To: Dave Dalry who wrote (254 ) 6/15/1998 8:48:00 PM From: Jeffrey L. Henken Respond to of 1020
CLCK works with FISCRIP to provide EBT services through the use of the Quest card in the following participating QUEST States: Alabama, Alaska, Arkansas, Colorado, Connecticut, District of Columbia, Florida, Georgia, Hawaii, Idaho, Massachusetts, Missouri, Minnesota, North Carolina, Pennsylvania, Rhode Island. This should grow to 30 states by the end of 1998. Check out this site for more information:nacha.org FiScrip designs, programs and tests the software that is reloaded into ATM's and debit card point-of-sale machines. FiScrip is one of four companies certified by Deluxe Payment Systems, an unaffiliated third party, to process EBT transactions. EBT is a new process and method of distributing federal entitlements, initially including food stamps, welfare and social security payments to beneficiaries. In place of printing and issuing checks and other financial instruments, some beneficiaries of government entitlement programs receive a debit style card (a "QUEST Card") which operates in the same manner as an ATM or debit card. The beneficiary of the entitlement program uses this federally issued card to purchase items utilizing the EBT system. The federal government may eventually establish individual accounts which will be debited when a beneficiary makes a withdrawal or purchase. According to federal government surveys, it is anticipated that by the year 2000, 60% of the population of the United States will be receiving monthly income issued electronically and accessible through the use of a QUEST Card. However, no assurance to this effect can be given. The total dollar value of EBT transactions (food stamps, aid to families with dependent children and welfare) in 1998 is estimated by FiScrip to be $60 billion, with an average transaction size of approximately $23.00, or approximately 450 million transactions per year. FiScrip's target market share of total dollar volume of EBT transactions is estimated to be $6 billion or 65 million transactions per year) by January 1, 2000. However, no assurance can be given that there will be this volume of transactions or that FiScrip will service such a volume of transactions. The Social Security System will begin distributing benefits using EBT beginning on January 1, 1999 and expects to have completed full implementation of the distribution system for benefit distribution using EBT by January 2, 2002. The dollar value for all EBT transactions by the Social Security System is expected to reach $470 billion annually. However, no assurance to this effect can be given.sec.gov Regards, Jeff