<DOCUMENT>
<TYPE>10-K405
<SEQUENCE>1
<FILENAME>deluxe010420_10-k.txt
<DESCRIPTION>DELUXE CORPORATION 10-K YEAR ENDED 12-31-00
<TEXT>


                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-K

[X]      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934. FOR THE FISCAL YEAR ENDED DECEMBER 31, 2000.

         Commission file number 1-7945.

                               DELUXE CORPORATION

             (Exact name of registrant as specified in its charter)

           Minnesota                                  41-0216800
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization)                        Identification No.)

3680 Victoria St. N., Shoreview, Minnesota            55126-2966
(Address of principal executive offices)              (Zip Code)

Registrant's telephone number, including area code: (651) 483-7111.

Securities registered pursuant to Section 12(b) of the Act:

Common Stock, par value $1.00 per share          New York Stock Exchange
            (Title of Class)         (Name of each exchange on which registered)

Securities registered pursuant to Section 12(g) of the Act: None.

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. _X_ Yes ___ No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (ss.229.405 of this chapter) is not contained herein, and will
not be contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K. [X]

The aggregate market value of the voting stock held by non-affiliates of the
registrant is $1,685,824,790 based on the last sales price of the registrant's
common stock on the New York Stock Exchange on March 7, 2001. The number of
outstanding shares of the registrant's common stock as of March 7, 2001, was
70,644,880.

<PAGE>


Documents Incorporated by Reference:

1.   Portions of the registrant's annual report to shareholders for the fiscal
     year ended December 31, 2000, are incorporated by reference in Parts I and
     II.

2.   The registrant's definitive proxy statement to be filed within 120 days
     after the Company's fiscal year-end is incorporated by reference in Part
     III.



                                     PART I

ITEM 1. NARRATIVE DESCRIPTION OF BUSINESS

OVERVIEW
   Deluxe Corporation is the largest provider of checks in the United States,
both in terms of revenue and number of checks produced. We sell checks and
related products to individuals and small businesses. In addition, we produce
computer and business forms on a small quantity order basis, including
continuous forms, deposit tickets, invoices, statements, tax forms and labels.
Our checks and business forms are compatible with nearly all of today's
off-the-shelf accounting software packages. We also sell accessories, such as
checkbook covers, deskbooks and rubber stamps. In addition, we offer products
and services to our financial institution clients and consumers, such as
protection from check order fraud. Our products and services are sold entirely
in the United States.

   Our company was incorporated under the laws of the State of Minnesota in
1920. From 1920 until 1988, our company was named Deluxe Check Printers,
Incorporated. Our principal executive offices are located at 3680 Victoria
Street North, Shoreview, Minnesota 55126-2966, telephone (651) 483-7111.

DISCONTINUED OPERATIONS
   Consistent with its stated intent to enhance shareholder value, our board of
directors declared a distribution of eFunds Corporation (eFunds) common stock
owned by Deluxe to all holders of our common stock as of 5:00 p.m., central
standard time, on the record date of December 11, 2000. On December 29, 2000, we
distributed our 40 million eFunds shares, representing approximately 88% of
eFunds outstanding shares, on a pro rata basis to our shareholders. Our
shareholders received .5514 share of eFunds common stock for each share of
Deluxe common stock held. Cash was issued in lieu of fractional shares. As a
result of this distribution, eFunds is now a completely independent company. Our
Consolidated Financial Statements set forth in Item 8 below contain further
information regarding eFunds as a discontinued operation.

   eFunds provides transaction processing and risk management services to
financial institutions, retailers, electronic funds transfer networks,
e-commerce providers and

<PAGE>


government agencies and also offers information technology consulting and
business process management services.

INDUSTRY BACKGROUND
   Payment systems and methods have been changing in the United States in recent
years as banking and other industries have introduced alternatives to the
traditional paper check, including, among others, automatic teller machines,
credit cards, debit cards and electronic payment systems, such as electronic
bill presentment and payment. Use of these payment alternatives is negatively
affecting the number of checks written.

   According to our estimates, growth in total checks written by individuals and
small businesses, the primary purchasers of checks, was flat in 2000 compared to
1999. We believe that the number of checks written by individuals and small
businesses will eventually decline due to the increasing use of alternative
payment methods. Although individual and small business check writing has not
yet begun to decline, the total number of personal, business and government
checks written in the United States has been in decline since 1997. We believe
the decline in personal, business and government checks is due to the increasing
use of the alternative payment methods, increasing use of direct deposits for
payroll and government transfer payments, and changing payment practices at
large businesses and government agencies.

   The most common method by which consumers order checks is through financial
institutions. We believe such orders comprised approximately 73% of all check
sales to individuals and small businesses in 2000. Orders originating in this
manner are sourced through financial institutions such as banks, savings and
loan institutions, credit unions, brokerages and other financial institutions.
In recent years, margins on check orders obtained through financial institutions
have been pressured by competitive factors and by the consolidation in the
financial institution industry. Margin pressure arising from consolidation in
the financial institution industry is a result of merged entities seeking not
only the most favorable prices formerly offered to the predecessor institutions
but also additional discounts due to the greater volume represented by the
combined company.

   The direct-to-the-consumer method of ordering checks emerged in the mid-1980s
based upon consumer desire for lower-priced alternatives to checks obtained
through financial institutions and the ability to obtain enhanced design
selections. We believe that direct sales to individuals and small businesses
have slightly increased from 1997 to 2000. Direct-to-the-consumer checks are
marketed to individuals and small businesses primarily through newspaper and
magazine inserts, direct mail advertisements, catalogs and the Internet.

