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Electronic Benefits Transfer (EBT) is a method of delivering governmental benefits to recipients electronically. This electronic system has been implemented with Deluxe Electronic Payment Systems, a Milwaukee based firm, as the vendor that processes all EBT transactions including the settlement to the retailers and ATM (Automated Teller Machine) operators that provide benefits to our customers. Louisiana uses magnetic stripe card technology. The card, which is referred to as the "Louisiana Purchase Automated Benefit Card", enables recipients to access benefits at ATMs and Point-of-Sale (POS) devices.
Louisiana was the sixteenth state to begin an EBT project and was the thirteenth state to have a statewide program. After the initial six-month pilot in Natchitoches Parish, the Louisiana Legislature authorized statewide expansion of EBT to begin in July 1997. The final phase of EBT roll out was implemented in December 1997.
At the present time the EBT system provides only Family Independence Temporary Assistance Program (FITAP) and Food Stamp benefits to recipients. The Agency is exploring the feasibility of adding delivery of other program benefits and services to the EBT system. Federal direct payments such as Supplemental Security Income (SSI) may also be added to the Louisiana EBT system in the future.
One positive impact of the Louisiana EBT system is benefit availability because weekends and holidays do not affect receipt of benefits. Benefits are posted to FITAP recipient accounts during the first five days of the month and food stamp benefits are posted during the first fourteen days of the month. Security of benefits is another positive feature of EBT. Benefits are secure and accessible only to those persons that the recipient designates. The Personal Identification Number (PIN) selected by the recipient must be correctly entered onto the system to successfully complete all electronic transactions. As purchases or cash withdrawals are made at the grocery store checkout lanes and ATMs, recipient accounts are debited electronically and the recipient is provided a receipt of the transaction which includes the remaining balance in the account(s).
All EBT stakeholders have benefited from EBT implementation. Surveys have shown that EBT is highly approved by clients and retailers. EBT has reduced certain administrative workloads and associated costs such as printing and postage. Because each EBT transaction leaves an electronic audit trail, the Agency has the ability to detect and investigate fraud and abuse of the Programs.
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