Regulation E. All state and local EBT systems are exempt from Regulation E of the Electronic Funds Transfer Act. Regulations regarding benefit replacement and loss liability for food stamps should be similar to those in place for the paper coupon program.
Mandatory EBT Systems for Food Stamps. States are required to implement food stamp EBT systems by October 1, 2002, unless waived. Systems must be cost neutral over the life of the program. Within two years, state EBT systems shall include, to the extent practicable, retailer scanning devices that differentiate between allowable and nonallowable food items.
Other EBT Issues. States may charge for replacement cards and may require photos on EBT cards. EBT vendors may not condition their contracts on states buying additional point-of-sale service from them or an affiliate.