Food stamp cards may soon need a chip and tap-to-pay

The USDA has proposed that every state issue SNAP benefit cards with a chip and tap-to-pay, the same tech on many credit and debit cards. Stores that take SNAP would have to accept them. This is a proposed rule, so it is not final yet.

What would change

The USDA says chip cards are harder to copy, which makes it harder to steal account information. The National Grocers Association backs the plan. It says states that already switched have seen a significant drop in skimming fraud, where thieves copy card data.

Nearly a dozen states already issue chip cards, including California, Oklahoma, Alabama, Michigan, Virginia and Massachusetts. Half a dozen more are in the process of doing so, according to the USDA. If the proposal becomes a final rule, states would have two years to comply.

Costs and open questions

The USDA admits the switch will cost state agencies and others who run the EBT system. Stores would need to make sure their payment machines can take chip and tap-to-pay cards.

The material does not say how much this would cost, who would pay for store upgrades, or when people in each state would get new cards. It also remains to be seen whether the rule will be finalized as written. The USDA is taking public comments until Dec. 22.