Touchpay Inmate Commissary Deposit: A Deep Dive Into the Hidden Details
The system of commissary accounts and associated deposit services within correctional facilities is a multi-billion dollar industry, often shrouded in complexity and criticized for disproportionately impacting low-income families. Touchpay, now known as ViaPath Technologies, is a major player in this landscape. This explainer breaks down who Touchpay/ViaPath is, what they do, when and where they operate, and why their business practices have faced scrutiny.
Who is Touchpay/ViaPath Technologies?
Touchpay, acquired by Platinum Equity and now operating under the umbrella of ViaPath Technologies (formerly Global Tel Link, or GTL), is a technology company that provides payment processing services for correctional facilities. They facilitate deposits into inmate commissary accounts, allowing incarcerated individuals to purchase items like food, hygiene products, and communication credits. ViaPath provides a range of other services, including phone calls and video visitation.
What Services Does Touchpay/ViaPath Provide?
Touchpay/ViaPath's core function is enabling money transfers to inmate accounts. This can be done through online portals, phone payments, walk-in locations like MoneyGram, or through kiosks located in correctional facilities' lobbies. These funds are then used by inmates to purchase commissary items, phone time, and other services offered within the facility. The company essentially acts as a financial intermediary between inmates' families and the correctional system.
When and Where Does Touchpay/ViaPath Operate?
Touchpay/ViaPath operates across the United States, contracting with correctional facilities at the state, county, and federal levels. Specific contracts and locations vary, but the company’s reach is extensive. They have been active in this industry for decades, evolving as technology has advanced. The timing of their growth coincides with the broader privatization and technological advancements within the corrections industry, particularly from the late 1990s onwards.
Why the Scrutiny? Fees, Transparency, and Market Dominance
The primary criticism leveled against Touchpay/ViaPath, and similar companies, revolves around the fees associated with their services and a perceived lack of transparency. While the convenience of electronic deposits is undeniable, these transactions often come with fees that can disproportionately burden families already struggling financially.
- High Fees: A 2015 report by the Prison Policy Initiative highlighted that transaction fees for commissary deposits can range from $2.95 to $6.95, regardless of the deposit amount. These fees can quickly add up, especially for families making frequent, small deposits. In some cases, the fees can consume a significant percentage of the deposit amount, effectively reducing the purchasing power of the intended recipient.
- Lack of Transparency: Critics argue that the fee structures and contract details between Touchpay/ViaPath and correctional facilities are not always readily accessible to the public. This lack of transparency makes it difficult for families to understand exactly how much they are paying in fees and how those fees are allocated.
- Market Dominance: ViaPath Technologies, through acquisitions like Touchpay, has achieved significant market share in the corrections technology industry. This dominance raises concerns about potential anti-competitive practices and the ability to dictate pricing without sufficient market pressure.
- Exploitation of a Captive Market: Because inmates are reliant on these services for basic necessities and communication with the outside world, the families of the incarcerated are essentially a captive market. This lack of choice allows companies like ViaPath to potentially exploit this vulnerability by charging high fees.
- Lawsuits: Class-action lawsuits have been filed against ViaPath and similar companies, alleging unfair and deceptive business practices related to fees and transparency. These lawsuits often seek to recover damages for affected families and to force the companies to change their business practices.
- FCC Scrutiny: The Federal Communications Commission (FCC) has also taken an interest in the corrections technology industry, particularly regarding the high cost of inmate phone calls. While the focus has primarily been on phone calls, increased scrutiny of the entire industry is likely.
- State Legislation: Some states are considering or have already implemented legislation to regulate fees charged for commissary deposits and other services within correctional facilities. These laws aim to protect families from excessive fees and to increase transparency in the industry.
- Fee Caps and Transparency Requirements: State and federal regulators may implement caps on the fees that can be charged for commissary deposits and other services. They may also require companies to provide greater transparency about fee structures and contract details.
- Alternative Payment Options: Efforts may be made to develop alternative payment options that are more affordable and accessible for families of incarcerated individuals. This could include allowing direct deposits from government benefits or exploring non-profit alternatives.
- Increased Consumer Advocacy: Consumer advocacy groups will likely continue to raise awareness about the issues surrounding inmate commissary deposits and to advocate for policy changes that protect families from exploitation.
- Technological Innovation: While technology has contributed to the problem of high fees, it could also be part of the solution. New technologies could be used to streamline payment processes and reduce costs, making commissary deposits more affordable for families.
- Decriminalization and Sentencing Reform: Ultimately, addressing the root causes of mass incarceration and implementing sentencing reform could reduce the number of people in correctional facilities and, consequently, the demand for these services.
Historical Context: The Rise of the Inmate Commissary Industry
The inmate commissary system has evolved significantly over time. Initially, commissaries served as a way for inmates to supplement meager rations provided by correctional facilities. Over time, the scope of commissary offerings expanded, and private companies like Touchpay/ViaPath emerged to facilitate the financial transactions involved. This shift towards privatization has been driven by factors such as budget constraints faced by correctional facilities and the perceived efficiency of outsourcing these services.
Current Developments: Legal Challenges and Regulatory Scrutiny
Touchpay/ViaPath and other companies in the corrections technology sector have faced increased legal challenges and regulatory scrutiny in recent years.
Likely Next Steps: Increased Regulation and Consumer Advocacy
The future of the inmate commissary deposit industry is likely to be shaped by increased regulation, consumer advocacy, and technological innovation.
The debate surrounding Touchpay/ViaPath and the inmate commissary deposit industry highlights the complex intersection of technology, finance, and social justice within the corrections system. As scrutiny intensifies and regulations evolve, the industry will likely face increasing pressure to address concerns about fees, transparency, and fairness.
