About the EBT Card

Used only in the United States, the Electronic Benefit Transfer or EBT system is an electronic debit card that lets state governments fund individuals in need of food and cash. The EBT card is most closely associated with the Food Stamps program, which has now been renamed the Supplemental Nutrition Assistant Program or SNAP to remove some of the stigma associated with food stamps. Additionally, EBT cards are used to provide supplementary funds to refugees and members of the Temporary Aid for Needy Families (TANF) program.

When a person is approved for the SNAP program, he or she receives an EBT card which is automatically funded at a specified level on a weekly or monthly basis. The card then works like any debit or gift card. The SNAP participant has an allotment of money that can be spent over the time period, in addition to any other money he or she normally spends on food or supplies. However, EBT cards cannot be used to purchase just any item in an EBT participating market, as the SNAP program maintains a list of items that may not be purchased with its funds, most notably cigarettes and alcohol. When a SNAP participant goes to the register to make a purchase, the cashier swipes the EBT card through an EBT specific device that calls up the current level of funding on the EBT card. If the participant has enough in his EBT account, that amount is debited. If there isn't enough to cover the total purchase price, he may divide the cost of the purchase in any way he sees fit between the EBT card and cash or another form of payment. It's worth noting that it's illegal for stores to charge sales tax or processing fees for EBT purchases.