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. Debit Card

    An electronic card issued by a bank which allows bank clients ...
  4. Magnetic Stripe Card

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

    Security measures used to reduce the likelihood of a credit or ...
  6. Social Welfare System

    A social welfare system is a program that provides assistance ...
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.
RELATED FAQS
  1. What is the difference between EBIT and EBT?

    Take a closer look at the different calculations and uses of EBT and EBIT, two non-GAAP figures used to compare profitability ... Read Answer >>
  2. What are some examples of common credit card reward program benefits?

    Learn about different benefits available to credit card holders including cash back, air travel miles, introductory rates, ... Read Answer >>
Hot Definitions
  1. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  2. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  3. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
  4. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
  5. The Bernie Madoff Story

    Bernie Madoff ran a multibillion-dollar Ponzi scheme that is considered the largest financial fraud of all time.
  6. Pyramid Scheme

    An illegal investment scam based on a hierarchical setup. New recruits make up the base of the pyramid and provide the funding, ...
Trading Center