SOURCE: eFunds Corporation

November 16, 2005 08:02 ET

eFunds and United States Postal Service (USPS) Enter Facilities Management and Debit Gateway Processing Agreement

Innovative, Hybrid Solution to Manage USPS Payment Processing and Back Office Operations

SCOTTSDALE, AZ -- (MARKET WIRE) -- November 16, 2005 -- eFunds Corporation, a leading provider of risk management, electronic payments and global outsourcing solutions, announced today that it will provide payment processing switching services, debit gateway processing and back office solutions to the United States Postal Service (USPS).

This new solution, which follows a previous software agreement signed in 2004, will be delivered through facilities management and debit gateway processing agreements that provide a flexible hybrid of in-house software and outsourced payment services. With the new agreement in place, the eFunds solution will drive transaction processing at more than 34,000 USPS locations and 65,000 point-of-sale (POS) devices nationwide once fully implemented. Other payments channels including the USPS' eCommerce business and its 2,500 Automated Postal Center (APC) self-serve kiosks will also be supported under this agreement.

"This agreement with USPS reinforces eFunds' commitment to customer-focused, industry-leading, payment solutions," commented Rahul Gupta, senior vice president and division executive, Payment Account Solutions at eFunds. "Through a flexible combination of proven in-sourced and outsourced services, we are able to meet the precise business needs of our customers -- helping them reduce overall cost and minimize risk."

The comprehensive solution includes several key components of eFunds' CONNEX Open Enterprise™ platform, including IST®/Switch and IST/eMerchant licensed software, debit gateway processing services, and additional back-office and settlement components. Operated at eFunds' secure data centers, the software and debit processing services will be used in parallel to route USPS debit and credit transactions through the appropriate gateway for authorization. The solution utilizes additional CONNEX OE software components, which will be located at USPS' facilities and managed in-house. These include DataDistributor™ for real time delivery of transactions to USPS' back office, as well as DataNavigator® and eFunds' settlement software for end-of-day settlement processing, transaction research and exception item management. Full redundancy and failover capabilities will also be provided.

eFunds' solution gives USPS the flexibility to directly control key parts of its payment operations, while relying on eFunds' expertise and proven history in outsourced processing solutions. Under the new agreements, USPS will have direct control over its back office operations and business functions, indirect control over its own payment switch through eFunds, and a flexible platform designed to support new business initiatives.

"We are pleased to be working with eFunds on this important initiative," said Robert J. Pedersen, vice president and treasurer, United States Postal Service. "The payment switch provides the Postal Service with the ability to use best practices in the transaction authorization and settlement arena as well as the flexibility to make use of future technological advances. The enhanced reporting and information management tools will also enable us to make informed business decisions."

The combined in-house/outsourced model also allows USPS to better control management costs, benefit from enhanced fraud management capabilities and deliver superior service levels to its customers.

"The drivers behind our decision to engage eFunds were that Postal Service customer transactions would be processed and settled securely, accurately, and in real time," said Bob Otto, chief technology officer, United States Postal Service. "This solution offers the kind of innovation and industry leadership the Postal Service seeks in business relationships that allow us to provide blue-ribbon customer service, while containing management and administrative costs for processing and settling customer transactions."

About eFunds

eFunds Corporation is an industry leader with nearly 30 years of experience and expertise in electronic payments and risk management. eFunds offers electronic funds transfer software and processing, risk management and related outsourcing solutions to financial institutions, electronic funds transfer networks, retailers, telecommunications providers and government agencies around the world. Committed to providing excellent customer service and award-winning products, eFunds enables its clients to reduce transaction and infrastructure costs, detect potential fraud and enhance relationships with their customers.

Statements made in this release concerning the Company's or management's intentions, expectations, or predictions about future results or events are "forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are necessarily subject to risks and uncertainties that could cause actual results to vary from stated expectations, and such variations could be material and adverse. Factors that could result in such a variation include, but are not limited to, the inherent unreliability of earnings and revenue growth predictions due to numerous factors, including many beyond the Company's control, potential difficulties, delays and unanticipated expenses inherent in the development and marketing of new products and services, competitive factors, the unpredictability of merger and acquisition activity, and the numerous risks and potential additional costs, disruptions and delays associated with the establishment of new business initiatives. Additional information concerning these and other factors that could cause actual results to differ materially from the Company's current expectations is contained in the Company's Quarterly Report on Form 10-Q for the period ending September 30, 2005.

eFunds Corporation
Gainey Center II, Suite 300
8501 North Scottsdale Road
Scottsdale, AZ  85253

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