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Microcap & Penny Stocks : Columbia Capital Corporation-Computerized Banking (CLCK) -- Ignore unavailable to you. Want to Upgrade?

To: CHIPNHOLE who wrote (14)	5/20/1998 12:13:00 PM
From: Jeffrey L. Henken	Respond to of 1020

Electronic Benefits Transfer (EBT) is the delivery of government benefit funds such as food stamps, Aid to Families with Dependent Children (AFDC) and Social Security via electronic means. Delivery mechanisms include magnetic stripe cards and smart cards. Benefits of EBT EBT programs have many advantages over paper-based programs, some of these advantages are listed on the reverse side of this document. But EBT isn't just a good idea; it has been mandated in the "Balanced Budget Downpayment Act of 1996" which President Clinton signed into law. The act requires that all Federal payments, including benefits, be made electronically by 1999. Because the first programs to be implemented are food stamps and AFDC, supermarkets are leading the way with EBT. However, when Social Security and other cash benefits come on-line, all types of merchants will need to expand their electronic payment systems to integrate this payment type. How it Works Existing paper-based programs mail food stamps, coupons or checks to recipients each month. Recipients cash the checks and/or use the food stamps and coupons to purchase qualifying items from participating supermarkets. With EBT, recipients receive a magnetic stripe card that they use to make purchases in a manner very similar to using an on-line debit card. Transactions are authorized electronically, and when a recipient has used all of his or her benefit allocation for the month, additional transactions are refused. The Advantages of EBT Reduced fraud and error because transactions are authorized on-line Reduced costs for taxpayers, merchants and recipients Convenience for recipients and retailers No check-cashing fee for recipients Faster check out Faster delivery of funds to merchants Better tracking of benefit use Standardization Greater security than paper for recipients Advantages of EBT to CLCK shareholders? Because of our partnership with FiScrip the company is paid a fee for each one of these transactions using our company's technology. That could amount to fully 1/4 the money paid for these services by the US Government dealing with entitlement benefits for years to come! Regards, Jeff