Electronic Benefit Transfer (EBT) Definition

By Phillip Parker

Last Updated: October 2, 2013

Merchant Account Electronic Benefit Transfer Explained:

What is EBT? EBT, or Electronic Benefit Transfer, is a system that allows state welfare recipients to pay for their goods using a card with a magnetic strip. This form of payment has replaced the Food Stamp Program, which issued paper coupons to recipients. EBT cards, which function as PIN-debit cards, may be used to pay for USDA-authorized groceries through the federal Supplemental Nutrition Assistance Program (SNAP) or to buy goods with cash benefits issued at the state level or through Temporary Assistance for Needy Families (TANF).

EBT transactions are processed in a way that is similar to PIN-debit transactions. A customer swipes the card through a point-of-sale terminal and enters a secret PIN to authorize the purchase. The funds are then deducted from the benefits account associated with the card. It is illegal for anyone to charge card processing fees for acceptance of EBT SNAP cards, but surcharges may be added to cash benefit cards.

About The Author

Phillip Parker

Phillip Parker is an independent card payment expert specializing U.S. and Canadian point-of-sale, e-commerce, and mobile payment acceptance. He has nearly two decades of experience in credit card processing as a journalist and consultant. Phillip is the creator of this website and has written over 1,500 articles covering numerous payment acceptance topics. He has also published critical reviews about most merchant services providers currently in operation.

Expert Guidance

Phillip has consulted businesses of all sizes from mom-and-pop shops processing $10K per month to enterprise level organizations processing in excess of $300MM annually. His specialties include:

– Merchant Account Statement Auditing

– Rate & Fee Negotiation

– Processor & POS Selection

– Software Integrations

– Risk Assessment

– Fraud Prevention

– General Processing Advice

Schedule a Consultation Here

Phillip’s Top Picks

Phillip has researched and reviewed over 1,000 merchant services providers over the last 15 years. He also owns multiple businesses that accept credit card payments. If you are looking for an ethical credit card processor that doesn’t hide fees or lock you into expensive contracts, see Phillip’s merchant account picks here.

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In addition his contributions on CPO, Phillip has also been quoted in several major publications such as The Los Angeles Times, INC Magazine, Miami Herald, Computer World, and numerous others. If you would like to interview Phillip for your story or podcast, please reach out here.

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