|
|
|
What is Electronics Benefits Transfer (EBT)?
EBT is the use of digital information and telecommunications technologies to assist government in the distribution of benefits to eligible constituents. These benefits can be the delivery of services, or the transfer of funds or information. Government agencies have been under pressure to cut costs and improve the efficiency of these benefit programs while providing the same level of services, and the use of EBT technology is a way to achieve these goals. EBT automates many of the administrative processes in these programs, freeing government resources and employees to more effectively serve constituents.In Texas’ an EBT program was originally developed to replace the paper-based food stamp and TANF (a welfare cash) programs with an electronic debit card, the Lone Star Card, which is tied to the recipients' benefits through an online process much like a debit card. The card is passed through a reader located at a retailer, and a personal identification number is entered to access the funds electronically. The funds are then automatically transferred from the government to the retailer, eliminating the use of paper food coupons and the need for personnel required for counting, transferring and handling such coupons.
However, this is only one example of EBT. Smart cards, or cards with an embedded microprocessor chip, are another method to deliver benefits. The processing capability of the chip allows financial transactions directly at the point of sale, rather than through a remote, online computer. In addition, the memory capacity of smart cards make them ideal for storing information about the cardholder, such as personal or medical information, which allows the cardholder to carry this information at all times.
Electronic benefits transfer programs have begun in nearly every state. The federal government has also been involved in EBT programs, through the passage of legislation and the implementation of regulations and guidelines. By 2002, all states are required by the federal government to have an EBT program in place that delivers benefits electronically to food stamp recipients. While EBT programs are being created and are growing across the country, the capability of this technology is always improving, allowing government officials to explore new and innovative ways to serve their constituents.
The Future of Electronic Benefits Transfer
The number of government programs delivered electronically continue to grow, primarily through magnetic stripe technology, familiar on all conventional credit cards. As EBT technology expands, through smart cards and hybrid cards (those that combine smart card technology with magnetic stripe technology), the potential for delivering more government benefits electronically increases as well.
In Texas, several state agencies are exploring ways of utilizing smart card technology, along with hybrid cards. The benefits of smart cards and their versatility may make these a useful asset for many EBT programs. The proliferation of this new technology in state government, however, depends on a variety of factors. Obstacles to the widespread use of smart cards include the lack of technical standards, a lack of consensus on the number and type of applications that should be on a card (i.e. WIC, TANF, drivers licenses, etc.), and the new costs for the maintenance and distribution of a smart card system.
|
|
|