DEFINITION of 'Electronic Benefit Transfer - EBT'

A system that allows state governments to provide and track benefits to authorized recipients via a plastic debit card. Common benefits provided via EBT are Food Stamps and Cash benefits. Recipients receive a plastic payment card with a magnetic strip and a PIN is issued. Cash benefits include State General Assistance, TANF (Temporary Aid for Needy Families) benefits and refugee benefits.

Cash and food stamp benefits are deposited into electronic benefit accounts which can be accessed using a Common Benefit Identification Card (CBIC) and Personal Identification Number (PIN). The Card can be used at EBT participating merchants and ATM machines and Point of Sale (POS) terminals throughout the state.

BREAKING DOWN 'Electronic Benefit Transfer - EBT'

As of 2008, Congress renamed the Food Stamp Program the Supplemental Nutrition Assistance Program. Electronic Benefit Transfer (EBT) has been adopted nationwide since 2004.




RELATED TERMS
  1. Earnings Before Tax - EBT

    An indicator of a company's financial performance calculated ...
  2. Cloning

    The copying of stolen credit or debit card information to a new ...
  3. Magnetic Stripe Card

    Any type of card that contains data embedded in a strip composed ...
  4. Credit Card Encryption

    Security measures used to reduce the likelihood of a credit or ...
  5. Cash Back

    Cash back can refer to two different kinds of card transactions: ...
  6. Card Reader

    A device that can decode the information contained in a credit ...
Related Articles
  1. Insights

    Should Congress Limit Food Stamp Purchases?

    If Congress limits using food stamps on junk food like candy and soda, manufacturers stand to lose at least some of $1.2 billion in spending.
  2. Personal Finance

    Credit vs. Debit Cards: Which is Better?

    Be strategic about the card you choose
  3. Personal Finance

    Credit, Debit And Charge: Sizing Up The Cards In Your Wallet

    Not all plastic is equal! Learn the difference between the three kinds, and how each can affect your finances.
  4. Personal Finance

    Should You Pay In Cash?

    Avoiding all forms of plastic payment can do wonders for your stress level and pocket book.
  5. Insights

    What Is The New Credit Card Chip Good For?

    Under current U.S. credit card requirements, credit card issuers are required to issue chip cards as of October 1, 2015. Instead of swiping your card as you do now, you will slide the card into ...
  6. Personal Finance

    Yes, They Have Gift Cards for 529 Plans

    Gift cards for 529 plans are available online and in some retail locations. They involve fees whereas direct giving does not, but are much more convenient.
  7. Personal Finance

    Debit Cards: Why They're Not As Safe As You Think

    Ditching your credit card can be a smart move, but debit isn't yet an equal alternative.
  8. Personal Finance

    10 Reasons To Use Your Credit Card

    There are several benefits to paying with credit instead of debit, if you use a credit card responsibly.
  9. Personal Finance

    How Many Credit Cards Should You Have?

    Having several credit cards provides many benefits. Here are a few factors to consider when you’re deciding how many credit cards you need.
  10. Personal Finance

    10 Considerations For Using Your Credit Card Abroad

    Credit cards can be the best item you pack when traveling, just make sure that you are taking the right card that suits your needs.
RELATED FAQS
  1. What are the differences between debit cards and credit cards?

    Learn how the major difference between a debit card and a credit card is where the money comes from when a customer makes ... Read Answer >>
Hot Definitions
  1. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  2. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  3. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities ...
  5. Wash-Sale Rule

    An Internal Revenue Service (IRS) rule that prohibits a taxpayer from claiming a loss on the sale or trade of a security ...
  6. Porter Diamond

    A model that attempts to explain the competitive advantage some nations or groups have due to certain factors available to ...
Trading Center