American Banknote Corporation announced yesterday that its subsidiary, ABN Card Services, Inc., has been certified in 18 states as a Third Party Processor for E.B.T., which is the new payment system used by states to deliver state and federal benefits such as Food Stamps, Aid to Dependent Children, WIC funds and other welfare and entitlement programs. These benefits will reside on a card, which the recipient uses at retail, food, and ATM locations.
The United States Government has mandated in the EFT 2000 initiative that all benefits be entirely electronic by the year 2000. As a Third Party Processor, ABN Card Services acts as a payment gateway between the merchant accepting the cards and the financial settlement of those funds and the debiting of value from the E.B.T. cards.
PNC Bank has signed an agreement with ABN Card Services whereby ABN Card Services will provide all E.B.T., credit, and debit processing for any PNC merchant in Pennsylvania that signs up for E.B.T.
In the latter part of 1997, ABN Card Services purchased the credit card merchant services business of CFX Bank in New Hampshire which contains approximately 700 portfolios with credit card volumes in excess of $60 million.
Morris Weissman, Chairman and Chief Executive Officer, said, “Expansion of American Banknote Card Services, Inc. is another building block in our growth in electronic commerce. We see many new business opportunities in transaction processing, particularly in E.B.T., which is a brand new form of payment in the United States. We see expansion of E.B.T. to other programs such as Social Security. We are positioning American Banknote Card Services to be a national third party processor of debit and credit transactions as well.”
American Banknote Corporation is a leading global full-service provider of secure transaction solutions in carefully selected markets along three major product groups: Transaction Cards & Systems, Printing Services & Document Management, and Security Printing Solutions. A combined strategy of operating along product lines and constant expansion of transaction activities worldwide reflects the rapidly changing field of electronic commerce. Additionally, American Banknote, via its Holographics subsidiary, is the world leader in security for financial transaction cards, including VISA, MasterCard, Discover, Diners Club International, and Europay.
This release contains forward-looking statements relating to future financial results. Actual results may differ materially as a result of factors over which the Company has no control. These risk factors and additional information are included in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q on file with the Securities and Exchange Commission.Details