<PAGE>

                                                                   Exhibit 10.27

                              eFUNDS CORPORATION
                             ANNUAL INCENTIVE PLAN
                        (as adopted February 16, 2001)


     1.   Establishment.  On February 16, 2001 the Board of Directors of eFunds
Corporation approved an incentive plan for executives as described herein, which
plan shall be known as the "eFunds Corporation Annual Incentive Plan."  This
Plan shall be submitted for approval by the stockholders of eFunds Corporation
at the 2001 Annual Meeting of Stockholders.  This Plan shall be effective as of
January 1, 2001, subject to its approval by the stockholders, and no benefits
shall be issued pursuant hereto unless and until after this Plan has been so
approved.

     2.   Purpose.  The purpose of this Plan is to advance the interests of
eFunds Corporation and its stockholders by attracting and retaining key
employees and by stimulating the efforts of such employees to contribute to the
continued success and growth of the business of the Company. This Plan is
further intended to provide employees with an opportunity to increase their
ownership of eFunds' common stock and to thereby increase their personal
interest in the long-term success of the Company in a manner designed to
increase stockholder value.

     3.   Definitions.  When the following terms are used herein with initial
capital letters, they shall have the following meanings:

     3.1. Achievement Percentage - a percentage (or a range of percentages),
which may be greater or less than 100%, that will result from the Company's
performance against each Performance Factor set for a Participant during a
Performance Period.  Such percentages shall be determined by the Committee with
respect to each Performance Factor applicable to a Participant in a given
Performance Period.  Following the conclusion of the Performance Period, the
Committee shall determine the Achievement Percentage for each Performance Factor
based on the performance of the Company for that Period.

     3.2. Base Salary - The amount of base salary received by a Participant
during a Performance Period, as determined by the Committee.  In the discretion
of the Committee, a Participant's base salary may be annualized or set at the
Participant's base salary as of the last day of the Performance Period.

     3.3.   Committee - a Committee of the Board of Directors of eFunds
designated by such Board to administer this Plan.  The Committee shall consist
of members of the Board of Directors of eFunds appointed from time to time by
the Board of Directors and shall be composed of not fewer than such number of
directors as shall be required to permit grants and awards made under this Plan
to satisfy the requirements of Rule 16b-3 promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934 (the "1934 Act"),
as amended, or any successor rule or regulation ("Rule 16b-3").  Each member of
the Committee shall be a "Non-Employee Director" within the meaning of Rule 16b-
3 and an "outside director" within the meaning of Section 162(m) of the Code.

     3.4. Code - the Internal Revenue Code of 1986, as it may be amended from
time to time, and any proposed, temporary or final Treasury Regulations
promulgated thereunder.

     3.5. Common Stock - the common stock, par value $.01 per share, of eFunds.

     3.6. Company - eFunds Corporation, a Delaware corporation, together with
its subsidiaries or affiliates, whether now or hereafter established.
<PAGE>

     3.7       eFunds - eFunds Corporation, a Delaware corporation

     3.8.      Executives - all Participants for a given Performance Period
designated by the Committee as "Executives" for purposes of this Plan.  The
Committee shall designate as Executives all Participants it reasonably believes
may be "named executive officers" under Rule 402 promulgated under the 1934 Act
for that Performance Period.

     3.9.      Other Participants - all Participants for a given Performance
Period who are not designated as "Executives" by the Committee for such
Performance Period.

     3.10.     Participants - any management or highly compensated employees of
the Company who are designated by the Committee as Participants in this Plan.
Directors of the Company who are not also employees of the Company are not
eligible to participate in this Plan. Participants shall be designated as either
Executives or Other Participants by the Committee as provided in Section 4.3
below.

     3.11.     Performance Factor - the performance goals selected by the
Committee for each Participant with respect to each Performance Period. The
performance goals selected by the Committee for Executives shall be based solely
upon the attainment of one or more objective performance criteria selected by
the Committee in connection with the grant of an award hereunder. In the case of
Other Participants, such performance goals need not be objective and may be
based on such business criteria as the Committee may determine to be appropriate
and may include financial and nonfinancial performance goals that are linked to
such individual's business unit, the Company as a whole or to such individual's
areas of responsibility. The objective performance goals for Executives shall be
based solely on one or more of the following business criteria, which may apply
to the individual in question, an identifiable business unit or the Company as a
whole, and on an annual or other periodic or cumulative basis: sales or
revenues, cost of sales, margins, income (including operating income), selling,
general and administrative expense levels, other income (expense), effective tax
rates, current ratios or other measures of liquidity, capital expenditures,
transaction volumes or hours billed, system availability rates, cash flow, stock
price, market share, earnings (on either a net or per share basis), earnings
before any one or more of the following: (i) interest expense and/or income,
(ii) taxes, (iii) depreciation and (iv) amortization, return on equity or costs,
return on invested or average capital employed, cumulative total return to
stockholders (in each case, whether compared to pre-selected peer groups or
not). In evaluating the performance of the Company against such criteria, the
Committee shall have the discretion to adjust the Company's reported results to
eliminate or include the effect of acquisitions, dispositions, special charges
or other one-time or non-recurring items.

