SNAP and EBT: What’s the difference?

SNAP and EBT are common terms when talking about government assistance in the United States but are often used as if they are synonymous, confusing whether they mean the same or are referring to two separate programs. This is a distinction that is of utmost importance to the beneficiaries, retailers, and policy makers and for those in general. Here you will find a detailed guide on SNAP and EBT —what the differences are, how they work, the history behind them, and functionality detailing exactly how they work (or do not) to address food insecurity in America.

The Basic Distinction

SNAP – This is the name of THE federal program that provides nutrition assistance to eligible low-income individuals and families. It is the program itself– the rules, benefits, funding, and policy.

EBT (Electronic Benefits Transfer) is just the mode of payment or delivery system to payout SNAP benefits electronically. EBT refers to the plastic card (like a debit card) beneficiaries use at authorized retailers to access their benefits.

Remember this for the SNAP or program, EBT is the delivery tool (grant delivery) They get it in a similar way to Medicare being a health insurance program and a Medicare card the access feature of those benefits.

The History and Evolution of Food Assistant

Origin of Food Assistant Program

Food assistance in the US has its roots back to the Great Depression days. The country’s new form of food stamp program ran from 1939-43, giving people orange stamps that were going to pay for pretty much their ordinary food and they could get blue stamps for their extra food.

Food Stamp Program, after a pause, was reauthorized permanently in 1964, under the Food Stamp Act of that name, as part of President Lyndon Johnson’s “War on Poverty.” This program enrolled individuals in a program to feed them with food stamps, but the government would give bonus stamps to needy households.

From Food Stamps to SNAP

The Food Stamp Program went through enormous changes for decades:

• In 1977, however, all purchase requirements went away — making the stamps available you do not have to prepay for.
• Started implementation of EBT in the 1990s to eliminate the physical paper stamps.
• In 2008, the Food Stamp Program was renamed the Supplemental Nutrition Assistance Program (SNAP), reducing stigma and calling attention to the program as a nutrition program.

The Development EBT

In the time before EBT, there were hardships in obtaining benefits such as physical paper coupons or “stamps”!

• Paper stamps were stigmatizing to use in public
• Might get lost, stolen, or wrecked
• They were administrative nightmares
• They did cause one to be all sold up the pike with trading stamps

A mandate from the Hunger Prevention Act of 1988 required EBT to be a more efficient, secure alternative. The first statewide use of EBT was launched by Maryland in 1993, and all states had rolled out their EBT systems by 2004. The rest of the country went off paper stamps in June 2004.

SNAP: Program Details and Administration

What is SNAP?

SNAP is a United States federal food stamps program intended to help low-income households afford adequate, nutritious food. SNAP is one of the largest food assistance programs in the U.S., feeding millions of Americans with a more than $100 billion budget annually.

SNAP Administration

It is run under a distinct federal-state partnership model:

• Federal Level: The U.S Department of Agriculture’s Food and Nutrition Service (FNS) provides nationwide eligibility criteria, benefit amounts, and program rules. The whole benefit amount is paid for by the federal government, and there are administrative costs shared between the federal government and the state.
• State Level: Each State does the processing of the day-to-day application, determines eligibility, determines benefits issued, and monitors States can also modify certain program elements to meet state needs through waivers and demonstration projects.

SNAP Eligibility Criteria

SNAP benefits are generally eligible for:

• Income: Most states have both gross and net income (specifically, that takes on to be equal to no less than 100 % but does not exceed 130% of FPL)
• Assets: Most states have asset limits, but several reset or eliminate these limits through extensive categorical eligibility.
• SNAP Work Requirements: ABAWDs aged 18-49 must work or actively participate in a 20-hour-a-week work activity to draw SNAP benefits for more than three months in three years, although states must seek waivers in areas that have high unemployment.
• U.S. Citizenship/Immigration Standing: Citizens and select non-citizens of a U.S.

SNAP Benefit Calculation

SNAP benefit amounts are computed based on the USDA Thrifty Food Plan and an expected food contribution by the household:

• Maximum benefit amount changes by household size
• Benefits decline with rising household income (households will allocate approximately 30% of their net income to food, on average.
• Current minimum benefit per person and couple (2023)

Regional Variation in SNAP Implementation

SNAP is a federal program, but how states execute it wildly varies:

• Beneficiary Access: States such as California and New York have loosened eligibility through categorical eligibility, while many others have tilted requirements more restrictively.
• Application Processes: A few states only have online applications, and others may require an in-person interview.
• Recertification Intervals: The Interval with which eligibility must be reconfirmed varies by state from 3 to 24 months, depending on household circumstances.
• Outreach: States very much so vary how they reach out to hopeful SNAP beneficiaries with info on what is available and how to access it.

