Affiliated Computer Services Inc. this week announced it has won a bid to continue processing child-supports payments for the Ohio Department of Job and Family Services. The potential nine-year agreement consists of a one-year base and four two-year options.
The value of the deal could reach $163 million if the processor exercises all the options.
Affiliated has processed child-support payments for nearly 20 years and serves 15 states. It first partnered with Ohio in 2002 to provide payment processing and customer service. Nearly half of the state’s recipients receive payments through an account tied to a MasterCard-branded prepaid debit card, according to an Affiliated spokesperson. Dallas-based Comerica Bank issues the cards.
Cardholders pay 75 cents per ATM cash withdrawal and 40 cents per ATM balance inquiry. They pay nothing to have a card replaced once and $5 for each replacement card issued thereafter. Cardholders pay no ATM surcharge fees at machines deployed by Fifth Third Bancorp. Ohio has a separate deal with Fifth Third that enable no ATM surcharge fees. Comerica does not operate in the state.
Most card transactions happen at the point-of-sale, according to figures provided by the state. In January, 91% of transactions happened at the POS compared with 8% at the ATM. Another 1% happened online.
In a separate announcement, Affiliated says new technology it has added in Illinois will help save that state’s child-support program $40 million total through fiscal 2015. Affiliated is combining several processing systems into one platform for the disbursement unit of the Illinois Department of Healthcare and Family Services, according to an Affiliated spokesperson.
The Illinois unit and receives and distributes more than 7 million child-support payments annually valued at more than $1 billion through direct deposit and the MasterCard-branded prepaid debit card.
