Electronic Benefit Transfer (EBT) is an electronic system that allows state governments to provide financial benefits via a plastic debit card (specifically the distribution of food stamps such as SNAP or WIC and cash welfare grants). Food benefits are federal and state authorized benefits that can be used only to purchase food and non-alcoholic beverages at defined supermarkets, bodegas and
. certain restaurants (certain dining establishments accept food benefits while some do not). Cash benefits include state general assistance and other forms of welfare payments and transfers. Unlike traditional food stamps, which used to literally be a coupon used to buy food, many states transitioned to the use of electronic benefit transfer debit cards to streamline the distribution process and reduce the stigma of using public assistance. Also, the use of debit cards to load cash assistance is cheaper for state governments to implement. Despite the advantages, there are potential pitfalls to using debit cards for cash assistance, in particular the potential for fraud and abuse (such as the trading and selling of debit cards for illicit drugs or not using the funds to purchase food but alcohol instead from unscrupulous vendors). State agencies work with contractors to procure their own EBT systems for delivery of food stamps and other state-administered benefit programs. In the United States, all food stamp benefits are now being issued via EBT. JP Morgan and Company is one of many banks that offer the use of debit cards for food stamp benefits. Since these banks have built large payment processing networks, it is cheaper for them to administer the program and maintain balances for users instead of the state using paper stamps and coupons. Other banks that may offer EBT systems for state governments include, but are not limited to, Bank of America, Wells Fargo and Citigroup. www.ebtproject.ca.gov/ or https://www.ebt.acs-inc.com/
