USDA Proposes Chip-Enabled SNAP EBT Cards: States Would Have Two Years to Replace Magnetic-Stripe Cards
The U.S. Department of Agriculture (USDA) has proposed a rule that would require states to upgrade Supplemental Nutrition Assistance Program (SNAP) Electronic Benefit Transfer (EBT) cards from magnetic-stripe cards to cards with chips and tap-to-pay technology, in order to prevent skimming and card cloning. According to trade publication Supermarket News on October 23, the proposed rule would give states two years to update their cards, retailers would also need to make updates to accept the new cards, and the deadline for public comments is December 22.
The USDA says the move will cost over $280 million, and reported that at least $360 million in stolen benefits had been replaced through the second quarter of fiscal year 2025. Congress told the USDA to address EBT card theft back in 2022, and some states have already gone ahead and inserted chips in their cards. Bloomberg Law reported on October 22 that, within two years of a finalized rule, states would have to adopt payment cards with chip technology that are less susceptible to theft.
The National Grocers Association applauded the move. Stephanie Johnson, the association's senior vice president and head of government affairs, said too many families learn their benefits were stolen at the checkout, after multinational criminal organizations skimmed their EBT cards, and that states that adopted chip cards have seen a significant drop in skimming fraud. A ProPublica investigation reported that about $470 million in SNAP benefits were stolen last year, in large part because the cards remain technologically outdated and easy to skim.
Source: GSM · USA (original Chinese edition)
Photo: 美国农业部总部 Jamie L. Whitten 大楼内一场活动的现场，右侧为农业部部旗。照片：美国农业部（USDA），公共领域，经 Wikimedia Commons
