WIC EBT Feasibility Study and Cost‐Benefit Analysis

VIRGINIA DEPARTMENT OF HEALTH
E‐WIC OPERATIONS
RETAILER‐BORNE COSTS FOR E‐WIC
INSTRUCTIONS: Enter the item description, labor or unit cost, estimated annual quantities and comments in the shaded areas.
ESTIMATED RETAILER‐BORNE COSTS FOR ONE YEAR OF E‐WIC OPERATIONS (SUBJECT TO INFLATION)
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Labor
Number of Average Time per
Transactions per Transaction
Item Description
Labor Rate Year (Minutes) Cost Per Year Comments
1 Conduct a Purchase Transaction
$ 8.93 930,501 1.3 $ 180,036 See ** below (Cashier Transaction)
2 Deposit FIs
$ 10.66
0 ‐ $ ‐ See *** below
3 Handle Rejects
$ 10.66
1,986 14.4 $ 5,081 Assumes 95% reduction in errors
4 Enter Pricing Into Retailer Database
$ 10.66
24 41.7 $ 178 Based on 24 new retailers per year
5 $ ‐
$ ‐
6 $ ‐
$ ‐
TOTAL RETAILER BORNE COSTS SUBJECT TO INFLATION $ 185,296
ESTIMATED RETAILER‐BORNE COSTS FOR ONE YEAR OF E‐WIC OPERATIONS (NOT SUBJECT TO INFLATION)
Rejects/Fines
Item Description
Cost per Unit
Estimated
Number of Units
per Year Cost per Year Loss per Year Comments
1 Rejected Payments ‐ Not Recoverable
$ ‐ Not applicable
2 Amount Exceeding Allowable Maximum
$ ‐ Not applicable
3 Bank Fees
$ ‐
$
‐
Based on one‐day settlement period at
4 Cost of Money $ 0.0001 $ 89,838,232 $ 12,577
a rate of 5% for cost of money.
5 $ ‐
$
‐
6 $ ‐
$
‐
TOTAL RETAILER BORNE COSTS NOT SUBJECT TO INFLATION $ 12,577
NOTATIONS
The rejects that occurred in the paper‐based environment are eliminated in the e‐WIC environment.
Purchase transaction time based on an average of times acquired in the Michigan, Texas and New Mexico EBT Pilot Evaluation Time Studies.
Once operational, retailer pricing will be acquired through e‐WIC transactions; however, new retailers will initially need to enter their pricing into the database.
E‐WIC Cost‐Benefit Analysis
Retailer‐Borne Costs for
One Year of E‐WIC Operations Page 26