Vermont just switched over to using EBT instead of food stamps today. Here is some information from Maryland which was actually the first state to make the move:
Food Stamp Benefits provide funds for food purchases to increase the nutrition of low income households. Benefits are accessed through the Electronic Benefits Transfer System.
Maryland is the first state in the nation to provide citizens receiving public assistance and food stamps an opportunity to use state-of-the-art technology. Through the use of a debit card, called the 'Independence Card' recipients access their benefits through point-of-sales (POS) devices at retail stores and at automated teller machines (ATM).
The Electronic Benefits Transfer System was launched as a pilot program in the Park Circle District of Baltimore City in November 1989.
Deluxe Electronic Payment Systems, Inc., of Brown Deer, Wisconsin was awarded a six-year, $37,590,154 contract with the State of Maryland to administer the program. The federal government shares 47.5% of the contract cost, and the state pays 52.7%.
Clients are issued a plastic card with a magnetic stripe, called the 'Independence Card'. The card enables the holder to receive their monthly benefits electronically, therefore replacing food stamp coupons and cash benefit checks.
Clients can use the 'Independence Card' to withdraw money from any automated teller machine in the 'HONOR' and 'MAC" networks.
Facts
Participating Customers: 325,252
Participating merchants: 3,200
Transactions: $43 million per month
ATMs statewide: 2,450
POSs statewide: 8,000
Advantages
Less cost then the old paper system
Customers can better manage their finances
Benefits arrive on the same day and at the same time each month
Better administrative control including reduction of fraud and more efficient use of resources
dhr.state.md.us
Look at some of those numbers. EBT will be a big business for CLCK.
More and more states are moving to EBT. One day social security benefits will be handled by EBT as well. Lots of transactions, lots of accounts, it all adds up to lots of money for CLCK.
InvestRight
Regards, Jeff
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