DELUXE'S PRODUCTS AND SERVICES
   For the past 85 years, we have provided check printing services to consumers
through financial institutions. We have developed relationships with financial
institutions where the financial institution agrees to offer checks we produce
to its customers. We provide

<PAGE>


these checks to these customers at prices negotiated by their financial
institutions. Customers commonly submit initial check orders and reorders to
their respective financial institutions, who then forward those requests to us.
Printed checks are always shipped directly by us to the customers. Our charges
are usually paid by electronic transfer directly from the customers' accounts.
We typically produce and ship check orders within two days after the receipt of
an order. We sold checks through more than 10,000 financial institutions during
2000.

   Our relationships with specific financial institutions are usually formalized
through supply contracts averaging three to five years in duration. We are
committed to our financial institution relationships and seek to strengthen and
expand them by emphasizing the breadth and value of our checks and related
products and services. While the majority of our check orders are generated
through our relationships with financial institutions, we also offer checks and
related products directly to individuals and small businesses.

   We increased our direct-to-the-consumer selling in the 1980's in response to
the changes in the industry, although we have been selling products directly to
consumers since our first catalog was produced in 1918. In 1987, we expanded our
direct-to-consumer selling through an acquisition. We use a variety of direct
marketing techniques to acquire new customers in the direct-to-the-consumer
market, including free-standing inserts in newspapers, direct mail, catalogs and
referrals from other third parties, including our financial institution clients.
We also use Internet banner advertising and hyperlinks to direct traffic to our
websites. We have been emphasizing telephone and Internet contacts because they
are more effective than mail for our selling efforts.

   We have three websites that sell checks and related products directly to
customers: www.checksunlimited.com, www.designerchecks.com and
www.deluxeforms.com. Currently, almost ten percent of our orders received
directly are obtained from customers via the Internet. We received over one
million Internet orders for our checks and forms in 2000.

   As part of our growth strategy, we acquired Designer Checks, Inc. in February
2000. This acquisition provided us with access to additional customers, as well
as additional capacity, new product configurations such as a side tear option,
and additional background designs for our checks. As part of our growth and
e-commerce retailing strategies, we have offered many of our business partners
access to our small business website so that their customers can order online
with us. Although orders from new customers obtained in this manner are not a
significant contributor to our revenue at this time, we believe that this
additional order capture medium will allow customers to access a wider range of
products and services and will provide further convenience when placing orders.
We believe this will increase customer satisfaction and encourage repeat sales.

   Due to our belief that the individual and small business segments of the
check industry will eventually decline due to the increasing use of alternative
payment methods, we have implemented measures to reduce costs of production and
other cost management


<PAGE>


measures. In 1996, we announced a plan to close 21 of our financial institution
check printing plants over a two-year period in order to better manage our cost
structure. Four additional plant closings were announced in 1998. The plant
closings were made possible by advancements in our telecommunications, order
processing and printing technologies. By the end of 2000, all of the production
functions in these 25 plants were closed. Four of the order capture and
processing functions remain open and are expected to be closed in 2001. We have
also outsourced many non-strategic areas, such as information technology (IT)
application development, mail processing and certain data entry and accounting
functions.

   Our checks offer consumers opportunities to express their personal style,
which is a key element in our customer merchandising approach. In addition to
including basic name and address information on their checks, customers may add
other details and may choose from many variations in the format and style of
their checks, including:

         *        selection of type fonts;

         *        placement of information on the check;

         *        approximately 200 distinct background designs, including
                  choice of plain safety paper designs or background designs,
                  including specially licensed designs from companies such as
                  Disney (R), Coca-Cola Company, Warner Bros. and NASCAR Inc.;

         *        choice of paper and ink color;

         *        choice of top or side tear options; and

         *        choice of stubs or duplicate copies.

   Over the last several years, we have begun offering enhanced services, such
as customized reporting services, file management and expedited account
conversion support, to our financial institution clients in order to increase
efficiency and our revenue. We continue to offer our SecureMail(TM) service,
which we implemented in September 1999, to help protect financial institutions
and their customers from check order fraud.

   The primary raw materials used in producing our products are paper, ink and
cartons. We purchase paper, ink and cartons from various sources. We believe
that supplies of our materials are sufficient to meet our planned operating
needs for the foreseeable future. We also utilize a paper printing plate
material that is available from only a limited number of sources. We believe our
source provides a reliable supply of this material and that it maintains an
inventory sufficient to avoid any production disruptions in the event of an
interruption of its supply.


<PAGE>


OUR STRATEGY
   Our strategy is to strengthen our leading position in the markets in which we
compete by leveraging our core competencies, which are personalization, direct
marketing and e-commerce, adding services and expanding product offerings to
retain and gain market share. Key elements of our strategy are to:

         *        LEVERAGE CORE COMPETENCIES TO DEVELOP NEW SOURCES OF REVENUE
                  THROUGH NEW AND EXPANDING PRODUCT OFFERINGS WITHIN OUR
                  EXISTING BUSINESSES.

                       PROVIDE ADDITIONAL SERVICES AND NEW PRODUCTS. We intend
                       to sell additional services and new product offerings to
                       our existing customers. For example, we recently
                       introduced a line of Disney(R) check designs. This marks
                       the first time that Disney(R) characters have appeared on
                       personal checks and related products.

                       PURSUE EXPANDED PRODUCT OFFERING OPPORTUNITIES. We intend
                       to maximize revenue per order by pursuing expanded
                       product offering opportunities within our existing
                       customer base. For example, our customers have specific
                       preferences and requirements. When we take reorders
                       directly via the Internet and our voice response unit
                       from financial institution customers, we have an
                       opportunity to directly focus on their preferences and
                       requirements. This allows us the opportunity to sell more
                       products and additional services to them. We intend to
                       expand our direct contact with customers by providing
                       them with the ability to process reorders by speaking
                       directly to a person via the telephone. We also pursue
                       cross-selling opportunities by placing advertising
                       inserts in the boxes of checks we ship and by placing
                       hyperlinks on our websites.

