Electronic benefits transfer

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Related to Electronic benefits transfer: EBT

Electronic Benefits Transfer

A system in which a government grants a citizen a card with features like a debit card to dispense public service benefits. For example, most U.S. states use electronic benefits transfer for food stamps. The recipient of food stamps receives a debit card with a certain amount of money pre-programmed into it and the recipient can use it to buy food. Not all establishments accept electronic benefits transfers for payment (just as not all stores accepted actual food stamps), but many do. Electronic benefits transfers are also sometimes used for other welfare programs.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Electronic benefits transfer (EBT).

Electronic benefits transfer, or EBT, is a system through which recipients of certain government benefits receive and spend funds electronically, using a plastic EBT card similar to a bank debit card.

Benefits are deposited electronically into the recipient's program account. The recipient can then use his or her EBT card to make purchases, which are debited from the account.

All states now use EBT in addition to traditional paper coupons to distribute food stamp benefits. Some states also use EBT to disburse benefits for other programs, including the US Department of Agriculture's Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) and the Temporary Assistance to Needy Families (TANF) programs.

There are no fees when recipients use EBT cards for purchases, but fees may apply to cash withdrawals from ATMs or electronic balance inquiries.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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The mistake was soon discovered when recipients went grocery shopping, swiped their electronic benefits transfer (EBT) card and noticed a disproportionately large account balance on their receipts.
Electronic benefits transfer (EBT), the system designed to simplify and streamline the food stamp program, is moving along at a brisk pace.
The Board strongly supports the facilitation of electronic alternatives for the delivery of government payments (known as "electronic benefits transfer" or EBT).
Attention this year has rightly focused on the abuse of Electronic Benefits Transfer cards - through their sale, their misuse, and their use to obtain cash that can then be spent without limits.
Department of Agriculture's Food and Nutrition Service hosted an awards ceremony in Washington, D.C., to celebrate the nationwide implementation of the Food Stamp Electronic Benefits Transfer (EBT) effort.
Clark also notes that the organization will continue to address such issues as shrinkage, ergonomics, electronic benefits transfer and 'smart cards."
"We want to go national with electronic benefits transfer programs instead of issuing food stamps," Haas says.
But as state and federal officials continue to unravel what appears to be an extensive series of abuses and misuses of Electronic Benefits Transfer cards, it is the public's patience with business as usual that is about to snap.
A number of states and localities are testing, or have launched, Electronic Benefits Transfer projects that would shift food stamp benefits from paper to debit cards.

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