How Businesses Can Process EBT Payments
Blog post from Basis Theory
Electronic Benefits Transfer (EBT) replaced paper food stamps with electronic benefits cards and is now used across all 50 U.S. states to distribute programs such as SNAP. Merchants seeking to accept EBT must obtain a USDA Food and Nutrition Service permit, navigate state-specific rules, and use an approved processor capable of securely handling the PIN required for online purchases, with only a small number of providers meeting relevant PCI standards. Although these requirements can be complex, EBT acceptance may help eligible merchants reach consumers who rely on benefit funds, increase sales of essential goods, and reduce chargebacks because payments are government-backed; EBT spending was estimated at $356.3 billion in 2023. Unlike conventional card payments, EBT often requires direct relationships with approved gateways or processors, as major providers such as Stripe may not support online EBT, while Shopify uses Forage. The passage argues that tokenization can help merchants manage multiple payment providers by storing sensitive card data securely, reducing compliance exposure, supporting payment-routing decisions, and allowing merchants to change processors without disrupting customer payment details.
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