EBT Stands for electronic benefits transfer and is an electronic system that allows recipients to authorize transfers of their government benefits to a retailer account from a federal account in order to pay for products that they receive.
It is used in all 50 US states, Puerto Rico, the District of Columbia, Guam, and the Virgin Islands, and has been implemented since June 2004.
In this article, we are going to look at how exactly EBT works and how you can qualify.
Everything You Need to Know About EBT
EBT recipients use the EBT cards at retailers as a means to buy food items that are authorized by SNAP.
You are also able to use cash benefits to purchase an item at participating retailers or make a withdrawal from participating ATMs and also to obtain cash-back.
State agencies partner up with contractors to develop their own EBT Delivery systems of food stamps and other benefit programs administered by the state. All SNAP benefits are issued through EBT in the US.
Recipients generally apply for their benefits by filling a form out at a food stamp office or, alternatively, online.
As soon as the benefit level and eligibility have been determined, an account will be created in the name of the recipient, and their benefits will be electronically deposited in their account every month.
Recipients also receive plastic debit cards and are also assigned a PIN or choose one to manage access to their accounts. These cards are also used in a very similar way to debit cards and that they are swiped through an electronic reader.
And, just like a bank card, the account of the recipient will be debited for the total of the purchase and the retailer will be credited. There is no exchange of cash money between any hands.
One thing to note is that it is illegal for a retailer to charge surcharges, sales tax, or card processing fees from an EBT SNAP account.
The Food and Nutrition Service of the US Department of Agriculture has a page on their website dedicated to explaining everything you might want to know about EBT.
How Does EBT Work?
In the late 90s, the old-fashioned paper food stamps that were issued to eligible recipients were swapped out for the plastic EBT cards we know today. After every transaction you make with your card, you should be able to see how much money you have left in your account.
You aren’t able to debit a higher amount than the cash register total and receive cashback. Many participating stores will hang a sign up in the front window to let folks know that they are participating in the SNAP program.
If you aren’t sure, you could always ask one of the Clerks at the front counter. Your EBT card can be used to purchase all of the Essential household food items that you would otherwise buy with your regular bank card.
This includes meats, dairy, produce, etc. and seeds that you can use to grow food are also eligible. You can’t buy cigarettes, alcoholic beverages, food to be eaten on the premises, medicines and vitamins, hot food, and non-edible items like paper products and laundry supplies.
As we mentioned above, your EBT card can be used in all 50 states, even if you were enrolled in one specific state.
One of the bonuses of your EBT card is that any of the benefits you do not use in one month will be carried over to the next. If you haven’t used your card in 1-year, you won’t be entitled to receive benefits any longer.
Check out this link to learn how to apply for debt assistance.
Eligibility Requirements
To be considered eligible for an EBT card, the gross monthly income of your household will need to be at 130% or below the federal poverty line. Your net income, which is the income of your household after deductions, will need to be below the federal poverty line.
Your assets will also need to fall below specified limits. Households that do not have a member over the age of 60 or with a disability or have to have assets value ring at $2,250 or below.
Households with at least one member that does fit the previous categories will have to have assets valued at $3,500 or below.
Summary
EBT can be considered an extension of the food stamp program known as SNAP. It is used to supplement the income of households who are unable to feed themselves and their families.
If you feel that you could benefit from EBT, and might be considered eligible, do not hesitate to apply.