits Transfer:
This market is growing but it's not just a question of each individual state having to accept it's use, businesses have to be set up to accept EBT as well.
What is Electronic Benefits Transfer (EBT)?
Electronic Benefits Transfer, more commonly known as EBT, is the movement of government benefit funds, such as food stamps or Social Security, via an electronic network. The benefit recipient can receive funds via magnetic stripe cards or via smart cards. Until now CLCK has focused on the most widely accepted EBT vehicle, the magnetic stripe card. With the acquisitions from ABN CLCK will be able to easily upgraded to read smart cards.
Why should businesses consider EBT?
The "Balanced budget Downpayment Act of 1996" requires that all Federal payments, including benefits, be made electronically by 1999. Because Food Stamps and Aid to Families with Dependent Children (AFDC) are the first programs to implement this new technology, supermarkets are leading the way in EBT. Soon all benefits programs, including Social Security, will come on-line and all types of retailers will need the ability to accept EBT and integrate this form of payment into their current systems. Additionally, most states plan to have some type of electronic benefits in place by end of 1998.
How does EBT work?
Recipients will receive a magnetic stripe card that they can use to make purchases in a manner very similar to using a debit card. Transactions are authorized electronically and, when there are no more funds on the recipient's card, further transactions are refused.
Why should businesses offer EBT now?
By acting now, you will be on the front end of this government project. As people begin to receive their benefits via cards, they will need a place to use them. If you are one of the only local vendors they can find who accepts this payment, you will get a windfall from the business and seem very customer service oriented.
I will get back to this subject later and leave a URL which will show that this national expansion is already underway in most states. Eventually this will be just one of the many markets that will benefit CLCK and it's shareholders. Check out these roll out numbers for the food stamp program alone from CitiBank:
usda.gov
FiScrip has been certified by Citibank and Lockheed Martin as an EBT third party processor according to federally established guidelines in twenty eight states and two counties in California. Eleven other states will require simple certification, which is anticipated to be completed in 1998. However, no assurance to this effect can be given. FiScrip's EBT development plans include full certification for six additional states as, if and when government contracts are awarded to Lockheed Martin or Deluxe Payment Systems, both of which are unaffiliated with the Company or FiScrip, for EBT transaction processing.
sec.gov
Regards, Jeff |
