What is an EBT Card?

Point of Sale (POS) Glossary

An Electronic Benefit Transfer card allows people receiving government benefits to pay for things from a federal account. EBT is used throughout the country, Puerto Rico, the Virgin Islands, and Guam. It is used to distribute food stamp benefits, and in some states, it may also be used for cash benefits. Food stamp money can generally be spent on food and non-alcoholic beverages and will be declined at the POS register for non-approved item purchases.

When the EBT card is used to distribute cash benefits, it is processed similar to a debit card at point of sale systems equipped to accept the card. ATM and banks may also allow EBT holders to withdraw cash. The rules for welfare recipients and EBT benefits vary from state to state.