RISK FACTORS AND CAUTIONARY STATEMENTS

Exhibit 99.1


RISK FACTORS AND CAUTIONARY STATEMENTS

When used in this Annual Report on Form 10-K and in future filings by the
Company with the Securities and Exchange Commission (the "Commission"), in the
Company's press releases, letters to shareholders and in oral statements made by
the Company's representatives, the words or phrases "should result," "are
expected to," "targeted," "will continue," "will approximate," "is anticipated,"
"estimate," "project" or similar expressions are intended to identify
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are necessarily subject to
certain risks and uncertainties, including those discussed below, that could
cause actual results to differ materially from the Company's historical
experience and its present expectations or projections. Caution should be taken
not to place undue reliance on any such forward-looking statements, which speak
only as of the date made. The factors listed below could affect the Company's
financial performance and could cause the Company's actual results for future
periods to differ from any opinions or statements expressed with respect
thereto. Such differences could be material and adverse.

The Company will not undertake and specifically declines any obligation to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances occurring after
the date of such statements or to reflect the occurrence of anticipated or
unanticipated events. This discussion supersedes the discussion in the Company's
current Quarterly Report on Form 10-Q for the quarter ended September 30, 1999.

Earnings Estimates; Cost Reductions. From time to time, representatives of the
Company may make predictions or forecasts regarding the Company's future
results, including estimated earnings or earnings from operations. Any forecast,
including the Company's current statements that it expects to achieve a minimum
of 11 percent annual growth in earnings in 2000, and that it has a target of
generating cumulative EBITDA (earnings before interest, income taxes,
depreciation and amortization) in excess of $2.3 billion over the next five
years, regarding the Company's future performance reflects various assumptions.
These assumptions are subject to significant uncertainties, and, as a matter of
course, many of them will prove to be incorrect. Further, the achievement of any
forecast depends on numerous factors (including those described in this
discussion), many of which are beyond the Company's control. In addition, it is
not expected that the earnings growth projected for 2000 will be representative
of results that may be achieved in subsequent years.

As a result, there can be no assurance that the Company's performance will be
consistent with any management forecasts or that the variation from such
forecasts will not be material and adverse. Investors are cautioned not to base
their entire analysis of the Company's business and prospects upon isolated
predictions, but instead are encouraged to utilize the entire available mix of
historical and forward-looking information made



available by the Company, and other information affecting the Company and its
products, when evaluating the Company's prospective results of operations.

In addition, representatives of the Company may occasionally comment on the
perceived reasonableness of published reports by independent analysts regarding
the Company's projected future performance. Such comments should not be
interpreted as an endorsement or adoption of any given estimate or range of
estimates or the assumptions and methodologies upon which such estimates are
based. Generally speaking the Company does not make public its own internal
projections, budgets or estimates. Undue reliance should not be placed on any
comments regarding the conformity, or lack thereof, of any independent estimates
with the Company's own present expectations regarding its future results of
operations. The methodologies employed by the Company in arriving at its own
internal projections and the approaches taken by independent analysts in making
their estimates are likely different in many significant respects. Although the
Company may presently perceive a given estimate to be reasonable, changes in the
Company's business, market conditions or the general economic climate may have
varying effects on the results obtained through the use of differing analyses
and assumptions. The Company expressly disclaims any continuing responsibility
to advise analysts or the public markets of its view regarding the current
accuracy of the published estimates of outside analysts. Persons relying on such
estimates should pursue their own independent investigation and analysis of
their accuracy and the reasonableness of the assumptions on which they are
based.

Recent Strategic Initiatives. The Company has recently announced the creation of
Electronic Payment Solutions, a new business unit comprised of eFunds
Corporation (f/k/a Deluxe Electronic Payment Systems, Inc.), Debit Bureau(SM),
Chex Systems, Inc., Deluxe Payment Protection Systems, Inc. and a check
conversion company that it purchased in February 1999. It is hoped that
combining these businesses into a single business unit will increase their
opportunities for revenue and profit growth. The Company has also announced an
intention to transfer certain resources and responsibilities from its corporate
group to its operating units in an effort to enable them to more efficiently
respond to market opportunities and conditions. The precise benefits, if any,
that may result from these initiatives cannot presently be quantified. Further,
accomplishing the goals of the reorganization is dependent upon identifying and
developing new products and services, some or all of which may be directed at
markets not now served by the Company. The successful execution of this strategy
is also dependant upon identifying and retaining personnel and third parties
with the expertise needed to develop and implement the Company's strategic
initiatives. Portions of the initiative may also involve identifying and
reaching agreements with strategic alliance partners and acquisition targets.
Unexpected delays are common in endeavors of this type and can arise from a
variety of sources, many of which will likely have been unanticipated. The
likelihood that the reorganization will achieve its goal of incrementally
increasing the revenues and profits of the businesses included in this business
unit must be considered in light of the problems, expenses, complications and
delays frequently encountered in connection with the development and execution
of new business initiatives and the competitive, rapidly changing environment in
which this business will operate. As a result, although the Company



