Plastic Cards May Be Used for Food Stamps

Food stamp recipients soon could be buying groceries with a plastic card instead of paper coupons.

Proposed federal rules published Friday would allow states to computerize their food stamp programs so recipients can purchase food with plastic cards similar to those used to access bank accounts electronically.

Officials of the Agriculture Department, which administers the food stamp program, say they believe the electronic-benefits-transfer system will streamline administration.

“Retailers and banks like (the electronic system) because it eliminates much of the paper handling involved with paper coupons and automates much of the accounting,” Agriculture Secretary Edward R. Madigan said. “It is also an effective tool against fraud and trafficking because it eliminates the coupon, which has become a secondary currency to some people.”

Once the regulations take effect April 1, states can apply to participate in the electronic system. The law requires that the system cost no more than the conventional paper-coupon system. Sixteen states have expressed an interest, including California and Texas.

Under the electronic system, food stamp applicants would apply in the usual way at a local office. Once their eligibility and level of benefits were determined, recipients would have an account opened in their name and would receive a plastic card, protected with a personal identification number.

When paying for groceries, food stamp customers would have their cards run through an electronic reader and would enter their personal identification number. Their account would then be charged for the purchase.

The food stamp program provided an estimated $17.3 billion in benefits in the year that ended Sept. 30. In September, a record 23.76 million Americans were receiving food stamps.