WIC EBT Feasibility Study and Cost‐Benefit Analysis

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Virginia Department of Health WIC EBT Feasibility Study and Cost-Benefit Analysis Comparison of Off-Line and On-Line Systems Factor Off-line On-line Balance Inquiry Can provide information stored at the host but the information will not be current unless all retailers have settled their transactions. Clients can get current balances at WIC clinics or on the last receipt received at the store. 20 V 1.2 August 20, 2008 Can be provided in real time via phone or web-based client help. 4.1.3.1 The Client Perspective The greatest impact to the client is the need to present the card at the clinic in order to receive benefits. If a client forgets the card or if there are circumstances where the client cannot get to the clinic, then the client will incur an inconvenience or delay in receipt of benefits. There is little difference between the technologies when conducting a transaction at the store. Both require presentation of the card prior to the transaction. Smart card transactions are not subject to breaks in connectivity and transmission errors at the POS but errors can occur if a card is removed prior to a transaction being completed. 4.1.3.2 Conclusion This alternative provides the advantages of being a proven solution, having been implemented statewide in one State and in the process of implementation in two more. It has also been integrated with at least 14 different ECR systems, providing a greater probability of implementation success and a greater chance that Virginia’s retailers will already have ECR systems that are integrated with e-WIC in other States. The following table represents the scores given to this alternative for each of the evaluation criterion. Alternative 3: Off-Line In-House 5 Criteria Score Comment Proven Record of Implementation 3 This solution has been implemented statewide in New Mexico and will be issued statewide in Texas next year. The system has been ported to Wyoming and is in the implementation phase. Proven Record of Operations The system is successfully operating in Texas and New Mexico 1 with in-house support. VDH has not previously supported EBT operations. Proven Record of Integration With ECR Systems 3 The Texas-New Mexico solution has been successfully integrated with ECR systems. Proven Record With EBT 0 VDH has not previously provided EBT services. Provides Body of Knowledge for 3 Since deployment, Texas and New Mexico have developed Policies and Procedures Provides Stability for On-going Operations 3 lessons learned and standard policies and procedures. An in-house solution will provide stability as there is little to no risk of having to change to a different solution once implemented. 5 The alternative’s scores are based on a 0 to 3 scale, with a zero score meaning the alternative does not have the ability to meet the criterion and three meaning the alternative has the ability to meet or exceed the criterion.
Virginia Department of Health WIC EBT Feasibility Study and Cost-Benefit Analysis 21 V 1.2 August 20, 2008 Alternative 3: Off-Line In-House 5 Criteria Score Comment Able to Increase WIC Accuracy and Accountability Increases Retailers’ Ability to Comply With Program Policies 3 Minimizes On-going Operations Costs Provides Uninterrupted Service to WIC Clients or Retailers Investment in Retailer Hardware/Software Ability to Adapt to Change in Technology System and Data Security Able to Meet the Schedule Established for SAM 3 2 3 1 1 3 2 As all e-WIC transactions are electronic, saving the full set of transaction data, this is a benefit that will be derived from an e- WIC, regardless of the technology or whether it is outsourced or operated in-house. Regardless of technologies or approach, e-WIC will provide retailers with a means to automate approval of transactions and to provide an electronic check on each transaction. As with the on-line in-house e-WIC solution, this alternative’s operational costs are much lower than the paper-based system or the outsourced system. The cost analysis indicates a slightly higher operational cost than on-line in-house e-WIC, primarily caused by the higher cost per card. Off-line e-WIC can be conducted without connectivity to the host system. Virginia has determined it will not fund stand-beside equipment. There has been some integration of this solution with standard ECR systems. However, this solution will require deployment of smart card terminals at all WIC-authorized locations. Any changes to technologies or to the system would have to be addressed in-house by Virginia. Smart cards are considered a more secure technology then the magnetic stripe cards, as the data contained in the chip is encrypted and includes other security features, making it extremely difficult to be read or duplicated. Virginia has experience in implementing security requirements for client data. The Texas-New Mexico system can be ported to Virginia but will require configuration, some development, and integration with the SAM system. As with the other alternatives, there will be a risk in attaining retailer readiness to parallel SAM and e-WIC deployment. This risk might be slightly less as there are more ECR systems integrated with the off-line solution.
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WIC EBT Feasibility Study and Cost‐Benefit Analysis

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