Electronic Benefits Transfer

What Is Electronic Benefits Transfer?

Electronic benefits transfer is a card-based system similar to a debit card that allows recipients of government assistance such as food stamps to pay retailers directly for their purchases. State governments provide benefits and track their use via the EBT system.

Deeper Definition

Another card called the electronic benefit card is for the same purpose and is distributed to the underprivileged masses. The cards can only be accessed within a confined time zone where the system can track all purchases after it has been issued to recipients in need of nutritional assistance and used to purchase from a retailer.

The EBT has replaced the old-style color-coded paper food stamps, and some states have incorporated other public assistance programs into the EBT systems they administer. The system has expanded its operation in the past year in response to the COVID-19 pandemic through the Pandemic Electronic Benefits Transfer (P-EBT) program.

EBT most commonly provides food-purchasing assistance for low- and no-income people. Of course, before it can be issued to anyone, they are screened to determine if they fall into the category of those who need it.

Types of EBTs

There are two major types of EBT programs:

1. Supplemental Nutrition Assistance Program (SNAP), which was formerly known as the Food Stamp Program

2. Cash benefits include Temporary Aid to Needy Families (TANF), state general assistance, and refugee benefits.

And the most recent one which the federal government implored the state government to incorporate is the P-EBT, pandemic electronic benefits transfer that was used to support those who lost their jobs and whose income was affected by the lockdown during the pandemic lockdown.