Welfare Abuse Reaction & Blocking ATM Transactions
February 28, 2012 2 Comments
Often when covering polarizing issues like welfare abuse, I’ll get emails from people who feel passionately about the subject.
I like to think my report proved to be objective when I get criticized by people who would disagree with each other:
One viewer said I didn’t focus enough on welfare recipients while another said I was too tough.
I’m glad my report has people talking.
In the mean time, I want to share with you this letter (see below) that was sent out to “prohibited” businesses.
Colorado’s Health and Human Services Department asked Chase Bank (which handles welfare Colorado Quest cards) to send letters to all liquor stores, casinos and bingo halls asking them to block welfare transactions on their property.
The letters were not sent to strip clubs because under Colorado law, strip clubs are NOT considered prohibited businesses.
It’s quite clear the technology exists to block Colorado Quest cards at specific cash machines. This example is the letter sent to liquor stores:
Subject: Restriction on the use of the State of Colorado Electronic Benefit Transfer (EBT) Card at Automated Teller Machines (ATM) located in Retail Establishments Licensed to Sell Malt, Vinous, or Spirituous Liquors
Dear Business Owner:
This letter is to request your cooperation in restricting the use of Colorado EBT Cards to withdraw cash from ATMs located in liquor stores within the state of Colorado. This effort is mandated by Colorado State Law. The Colorado Department of Human Services has requested that J.P. Morgan, as its EBT provider, work with liquor stores to restrict this access.
The State of Colorado Human Services Code 26-2-104 prohibits clients from accessing EBT cash benefits from ATMs in liquor stores:
“Clients shall not be allowed to access cash benefits through electronic benefits transfer service from automated teller machines in this state located in licensed gaming establishments as defined in section 12-47.1-103 (15), C.R.S. , in-state simulcast facilities as defined in section 12-60-102 (14), C.R.S., tracks for racing as defined in section 12-60-102 (26),C.R.S., commercial bingo facilities as defined in section 12-9-102 (2.3),C.R.S., stores or establishments in which the principal business is the sale of firearms, or retail establishments licensed to sell malt, vinous, or spirituous liquors pursuant to part 3 of article 47 of title 12,C.R.S.”
J.P. Morgan has assigned a Project Manager, Mr. Todd McEwan, to assist you in the steps to take to block the Colorado EBT Card Bank Identification Number (BIN) on your ATM(s).
Please provide the following information to Mr. McEwan to enable him to take action with your ATM processor:
- Number of ATMs physically located in your business location(s).
- All ATM terminal Identification Numbers.
- Name of the ATM owner/operator.
- Contact information (phone number and address) of the ATM owner/operator.
If you would prefer to work with your ATM processor, please take the following steps:
- Contact your ATM processor.
- Provide your processor with the Terminal Identification Numbers for all ATMs physically located in your business.
- Request that your processor block Colorado EBT BIN (507681) from each ATM.
- Report the following information that the ATM has been blocked to Mr. McEwan for State reporting purposes:
- Number of ATMs physically located in your business location(s) that have been blocked.
- Name of the ATM owner/operator
- Contact information (phone number and address) of the ATM owner/operator.
(Note: I redacted the email and contact phone number of Todd McEwan to spare him from spam).



