Business process and document management leader
) was awarded a $51 million contract to establish an assistance
program for the state of South Carolina.
Xerox will provide South Carolina residents with debit cards to
allow them access to food stamps or welfare benefits.
State Assistance Program
Under the seven-year contract, Xerox will provide the beneficiaries
with electronic benefits transfer cards to link them to the
Supplemental Nutrition Assistance Program (SNAP). The re-loadable
debit cards will provide funds that can be used for state-approved
purchases or cash withdrawals at authorized retailers and ATMs.
Xerox will be responsible for processing transactions, managing
retailers and ATM networks, and offering customer support. The
contract will extend support to 420,000 residents of the state,
with another 20,000 having access to benefits from Temporary
Assistance for Needy Families through an electronic payment card
solution. The solution will speed up the payment process by using a
re-loadable MasterCard debit card.
The company will also install mechanisms to detect any fraudulent
activity through a Web-based data warehouse, enabling the state's
SNAP fraud unit to identify suspicious behavior. This system is
crucial as frauds in state benefit disbursement result in losses of
$6-10 billion annually, with the figures expected to double over
the next five years.
Xerox will also provide 70 pre-written reports as part of the data
warehouse, so that the state can begin tracking suspicious activity
immediately without having to create required reports.
Many states have been updating and modernizing their benefits
systems as the number of recipients continues to increase despite
economic recovery. Simplifying the benefits delivery process and
setting up measures to prevent fraud will reduce administrative
burden, improve productivity and result in cost efficiency.
An established leader in such programs, Xerox provides card service
programs to nearly 25 million people in 29 states.
Xerox holds a Zacks Rank #3 (Hold). Some better-ranked stocks in
the computer & technology sector include
Pitney Bowes Inc.
), each carrying a Zacks Rank #2 (Buy).
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