         *        FURTHER EXPAND OUR PRESENCE ON THE INTERNET. Consumers'
                  willingness to do business via electronic methods is
                  beneficial for us due to the accuracy, efficiency and
                  convenience of this medium. In addition, the Internet allows
                  us to connect directly with check writers, affording us the
                  opportunity to improve product mix and customer satisfaction.

         *        INVEST IN TECHNOLOGY AND PROCESSES THAT WILL LOWER OUR COST
                  STRUCTURE. We intend to continue to manage our costs carefully
                  and to invest in technology and processes to increase
                  operating efficiency in our business. In recent years we have
                  implemented a number of programs to control expenses and
                  increase efficiency, such as consolidating plants, improving
                  production capacity, implementing electronic customer
                  interfaces and outsourcing certain IT application development
                  and mail processing functions.


<PAGE>


         *        CONSIDER ACQUISITIONS THAT LEVERAGE CORE COMPETENCIES, ARE
                  ACCRETIVE TO EARNINGS AND GENERATE CASH FROM OPERATING
                  ACTIVITIES. For example, we acquired Designer Checks, Inc. in
                  February 2000 which contributed positive earnings and cash
                  flow to our operations.

COMPETITION
   The check printing industry is highly competitive. We expect that competition
will intensify as the overall check industry continues to mature and decline. We
face competition from alternative electronic payment systems such as automatic
teller machines, credit cards, debit cards and electronic payment systems, such
as electronic bill presentment and payment. We also face considerable
competition from at least six other check printers. Electronic commerce is new,
rapidly evolving and intensely competitive. As we expand our e-commerce
presence, we will face competition from check printing software vendors and from
Internet-based sellers of checks and related products to consumers, such as
iPrint or ImageX.

   In the check printing industry, the principal factors on which we compete are
service, convenience, quality, product range and price. From time to time, some
of our check printing competitors have reduced the prices of their products in
an attempt to gain greater volume, and the corresponding pricing pressure placed
on us has resulted in reduced profit margins for us in the past. We have also
experienced some loss of business due to our refusal to meet competitive prices
that fell below our profitability targets. Similar pressures may result in
margin reductions in the future.

GOVERNMENT REGULATION
   We will be subject to the privacy requirements of a new federal financial
modernization law known as the Gramm-Leach-Bliley Act, enforcement of which will
begin in July 2001. Regulations implementing the Act require each regulated
entity to develop and implement policies to protect the security and
confidentiality of consumers' nonpublic personal information and to disclose
those policies to consumers before a customer relationship is established and
annually thereafter.

   The regulations will require us to provide a notice to our consumer customers
to allow them an opportunity to remove their nonpublic personal information from
our files before we share their information with certain third parties. The
regulations, including the above provision, may limit our ability to use our
direct consumer data in our businesses. However, the regulations allow us to
transfer consumer information to process a transaction that a consumer requests
and to protect the confidentiality of a consumer's records or to protect against
or prevent actual or potential fraud, unauthorized transactions, claims or other
liability. We are also allowed to transfer consumer information for required
institutional risk control and for resolving customer disputes or inquiries. We
may also contribute consumer information to a consumer reporting agency pursuant
to the Fair Credit Reporting Act.


<PAGE>


   We are evaluating the methods by which we will comply with the regulations
and any related contractual requirements. Further, we anticipate that our
financial institution clients will request various contractual provisions in
their agreements with us that are intended to comply with their obligations
under the Act and regulations.

   We have entered into an agreement, effective until July 1, 2001, with eFunds
pursuant to which we will contribute consumer information to eFunds. eFunds has
agreed that it may only use this information for purposes that are consistent
with applicable federal, state and local laws.

   Congress and many states are considering more stringent laws or regulations
that, among other things, restrict the purchase, sale or sharing of non-public
personal information about consumers. For example, legislation has been
introduced in Congress to further restrict the sharing of consumer information
by financial institutions, as well as to require that a consumer opt-in prior to
a financial institution's use of his or her data in its marketing program.

   Laws and regulations may be adopted in the future with respect to the
Internet or e-commerce covering issues such as user privacy. New laws or
regulations may impede the growth of Internet business. This could decrease
traffic to our websites and the demand for our products. Moreover, the
applicability to the Internet of existing laws governing property ownership,
taxation, libel and personal privacy is uncertain and may remain uncertain for a
considerable length of time.

INTELLECTUAL PROPERTY RIGHTS
   We rely on a combination of trademark and copyright laws, trade secret
protection and confidentiality and license agreements to protect our
intellectual property. Intellectual property laws afford limited protection. It
may be possible for a third party to copy our products and services or otherwise
obtain and use our proprietary information without our permission. There is no
assurance that our competitors will not independently develop products and
services that are substantially equivalent or superior to our products and
services.

EMPLOYEES
   As of December 31, 2000, we had approximately 7,800 full- and part-time
employees employed within the United States. Of the total number of employees,
3,390 were engaged in production, 3,259 were engaged in customer and technical
support services, 428 were engaged in sales and marketing and 723 were engaged
in administrative and other functions. None of our employees are represented by
a labor union, and we consider our employee relations to be good.

OTHER FINANCIAL INFORMATION
   The information about segments and geographic areas appearing under the
caption "Note 15. Business segment information" on pages 43 through 45 of the
Annual Report is incorporated by reference.


