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Insights and Expertise

The continuing tech can have a state-specific component. This additional

funding from state governments helps to ensure that the
transformation of EBT needs of local communities are met.

The financial resources for these programs are regularly
reviewed and reauthorized, with legislation such as the
Farm Bill playing a pivotal role. The Farm Bill determines
the budget and policy direction for SNAP and related
assistance programs, ensuring their continuity and
By Elie Y. Katz adaptation to meet the changing needs of the population
they serve.
National Retail Solutions (NRS)
EBT cards and POS systems
efore the introduction of electronic benefit
transfer (EBT), benefits such as food stamps EBT cards, similar to debit cards, are issued to eligible
were distributed through paper checks and individuals. These cards are then used by recipients to
B vouchers. This method posed numerous chal- access their benefits, with the added security of a personal
lenges, including a high risk of fraud, the potential for loss identification number (PIN).
or theft, and general inefficiency in the distribution and
redemption process. The need for a more secure, efficient The PIN ensures that only the authorized cardholder
and streamlined system led to the rise of EBT. can access the funds, significantly reducing the risk of
unauthorized use. The core of these transactions happens
EBT technology revolutionized how benefits were through POS systems in retail stores equipped to handle
distributed by electronically managing the transfer of EBT payments, providing an additional layer of security.
government aid to individuals. This system reduced These measures are in place to reassure users about the
fraud, minimized administrative costs, and improved safety of their benefits.
accessibility for recipients. The pilot programs for EBT
began in the late 1980s, and widespread adoption across These POS systems communicate with the EBT network
the United States was completed by the late 1990s, marking to authorize and complete transactions, ensuring funds
a significant shift in the management of public assistance transfer from the government to the merchant. This
programs. process, which includes the use of a PIN, streamlines the
shopping experience for EBT recipients. It integrates them
Eligibility into the broader retail environment, making purchasing
food and essentials as seamless as possible for those
EBT is utilized for various assistance programs, each utilizing public assistance programs.
with distinct eligibility criteria. The most common is
the Supplemental Nutrition Assistance Program (SNAP), Future of POS technology in EBT
which bases eligibility on income level, household size
and employment status. These criteria are designed to Looking ahead, potential technological advancements
ensure fairness and equity in the distribution of benefits. could further integrate EBT systems into the digital
To qualify for SNAP, applicants must meet specific income payments landscape. For example, integrating EBT
thresholds, which vary depending on the number of payments with mobile wallets could allow for contactless
people in the household. payments, enhancing convenience and security for users.

Other programs using EBT include the Temporary Additionally, biometric verification, such as fingerprint
Assistance for Needy Families (TANF), which has its own scans, could add another layer of security, ensuring that
requirements and is aimed at helping families achieve the intended recipients use their benefits. Moreover, the
self-sufficiency. Understanding the diverse eligibility development of mobile apps dedicated to managing EBT
requirements is crucial for individuals seeking assistance, accounts could give users real-time access to their balance
as it determines their access to the benefits provided transaction history and even track their purchases.
through EBT systems.
Such technological innovations would streamline the
Where the money comes from process for users and pave the way for a more efficient
and secure system for managing and utilizing EBT
The federal government primarily funds EBT benefits, benefits, which would reflect a significant shift toward a
particularly programs like SNAP. These funds are more digital-first approach in public assistance programs,
allocated by the United States Department of Agriculture enhancing user convenience and security.
to ensure that eligible individuals and families can afford
the nutrition they need.
Elie Y. Katz is founder, president and CEO at National Retail Solutions
In some instances, state governments may also supplement (NRS), https://nrsplus.com. Contact him by phone at 201-715-5179 or
federal funds, especially for programs like TANF, which by email at ekatz@nrsplus.com.
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