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District Roundup on EBT

ReserveNotes

District Roundup on EBT

States across the Eighth District have been working hard to implement Electronic Benefits Transfer (EBT) programs. All states must use EBT to issue food stamp benefits by Oct. 1, 2002, as specified by the Welfare Reform Act of 1996.

As you are probably aware, EBT is the electronic disbursement of state benefits to those who receive food stamps or cash assistance. Most states use magnetic swipe cards, similar to debit cards, that are accepted at ATMs and stores displaying the Quest® symbol. Illinois residents look for the Illinois Link symbol to redeem their benefits.

Your financial institution can increase revenue opportunities by becoming involved in your state's EBT program. To participate, arrange with ATM networks to accept EBT cards, as well as offer low-cost or starter accounts to those without accounts who want to receive cash benefits by direct deposit.

States in the Eighth District have made the following progress on EBT programs:

• Arkansas launched its EBT program statewide in April. Early feedback shows customers are pleased with receiving welfare, food stamp and Transitional Employment Assistance (TEA) benefits on a magnetic swipe card.
• Illinois successfully began issuing EBT cash and food stamp benefits statewide in November 1997.
• Indiana plans to start placing food stamp and Temporary Assistance for Needy Families (TANF) benefits on its EBT card in the future, after handling an implementation delay.
• Kentucky will begin disbursing food stamp benefits electronically in May 1999. Five counties in central Kentucky will be the first to offer EBT--Anderson, Fayette, Franklin, Shelby and Woodford. Kentucky also is focusing on moving cash consumers into the banking system by partnering with financial institutions to develop and promote starter accounts.
• Mississippi has rejoined the Southern Alliance of States; contract negotiations will begin soon to pilot its EBT program in Rankin County.
• Missouri's program has been active statewide since May. The state's EBT card provides temporary assistance and food stamp benefits, as well as federal benefits, such as Social Security, Railroad Retirement and Supplemental Security Income (SSI).
• Tennessee will pilot its program in November in four counties--Meigs, McMinn, Polk and Bradley. The state plans to place food stamp, Temporary Assistance for Needy Families (TANF) and federal benefits (optional) on its EBT card.

As states begin their EBT programs, you will receive more information on how you can participate. In the meantime, if you have any questions about EBT, contact Carrie Andert in St. Louis at (314) 444-8946.

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