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Electronic Benefit Transfer Project

Electronic Benefit Transfer (EBT) is the electronic method for distributing the federal Food Stamp Program benefits and, when selected by California counties, cash benefit programs. The EBT system automates the delivery, redemption, and reconciliation of issued benefits. California EBT is the result of federal and state legislation. The federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) mandated the replacement of the paper-based food stamp issuance method with electronic fund technology (debit cards). In August 1997, California Assembly Bill 1542 authorized the EBT Project and provided counties with the option of issuing cash benefits via EBT. Statewide implementation of EBT began in July 2001 and was successfully completed in all 58 counties by May 2005.

Today EBT cardholders access their benefits using the California “Golden State Advantage” card. The EBT card provides faster service; the cardholder simply slides his/her card through a point-of-sale (POS) device or an automated teller machine (ATM). The card is convenient, secure, in line with commercial banking practices of automated payment, and reduces the stigma associated with receiving public assistance.

The positive effects of California EBT extend beyond the cardholder. Others who benefit include: federal, state, and county governments; retailers; financial institutions; and the taxpayers. As of January 2007, there are over 30,000 retailers processing food stamp and/or cash POS transactions and over 32,000 ATMs dispensing cash benefits. EBT is a success in California.