SOURCE: eFunds Corporation

September 12, 2006 08:00 ET

eFunds and State of Kansas Modernize Government-Assisted Child Care

eFunds' Innovative EBT Solution Enables Faster, More Efficient Payment to Child Care Providers, Fosters Increased Parental Involvement and Self-Sufficiency

SCOTTSDALE, AZ -- (MARKET WIRE) -- September 12, 2006 -- eFunds Government Solutions, a division of eFunds Corporation (NYSE: EFD), today announced the successful implementation of an innovative EBT (Electronic Benefits Transfer) solution for state-assisted child care payments.

For the past decade, the state of Kansas made payments directly to child care providers on behalf of qualified families. This established, paper-based system meant child care facilities had to complete timesheets, and then wait for the state to process and issue payment via paper checks or direct deposit. This process was labor and time intensive, made budgeting on behalf of the state difficult, and meant families often faced a stigma associated with state assistance.

The new eFunds EBT system provides parents with a benefit card loaded with a dollar amount approved by the state. Parents are now responsible for providing payment to their child care provider directly, much as they would in a private pay situation. By including parents in the payment process, the program promotes greater awareness of the true costs of child care as it guides parents toward eventual self-sufficiency. For additional security and peace-of-mind, the Kansas EBT card, VISION, can also only be used to pay approved child care providers, which helps to eliminate potential concerns regarding payment misuse.

"We were interested in EBT because of a philosophical belief that increased parental involvement is important," said Rachel Katuin, team leader, resource & community outreach for Kansas Social and Rehabilitation Services. "eFunds' expertise and experience helped us to bring everyone involved -- including families and child care providers -- into the next generation of child care benefit assistance delivery. The project has been a success on every level."

The eFunds EBT implementation has eliminated the tedious submission and processing of time sheets, removed the cost of producing and mailing paper checks and stubs, and has dramatically improved the time in which child care providers are paid. The full cost analysis of the implementation on the child care budget is still being tracked.

"The State of Kansas has long been an important government customer, and we are encouraged by the positive results of this next-generation child care payment program," said Cheryl Campbell, vice president, government solutions, at eFunds. "We hope that additional states will follow Kansas' lead and invest in more modern child care payment delivery programs that are good for the government, good for the provider and good for the family."

The State of Kansas has been an eFunds EBT customer since 1996, using the company's electronic payment processing services for its cash and food stamp programs.

About eFunds

eFunds Government Solutions is a division of eFunds Corporation (NYSE: EFD). With more than 30 years of payment processing and information intelligence expertise, eFunds delivers flexible, innovative solutions to the world's leading businesses. Leveraging mission-critical business insight, eFunds enables financial services companies, retailers and government organizations to grow their businesses while reducing transaction and infrastructure costs, detecting potential fraud and building long-term customer value. eFunds' flexible delivery model means solutions can be run in-house, outsourced or anything in between, helping customers balance the need for control with operational efficiency and low cost of ownership. From the point of account opening to the settlement of every transaction -- debit, credit, or prepaid -- eFunds helps businesses win more of the right customers, serve them more efficiently and keep them. Additional information is available at www.eFunds.com.

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 Annual Report on Form 10-K for the year ending December 31, 2005, as supplemented by its subsequent Quarterly Reports on Form 10-Q.

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

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