EBT stands for Electronic Benefits Transfer. It is a card-based system that allows recipients of government assistance, such as food stamps, to pay retailers directly for their purchases. EBT is used most commonly for the Supplemental Nutrition Assistance Program (SNAP), which provides food-purchasing assistance for low- and no-income people. State governments issue benefits and track their use through the EBT system.
Here are some key points about EBT:
- EBT was introduced as part of the 1996 federal welfare reform, which aimed to reduce the cost of manufacturing, distributing, and destroying food stamp coupons, as well as to combat fraud.
- All states in the US were required to implement and be operational with EBT by October 2002.
- EBT is similar to a debit card, and each county welfare department issues recipients a magnetic stripe card that works like a debit card for accessing their benefits.
- In addition to in-store purchases, EBT cardholders can use their benefit cards for online purchasing at participating retailers, such as Safeway, Amazon, and Walmart.
- The EBT system is also used for other government nutritional programs, and its use has been phased in since 2004 for payments through SNAP in all 50 states.
