Electronic Benefit Transfer (EBT) is an electronic system that allows a recipient to authorize transfer of their government benefits from a Federal account to a retailer account to pay for products received. EBT is currently being used in many States to issue food stamp and other benefits. Over 80 percent of food stamp benefits are currently being issued by EBT.
This electronic technology ensures convenient, rapid and secure transfer of both information and payments. Most state operated EBT systems now use plastic debit cards for the distribution of cash and food stamp benefits. The card replaces paper food stamp coupons and cash benefit checks. Information on the card's magnetic strip, along with a personal identification number, ensure the proper account is debited when a food stamp recipient uses the card to purchase groceries.
EBT improves service for customers and merchants, reduces fraud, and increases administrative control. Currently forty-four states, the District of Columbia, and Puerto Rico have operational food stamp EBT systems.
Advantages of EBT
EBT users receive their benefits in their accounts regularly, without having to wait for checks or coupons to arrive in the mail.
EBT will reduce the incidence of fraud, theft and abuse.
EBT streamlines the benefit delivery process and eliminates the cost of printing, storing, handling, shipping and disposing of coupons and checks
Food stamp benefits are spent solely on food, since recipients can no longer receive cash back from coupons. They now purchase food by having the amount debited from their food stamp account.
Retailers no longer have to process food coupons or checks.
HOW TO GET STARTED WITH EBT
For more information on EBT, click here to read our FAQ.
Interested Merchants should email NPS® Payment Processing, click here to speak with a knowledgeable representative concerning implementing EBT services.