has set annual revenue growth targets for this business unit at 20 percent for
the years 2000 and 2001, and hopes to achieve higher levels of growth in
subsequent years, there can be no assurance that these targets will in fact be
achieved. In addition, the implementation of these initiatives could lead to a
restructuring charge in an amount that, although not yet quantified, may be
material.

In January 2000, the Company announced that its Board of Directors approved a
plan to combine its Electronic Payment Solutions, Professional Services and
Government Services segments into a separate company to be called eFunds
Corporation ("eFunds") and that eFunds plans to issue shares of its common stock
to the public through an initial public offering. Unanticipated delays and
disruptions are common with regard to endeavors of this type due to business or
market developments, changes in the equity markets and other factors that are
difficult or impossible for the Company to control. As a result, there can be no
assurance that this initial public offering can be consummated in a timely
manner, or at all.

Although it is under no obligations to do so, the Company has announced that,
following any initial public offering by eFunds, it plans to distribute all of
its shares of eFunds common stock to its shareholders who tender shares of the
Company's common stock in an exchange offer (the "Split-Off). The Split-Off is
contingent upon the Company receiving a favorable tax ruling from the Internal
Revenue Service, and no assurance can be given that such a ruling will in fact
be obtained.

Professional Services. There can be no assurance that the services proposed to
be offered by the Company's Professional Services business unit will achieve
market acceptance in either the United States or India. To date, the operations
of this business unit have not been profitable. In addition, the Company has
only limited operational experience in India. The successful development of
Professional Services is subject to all of the risks inherent in the
establishment of a new business enterprise, including the absence of an extended
operating history, reliance on key personnel, a need to attract and retain
qualified employees in a highly competitive labor market, a competitive
environment characterized by numerous well-established and well-capitalized
competitors and the risk that the reputation of the business could be more
adversely affected by any customer service issues or problems than would be the
case with a more established firm. Further, in developing Professional Services,
the Company faces additional complexities arising from the maintenance of
certain of its functions in India. In addition to the normal complications that
arise in connection with the management of remote locations, operations in
foreign countries are subject to numerous potential obstacles including, among
other things, cultural differences, political unrest, export controls,
governmental interference or regulation (both domestic and foreign), currency
fluctuations, personnel issues and varying competitive conditions. There can be
no assurance that one or more of these factors, or additional causes or
influences, many of which are likely to have been unanticipated and beyond the
ability of the Company to control, will not operate to inhibit the success of
this business unit. As a result, there can be no assurance that this business
unit will achieve its projected rate of growth or that this unit will ever
generate significant revenues or profits or provide an adequate return on the
Company's investment.



Debit Bureau(SM). The Company has announced its intention to offer decision
support tools and information to retailers and financial institutions that offer
or accept direct debit-based products, such as checking accounts, ATM cards,
debit cards and Internet payments. To date, this effort has primarily been
directed towards the creation of the supporting data warehouse and research
regarding the utility and value of the data available to the Company for use in
this area. There can be no assurance that the Company's Debit Bureau(SM)
initiative will result in the introduction of a significant number of new
products or services or that any new products or services introduced by the
Company will generate revenues in material amounts. In any event, the continued
development of Debit Bureau(SM) is expected to require a significant level of
investment by the Company.

IDDA Initiative. The Company has recently announced a initiative to develop an
Internet demand deposit account opening product. This product has only recently
been introduced and there can be no assurance that the system will achieve
widespread market acceptance or generate incremental revenues in material
accounts. In addition, technological change occurs at a rapid pace in the
Internet applications area, and there can be no assurance that competing
products or systems will not be introduced that will narrow or limit the market
for the Company's system or render it obsolete.

Share Repurchase Program. In April 1999, the Board of Directors of the Company
authorized the repurchase of up to 10,000,000 shares of the Company's Common
Stock. During 1999, the Company purchased 8,186,600 of the shares included in
this authorization. The completion of this program is, however, dependant upon
market conditions, including the availability of a sufficient number of shares
at prices determined by management of the Company to be reasonable, the amount
of cash available to the Company for this purpose and the Company's other
investment opportunities. Accordingly, if appropriate conditions or
circumstances do not prevail during the planned repurchase period, the Company
will not purchase the entire allotment of shares authorized by the Board.