EBT: The Delivery System 

What is EBT

The Electronic Benefits Transfer (EBT) is an electronic system that allows individuals to have their SNAP benefits authorized for the transfer from their government account into an account with individual retailers so they may purchase authorized products.

How EBT Works

EBT system functions, to some extent, are the same as a normal debit card transaction:

• A few examples of EBT cards load a family’s monthly benefits
• The transaction is authorized as the card is swiped in a point-of-sale terminal.
• The recipient types in the personal identification number (PIN) to authorize the transaction.
• The system checks the existing balance and approved food items.
• Subtract the purchase amount from the recipient´s account.

EBT Card Features

An EBT card looks something like this:

• Magnetic stripe/chip with account info
• The recipient
• An individual card number
• Name Of The State & EBT logo
• Provide the customer service number for balance checks and lost/stolen card reporting.

Beyond SNAP: Other Benefits of EBT

SNAP serves as the major EBT benefit delivered via this system, but it may also include:

• Temporary Assistant for Needy Families: Cash assistance for low-income families with children
• Women, Infants, and Children (WIC): Targeted nutritional assistance to pregnant/nursing moms & the first year of life for low-income women
• State-level support programs: Different state-level benefits that vary from state to state

Many times, if there are multiple benefits on just a single EBT card, it keeps each one in its account – distinguishing food stamps (SNAP) from cash benefits (TANF).

Technical Infrastructure of EBT

The EBT system is a deep-rooted technical complex:

State: EBT Processors – third-party contractors who hold the electronic payment systems

POS Equipment for EBT Only: Given to retailers that are allowed and do not have their point of sale system.

Automated Voice Response (AVR): Allows recipients to call in and check balances and transaction history

EBT Gateway Processors: matches retailers to the proper state EBT router

Settlement Systems: Funds from government to stores

Where SNAP and EBT Intersect

Purchasing Eligible Food

The SNAP benefits available with an EBT card can only be used to purchase for sale or consumed as food items:

• Fruits and vegetables› Meats, Poultry, Fish Dairy
• Grains(Bread, cereals, and snack foods except non-alcoholic beverages)
• Seeds and plants for human consumption

What SNAP benefits cannot be used for?

• Alcoholic beverages and tobacco items
• Vitamins, meds, and supplements
• Ordered to be managed. Hot prepared foods or in-store consumables
• Non-food items (pet food, housecleaning supplies, toilet paper, etc.)

Authorized Retailers

Not all retailers can accept the SNAP benefits through EBT cards. Applications required by businesses, to step up off the following standards of USDA:

• Stocking a range of basic food commodities
• The minimum stocking requirement is met
• Meeting all program requirements

Currently, nationwide, over 250k retailers are authorized to accept SNAP, as of 2023:

• Supermarkets and grocery stores
• Convenience stores & corner markets
• Farmers’ Markets and Direct-to-the-Consumers
• Co-ops and specialty food stores
• In participating states, some online retailers

SNAP Prevention and the Role of EBT

The decrease in paper SNAP stamps to EBT cards may have greatly lowered the opportunities for some categories of fraud. The electronic system prevents:

Benefit Trafficking: the trade of benefits for cash has plummeted considerably with the implementation of EBT

Counterfeiting: Unlike a paper stamp, EBT cards are tough to recreate

Double-devouring: the electronic recovery does not allow states to give out benefits more than once to a recipient

It’s unfortunate, but some fraudulent activities are still happening, such as:

• Card Skimming: This is when criminals use devices to swipe EBT card information.
• Retailer Fraud: Some authorized stores might charge for items that aren’t eligible or even trade benefits for cash.
• Online Scams: There are phishing attempts aimed at SNAP recipients that you need to watch out for.

The USDA’s Food and Nutrition Service is on the case, collaborating with state agencies to keep an eye on EBT transactions for any suspicious activity and to look into possible fraud.

Recent Development and Innovation

SNAP Online Purchasing

The 2014 Farm Bill kicked off the SNAP Online Purchasing Pilot, which lets recipients use their EBT cards to buy groceries online. After the COVID-19 pandemic, this option took off:

• Every state, together with the District of Columbia, will adopt the system by 2023.
• Major retail chains which include Amazon together with Walmart as well as ALDI have joined forces with local grocery retailers to accept electronic benefit transfer payments.
• People who receive SNAP benefits have the option to select grocery delivery or pickup services, but extra delivery costs are not eligible for SNAP benefit coverage.

Pandemic EBT (P-EBT)

In light of the school closures caused by COVID-19, Congress rolled out the Pandemic EBT program back in 2020. Here’s a quick rundown of what it offered:

• P-EBT gave financial support to families with kids who would typically qualify for free or reduced-price school meals.
• These benefits were loaded onto either existing or newly issued EBT cards.
• Unlike the usual SNAP program, P-EBT didn’t need the standard eligibility checks.