<PAGE>


EXECUTIVE OFFICERS OF THE REGISTRANT
   Our executive officers are elected by the board of directors each year. The
term of office of each executive officer will expire at the annual meeting of
the board of directors that will be held after the regular shareholders meeting
on May 8, 2001. The executive officers and their positions are as follows:

----------------------- ----------------------------------- ------ -------------
Name                    Position                            Age    Officer Since
----------------------- ----------------------------------- ------ -------------
Lawrence J. Mosner      Chairman of the Board and Chief     59     1995
                        Executive Officer
----------------------- ----------------------------------- ------ -------------
Ronald E. Eilers        President and Chief Operating       53     1996
                        Officer
----------------------- ----------------------------------- ------ -------------
Stephen J. Berry        Senior Vice President, President    38     2000
                        - Checks Unlimited/Designer Checks
----------------------- ----------------------------------- ------ -------------
Guy C. Feltz            Senior Vice President, President    45     2000
                        - FI Check Printing
----------------------- ----------------------------------- ------ -------------
Sonia W. St. Charles    Senior Vice President, Human        40     2000
                        Resources
----------------------- ----------------------------------- ------ -------------
Anthony C. Scarfone     Senior Vice President, General      39     2000
                        Counsel and Secretary
----------------------- ----------------------------------- ------ -------------
Warner F. Schlais       Senior Vice President and Chief     48     2000
                        Information Officer
----------------------- ----------------------------------- ------ -------------
Richard L. Schulte      Senior Vice President, President    44     2000
                        - Deluxe Business Forms and
                        Supply Chain
----------------------- ----------------------------------- ------ -------------
Douglas J. Treff        Senior Vice President and Chief     43     2000
                        Financial Officer
----------------------- ----------------------------------- ------ -------------
Gene H. Peterson        Vice President, eBusiness and       56     2000
                        Corporate Development
----------------------- ----------------------------------- ------ -------------

   LAWRENCE J. MOSNER has served as chairman of the board and chief executive
officer of Deluxe since the spin-off of eFunds from the Company, which was
completed on December 29, 2000. Prior to this position, Mr. Mosner served as
vice chairman, a position he assumed in August 1999. Before being named as vice
chairman, Mr. Mosner served as executive vice president of the Company. In that
position, Mr. Mosner had overall responsibility for all of the Company's
day-to-day operations from July 1997 until April 1999, at which point he was
designated to lead the Company's initiative to restructure the Company's various
businesses along business unit lines and otherwise evaluate strategic
alternatives for enhancing shareholder value. From February to July 1997, Mr.
Mosner was senior vice president of the Company and served as president of


<PAGE>


its Paper Payment Systems business unit. From November 1995 until February 1997,
Mr. Mosner served as senior vice president of the Company and president of
Deluxe Direct, Inc., a subsidiary of the Company that included all of its
business units selling directly to individuals and small businesses.

   RONALD E. EILERS has served as president and chief operating officer of the
Company since December 29, 2000. From August 1997 to December 2000, Mr. Eilers
was a senior vice president of the Company and managed its Paper Payment Systems
business. From February 1997 to August 1997, Mr. Eilers was president of Deluxe
Direct, Inc., a subsidiary of the Company, and from October 1996 was vice
president of Deluxe Direct, Inc. In 1995, Mr. Eilers became president of
PaperDirect, Inc., a subsidiary of the Company, and the manager of the Company's
business forms division.

   STEPHEN J. BERRY was named a senior vice president of the Company in December
2000 and has served as president of Checks Unlimited, LLC and Designer Checks
(Direct Checks), the direct to consumer check provider subsidiary of the
Company, since May 1999. From August 1997 to April 1999, Mr. Berry was director
of marketing for Direct Checks, and from August 1996 to July 1997 was a
marketing manager for Direct Checks. Mr. Berry was its customer service and
telemarketing manager from April 1994 to July 1996.

   GUY C. FELTZ was named a senior vice president of the Company in December
2000 and has served as president of the Company's financial institution check
printing business since July 2000. He was also a vice president of the Company
from July to December 2000. From August 1999 to July 2000, Mr. Feltz served as
senior vice president of sales and marketing of the Company's financial
institution check printing business. From June 1998 to July 1999, Mr. Feltz was
the president and chief executive officer of the Company's government services
business, which is part of Deluxe's former subsidiary, eFunds. From May 1996 to
May 1998, he served as president of Deluxe-HCL, an international joint venture
of the Company.

   SONIA W. ST. CHARLES was named an executive officer of the Company in
December 2000 and has served as senior vice president of human resources since
May 1999. From October 1997 to April 1999, Ms. St. Charles was vice president of
human resources for the company and from July 1996 to July 1997 was vice
president of human resources for the Company's financial services group. She
joined PaperDirect, Inc., a subsidiary of the Company, in August 1994 as vice
president of human resources and held that position until June 1996.

   ANTHONY C. SCARFONE joined the Company in September 2000 as senior vice
president, general counsel and secretary and became an executive officer of the
Company in December 2000. Prior to joining the Company, Mr. Scarfone served as
vice president, general counsel and secretary of Dahlberg, Inc., a worldwide
manufacturer, distributor and retailer of electronic hearing devices, a position
he held from November 1993 to November 1999.


<PAGE>


   WARNER F. SCHLAIS has served as senior vice president and chief information
officer since November 1999, and became an executive officer of the Company in
December 2000. From December 1997 to November 1999, Mr. Schlais was vice
president and chief information officer and from April 1995 to December 1997 was
the Company's vice president of applications development.

