Electronic Benefits Transfer (EBT)
Electronic Benefits Transfer or EBT cards is a government supported system, designed to assist those who are on federal or state benefits programs, such as food stamps or welfare programs. These cards provide a level of security and dignity for those within the public assistance system. Retailers who provide qualifying services to recipients of the benefits of these programs will greatly benefit from being able to accept EBT cards.
Electronic Benefits Transfer cards work much like a back debit or check card. The user selects items for purchase within the specifications of their benefits and uses the card at a POS terminal to pay for their purchase, using an assigned PIN number. This system gives a level of security by only allowing the person in possession of the card and Pin to access the funds in the account for approved purchases. Previously with paper food stamps and coupons, many users abused the system and traded or sold stamps for other non-approved items or services. Using an automated system allows the government to more closely monitor where their funding is going.
Retailers who accept EBT cards no longer have the hassles of making change for the food stamps presented by customers. Also there are no separate deposits necessary for receiving cash for the paper food coupons you receive from those on government aid. These cards cut time and payroll previously needed for processing government benefits for payment through your own bank.
Retailers who choose to accept these cards as a payment option for the goods they provide take on a level of responsibility to the government when these cards are used by their customers. You must assure that the goods and services received are within the limits of the programs. However, the benefits of using these cards are great for both aid recipients and retailers. |
