Electronic Benefits Transfer (EBT)
More Background (What is EBT and how does it work?)
from Consumer's Union
Electronic Benefits Transfer, EBT, is a permanent change in the way food stamps and cash public assistance will be delivered in California. Paper food coupons will be replaced with an electronic card similar to a debit card in every county in California by October 2002. At the option of each county, the EBT card may replace paper public assistance checks.
EBT has the potential to reduce the stigma of paper food coupons and provide familiarity with the technology used in the traditional banking system. However, as evidenced by the national experience, EBT also could impose new costs and barriers on recipients. If it is expensive or hard to use, it could drive pubic assistance recipients further away from the mainstream banking system.
EBT is now being implemented across the U.S. The national experience shows that without strong advocacy, recipients face serious problems. In New Jersey, thousands stood in line for hours to get their EBT cards because of the private vendor’s delay in notifying recipients of the system and mandatory training. Recipients in New York have noted lack of access and additional costs as barriers to receiving their monthly benefits. In every state that has implemented EBT to date, recipients face the risk of loss of benefits that are stolen by someone using their card and PIN before the recipient reports the loss of the card.
The California Department of Social Services just released its bid request, or Invitation to Partner, for a private company to design and run this system. The bid request answers some questions about training, language and fees and a summary is available from Consumers Union or can be viewed from their web page at www.consumersunion.org.
Yet, important decisions regarding access to cash benefits remain unanswered and the state has agreed to accept input from client advocates as these decisions are made at the county level.
If you are interested in influencing the delivery of Electronic Benefits Transfer in your county or have any questions, please contact Shelley Curran at Consumers Union (415) 431-6747 or currsh@consumer.org.
EBT Links
Legal Services of Northern California
Electronic Benefit Transfer Project