   RICHARD L. SCHULTE was named a senior vice president of the Company in
December 2000 and has served as president of the Company's business forms and
supply chain areas since July 2000. From May 1999 to July 2000, Mr. Schulte was
senior vice president of supply chain and operations for the Company. From 1995
to May 1999, he was president and general manager of Current, Inc. (now Direct
Checks), the Company's direct mail check business.

   DOUGLAS J. TREFF joined the Company in October 2000 as senior vice president
and chief financial officer and became an executive officer of the Company in
December 2000. From February 1993 until Mr. Treff joined the Company, he served
as vice president, finance, of Wilsons the Leather Experts, Inc. (Wilsons), a
leather specialty apparel retailer. He was also appointed chief financial
officer of Wilsons in May 1996.

   GENE H. PETERSON was named an executive officer of the Company in December
2000 and has served as vice president, eBusiness and corporate development since
November 1999. From October 1997 until November 1999, Mr. Peterson was vice
president of planning and development. From February 1996 to October 1997, he
served as vice president of planning and development for the Company's financial
services division.

ITEM 2. PROPERTIES

   We conduct our operations in 22 principal facilities, 18 of which are used
for production and service operations. These facilities are located in 15 states
and total approximately 2,333,000 square feet. Our headquarters occupies a
158,000-square-foot building in Shoreview, Minnesota. We believe that our
current facilities are adequate to meet our anticipated space requirements. We
believe that additional space will be available at a reasonable cost to meet our
future needs. The following table provides a description of our principal
facilities:

<PAGE>

<TABLE>
<CAPTION>
                                                         OWNED OR
                                                          LEASE
                                      APPROXIMATE       EXPIRATION
LOCATION                              SQUARE FEET          DATE                      FUNCTION
--------                              -----------          ----                      --------
<S>                                     <C>          <C>                 <C>
Shoreview, Minnesota (2 locations)      313,965           Owned          Administration, marketing, sales,
                                                                         teleservice center and headquarters
Lancaster, California                    68,539           Owned          Production and mail center
Des Plaines, Illinois                   191,805           Owned          Production and distribution
Colorado Springs, Colorado              291,311           Owned          Production, administration, marketing
                                                                         and teleservice center
Dallas, Texas                            53,490           Owned          Production
Greensboro, North Carolina               44,336           Owned          Production
Indianapolis, Indiana                    43,969           Owned          Production
Lenexa, Kansas (2 locations)            321,080           Owned          Production, distribution and
                                                                         teleservice center
Mountain Lakes, New Jersey               62,961           Owned          Production
Pittsburgh, Pennsylvania                 45,884           Owned          Production
Streetsboro, Ohio                       115,205           Owned          Production
Salt Lake City, Utah                     95,307           Owned          Production
Campbell, California                     68,655           Owned          Production
Shoreview, Minnesota (2 locations)      189,338       September 2006     Administration
Shoreview, Minnesota                    180,832       September 2009     Administration
Anniston, Alabama                        83,400         June 2001        Production, marketing, and
                                                                         teleservice center
Greensboro, North Carolina               65,340       November 2007      Teleservice center
Syracuse, New York                       47,469       December 2004      Teleservice center
Phoenix, Arizona                         50,337         June 2003        Administration and teleservice
                                                                         center
</TABLE>

ITEM 3. LEGAL PROCEEDINGS

   Other than routine litigation incidental to our business, there are no
material pending legal proceedings to which we are a party or to which any of
our property is subject.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

   Not applicable.

                                     PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

   Our common stock is traded on the New York Stock Exchange under the symbol
DLX. During the years ended December 31, 2000 and 1999, we declared dividends of
$0.37 per share during each quarterly period. As of December 31, 2000, the
number of shareholders of record was 12,770. The table below shows the per-share
price ranges of

<PAGE>


our common stock for the past two fiscal years as quoted on the New York Stock
Exchange. The per-share prices have been adjusted to reflect the spin-off of our
subsidiary, eFunds Corporation, on December 29, 2000.


      STOCK PRICE RANGES (DOLLARS)       HIGH       LOW         CLOSE
      ----------------------------------------------------------------
      2000
        Quarter 1                        23.18      17.74       21.18
        Quarter 2                        21.23      18.65       18.84
        Quarter 3                        19.19      15.99       16.24
        Quarter 4                        20.20      15.89       20.20
      ----------------------------------------------------------------
      1999
        Quarter 1                        29.88      23.28       23.28
        Quarter 2                        31.03      22.63       31.03
        Quarter 3                        32.37      26.48       27.18
        Quarter 4                        27.83      19.79       21.93
      ----------------------------------------------------------------


ITEM 6. SELECTED FINANCIAL DATA

   The information appearing under the caption "Five-year Summary" on page 25 of
the Annual Report is incorporated by reference.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

   The information appearing under the caption "Management's Discussion and
Analysis of Financial Condition and Results of Operations" on pages 18 through
23 of the Annual Report is incorporated by reference.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

   The information appearing under the caption "Market Risk Disclosure" on page
23 of the Annual Report is incorporated by reference.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

   The financial statements, notes and independent auditors' report on pages 26
through 50 of the Annual Report and the information appearing under the caption
"Summarized Quarterly Financial Data" (unaudited) on page 51 of the Annual
Report is incorporated by reference.

