Editing Electronic benefit transfer (section)

==History==
[[File:Food_Coupons.jpg|thumb|right|Traditional paper food stamps with an early EBT card]]
Before the introduction of electronic benefit transfer (EBT), government benefit programs primarily relied on paper-based methods. The Food Stamp Program (FSP), for example, utilized color-coded paper coupons ("stamps") that were redeemable at authorized retailers. Other programs, such as [[Aid to Families with Dependent Children]] (AFDC) and Temporary Assistance for Needy Families (TANF), typically distributed benefits through mailed checks. 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.<ref name="USDA SNAP history">{{cite web |title=A Short History of SNAP |website=USDA Food and Nutrition Service |date=July 9, 2024 |url=https://www.fns.usda.gov/snap/history |access-date=January 5, 2025}}</ref>

The development of EBT began with pilot programs in the 1980s. In 1984, [[Reading, Pennsylvania]], piloted the first program that used an EBT card for food stamp benefits. This initial experiment aimed to assess the feasibility and potential advantages of transitioning to an electronic system for the delivery of benefits. The [[Hunger Prevention Act of 1988]] provided legislative authorization for further pilot projects to evaluate the use of benefit cards and automated systems. 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.<ref name="USDA SNAP history"/>

The 1990s witnessed growing momentum toward nationwide EBT implementation. The Conference Report accompanying the [[Omnibus Budget Reconciliation Act of 1993]] expressed strong federal support for state-level EBT development. Soon after, the [[Personal Responsibility and Work Opportunity Reconciliation Act of 1996]] (PRWORA) was passed, which made many significant changes to the US welfare system. 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.<ref name="USDA SNAP history"/>

State agencies, private sector contractors, banks, and retailers collaborated to develop the necessary technological infrastructure, such as card processing networks and point-of-sale terminals, that could process the EBT card as a form of payment. To ensure the interoperability and portability of benefits across state lines, the Electronic Benefit Transfer Interoperability and Portability Act of 2000 established national standards for electronic benefit transactions. Puerto Rico, which transitioned to a block grant program (the Nutrition Assistance Program) in 1982, was exempted from these interoperability standards.<ref name="USDA SNAP history"/>

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. By 2004, all U.S. states, territories, and the District of Columbia had implemented statewide EBT systems for administering SNAP benefits (the successor to the FSP).<ref name="USDA SNAP history"/><ref name="Pear 2004">{{cite web |last=Pear |first=Robert |title=ELECTRONIC CARDS REPLACE COUPONS FOR FOOD STAMPS |website=The New York Times |date=June 23, 2004 |url=https://www.nytimes.com/2004/06/23/us/electronic-cards-replace-coupons-for-food-stamps.html |access-date=January 5, 2025}}</ref>

The 2008 Farm Bill ([[Food, Conservation, and Energy Act of 2008]]) formally changed the name of the Food Stamp Program to the Supplemental Nutrition Assistance Program (SNAP) and codified EBT as the standard method of benefit issuance. 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.<ref name="USDA SNAP history"/>

The [[Agricultural Act of 2014]] enacted several SNAP-related changes impacting EBT. 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.<ref name="USDA SNAP history"/>

The 2018 Farm Bill authorized the USDA's Food and Nutrition Service (FNS) to conduct a [[mobile payment]] pilot for EBT in five states. 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.<ref name="Crowe 2023">{{cite web |last=Crowe |first=Emily |title=USDA Piloting Contactless SNAP Payments in 5 States |website=Progressive Grocer |date=March 12, 2023 |url=https://progressivegrocer.com/usda-piloting-contactless-snap-payments-5-states |access-date=January 5, 2025}}</ref><ref name="USDA 2023">{{cite web |title=USDA Selects Five States to Test Mobile Contactless Payments in SNAP |website=USDA Food and Nutrition Service |date=March 8, 2023 |url=https://www.fns.usda.gov/news-item/fns-006.23 |access-date=January 5, 2025}}</ref>

In 2023, the payment industry began collaborating to revise the [[International Organization for Standardization|ISO]] standard governing EBT cards to enable the integration of [[EMV]] chip technology. This security enhancement is designed to mitigate the risk of fraud, particularly [[Credit card fraud#Skimming|skimming attacks]].<ref name="Andrus 2024">{{cite web |last=Andrus |first=Kelly |title=Electronic Benefits Transfer (EBT) Migration to Chip Cards |website=Merchant Advisory Group |date=January 2, 2024 |url=https://www.merchantadvisorygroup.org/news/mag-insights/article/2024/01/02/electronic-benefits-transfer-(ebt)-migration-to-chip-cards---the-first-of-many-hills-to-climb |access-date=January 5, 2025}}</ref> In 2025, California and Oklahoma are slated to be the first states to implement this updated standard, transitioning to EBT cards equipped with EMV chip technology.<ref name="USDA 2024">{{cite web |title=Attention: California and Oklahoma SNAP EBT Retailers |website=USDA Food and Nutrition Service |date=November 21, 2024 |url=https://www.fns.usda.gov/snap/ebt/modernization/retailer-notice/chip-card-CAOK |access-date=January 5, 2025}}</ref><ref name="NACS 2024">{{cite web |title=California Delays Implementation of Chip-Enabled EBT Cards |website=National Association Of Convenience Stores |url=https://www.convenience.org/Media/Daily/2024/September/18/3-California-Delays-Chip-Enabled-EBT_GR |date=September 18, 2024 |access-date=January 5, 2025}}</ref>