Electronic Payments Leader Accounts for 95% of POS Terminals and Peripherals in EBT Systems Spanning 49 States, District of Columbia, Puerto Rico and Virgin Islands
Santa Clara, CA - June 28, 2004 - SANTA CLARA, CA – June 28, 2004 – Verifone, Inc. plays a crucial role in the shift of Food Stamp benefits from a paper-based system to an electronic benefits transfer (EBT) program. U.S. Department of Agriculture Secretary Ann M. Veneman declared June 22 that all 50 states and the U.S. territories now provide Food Stamp Program benefits electronically.
Verifone has deployed more than 100,000 electronic payment terminals to support Food Stamp EBT and its equipment is in use in 49 states, the District of Columbia, Puerto Rico and the Virgin Islands. Verifone has delivered an estimated 95% of the terminals and POS peripherals used in food stamp EBT programs. EBT replaces traditional food stamps with a magnetic-stripe card that operates similar to a debit or credit card and cuts down on errors that have historically cost hundreds of millions of dollars.
“Verifone’s ability to win such a large share of the EBT market demonstrates the company’s leadership in bringing innovative payment technologies to market,” said Jesse Adams, Verifone executive vice president, North American sales. “We are proud to be one of the organizations involved in a hallmark modernization effort that achieves better efficiency for its benefactors while also assuring greater dignity for its recipients.”
Government agencies that use EBT lower the cost of running their entitlement programs by reducing paper handling, simplifying tracking and reporting, and decreasing opportunities for fraud. The U.S. Department of Agriculture said program accuracy has improved by 25 percent over the last three years, resulting in a decrease in erroneous payments of nearly half a billion dollars and the payment of $173 million to eligible clients who otherwise would not have received those benefits.
In one example of how EBT extends the reach of the Food Stamp program, Verifone announced last September that the first ever U.S. deployment of a POS payment solution based on wireless code division multiple access (CDMA) was set up to process EBT cards at Fondy Farmers’ Market in Wisconsin. The Hunger Task Force, the creator of the Fondy Farmers’ Market, worked with eFunds (Nasdaq: EFDS), a leading transaction processing company based in Scottsdale, Arizona; Verifone; the U.S. Department of Agriculture, and the Wisconsin Department of Health & Family Services to bring the project on line.
Further information about the Food Stamp Program can be found at www.fns.usda.gov.
About Verifone, Inc.
Verifone, Inc., recognized worldwide as the trusted leader in secure electronic payment technologies, provides expertise, solutions and services for today with a smart migration strategy for tomorrow. Verifone is leading the industry in the delivery of solutions that add value to the point of sale, resulting in improved merchant retention and te generation of new sources of revenue for its partners and customers. Verifone solutions are specifically designed to meet the needs of vertical markets including financial, retail, petroleum, government and healthcare. Verifone has shipped over eleven million electronic-payment systems.