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. Cloning

    The copying of stolen credit or debit card information to a new ...
  2. Social Welfare System

    A social welfare system is a program that provides assistance ...
  3. Magnetic Stripe Card

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

    Also known as a smart card or memory card. A chip card is a plastic ...
  5. Cash Back

    Cash back can refer to two different kinds of card transactions: ...
  6. Chip-And-PIN Card

    A credit card that contains data embedded in a microchip and ...
Related Articles
  1. Personal Finance

    Credit vs. Debit Cards: Which Is Better?

    Be strategic about the card you choose
  2. 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.
  3. Personal Finance

    Should You Pay In Cash?

    Avoiding all forms of plastic payment can do wonders for your stress level and pocket book.
  4. 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.
  5. Personal Finance

    8 Ways To Avoid Getting Burned By Prepaid Debit Cards

    These cards have many differences from traditional debit and credit cards that can cost you money if you don't know what to watch out for.
  6. 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.
  7. 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.
  8. Personal Finance

    Do Your Card's Travel Benefits Make The Grade?

    If you take frequent trips, it pays to evaluate the different travel benefits that a credit card offers – from airline miles to hotel discounts.
  9. Personal Finance

    Credit Card or Cash?

    Credit cards are convenient to use, but not always the best choice. Here are 5 times you shouldn't pay with a credit card – and 5 times you should.
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 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 >>
  3. 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. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  3. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  4. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  5. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
  6. Tax Refund

    A tax refund is a refund on taxes paid to an individual or household when the actual tax liability is less than the amount ...
Trading Center