<PAGE>


ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
        FINANCIAL DISCLOSURE

   On March 16, 2001, the Company determined not to re-engage its independent
auditors, Deloitte & Touche LLP ("Deloitte") and appointed
PricewaterhouseCoopers LLP ("PricewaterhouseCoopers") as its new independent
auditors for the fiscal year ending December 31, 2001. This determination
followed the Company's decision to seek competitive bids from independent
accounting firms, including Deloitte, with respect to the engagement of
independent accountants to audit the Company's consolidated financial statements
for the fiscal year ending December 31, 2001. The decision not to re-engage
Deloitte and to engage PricewaterhouseCoopers was approved by the unanimous
vote of the Company's board of directors upon the recommendation of its audit
committee. The shareholders of the Company will be asked to ratify the
appointment of PricewaterhouseCoopers at the Company's Annual Meeting to be held
on May 8, 2001.

   The reports of Deloitte on the consolidated financial statements of the
Company for its fiscal years ended December 31, 2000 and December 31, 1999 did
not contain any adverse opinion or disclaimer of opinion and were not qualified
or modified as to uncertainty, audit scope or accounting principles. During the
Company's two most recent fiscal years and the subsequent interim period
through March 16, 2001, (i) there were no disagreements between the Company and
Deloitte on any matter of accounting principles or practices, financial
statement disclosure or auditing scope or procedure which, if not resolved to
the satisfaction of Deloitte, would have caused Deloitte to make reference to
the subject matter of the disagreement in connection with its reports (a
"Disagreement") and (ii) there were no reportable events, as defined in Item
304(a)(1)(v) of Regulation S-K of the Securities and Exchange Commission (a
"Reportable Event").

   The Company reported the change in accountants on Form 8-K on March 21, 2001.
The Form 8-K contained a letter from Deloitte addressed to the Securities and
Exchange Commission stating that it agreed with certain of the above statements,
and had no reason to agree or disagree with the remaining statements.


                                    PART III

ITEMS 10, 11, 12 AND 13. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT,
                         EXECUTIVE COMPENSATION, SECURITY OWNERSHIP OF CERTAIN
                         BENEFICIAL OWNERS AND MANAGEMENT, AND CERTAIN
                         RELATIONSHIPS AND RELATED TRANSACTIONS

   The Company's definitive proxy statement, to be filed with the Securities and
Exchange Commission within 120 days after the Company's fiscal year-end, is
incorporated by reference.

                                     PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

   (a) The following financial statements, schedules and independent auditors'
report and consent are filed with or incorporated by reference in this report:

                                                                      Page in
   Financial Statements                                            Annual Report
   --------------------                                            -------------

    Consolidated Balance Sheets at December 31, 2000 and 1999............26
    Consolidated Statements of Income for each of the three
       years in the period ended December 31, 2000.......................27
    Consolidated Statements of Comprehensive Income for each of
       the three years in the period ended December 31, 2000.............27
    Consolidated Statements of Cash Flows for each of the three
        years in the period ended December 31, 2000......................28
    Notes to Consolidated Financial Statements........................29-49
    Independent Auditors' Report ........................................50
    Supplemental Financial Information (Unaudited):
    -----------------------------------------------
    Summarized Quarterly Financial Data .................................51

                                                                    Page in this
                                                                     Form 10-K
                                                                     ---------

    Independent Auditors' Consent to the incorporation by
    reference of its reports in the Company's registration
    statements numbered 2-96963, 33-53585, 33-57261,
    33-32279, 33-58510, 33-62041, 333-03625, 33-48967,
    333-95739, 333-52452 and 333-52454..................................F-1


<PAGE>


   Schedules other than those listed above are not required or are not
applicable, or the required information is shown in the consolidated financial
statements or notes.


   (b) Reports on Form 8-K

       The Company filed the following reports on Form 8-K:

         *  December 4, 2000 report concerning approval by the Company's board
            of directors of the spin-off of eFunds.

         *  December 14, 2000 report concerning a press release issued by the
            Company announcing the final distribution ratio for the spin-off of
            eFunds.

         *  December 19, 2000 report providing an information statement
            concerning the spin-off of eFunds.

         *  January 12, 2001 report announcing the completion of the spin-off of
            eFunds and providing required pro forma financial information.

         *  March 21, 2001 report concerning a change in certified public
            accountants.

   (c) The following exhibits are filed as part of or are incorporated in this
report by reference:

    Exhibit                                                            Method of
    Number                      Description                             Filing
    ------                      -----------                             ------

     2.1    Initial Public Offering and Distribution Agreement,            *
            dated as of March 31, 2000, by and between Deluxe and
            eFunds (incorporated by reference to Exhibit 2.1 to the
            Registration Statement on Form S-1 ("the S-1") filed by
            eFunds Corporation with the Securities and Exchange
            Commission (the "Commission") on April 4, 2000,
            Registration No. 333-33992)).


     3.1    Articles of Incorporation (incorporated by reference to        *
            the Company's Annual Report on Form 10-K for the year
            ended December 31, 1990).

     3.2    Bylaws (incorporated by reference to Exhibit 3.2 to the        *
            Company's Quarterly Report on Form 10-Q ("the September
            1999 10-Q") for the quarter ended September 30, 1999).


     4.1    Amended and Restated Rights Agreement, dated as of             *
            January 31, 1997, by and between the Company and Norwest
            Bank Minnesota, National Association, as Rights Agent,
            which includes as Exhibit A thereto, the form of Rights
            Certificate

<PAGE>


            (incorporated by reference to Exhibit 4.1 to the
            Company's Amendment No. 1 on Form 8-A/A-1 (File No.
            001-07945) filed with the Commission on February 7,
            1997).

     4.2    Indenture, relating to up to $150,000,000 of debt              *
            securities (incorporated by reference to Exhibit 4.1 to
            the Company's Registration Statement on Form S-3
            (33-32279) filed with the Commission on November 24,
            1989).

