Electronic Benefit Transfer (EBT)

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Electronic Benefit Transfer (EBT) is a card-based system similar to a debit card that allows recipients of government assistance such as food stamps to pay retailers directly for their purchases. State governments provide benefits and track their use via the EBT system.

Through the EBT program, recipients of nutrition assistance are issued an electronic card similar to a debit card for payment of benefits directly to retailersThe EBT has replaced the old-style color-coded paper food stampsSome U.S. States have incorporated other public assistance programs into the EBT systems they administerThe use of EBT programs has expanded recently in response to the COVID-19 pandemic through a program called the Pandemic Electronic Benefits Transfer (P-EBT)EBT is used most commonly for a program called SNAP, which provides food-purchasing assistance for low- and no-income people.Source: https://www.investopedia.com/terms/e/electronic-benefits-transfer.asp