Retailer Kick-off Meeting September 8, 2011 Virginia eWIC Retailer Kick-off Meeting September 8, 2011

Opening Comments Jerry Owens Program Manager ACS, a Xerox Company

ACS Corporate Overview Xerox, a Fortune 500 company with more than 130,000 employees ACS, State and Local Solutions employs approximately 3,700 professionals Operations in all 50 states and more than 100 countries Provider of Electronic Benefit Transfer (EBT) Services programs in 12 states as prime contractor and 3 states as subcontractor Currently manage over 7.4 million SNAP households Ranked #1 MasterCard Prepaid processor in 2007 Provider of 28 branded debit card programs in 21 states Operate the first statewide on-line WIC Program (Michigan)

ACS Card Services Overview Dedicated to providing affordable, leading-edge solutions that maximize government service capabilities Family and Community Services line of business provides solutions for: Electronic Benefits Transfer (EBT) Women Infant Children (WIC) Child support disbursements Electronic Payment Card (EPC) for child support/payroll/unemployment insurance Electronic childcare Workforce services Eligibility services

ACS, a Xerox Company eWIC Services and Supplemental Nutrition Assistance Program (SNAP) Implemented first online eWIC solution in Michigan- 2007 Provides eWIC services to more than 145,000 households/month Performs more than 1 million eWIC transactions/month Reconciles more than $14 million/month in e-WIC purchases Supports 2000 eWIC retailers in Michigan Provide SNAP services for 15 states, including VA Provide SNAP services to more than 8 million people/month Perform more than 70 million transactions/month as host processor Support more than 80,000 retailers nationwide

Introductions/Project Roles Assigned To Assignment Specifics Program Manager Jerry Owens Ensure overall success of project and attention to stakeholder needs Pursue new and existing eWIC integration opportunities Guide retailers and other stakeholders through eWIC integration and certification process Retail Manager Ed Yorkavich Oversee retail POS installation and training needs Serve as liaison between retailers and POS installers Provide guidance and direction for retailers during deployment process Retail Coordinator Steve Gibson Coordinate POS installation and training needs Manage scheduling and installation activities of installers and equipment depot to ensure it meets the needs of the project Troubleshoot and problem solve for retailers going through installation and training Serve as backup to Retail Manager and provide ongoing project support Deputy Program Manager Russell Trahan Serve as backup to Program Manager

Other Participants Role Assigned To Assignment Specifics POS Installation/Training/Testing Media Riders, Inc Onsite equipment deployment and testing Onsite retailer training Value Added Resellers (VAR)/ECR Service Provider Multiple Companies Installation of eWIC functionality into a client retailer ECR Testing of installed eWIC functionality Complete pre-certification testing Participation in certification/acceptance testing Third Party Processors (TPP) Enabling of retailer account to accept eWIC transactions Attended testing for pre-certification activities Reconciliation for testing efforts Certification VDH/FNS/Booz Allen Hamilton Review and approval of certification test scripts Observe test script execution Confirm accurate reconciliation

Jerry Owens, Program Manager Introduction to eWIC Jerry Owens, Program Manager

Introduction to eWIC eWIC is simply the electronic processing of WIC benefits Participants redeem benefits using a magnetic stripe card and PIN similar to how SNAP (food stamp) benefits are redeemed in VA today Benefits are issued to participant accounts at the household level Participants may redeem benefits as needed (it is not required to redeem all benefits at the same time) The system only allows redemption of products that are both approved for WIC and available in the participant account balance

eWIC – Approved Product List (APL) The WIC Eligibility System sends a list of approved products to the host system WIC Clinic EPPIC Category/Subcategory/UPC 1 Category/Subcategory/UPC 2 Category/Subcategory/UPC 3 Category/Subcategory/UPC 4 Etc. The POS/ECR downloads the APL on a daily schedule from the FTP Server Approved Product List (APL) The Host System formats this information along with other data, creates an APL and places it on an FTP Server FTP Server POS/ECR APL

Retailer Benefits eWIC improves WIC redemption process Lane flow is smoother and faster than the paper process No returned checks Faster payment, usually within 24 hours System approves only WIC allowed items prescribed to participant Fewer administrative tasks - i.e., no batching paper, no vendor stamps, no price surveys, etc. Reduced risk of non-compliance Reduced training for personnel, less time to train cashiers Participant are not required to redeem all benefits at once Results in additional trips to the store – increased traffic Higher benefit utilization – more items purchased/increased sales

Vendor Portal Query payment information by date range View transaction data Check to see what UPCs are on the Approved Product List

Jerry Owens, Program Manager Ed Yorkavich, Retail Manager Project Overview Jerry Owens, Program Manager Ed Yorkavich, Retail Manager