Restaurant Meal Program

Some states have a Restaurant Meals Program (RMP) that lets elderly, disabled, or homeless SNAP recipients use their EBT cards at certain restaurants:

• States like California, Arizona, and Rhode Island, among others, have rolled out RMPs.
• This program understands that some recipients might struggle to cook meals at home.
• Restaurants that take part in the program are required to offer meals at lower prices.

Mobile EBT Applications

Several states have rolled out mobile apps to make the EBT experience better for users. Here are a few notable ones:

• FreshEBT (now known as Providers): This is a third-party app available in various states that lets users check their balances, view transaction history, and find authorized retailers nearby.
• ebtEDGE: This is the official mobile app available in select states.
• ConnectEBT: This is another handy app for checking balances and transaction history.

While these apps don’t support mobile payments just yet, they do a great job of helping users manage their accounts and access important information.

Common Misconceptions and Challenges

Misconception: SNAP and EBT are interchangeable Terms

SNAP is the program, and EBT is how those benefits are delivered. Using these terms correctly can help clear up any confusion for both beneficiaries and the general public.

Misconception: EBT Card Only for SNAP

The primary application of EBT cards functions for SNAP arrangements; however, states utilize them to conduct money distributions and WIC advantages.

Misconception: SNAP Recipients Receive Excessive Benefits

People receiving SNAP benefits through the average monthly payment of $190 can use the money for their individual needs during 2023. That breaks down to about $6.33 a day or roughly $2.11 per meal—not exactly a lavish amount.

Challenge: EBT Infrastruture Limitation

Regardless of technological progress, the EBT system encounters various problems in its current operation.

●       Farmers’ markets across the country cannot accept electronic benefits transfers at their points of sale.

●       Internet outages can throw a wrench in EBT transactions.

●       Some rural communities have a shortage of authorized retailers.

Challenge: Benefit Adequacy

Every month, a person receives SNAP benefits, which usually amount to less than what it takes to purchase nutritious food when one considers high-cost living regions.

Challenge: SNAP Participation Gap

Despite being eligible, many people shy away from participating in SNAP because of:

• The stigma that comes with accepting government aid
• The complicated application process
• A lack of awareness about who qualifies
• Language barriers or difficulties with reading and writing
• Fears about how it might affect their immigration status

The Impact and Future of SNAP and EBT

Economic Impact

HEBT system used for SNAP benefits triggers a significant economic impact throughout the economy.

• The 1 dollar investment into SNAP benefits leads to economic activities valued between $1.50 and $1.80.
• Through this assistance program, people secure employment in retail stores, transportation industries and agricultural jobs.
• During economic downturns, SNAP expands to provide increased support that covers the increasing need for assistance.

Public Health Impact

Research shows that participating in SNAP:

• Helps reduce food insecurity and malnutrition.
• Could lower healthcare costs by promoting better nutrition.
• Plays a role in alleviating poverty, especially for children and the elderly.

Social Impact

But the benefits of SNAP through EBT go beyond just economic and health improvements:

• It helps maintain dignity by removing the need for visible stamps at checkout.
• It lessens the stigma often associated with using benefits.
• It gives families the freedom to choose their food, respecting cultural preferences.
• It helps keep families stable during tough financial times.

Potential Future Development

There are several exciting changes on the horizon for SNAP and EBT that are currently being looked into:

• Enhanced Mobile Technology: They’re working on mobile EBT apps that will let users check their balances, view transaction histories, and locate authorized retailers with ease.
• Expanded Nutrition Incentives: An increasing number of programs advocate the implementation of benefits that reward purchases of fresh produce and fruits.
• Integration with Health Initiatives:The program investigates strategies that would link SNAP benefits with healthcare programs to address diet-related chronic diseases.
• Benefit Targeting: There might be adjustments made to better reflect the differences in food costs and nutritional needs across various regions.
• Digital Wallet Integration: In the future, we could see EBT functionality being integrated into digital payment platforms.
• Biometric Authentication: Some states are testing or considering biometric verification methods to boost security.

Conclusion

Many Americans mistakenly view SNAP and EBT as equivalent programs, although they function separately as components of America’s food support system. SNAP operates as the Supplemental Nutrition Assistance Program (SNAP) when offering federal nutrition support to millions of low-income individuals with families. EBT functions as a system that simplifies food benefits distribution and usage for customers.

People receiving such assistance and professionals working in policy and retail sectors dedicated to food security must learn this valuable lesson. The improvements in technology alongside marketplace developments will lead to transformations in both the EBT system and the SNAP program. Such programs need to operate through their separate and meaningful frameworks to help consumers obtain quality foods at needed times.