Ebt Converts Paper-Based Benefits To Electronic-Based Card

Online Product News, July 1, 2002

eFunds Corporation (NASDAQ:EFDS), Scottsdale, Ariz., a provider of electronic payment, risk management and related professional services, has been selected as the prime provider of the Electronic Benefits Transfer (EBT) services by the State of Alabama Department of Human Resources. The three-year contract, which started on March 1, 2002, has the possibility of two extensions, each for a two-year period.

Under the contract, eFunds will handle the electronic distribution of food stamps and cash assistance programs in Alabama, including transaction processing, reporting, authorization, settlement, operations support, help desk services, contract and project management, and retailer management. eFunds has provided EBT services to the State of Alabama as a subcontractor since 1996.

EBT converts paper-based benefits to electronic-based card delivery. Instead of issuing checks or paper food stamps to recipients, a state transmits benefit information to eFunds, which credits the recipient's account and applies any other maintenance to the recipient's record on the EBT database.

"We are very excited to expand our EBT relationship with the State of Alabama," said Gus Blanchard, chairman and CEO of eFunds Corporation. "We look forward to providing Alabama's EBT recipients with an efficient and friendly process for receiving their benefits, and at the same time, helping the state manage costs and reduce back-office administration."

eFunds Government Services, one of the first suppliers of EBT services, provides state and county governments with processing and services to automate food stamp and cash benefits. Prior to this, eFunds was a prime EBT contractor for eight government assistance programs, and a subcontractor for 22 other programs nationwide.

The recipients, who receive training on how to use their cards, can withdraw food stamp benefits at point-of-sale (POS) terminals located at authorized retailers, and access cash benefits at either ATMs or POS terminals. All transactions are validated by the eFunds EBT system before benefits are paid.

eFunds' EBT system is built on eFunds' CONNEX(TM) software which offers ATM and POS electronic funds transfer driving, switching, authorization and settlement services to banks and financial networks.

About eFunds

eFunds delivers innovative, reliable and cost-effective technology solutions to meet its customers' payment and risk management, eCommerce and business-process-improvement needs. eFunds provides its services to financial institutions, financial services companies, electronic funds networks, retailers, government agencies, eCommerce providers, and other companies around the world.

For more information, visit http://www.efunds.com or call 480/629-7644.