Timing and Amount of Anticipated Cost Reductions. With regard to the results of
the Company's ongoing cost reduction efforts (including the Company's current
review of its SG&A expense levels), there can be no assurance that the projected
annual cost savings will be fully realized or will be achieved within the time
periods expected. The Company has previously experienced unanticipated delays in
the planned roll-out of its on-line ordering system and Year 2000 moratoriums by
the Company's customers have delayed the Company's original schedule for
transferring customers to this system. There can be no assurances that
additional sources of delays will not be encountered. Any such event could
adversely affect the expected productivity improvements and delay the
realization or reduce the amount of the anticipated expense reductions.

In addition, the achievement of the targeted level of cost savings is dependent
upon the successful execution of a variety of other cost reduction strategies
throughout the Company's operations. These additional efforts include the
consolidation of the Company's purchasing process and certain administrative and
sales support



organizations, headcount reductions and other efforts. The optimum means of
realizing many of these strategies is being evaluated by the Company in view of
the Company's recent efforts to transfer certain resources and responsibilities
from its corporate group to its operating units. The goodwill amortization
associated with the Company's recent acquisitions of eFunds (Tustin), Designer
Checks and the remaining 50 percent ownership interest in its joint venture with
HCL Corporation of India, as well as any future acquisitions, may also act to
offset some of the benefits sought to be achieved through this program.
Unexpected delays, complicating factors and other hindrances are common in the
implementation of these types of endeavors and can arise from a variety of
sources, some of which are likely to have been unanticipated. The Company may
also incur additional charges against its earnings in connection with future
programs. A failure to timely achieve one or more of the Company's primary cost
reduction objectives could materially reduce the benefit to the Company of its
cost savings programs and strategies or substantially delay the full realization
of their expected benefits.

Further, there can be no assurance that increased expenses attributable to other
areas of the Company's operations or to increases in raw material, labor,
equipment or other costs will not offset some or all of the savings expected to
be achieved through the cost reduction efforts. Competitive pressures and other
market factors may also require the Company to share the benefit of some or all
of any savings with its customers or otherwise adversely affect the prices it
receives or the market for its products. As a result, even if the expected cost
reductions are fully achieved in a timely manner, such reductions are not likely
to be fully reflected by commensurate gains in the Company's net income, cash
position, dividend rate or the price of its Common Stock.

Other Dispositions and Acquisitions. In connection with its ongoing
restructuring and growth initiatives, the Company may also consider divesting or
discontinuing the operations of various business units and assets and the
Company may undertake one or more significant acquisitions. Any such divestiture
or discontinuance could result in write offs by the Company, some or all of
which could be significant. In addition, a significant acquisition could result
in future earnings dilution for the Company's shareholders. Acquisitions
accounted for as a purchase transaction could also adversely affect the
Company's reported future earnings due to the amortization of the goodwill and
other intangibles associated with the purchase.

Consumer Privacy Protection. Laws and regulations relating to consumer privacy
protection could harm the Company's ability to collect and use data, increase
its operating costs or otherwise harm its business. There is an increasing
public concern over consumer privacy rights. The Congress and state legislatures
have adopted and are considering adopting laws and regulations restricting the
purchase, sale and sharing of personal information about consumers. The new
federal financial modernization law, known as the Gramm-Leach-Bliley Act,
imposes significant new consumer information privacy requirements on a wide
range of companies. The Gramm-Leach-Bliley Act requires covered companies to
develop and implement policies to protect the security and confidentiality of
consumers' nonpublic information and to disclose those policies



to consumers before a customer relationship is established and annually
thereafter. The Gramm-Leach-Bliley Act also mandates government agencies to
issue standards to implement these requirements. The Company's eFunds business
unit could experience increased costs in order to comply with any new standards.
In addition, the Gramm-Leach-Bliley Act requires covered companies to give an
opt-out notice to consumers before sharing consumer information with third
parties. The opt-out notice requirement is subject to several exceptions, which
the Company believes apply to its business, thereby allowing banks to continue
to provide nonpublic personal information to it. It is possible that new state
or federal legislation or regulations could restrict or prohibit the Company's
ability to collect and use some types of consumer information, which could have
an adverse effect on its business.

