EBT (Electronic Benefits)
Electronic Benefits Transfer (EBT) is the delivery of government benefit funds-- such as food stamps and cash benefits (TANF - Temporary Assistance to Needy Families) to recipients utilizing a magnetic stripe card that works like a debit card.
EBT is rapidly changing to ESD (Electronic Services Delivery) as the original Food Stamp and TANF (Temporary Assistance to Needy Families) cash programs are leading states to look at other programs that could be run on the same card. The additional programs vary widely and include such diverse programs as Social Security, SSI, childcare, WIC, and unemployment compensation. Many of these programs are not true welfare and lead us to start thinking in terms of ESD rather than the basic EBT terminology.
We aim to provide you with the information you need to understand EBT, Tier II EBT and ESD (Electronic Services Delivery).
Quick Glossery
EFTA. The Electronic Funds Transfer Association (EFTA) is the nation's premier inter-industry trade association advocating the advancement of all forms of electronic payment systems and commerce. Its members are international leaders in technologies like Internet commerce, home banking, smart cards and electronic delivery of government services.
Electronic Voucher. After completion of the manual voucher procedures, the information must be electronically submitted via the merchant's terminal to receive credit (i.e., payment) for the transaction. Most states require vouchers to be submitted electronically.
ESD. Electronic Services Delivery (ESD) is a term that more accurately describes the expanded programs and services that were limited to Food Stamp and TANF-type programs under EBT. Social Security, for example, is already available in several states.
FNS. Food and Nutrition Service, formerly Food and Consumer Service. A division of the U.S. Department of Agriculture responsible for the food stamp program.
FNS Number. A seven (7) digit number assigned to a merchant by the FNS identifying the merchant as an approved food stamp merchant.
Interoperability. The ability to accept cards from one state in another state. Currently, only cards from states within a coalition may be accepted in other states. As of March 1, 1999, cards issued in any of the QUEST states will be accepted in all other QUEST states for a six-month pilot. We hope that QUEST interoperability will continue beyond the pilot, which will run through August 31.
Manual Voucher. A procedure used when a component of the transaction authorization route (i.e., the terminal, the third-party processor, or the transaction authorizer) is down. The merchant must call in to the Primary Contractor's Help Desk for voucher approvals to receive a transaction approval number. The merchant must complete a voucher ticket and have the Cardholder/Recipient sign the voucher ticket. Some states allow these vouchers to be mailed in to the contractor's Help Desk in order to receive credit (i.e., payment) for the transaction.
Primary Contractor. The Primary Contractor is the entity which won the contract bid for a particular state. They are responsible for arranging for the provision of the following (list not all-inclusive): Issuance of EBT cards, Transaction authorization, State equipment and phone lines, Adjustments
EBT Information by State
Click on a state below for up to date information