     3.12.     Performance Period - each consecutive twelve-month period
commencing on January 1 of each year during the term of this Plan.

     3.13.     Plan - this eFunds Corporation  Annual Incentive Plan.

     3.14.     Stock Incentive Plan - The eFunds Corporation 2000 Stock
Incentive Plan, as the same may be amended from time to time.

     3.15.     Target Award - a dollar amount, typically expressed as a
percentage of a Participant's Base Salary, which percentage may be greater or
less than 100%, determined by the Committee with respect to each Participant for
each Performance Period.

     3.16.     Restricted Stock Rights - Restricted Stock Rights, as defined in
the Stock Incentive Plan.

                                       2
<PAGE>

     4.   Administration.

     4.1. Power and Authority of Committee.  This Plan shall be administered by
the Committee. The Committee shall have full power and authority, subject to all
the applicable provisions of this Plan and applicable law, to (a) establish,
amend, suspend or waive such rules and regulations and appoint such agents as it
deems necessary or advisable for the proper administration of this Plan, (b)
construe, interpret and administer this Plan and any instrument or agreement
relating to this Plan, (c) determine, from time to time, whether shares of
Common Stock and/or Restricted Stock Rights will be made available to a
Participant in this Plan and (d) make all other determinations and take all
other actions necessary or advisable for the administration of this Plan.
Unless otherwise expressly provided in this Plan, each determination made and
each action taken by the Committee pursuant to this Plan or any instrument or
agreement relating to this Plan shall be (x) within the sole discretion of the
Committee, (y) may be made at any time and (z) shall be final, binding and
conclusive for all purposes on all persons, including, but not limited to,
Participants and their legal representatives and beneficiaries, and employees of
the Company.

     4.2  Delegation.  The Committee may delegate its powers and duties under
this Plan to one or more officers of the Company or a committee of such
officers, subject to such terms, conditions and limitations as the Committee may
establish in its sole discretion; provided, however, that the Committee shall
                                  --------  -------
not delegate its power (a) to make determinations regarding officers or
directors of the Company who are subject to Section 16 of the 1934 Act or (b) in
such a manner as would cause this Plan not to comply with the provisions of
Section 162(m) of the Code.

     4.3. Determinations made prior to each Performance Period. On or before the
90th day of each Performance Period, the Committee shall:

          (a)  designate all Participants (including designation as Executives
or Other Participants) for such Performance Period;

          (b)  establish a Target Award for each Participant and the portions of
that Target Award related to each Performance Factor applicable to that
Participant; and

          (c)  for each Performance Factor, determine the Achievement Percentage
or range of Achievement Percentages that will result from the performance of the
Company against each Performance Factor.

     For example, the Committee may establish a Target Award equal to 50% of a
Participant's Base Salary, with one-half of such Award dependant upon a
Performance Factor related to the Company's revenues during the Performance
Period and one-half dependant upon a Performance Factor related to the Company's
earnings for such Period.  The Committee would then establish Achievement
Percentages for each of the Performance Factors based on the Company's revenues
and earnings for the Performance Period (i.e. 0% if the Company's revenues did
not exceed $X, 100% if the Company's revenues exceeded $Y and 150% if the
Company's revenues exceeded $Z).

     4.4. Certification.  Following the close of each Performance Period and
prior to payment of any amount to any Participant under this Plan, the Committee
must certify which of the applicable Performance Factors for that Performance
Period were achieved and determine the appropriate Achievement Percentage for
each such Factor.  The Committee must also certify

                                       3
<PAGE>

as to the attainment of all other factors upon which any payments to a
Participant for that Performance Period are to be based.

     4.5.  Stockholder Approval.  The material terms of this Plan shall be
disclosed to and approved by stockholders of the Company in accordance with
Section 162(m) of the Code.  No amount shall be paid to any Participant under
this Plan unless such stockholder approval has been obtained.

     5.    Incentive Payment.

     5.1.  Formula.  Subject to Section 5.2, each Participant shall receive an
incentive payment for each Performance Period in an amount not greater than the
sum of each portion of the Target Award related to a Performance Factor that was
achieved in the Performance Period, with each Performance Factor that was
achieved being multiplied by the relevant Achievement Percentage.

     For example, in the example described in Section 4.3, if the Company
achieved revenues of $Y during the Performance Period but did not make the
minimum earnings target, the Participant would receive an incentive payment
equal to 50% of his or her Target Award, or 25% of his or her Base Salary.

