Electronic Benefit Transfer (EBT) Overview

EBT is a system for distributing benefits electronically through a debit card, rather than issuing food stamp coupons or paper checks. As part of federal welfare reform laws enacted in 1996, Congress required all states to implement an EBT system for distributing benefits.

Background

The OTSI, in partnership with the CDSS, manages the California EBT Project. The state EBT contractor is FIS.

How EBT Works

EBT is a benefit issuance system, which is operated by FIS. Once eligibility and level of benefits have been determined, and account is established in the client’s name, benefits are deposited electronically in the account for the eligibility period each month. The client/cardholder is issued a Golden State Advantage card that is used like any other debit card. Each month, food and/or cash benefits are automatically added to the cardholder’s account.

Cardholders can receive both food and cash benefits, if applicable. Cardholders use the EBT card to access their CalFresh benefits to purchase food at authorized grocery stores or access their cash benefits at participating retail or ATM locations. Cash purchases can also be made using the card. Unused benefits from one month will be rolled over to the next month and each transaction record (receipt) shows the remaining balance(s).

At the location of the purchase, the EBT card is swiped in a POS device, and the cardholder enters his or her PIN to access the account. As long as there are benefits in the account, the cardholder’s account is debited for the amount of the purchase. The store receipt shows the amount of benefits remaining in the account.