     4.3    Amended and Restated Credit Agreement, dated as of July        *
            8, 1997, among the Company, Bank of America National
            Trust and Savings Association, as agent, and the other
            financial institutions party thereto, related to a
            $150,000,000 committed line of credit (incorporated by
            reference to Exhibit 4.3 to the Company's Annual Report
            on Form 10-K ("the 1997 10-K") for the year ended
            December 31, 1997).

     4.4    Credit Agreement, dated as of August 30, 1999 (the             *
            "August 30, 1999 Credit Agreement"), among the Company,
            Bank of America, N.A. as the sole and exclusive
            administrative agent, and the other financial
            institution party thereto related to a $500,000,000
            revolving credit agreement (incorporated by reference to
            Exhibit 4.4 to the September 1999 10-Q).


     4.5    Amendment No. 1 to Amended and Restated Rights                 *
            Agreement, entered into as of January 21, 2000, between
            the Company and Norwest Bank Minnesota, National
            Association as Rights Agent (incorporated by reference
            to Exhibit 4.1 to the Company's Amendment No. 1 to its
            Quarterly Report on Form 10-Q for the Quarter Ended June
            30, 2000).

     4.6    Extension of the August 30, 1999 Credit Agreement,             *
            entered into as of August 14, 2000 (incorporated by
            reference to Exhibit 10.4 to the Company's Quarterly
            Report on Form 10-Q ("the September 2000 10-Q") for the
            Quarter Ended September 30, 2000).

     4.7    Amendment to Amended and Restated Credit Agreement dated       *
            July 8, 1997, entered into as of August 14, 2000
            (incorporated by reference to Exhibit 10.5 to the
            September 2000 10-Q).

     4.8    Second Amendment to Amended and Restated Credit              Filed
            Agreement dated July 8, 1997, entered into as of October    herewith
            5, 2000.

<PAGE>


     4.9    Amendment to the August 30, 1999 Credit Agreement,           Filed
            entered into as of October 5, 2000.                         herewith

     10.1   Deluxe Corporation 2000 Annual Incentive Plan                  *
            (incorporated by reference to Exhibit 10.1 to the
            September 2000 10-Q).

     10.2   Deluxe Corporation 2000 Stock Incentive Plan                   *
            (incorporated by reference to Exhibit 10.2 to the
            September 2000 10-Q).

     10.3   Deluxe Corporation 2000 Employee Stock Purchase Plan           *
            (incorporated by reference to Exhibit 10.3 to the
            September 2000 10-Q).

     10.4   Deluxe Corporation Executive Deferred Compensation Plan        *
            for Employee Retention and Other Eligible Arrangements
            (incorporated by reference to Exhibit 10.24 to the
            Company's Quarterly Report on Form 10-Q ("the June 2000
            10-Q") for the quarter ended June 30, 2000).

     10.5   Deluxe Corporation Supplemental Benefit Plan                   *
            (incorporated by reference to Exhibit (10)(B) to the
            Company's Annual Report on Form 10-K ("the 1995 10-K")
            for the Year Ended December 31, 1995).

     10.6   Description of Deluxe Corporation Non-employee Director        *
            Retirement and Deferred Compensation Plan (incorporated
            by reference to Exhibit 10.14 to the Company's Annual
            Report on Form 10-K for the Year ended December 31,
            1996).

     10.7   Deluxe Corporation 1998 DeluxeSHARES Plan (incorporated        *
            by reference to Exhibit 10.9 to the 1997 10-K).

     10.8   Description of modification to the Deluxe Corporation          *
            Non-Employee Director Retirement and Deferred
            Compensation Plan (incorporated by reference to Exhibit
            10.10 to the 1997 10-K).

     10.9   Description of non-employee Director Compensation              *
            Arrangements (incorporated by reference to Exhibit 10.14
            to the Company's Annual Report on Form 10-K ("the 1999
            10-K") for the Year Ended December 31,1999).

     10.10  Description of John A. Blanchard III Supplemental              *
            Pension Plan (incorporated by reference to Exhibit 10(H)
            to the 1995 10-K).

<PAGE>


     10.11  Government Services Indemnification Agreement, dated as        *
            of May 1, 2000, by and between eFunds Corporation and
            the Company (incorporated by reference to Exhibit 10.17
            to Amendment No. 1 to the S-1 filed by eFunds
            Corporation with the Commission on May 15, 2000
            (Registration No. 333-33992)).

     10.12  Professional Services Agreement, dated as of April 1,          *
            2000, by and between eFunds Corporation and the Company
            (incorporated by reference to Exhibit 10.10 to Amendment
            No. 1 to the S-1 filed by eFunds Corporation with the
            Commission on May 15, 2000 (Registration No.
            333-33992)).

     10.13  Tax Sharing Agreement, dated as of April 1, 2000, by and       *
            between eFunds Corporation and the Company (incorporated
            by reference to Exhibit 10.3 to Amendment No. 1 to the
            S-1 filed by eFunds Corporation with the Commission on
            May 15, 2000 (Registration No. 33-33992)).

     10.14  Amendment, dated November 1, 1999, to Executive                *
            Retention Agreement, dated as of January 9, 1998,
            between John A. Blanchard III and the Company
            (incorporated by reference to Exhibit 10.21 to the 1999
            10-K).

     10.15  Executive Employment Agreement, dated as of May 9, 2000,       *
            by and between eFunds Corporation and John A. Blanchard
            III (incorporated by reference to Exhibit 10.19 to
            Amendment No. 1 to the S-1 filed by eFunds Corporation
            with the Commission on May 15, 2000 (Registration No.
            333-33992)).

     10.16  Agreement to Terminate Executive Retention Agreement and       *
            Memorandum Dated October 11, 1995, dated May 9, 2000, by
            and between John A. Blanchard III and the Company
            (incorporated by reference to Exhibit 10.26 to the June
            2000 10-Q).

     10.17  Severance Agreement entered into effective March 1, 2001     Filed
            between the Company and the following executive             herewith
            officers: Ronald E. Eilers, Anthony C. Scarfone, Richard
            L. Schulte, Douglas J. Treff, Stephen J. Berry, Warner
            F. Schlais, Sonia W. St. Charles, Guy C. Feltz, and
            Gene H. Peterson.

<PAGE>


     10.18  Severance Agreement entered into effective March 1, 2001     Filed
            between the Company and Lawrence J. Mosner.                 herewith

     10.19  Executive Retention Agreement entered into effective         Filed
            December 18, 2000 between the Company and the following     herewith
            executive officers of the Company: Lawrence J. Mosner,
            Ronald E. Eilers, Anthony C. Scarfone, Richard L.
            Schulte, Douglas J. Treff, Stephen J. Berry, Warner F.
            Schlais, Sonia W. St. Charles, Guy C. Feltz, and Gene H.
            Peterson.

     12.5   Statement re: computation of ratios.                         Filed
                                                                        herewith

     13     2000 Annual Report to shareholders.                          Filed
                                                                        herewith

     21.1   Subsidiaries of the Registrant.                              Filed
                                                                        herewith

     23     Consent of Experts and Counsel (incorporated by                *
            reference to page F-1 of this Annual Report on Form
            10-K).

     24.1   Power of attorney.                                           Filed
                                                                        herewith

     99.1   Cautionary Statements and Risk Factors.                      Filed
                                                                        herewith

------------------------
*Incorporated by reference

<PAGE>


   Note to recipients of Form 10-K: Copies of exhibits will be furnished upon
written request and payment of the Company's reasonable expenses ($.25 per page)
in furnishing such copies.

   Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of
Shoreview, State of Minnesota.

                                         DELUXE CORPORATION

Date: March 23, 2001                     By: /s/ Lawrence J. Mosner
                                             ----------------------------------
                                             Lawrence J. Mosner
                                             Chairman of the Board of Directors
                                             and Chief Executive Officer

   Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons in the capacities
indicated on March 23, 2001.

SIGNATURE                                TITLE
---------                                -----

By /s/ Lawrence J. Mosner                Chairman of the Board of Directors
   -------------------------------       and Chief Executive Officer
   Lawrence J. Mosner                    (Principal Executive Officer)


By /s/ Douglas J. Treff                  Senior Vice President and Chief
   -------------------------------       Financial Officer (Principal
   Douglas J. Treff                      Financial Officer and Principal
                                         Accounting Officer)

              *                          Director
   -------------------------------
   Ronald E. Eilers

              *                          Director
   -------------------------------
   Barbara B. Grogan


              *                          Director
   -------------------------------
   Stephen P. Nachtsheim


              *                          Director
   -------------------------------
   Calvin W. Aurand, Jr.


<PAGE>


              *                          Director
   -------------------------------
   Donald R. Hollis


              *                          Director
   -------------------------------
   Robert C. Salipante


              *                          Director
   -------------------------------
   Daniel D. Granger


              *                         Director
   -------------------------------
   Cheryl E. Mayberry


              *                         Director
   -------------------------------
   Charles A. Haggerty


*By: /s/ Lawrence J. Mosner
     -----------------------------
         Lawrence J. Mosner
         Attorney-in-Fact

<PAGE>


                          INDEPENDENT AUDITORS' CONSENT

   We consent to the incorporation by reference in Registration Statements Nos.
2-96963, 33-53585, 33-57261, 333-03625, 33-48967, 333-95739, 333-52452 and
333-52454 on Form S-8 and 33-32279, 33-58510 and 33-62041 on Form S-3 of our
report dated January 25, 2001, incorporated by reference in this Annual Report
on Form 10-K of Deluxe Corporation for the year ended December 31, 2000.

   /s/ Deloitte & Touche LLP
   Deloitte & Touche LLP
   Minneapolis, Minnesota
   March 21, 2001


                                       F-1
<PAGE>


                                  EXHIBIT INDEX

   The following exhibits are filed as part of this report:

   Exhibit                                                               Page
   Number                           Description                          Number
   ------                           -----------                          ------

    4.8       Second Amendment to Amended and Restated Credit
              Agreement dated July 8, 1997, entered into as of
              October 5, 2000.

    4.9       Amendment to the August 30, 1999 Credit Agreement,
              entered into as of October 5, 2000.

    10.17     Severance Agreement entered into effective March 1,
              2001 between the Company and the following executive
              officers: Ronald E. Eilers, Anthony C. Scarfone,
              Richard L. Schulte, Douglas J. Treff, Stephen J.
              Berry, Warner F. Schlais, Sonia W. St. Charles, Guy C.
              Feltz, and Gene H. Peterson.

    10.18     Severance Agreement entered into effective March 1,
              2001 between the Company and Lawrence J. Mosner.


    10.19     Executive Retention Agreement entered into effective
              December 18, 2000 between the Company and the
              following executive officers of the Company: Lawrence
              J. Mosner, Ronald E. Eilers, Anthony C. Scarfone,
              Richard L. Schulte, Douglas J. Treff, Stephen J.
              Berry, Warner F. Schlais, Sonia W. St. Charles, Guy C.
              Feltz, and Gene H. Peterson.

    12.5      Statement re: computation of ratios.

    13        2000 Annual Report to shareholders.

    21.1      Subsidiaries of the Registrant.

    24.1      Power of attorney.

    99.1      Cautionary Statements and Risk Factors.
</TEXT>
</DOCUMENT>