     5.2.  Limitations.

           (a)  Discretionary Increase or Reduction.  The Committee shall retain
sole and absolute discretion to increase or reduce the amount of any incentive
payment otherwise payable to any Participant under this Plan; provided, however,
that the Committee may not increase the payment to any Executive for any
Performance Period.

           (b)  Continued Employment. Except as otherwise provided by the
Committee, no incentive payment under this Plan shall be paid or owed to a
Participant whose employment terminates prior to the earlier to occur of (i) the
date of payment of the relevant award or (ii) the 90th day following the close
of the relevant Performance Period.

           (c)  Maximum Payments. No Participant shall receive a payment under
this Plan for any Performance Period in excess of $2.0 million (including the
amount of any premium received by reason of an election made pursuant to Section
6.1).

     6.    Benefit Payments.

     6.1.  Time and Form of Payments.  The Committee may elect to allow
Participants to receive all or part of any benefits which may be paid to them
under this Plan in the form of Common Stock or Restricted Stock Rights.  If no
such election is made, all benefits payable under this Plan shall be paid in
cash.  If this option is made available to one or more Participants, prior to a
date specified by the Committee but in no event later than the 90th day of a
Performance Period, each eligible Participant shall elect whether to receive any
benefits which may be paid to them under this Plan in respect of such
Performance Period in cash or in the form of shares of Common Stock or
Restricted Stock Rights (whichever is made available by the Committee to such
Participant in the Committee's sole discretion), or any combination thereof.
Participants who are to receive some percentage of their incentive payment in
the form of cash shall be entitled to elect to defer such receipt in accordance
with the terms of any deferred compensation plan in effect at the time and
applicable to such cash payment.  In the event a Participant is to receive some
percentage of their incentive payment in the form of cash, such cash incentive
shall, subject to any deferred compensation election, be paid as soon as
administratively feasible after the Committee has made the certifications
provided for in Section 4.4 above and determined the amount of such
Participant's incentive payment payable under this

                                       4
<PAGE>

Plan. In the event that an eligible Participant chooses to receive a portion of
their incentive payment in the form of shares of Common Stock or Restricted
Stock Rights in lieu of cash (with the amount of cash so foregone being herein
referred to as the "Share Dollar Amount"), the Participant shall be entitled to
receive shares of Common Stock or Restricted Stock Rights, or a combination
thereof (whichever option is made available by the Committee), having a fair
market value on the date of issuance (as determined in accordance with the terms
of the Stock Incentive Plan) of up to 125% of the Share Dollar Amount, with the
amount of any such premium being determined by the Committee. Any such shares or
Restricted Stock Rights shall be issued or awarded under the Stock Incentive
Plan promptly after the Committee has made the certifications provided for in
Section 4.4 above and otherwise determined the amount of the Participant's
incentive payment payable under this Plan.

     In the event an eligible Participant elects to receive some percentage of
their incentive payment in the form of shares of Common Stock or Restricted
Stock Rights, such shares or Restricted Stock Rights may be made subject to such
forfeiture rights, vesting requirements and  transfer restrictions as may be
established by the Committee in the exercise of its sole discretion.  Shares and
Restricted Stock Rights issued pursuant to this Plan shall not be counted
towards the 1,000,000-share award limitation provided for in Section 4(d) of the
Stock Incentive Plan.

     6.2.  Nontransferability.  Except as otherwise determined by the Committee,
no right to any incentive payment hereunder, whether payable in cash or other
property, shall be transferable by a Participant otherwise than by will or by
the laws of descent and distribution; provided however, that if so determined by
                                      -------- -------
the Committee, a Participant may, in the manner established by the Committee
designate a beneficiary or beneficiaries to receive any cash or property payable
to such Participant hereunder following the death of the Participant.  No right
to any incentive payment hereunder may be pledged, alienated, attached or
otherwise encumbered, and any purported pledge, alienation, attachment or
encumbrance thereof shall be void and unenforceable against the Company.

     6.3.  Tax Withholding.  In order to comply with all applicable federal or
state income, social security, payroll, withholding or other tax laws or
regulations, the Committee may establish such policy or policies as it deems
appropriate with respect to such laws and regulations, including without
limitation, the establishment of policies to ensure that all applicable federal
or state income, social security, payroll, withholding or other taxes, which are
the sole and absolute responsibility of the Participant, are withheld or
collected from such Participant. In order to assist a Participant in paying all
or part of the federal and state taxes to be withheld or collected upon receipt
or payment of (or the lapse of restrictions relating to) an incentive payment
payable hereunder, the Committee, in its sole discretion and subject to such
additional terms and conditions as it may adopt, may permit the Participant to
satisfy such tax obligation by (a) electing to have the Company withhold a
portion of the shares of Common Stock otherwise to be delivered upon payment of
(or the lapse of restrictions relating to) an incentive payment hereunder with a
fair market value equal to the amount of such taxes or (b) delivering to the
Company shares of Common Stock with a fair market value equal to the amount of
such taxes.

