Electronic Benefits Transfer

EBT is the automation of "cash-like" government benefits. In an attempt to eliminate paper benefits distribution, and thereby reduce misuse and fraud, the government plans to process all benefits through electronic authorization, data capture and settlement processes. Benefits recipients use plastic mag stripe cards and a PIN number at the point of sale.

The government has mandated that all federal benefits be automated by the year 2002, so each state currently has either an established or pilot program underway. EBT will be expanding rapidly in the years to come, providing great new opportunities for many different merchant types.

Heartland Payment Systems, 1310 Norton Street, San Mateo, CA 94401. Tel: 650-574-3315; Fax: 650-574-4661.