Dive Brief:
- Maryland announced Friday the statewide rollout of EBT cards that use chip-and-tap technology.
- Gov. Wes Moore’s office said in a statement that the payment technology offers better consumer protection and helps to reduce fraud. Legacy magnetic stripe EBT cards for the state’s residents will stop functioning on Sept. 30.
- With the rollout, Maryland joins a growing list of states adopting chip-enabled EBT cards, which the USDA says are a more secure payment method for SNAP consumers.
Dive Insight:
Modernizing EBT cards with chips is one of the main initiatives federal and state government officials have undertaken to tackle fraud in the SNAP program.
Maryland completed what the governor’s office called a “highly successful” pilot of the payment technology in Baltimore and the counties of Anne Arundel and Dorchester. During that pilot, which ran in partnership with the USDA, the state found that the chip-enabled cards “operate as intended at retailers and financial institutions, allowing customers to seamlessly activate and use their benefits without disruption,” according to the announcement.
More than 90% of EBT transactions using chip-enabled cards were approved during the pilot, Moore’s office said.
The state also found that 98% of Maryland EBT customers are within a 10-mile radius of chip-enabled retailers.
All EBT cardholders in Maryland will receive new chip-enabled cards in the mail over the next few weeks. Once people activate their new card, their previous card’s magnetic stripe will deactivate. The state noted that a participant’s current benefit balances will not change and will transfer automatically to the new card.
In addition to Maryland, California, Oklahoma, Alabama, New Jersey, Massachusetts and Michigan have also issued chip-enabled EBT cards, according to the USDA.
Other states are following suit. New York announced earlier this month that it will issue chip-based EBT cards in early 2027. Oregon, Arkansas and Virginia also have efforts underway, according to the USDA.
The USDA urges retailers to work with their point-of-sale service provider to ensure that their POS recognizes EBT chip cards.
