Mich. won't pay Xerox due to food stamp glitch - Boston News, Weather, Sports | FOX 25 | MyFoxBoston

Mich. won't pay Xerox due to food stamp glitch

Posted: Updated:
  • Mich. won't pay Xerox due to food stamp glitchMore>>

  • Glitch temporarily shuts down Bridge Card system

    Glitch temporarily shuts down Bridge Card system

    Sunday, October 13 2013 4:51 PM EDT2013-10-13 20:51:21 GMT
    Low-income families across Michigan were not able to use Bridge Cards Saturday to purchase food because of a glitch that also caused problems in 16 other states. By Sunday, the system was back up and running.
    Low-income families across Michigan were not able to use Bridge Cards Saturday to purchase food because of a glitch that also caused problems in 16 other states. By Sunday, the system was back up and running.

LANSING, Mich. -- Michigan will withhold money from Xerox Corp. because a technical problem crashed the state's debit card-style food stamps program, a state spokesman said Tuesday.

People in 17 states from Alabama to California found themselves temporarily unable to use their food stamp cards on Saturday morning, after a routine test of backup systems by Xerox sparked technical problems that shut down the states' electronic benefit transfer, or EBT, systems. Xerox said access was restored for all users late that day.

Michigan is within its rights to withhold 15 percent of the October bill due to "vendor non-compliance," Department of Human Services spokesman Dave Akerly told The Associated Press.

The state's contract "requires Xerox-ACS to maintain 99.9 percent access, and they failed to meet this," Akerly said in an email.

The specific amount that won't be paid is unclear because Michigan hasn't gotten the monthly invoice yet. But if the tab is similar to the September bill, Xerox could lose out on $80,000.

"It depends, because each month the figures change based on transactions and usage," Akerly said. "We won't know the actual billable figure until Nov .1." He said the invoice for September was about $534,000.

The issue began after a routine test of backup systems by Xerox resulted in a system failure. The U.S. Department of Agriculture said the outage was unrelated to the government shutdown.  

An email message seeking comment was sent to Xerox spokespeople after business hours Tuesday. The company earlier expressed regret in a posting on its website.

"We appreciate our clients' patience while we resolved this issue and apologize for any inconvenience," the statement said. "We realize that access to these benefits is important to families in the states we serve. We continue to investigate the cause of the issue so we can take steps to ensure a similar interruption does not re-occur."

  • Local NewsLocal NewsMore>>

  • Sunday's storm captured by Fox 2 viewers

    Sunday's storm captured by Fox 2 viewers

    Sunday, July 27 2014 11:48 PM EDT2014-07-28 03:48:38 GMT
    We have more video of the storm and storm damage from across southeast Michigan. It's Fox 2 viewer pics and video that you sent to us.
    We have more video of the storm and storm damage from across southeast Michigan. It's Fox 2 viewer pics and video that you sent to us.
  • Storm damage in Oakland and Macomb counties

    Storm damage in Oakland and Macomb counties

    Sunday, July 27 2014 11:26 PM EDT2014-07-28 03:26:48 GMT
    Damage was reported across Metro Detroit Sunday after severe storms moved across our area. About 200,000 customers lost power in the hail, heavy rain, strong winds, localized flooding and thunder and lightning.
    Damage was reported across Metro Detroit Sunday after severe storms moved across our area. About 200,000 customers lost power in the hail, heavy rain, strong winds, localized flooding and thunder and lightning.
  • Person of interest sought in April Millsap murder

    Person of interest sought in April Millsap murder

    Sunday, July 27 2014 7:57 PM EDT2014-07-27 23:57:45 GMT
    We now know more about who police are looking for in the murder of April Millsap, 14, of Armada. Sunday, police released a sketch of a person of interest in the unsolved case.
    We now know more about who police are looking for in the murder of April Millsap, 14, of Armada. Sunday, police released a sketch of a person of interest in the unsolved case.
  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
Powered by WorldNow

25 FOX Drive
Dedham, MA 02026

Phone (781) 467-2525

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices