New USDA Rule on SNAP EBT Cards Is a Step Toward Better Security

By Andy Owen

On Friday, October 23, USDA introduced proposed rule changes for SNAP that would modernize the Electronic Benefit Transfer (EBT) technology used for benefit payments cards, aligning it with commercial standards. The changes would help retailers and consumers participating in the SNAP program by improving both program security and convenience.

“We have long supported the use of chip technology with EBT payments for its ability to protect SNAP from fraud,” said NACS Director of Government Relations Margaret Mannion. “USDA’s latest proposed changes to SNAP regulations will bring modern security standards to the program while also making it easier for participants get the most out of their benefits.”

The new rule would create new operating standards for EBT cards that ensure the cards’ technology keeps pace with ongoing developments in the payments industry. An initial step in this process would require cards to include embedded-chip and Near Field Communication technologies, which have been commonplace in commercial payment cards for years. USDA expects these technologies to significantly enhance the security of EBT cards and reduce SNAP benefit theft. 

The rule would also provide for updated SNAP training that better educates participants on the secure use of EBT cards. Furthermore, the rule would require improved data sharing with SNAP participants, allowing them to access information such as transaction records and balance inquiry history more easily.

“USDA’s proposal represents a more modern way for SNAP customers to access their benefits,” said Mannion. “We are looking forward to reviewing the complete rule and making sure that the perspectives of our industry are considered before new regulations are finalized.”

NACS will submit written comments on the proposed rule during USDA’s official request period, which closes on December 22, 2026.

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