In an effort to modernize EBT and reduce fraud, multiple states are planning to migrate their EBT cards from magnetic stripes to EMV chip cards.
Starting with California and Oklahoma, states are planning to issue chip cards beginning as soon as August 2024. It is important that POS systems are tested to ensure uninterrupted processing of SNAP with EBT chip cards.
A recent webinar hosted by the National Grocers Association Foundation SNAP EBT Modernization Technical Assistance Center (SEMTAC) discussed the transition to EBT chip and how to test POS systems, and pointed participants to available information and resources.
Leading the discussion were Kari Wolkwitz, project manager for SEMTAC; and EBT technical consultants Ames Robb and Peter Relich; along with Thomas Pennington from the Oklahoma Department of Human Services, who shared his experiences with that state’s EBT chip testing.
Here are some key takeaways from the discussion:
What’s happening? Some states are transitioning EBT cards from magnetic stripe to chip functionality, to modernize EBT and reduce fraud. States are working toward transitioning to EBT chips now, starting with California and Oklahoma. Card rollout in other states is partially dependent on states’ EBT contracts; the chip is not currently an FNS mandate.
A magnetic stripe will remain on the new EBT chip cards. POS systems should be tested to ensure uninterrupted processing of SNAP transactions. Testing ensures SNAP participants can access their benefits. Failed transactions can be embarrassing for customers and reduce their trust in retailers, and it allows for training of staff to ensure a smooth transition when new cards are launched.
How do you test EBT chip cards? Obtain test cards from your POS provider (or contact [email protected]). Download test scripts from FNS website (https://www.fns.usda.gov/snap/ebt/modernization/chip-resources). Testing can help ensure that one failed chip transaction attempt prompts the customer to perform a magnetic stripe transaction instead, known as “ECL fallback.” Follow the test scripts for several different transaction scenarios. It’s recommended to perform tests at every POS terminal in a store. If issues are encountered during testing, contact your POS provider, or SEMTAC at [email protected].
Report your test results to SEMTAC. Test results can inform and help prepare for future EBT chip card implementations. Report results for POS that has not been updated for EBT chip to https://www.nationalgrocers.org/semtac/details-if-your-pos-is-not-updated-for-ebt-chip/. Once chip functionality is fully rolled out, report test results to https://www.nationalgrocers.org/semtac/details-if-your-pos-is-updated-for-ebt-chip/.
For more exclusive insights, guidance and technical information on EBT chip cards, view the complete webinar at https://attendee.gotowebinar.com/recording/8549205824028848480.
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