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Card Program For The Homeless April 04th 2004 Gavin Newsom Dear Mr. Newsom: Thank you for taking the time to review the enclosed documentation. Contained herein is a summary of a Global Platform designed to authorize, complete, audit and store real-time electronic transactions. Global Loyalty X-Change (GLX) will soon complete certification, beta and pilot of its Generation “2” (Gen “X2”) Platform. The GLX Host can in seconds, process, execute and deliver real-time, value-added transactions to individuals located at any point of sale location, (“TouchPoint”), in any city in the world. Transactions are settled using existing EFT payment’s software, communication infrastructure and are triggered by any electronic cash register or countertop credit card terminal. The development of this GeN “X2” Platform has been ongoing, guided by a team of industry luminaries for the past four plus years. All that is required to complete these real-time transactions is any available communications infrastructure, including terminals that are portable and wireless supported by the GPRS Network (Global Packet Receiving Service) and the latest satellite/GSM technology. Our Platform also supports traditional dial, frame relay, IP, XML, RFID, and a host of other protocol’s and message formats that our switch(s) and terminals can process based on specific program requirements. The application of this technology and Platform as it relates to the City of San Francisco and surrounding Bay Area Counties is quite simple. It involves engaging the Services for Humanity Division of GLX. San Francisco could become the operational Pilot and Model City for other like programs to operate in other markets in the US and eventually in other countries around the world. Revenues generated from other like programs would be shared by GLX with the City. The Business Model that GLX envisions is to distribute any governmental agency assistance to anyone qualified to receive it, electronically through a magnetically and/or UPC bar encoded membership card that also bears the picture of the person receiving the benefits. As per your mandate and the framework of your Care Not Cash initiative, participants could include the homeless, teachers, (of which we have developed a separate program model) and city employees and the working poor of San Francisco and surrounding counties. This program would guarantee that only the person pictured on the card could receive the benefits being distributed. Participants could no longer trade their food stamps or spend cash now received, for drugs, alcohol, cigarettes or other illicit forms of behavior as those controls could be implemented at the point of sale. This distribution process and Business Model would eliminate tremendous administrative overhead and accountability issues that is inherent in the current food stamp program and become a much more efficient way to distribute cash, medical and drug treatment, housing/boarding and psychological assistance without the need for actual cash/check disbursements, coupons or vouchers. The program database would automatically distribute customized reports daily, weekly and monthly as required, of all the programs activity on a merchant and cardholder basis with extensive data-mining capabilities to maintain the programs optimal effectiveness and operation. The database can even print instant messages on the merchant receipt to inform cardholders of new businesses that become available or new programs being offered. Along with the program card, participants receive a wallet size directory and laminated locator card of participating merchants, service organizations and other essential information and phone numbers relevant to specific lifestyle conditions. Please see the enclosed material for other value-added applications (e.g. electronic giftcards) that are available to participating merchants based on having the terminal footprint at their location(s) As part of a loyalty concept, merchants could award cardholders, in real-time, points (1 point equal to $1) based on a percentage they set of the benefit dollars being redeemed at their location(s). Merchants could then do their part in giving something back to the program and the value would become instantly available to the program member. Simply stated, this model, created for the enhanced electronic distribution of benefits would eliminate the requirement to distribute cash, food stamps, coupons and vouchers but rather all the benefits would be stored by cardholder account in a centralized database and be available, anytime, in real-time to the individuals selected to receive such benefits. Through an electronic settlement process/ACH (automated clearing house), funds are transferred to merchant’s bank account on the following business day. Alls funds whether distributed directly by the city or are directed by the donor community are held in trust by a designated agency of the city’s choosing. Further, the electronic benefits could be increased, at no cost to the city, in real-time through GLX’s web interface. These funds could be directed to the homeless and working poor of San Francisco by local high net-worth individuals, possibly some that were supporters of your campaign for mayor, local and national charities, local businesses, community groups, grants, multinational corporations and from governments in any country around the world. This process simply requires the donor to access the program website, select the desired cardholders and amount to be distributed and once funds have been verified, the cardholder accounts are instantly updated and populated with 100% of the value loaded on their card. Donors can use credit, debit, personal or business checks and wire transfer as a form of payment. Utilizing our processing interface, the Platform has the ability to convert currencies in real time of the country where the donation originates. All donations are 100% accountable to the donor, including the ability to receive on-line statements of precisely how every dollar is spent. Another application of the Platform would address the panhandling problem, instead of begging local residents and tourists for money could hand out a business style card that include program information their name and ID number, if desired, the person could then send them any amount of money via the program website, (from anywhere) and they can be certain that 100% of their donation will be spent responsibly. Or as an alternative a Program Giftcard (in any denomination) could be purchased at strategic locations all over the city. Residents and Tourists could purchase these cards and give them instead of cash, and the cards would be accepted at any merchant in the Program. This concept, we believe would significantly reduce the existing panhandling problems in and around San Francisco. Based on this model, local government and any other participating donor(s) would be assured that the benefits are 100% being directed to the persons targeted to receive the assistance. Through the website donors can access a complete accounting of how every dollar was utilized and view information about the different programs, agencies and how the actual beneficiaries lives and the lives of the people they impact are now being positively transformed. Local Government would have 100% control over who qualifies as a participating merchant or service. The City could set stringent criteria for acceptance of these businesses to the program. Grocery or Convenience Stores could be blocked from the sale of cigarettes and alcohol to the benefit recipients. Based on extensive market research, GLX is certain that hundreds of businesses (small and large) would line up to be part of your program. This program creates a win/win/win scenario, as merchants, cardholders, participating cities, and humanity as a whole all are rewarded as a result of this enhanced benefits transfer and donor-based activity. Businesses that accept the benefits, individual donors, small businesses, large corporations and local, national and international governments could receive some form of accommodation and recognition from the City for their participation and/or financial support of the program. GLX would issue a tax receipt to individuals, merchant and companies that donate to the program. As a fifth generation San Franciscan something I think we share common, Gavin it has truly been a pleasure volunteering for your campaign and meeting you and members of your staff. Thank you again for your time in reviewing the enclosed material. At your convenience, GLX is ready to perform a live demonstration of the technologies and program model outlined above, including specific database tools, reporting and tracking interfaces available to the City that have been developed and designed to insure the smooth operation and implementation of the program, should you consider a pilot. I look forward to hearing from you soon. Best Regards, GLOBAL LOYALTY X-CHANGE Richard Trieber |