Project Objective – Retailer Enablement The goal of this effort is to enable all WIC-authorized retailers to electronically process WIC transactions for benefit redemption and payment Retailer Enablement Methods Integration Process eWIC transaction via the existing electronic cash register (ECR) system just like any other transaction Stand-Beside POS Install a stand-beside point-of-sale device so that a retailer may process eWIC transactions electronically

Retail Integration High Level Overview – eWIC Integration Requirements ECR must have eWIC processing functionality (most platforms already have available or are under development) FNS must certify system as approved for eWIC transaction processing Certification Process Third party processors (TPP), ECR service providers, retailer IT departments make software modifications based on ACS-provided integrated retailer specifications ECR service providers and TPPs perform integration testing ECR service providers and TPPs use ACS test environment to perform pre-certifications FNS and the state oversee execution of approved certification test scripts and if executed successfully, approve system for integration In Store A final certification, generally completed by the retailer, is performed at the store level

Stand-Beside POS Enablement High Level Overview – Stand-Beside POS Deployment Requirements Power must be available at lane location where POS device will be installed (1 outlet for scanner and 1 outlet for POS) Either broadband internet or analog dial-up connectivity must be available at the lane location where POS device will be installed Setup Process ACS sets up WIC authorized retailers in the National Retail Management Center (NRMC) database, sends/receives retailer agreement, and creates work order ACS NRMC builds profile and enters retailer banking information in EPPIC ACS Retail Manager manages installation contractor as retailers are scheduled for installation and training during pilot and statewide rollout Training Retailer training is performed at the retailer location after successful installation Retailer POS operations manual, quick reference guide and helpdesk information is also provided at this time.

Retailer Enablement Summary ACS works with retailers to provide a solution that best meets their needs Coordinated efforts by ACS with retail service providers and third party processors provide most retailers with the option of integrating with their existing system For those retailers that do not have integration capabilities, stand-beside POS devices provide a safe and reliable method of eWIC transaction processing Experienced ACS retail enablement team coordinates deployment and integration efforts providing strong support for retailers The Vendor Portal provides instant access to transaction and settlement reports 24/7 retailer helpline is provided to answer questions and/or troubleshoot issues

Jerry Owens, Program Manager Project Timeline Jerry Owens, Program Manager

VA WIC Retailer Enablement Schedule Sept ‘11 Oct Nov Dec Jan ‘12 Feb Mar April May June July Aug Sept TPP/VAR Outreach Retailer/TPP Certification FNS Certifications Retailer Kickoff Meeting Pilot Operations Retailer Call Center Go Live Install/Train State POS (Stand-Beside) Retailer Outreach Retailer Outreach

Transaction Processing Jerry Owens, Program Manager

Online eWIC Transaction Flow WIC Purchase Flow Card Swipe at POS and client enters PIN Prescription balance is downloaded to store Items are scanned and checked against client balance UPCs are verified against local APL file at store POS transmits items scanned to EPPIC system for approval EPPIC responds with approval and remaining prescription balance

Transaction Processing Methodologies Third Party Processor Retailers have the ability to leverage their existing third party processor services Direct Connect Retailers have the ability to send EBT transactions directly from their system to the EBT host, no transaction fees Stand-beside POS Terminals Retailers have the ability to use the Agency supplied POS, no fees Value to WIC Programs: Provides Retailers with processing options to better manage their POS infrastructure and associated costs. Slide 22

eWIC Third Party Processing Model Majority of Chain Merchants use the TPP Model TPP provides value-added service to retailer No Certification Required by the Merchant TPP generally processes other types of transactions for retailer TPP Merchant Client EBT Host System Transaction Processor Third Party Processor Inbound/Outbound Data Flow

eWIC Stand Beside Model Example Stand Beside Merchant Utilized by most SNAP EBT-Only Proven reliable transaction processing model Issued at no cost to the merchant All Merchants have the option to utilize Stand-Beside Terminals EBT Host System Transaction Processor Inbound/Outbound Data Flow Slide 24

FNS Testing and Certification Jerry Owens, Program Manager

FNS Testing and Certification ACS Four-Phase Certification Approach Phase 1 - Initiation Integration specification reviewed with TPPs and Retailers, high-level timeline reviewed, and objectives set Phase 2 – Integration Testing Retailers and TPPs provided with test cards and test environment for development integration testing to ACS. Regular calls are held to track progress Phase 3 – Precertification Testing Testing block of time is scheduled, retailers and TPPs are provided with precertification test scripts, and testing is performed remotely while ACS monitors and validates execution in real time. Successful precertification indicates readiness for acceptance testing. Phase 4 – Acceptance Testing Formal execution of FNS approved test scripts validating full system functionality from transaction processing to settlement. Testing is generally performed at retailer location and takes 2 to 5 days to complete.

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