     7.    Amendment and Termination; Adjustments. Except to the extent
prohibited by applicable law and unless otherwise expressly provided in this
Plan:

           (a)  Amendments to this Plan. The Board of Directors of the Company
may amend, alter, suspend, discontinue or terminate this Plan, without the
approval of the stockholders of the Company, except that no such amendment,
alteration, suspension, discontinuation or termination shall be made that,
absent such approval, would violate the rules or regulations of the National
Association of Securities Dealers, Inc. or any securities exchange that are
applicable to the Company.

                                       5
<PAGE>

           (b)  Waivers of Incentive Payment Conditions or Rights. The Committee
may waive any conditions or rights of the Company with respect to any incentive
payment hereunder, prospectively or retroactively.

           (c)  Limitation on Amendments to Incentive Payment Rights. Neither
the Committee nor the Company may amend, alter, suspend, discontinue or
terminate any rights of any Participant to an incentive payment without the
consent of such Participant (or such Participant's beneficiaries), except as
otherwise herein provided.

           (d)  Correction of Defects, Omissions and Inconsistencies. The
Committee may correct any defect, supply any omission or reconcile any
inconsistency in this Plan in the manner and to the extent it shall deem
desirable to carry this Plan into effect.

     8.    Miscellaneous.

     8.1.  Effective Date. This Plan shall be deemed effective, subject to
stockholder approval, as of January 1, 2001.

     8.2.  Term of this Plan.  Unless this Plan shall have been discontinued or
terminated, this Plan shall terminate on December 31, 2005.  No right to receive
an incentive payment shall be granted after the termination of this Plan.
However, unless otherwise expressly provided in this Plan, any right to receive
an incentive payment theretofore granted may extend beyond the termination of
this Plan, and the authority of the Board of Directors and the Committee to
amend or otherwise administer this Plan shall extend beyond the termination of
this Plan.

     8.3.  Headings.  Headings are given to the Sections and subsections of this
Plan solely as a convenience to facilitate reference.  Such headings shall not
be deemed in any way material or relevant to the construction or interpretation
of this Plan or any provision thereof.

     8.4.  Applicability to Successors.  This Plan shall be binding upon and
inure to the benefit of the Company and each Participant, the successors and
assigns of the Company, and the beneficiaries, personal representatives and
heirs of each Participant.  If the Company becomes a party to any merger,
consolidation or reorganization, this Plan shall remain in full force and effect
as an obligation of the Company or its successors in interest (except to the
extent modified by the terms of the Stock Incentive Plan with respect to any
shares of Common Stock or Restricted Stock Rights issued under Section 6.1
hereof).

     8.5.  Employment Rights and Other Benefit Programs.  The provisions of this
Plan shall not give any Participant any right to be retained in the employment
of the Company. In the absence of any specific written agreement to the
contrary, this Plan shall not affect any right of the Company to terminate, with
or without cause, any Participant's employment at any time.  This Plan shall not
replace any contract of employment between the Company and any Participant, but
shall be considered a supplement thereto.  This Plan is in addition to, and not
in lieu of, any other employee benefit plan or program in which any Participant
may be or become eligible to participate by reason of employment with the
Company.  No compensation or benefit awarded to or realized by any Participant
under this Plan shall be included for the purpose of computing such
Participant's compensation under any compensation-based retirement, disability,
or similar plan of the Company unless required by law or otherwise provided by
such other plan.

     8.6.  No Trust or Fund Created.  This Plan shall not create or be construed
to create a trust or separate fund of any kind or a fiduciary relationship
between the Company and a Participant or any other person.  To the extent that
any person acquires a right to receive payments from the Company pursuant to
this Plan, such right shall be no greater than the right of any unsecured
general creditor of the Company.

                                       6
<PAGE>

     8.7.  Governing Law.  The validity, construction and effect of this Plan or
any incentive payment payable under this Plan shall be determined in accordance
with the laws of the State of Delaware.

     8.8.  Severability.  If any provision of this Plan is or becomes or is
deemed to be invalid, illegal or unenforceable in any jurisdiction such
provision shall be construed or deemed amended to conform to applicable laws, or
if it cannot be so construed or deemed amended without, in the determination of
the Committee, materially altering the purpose or intent of this Plan, such
provision shall be stricken as to such jurisdiction, and the remainder of this
Plan shall remain in full force and effect.

     8.9.  Qualified Performance-Based Compensation.  All of the terms and
conditions of this Plan shall be interpreted in such a fashion as to qualify all
compensation paid hereunder as "qualified performance-based compensation" within
the meaning of Section 162(m) of the Code.

                                       7