SNAP Modernization & EBT Chip Cards
Last Updated: October 29, 2024
The Issue
Electronic Benefits Transfer (EBT) cards allow cardholders to access their Supplemental Nutrition Assistance Program (SNAP) benefits to purchase eligible food items at authorized retail stores, such as convenience or grocery stores. However, recent reports indicate an increase in SNAP skimming fraud, with bad actors using skimming devices to steal EBT card information and to conduct fraudulent transactions that leave legitimate cardholders with empty benefit accounts. USDA reports that since 2023, over $94 million was returned to SNAP beneficiaries nationwide to replace stolen benefits.
According to USDA, modernizing EBT cards to include chip technology is a critical step in enhancing SNAP benefit protection, as chip cards are harder to copy to steal SNAP account information. Currently, California and Oklahoma are the only two states with plans to transition their EBT cards to chip. California is planning to begin its migration in mid-January 2025, and Oklahoma will begin its migration summer 2025.
Retail Impact
This transition is moving fast and could lead to system failures if retailers haven’t done the work to be ready. SNAP retailers in California and Oklahoma should start getting their POS systems ready for the EBT chip card transition as soon as possible. However, NACS encourages all SNAP retailers to begin updating their POS systems to accept EBT chip cards now, as it is likely that other states will start to develop their own plans to migrate to EBT chip cards.
NACS Resources for SNAP Retailers