Electronic benefit transfer
These systems presented numerous challenges, including logistical complexities associated with printing, distributing, and processing paper documents, along with increased vulnerability to fraud, theft, and counterfeiting, all resulting in significant administrative costs.
This exploratory phase continued with the Mickey Leland Memorial Domestic Hunger Relief Act of 1990, which formally recognized EBT as a viable alternative to paper-based methods and authorized further demonstration projects.
One of the changes mandated that all states implement EBT systems by October 1, 2002, dramatically accelerating the shift from paper to electronic benefit distribution.
[2] The Farm Security and Rural Investment Act of 2002 further broadened the application of EBT by allowing group homes and institutions to directly redeem benefits electronically.
This legislation removed all references to "stamps" or "coupons" from federal law, replacing them with "cards" or "EBT," thereby cementing the shift to electronic benefit delivery.
The 2008 Farm Bill also addressed issues such as transaction fees and established programs to incentivize the purchase of healthy foods using SNAP benefits.
The law expanded retailer eligibility to include entities serving elderly and disabled individuals and direct-marketing agricultural producers, enabling home delivery pilot programs and direct-to-consumer sales.
Other EBT-related provisions included restrictions on using SNAP for bottle/can refunds, mandates for retailer-funded EBT infrastructure (with exceptions), elimination of manual vouchers (except in emergencies), requirements for electronic sales restriction enforcement, expanded retailer approval based on food access, USDA oversight of excessive card replacements, and reporting requirements for state-operated restaurant meals programs for vulnerable populations.
In March 2023, the FNS announced the selection of Illinois, Louisiana, Massachusetts, Missouri, and Oklahoma for the pilot, enabling SNAP recipients in these states to use mobile payment technologies as an alternative to physical EBT cards.
[4][5] In 2023, the payment industry began collaborating to revise the ISO standard governing EBT cards to enable the integration of EMV chip technology.
When paying for groceries, the SNAP customer's card is run through an electronic reader or a point of sale terminal (POS), and the recipient enters the PIN to access the food stamp account.
