posted on Apr, 29 2013 @ 09:20 PM
As you will read about below, JP Morgan has made at least 560 million dollars processing Electronic Benefits Transfer cards. Each month, JP Morgan
makes between $.31 and $2.30 for every single person on food stamps (and that does not even include things like ATM fees, etc).
It's cheaper than physically mailing paper food stamps to households via the bankrupt U.S. Postal Service. This is a clear cut case of the
government electing to use the most cost efficient mechanism to deliver food stamp benefits.
The bank is simply the mechanism for delivery.
In fact, while this seems like a huge profit for the bank, in actuality, banks make more money when people are working, the economy is healthy, and
businesses are thriving. I can assure you that few banks want more people on food stamps. It's bad business.
Lastly, this particular bank - Chase - is one of the few banks in the country that has one of the most technologically advanced treasury management
platform for processing these kinds of electronic transactions. Few banks could compete in this arena. Chase wins awards year after year for its
technology compared to its peers.