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Background
All states now use EBT to issue Food Stamp benefits. This means the cards issued in Virginia will work in other states, and other states' cards can be used at stores in Virginia.
Virginia began issuing Food Stamp benefits with EBT cards in 2001. Statewide conversion was completed by July 2002.
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The EBT system is built upon the commercial infrastructure already in place for processing credit and debit cards in stores. With EBT, the cardholder swipes the card in card reader devices at the point of sale, and then enters his or her secret Personal Identification Number to access the account. The cost of the eligible food items in that purchase are then subtracted, or debited, from the account. At the end of the transaction, the cardholder gets a receipt which shows the purchase, and the balance remaining in the account.
Advantages of EBT
- food can be bought using a simple, conventional plastic debit card
- monthly food stamp benefits are put in accounts by 12:01 a.m. on the first day of the month, even if the first is a weekend or holiday
- If the EBT card is lost or stolen, the cardholder can report it and that card is immediately deactivated
- EBT transactions are faster for the retailers to process and receive their funds
- there are better audit trails to detect fraud and misuse of benefits
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