Here is some more from the same poster about CLCK. Check out the CLCK thread for some more Info. Jeff does a great job with his DD. I could not do it anywhere close to that.
How about a little more information on EBT? Electronic benifits transfer and how CLCK and it's newly acquired company Fiscrip will make money from it.
The transactions based on this medium of exchange through FiScrip and the
Company are estimated to produce a gross transaction fee of between $0.06 to
$0.09, of which the Company will be paid a per transaction fee of $0.02 and a
fee of $3.50 per monthly statement generated by the Company. The transaction
fee is in addition to the merchant application and statement fees. However, no
assurance can be given as to the volume of transactions that will be processed or
rates at which such processing will take place. FiScrip is newly in operation in
connection with the EBT business, with no more than 5,000 transactions in
February, 1998 and 7,000 transactions in March, 1998. FiScrip anticipates a
significant increase in the number of transactions, but no assurance to this
effect can be given.
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.
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.
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!!!!How about a little more information on EBT? Electronic benifits transfer and how CLCK and it's newly acquired company Fiscrip will make money from it.
The transactions based on this medium of exchange through FiScrip and the
Company are estimated to produce a gross transaction fee of between $0.06 to
$0.09, of which the Company will be paid a per transaction fee of $0.02 and a
fee of $3.50 per monthly statement generated by the Company. The transaction
fee is in addition to the merchant application and statement fees. However, no
assurance can be given as to the volume of transactions that will be processed or
rates at which such processing will take place. FiScrip is newly in operation in
connection with the EBT business, with no more than 5,000 transactions in
February, 1998 and 7,000 transactions in March, 1998. FiScrip anticipates a
significant increase in the number of transactions, but no assurance to this
effect can be given.
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.
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.
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!!!! |