Competition. Although the Company believes it is the leading check printer in
the United States, it faces considerable competition from other smaller
companies in both its traditional sales channel to financial institutions and
from direct mail sellers of checks. From time to time, one or more of these
competitors reduce the prices of their products in an attempt to gain volume.
The corresponding pricing pressure placed on the Company has resulted in reduced
profit margins for the Company's check printing business in the past and similar
pressures can reasonably be expected in the future. The Company has also
experienced some loss of business due to its refusal to meet competitive prices
that fell below the Company's revenue and profitability per unit targets. The
timing and amount of reduced revenues and profits that may result from these
competitive pressures is not ascertainable.

Check printing is, and is expected to continue to be, an essential part of the
Company's business and the principal source of its operating income for at least
the next several years. A wide variety of alternative payment delivery systems,
including credit cards, debit cards, smart cards, ATM machines, direct deposit,
electronic and other bill paying services, home banking applications and
Internet-based payment services, are in various stages of maturity or
development and additional systems will likely be introduced. The Company
believes that there will continue to be a substantial market for checks for the
foreseeable future, although a reduction in the volume of checks used by
consumers is expected. The rate and the extent to which alternative payment
methods will achieve consumer acceptance and replace checks cannot, however, be
predicted with certainty. A surge in the popularity of any of these alternative
payment methods could have a material, adverse effect on the demand for the
Company's primary products and its account verification and payment protection
services. Although the Company believes that its recent acquisition of an
electronic check conversion company may contribute to the continued viability of
the paper check as a payment mechanism by accelerating processing times and
reducing processing costs, there can be no assurance that the check conversion
technology developed by this new subsidiary and its competitors will achieve
widespread acceptance or have a measurable impact on the sales volume of the
Company's principal products.

The introduction of the alternative payment methodologies described above has
also resulted in an increased interest by third parties in transaction
processing, authorization



and verification, as well as other methods of effecting electronic payments, as
a source of revenue. This increased interest level has led to increased
competition for the Company's transaction processing and authorization
businesses. The payment processing industry is characterized by continuously
evolving technology and intense competition. Many participants in the industry
have substantially greater capital resources and research and development
capabilities than the Company. There can be no assurance that the Company's
competitors and potential competitors will not succeed in developing and
marketing technologies, services or products that are more accepted in the
marketplace than those offered or envisioned by the Company. Such a development
could result in the loss of significant customers by the Company's eFunds
business unit, render the Company's technology and proposed products obsolete or
noncompetitive or otherwise materially hinder the achievement of the growth
targets established for this business unit. Initiatives that may be undertaken
by the Company in connection with Internet commerce-based activities would be
particularly susceptible to these types of competitive risks and the rapid
development and deployment of Internet technologies, products and services may
present unanticipated competitive risks to the Company's current business that
may be material and adverse.

Effect of Financial Institution Consolidation. Recent consolidation within the
banking industry has resulted in increased competition and consequent pressure
on check prices. This concentration greatly increases the importance to the
Company of retaining its major customers and attracting significant additional
customers in an increasingly competitive environment. Although the Company
devotes considerable efforts towards the development of a competitively priced,
high quality suite of products for the financial services industry, there can be
no assurance that significant customers will not be lost or that any such loss
can be counterbalanced through the addition of new customers or by expanded
sales to the Company's remaining customers.

Revised Analytic Approach. The Company has announced that it is applying a new
methodology for evaluating the Company's projected return on various forms of
investment. The use of this methodology represents a revised analytic approach
by the Company and the long-term benefits to be derived therefrom cannot
presently be precisely determined.

Raw Material, Postage Costs and Delivery Costs. Increases in the price of paper
and the cost of postage can adversely affect the profitability of the Company's
printing and mail order businesses. Events such as the 1997 UPS strike can also
adversely impact the Company's margins by imposing higher delivery costs.
Competitive pressures and overall trends in the marketplace may have the effect
of inhibiting the Company's ability to reflect increased costs of production or
delivery in the prices of its products.

Limited Source of Supply. The Company's check printing business utilizes a paper
printing plate material that is available from only a limited number of sources.
The Company believes it has a reliable source of supply for this material and
that it maintains an inventory sufficient to avoid any production disruptions in
the event of an interruption of its supply. In the event, however, that the
Company's current supplier becomes unwilling or unable to supply the required
printing plate material at an acceptable price and the Company is unable to
locate a suitable alternative source within a reasonable time frame, the Company
would be forced to convert its facilities to an alternative printing process.
Any such conversion would require the unanticipated investment of significant
sums and there can be no assurance that the conversion could be accomplished
without production delays.