DECEMBER 03, 1999 - Michigan Department of Consumer & Industry Services (CIS) Director Kathy Wilbur announced the Michigan Liquor Control Commission (MLCC) will process its first Electronic Fund Transfer payment today as a result of a new pilot program aimed at making liquor orders more efficient for retail liquor licensees.

The program was developed by the MLCC with assistance of the CIS Office of Technology Resources, and the cooperation of the Department of Treasury. Participation in the program is voluntary.

"The EFT pilot program will make liquor ordering easier and more efficient for the estimated 13,000 retail liquor licensees the state serves. This is another example of how the state’s Liquor Control Commission has strived to become even more user-friendly for businesses since introducing computerized ordering and the privatized liquor distribution system," said Wilbur. "Every business owner appreciates any effort to save the time-consuming chore of writing checks to vendors. But if all of the licensees agree to use this payment option in the future, it is estimated that retail liquor licensees will have an amazing 2 million fewer checks to write to the state!"

Over three hundred retail liquor licensees have been invited to participate in the pilot, and already 265 have committed to using the new payment process. The first live dollar transaction is ready to be processed on December 3, 1999. Preliminary test transactions have been processed successfully.

"The pilot program is being used to make sure everything is running smoothly with the bank before the service is expanded and offered to all the Commission’s retail liquor licensees," said Jacquelyn Stewart, Chairwoman of the Liquor Control Commission. The pilot program is expected to run through the holiday season. Then the Commission will invite all licensees to participate.

"We’re excited to be able to offer this new service. Our customers have asked us to make this service available, and we’ve been listening," said Stewart.

The program is simple. Licensees complete an authorization form to allow the Commission to withdraw funds from their account. After processing of the authorization form is complete, a message will appear on the liquor invoice, "Payment by EFT." Licensees will sign their invoice at delivery to indicate approval for an EFT payment for that invoice. The Commission handles the rest. Funds are withdrawn electronically by the State from licensees’ accounts on the third day after delivery.

The Commission follows the rules of the Automated Clearing House and The Payments Authority, which are the national regulatory bodies for Electronic Fund Transfers, for processing electronic payments. This protects the licensees, and makes the payments safe and secure.

For the fiscal year ended September 30, 1999, the Michigan Liquor Control Commission collected over $714 million from its 13,000 licensees who buy their spirits from the Commission. With the new system in place and fully operational the Commission now has the capability of collecting over $700 million without the exchange of any paper.

Read more Michigan Department of Consumer & Industry Services press releases.