EBT eliminates the cumbersome processes required by a paper system. By eliminating paper Food Stamp vouchers and Temporary Assistance checks which may be lost, sold or stolen, EBT cards reduce fraud. EBT creates an electronic record of each Food Stamp and Temporary Assistance transaction. This record makes it easier to identify and document instances where benefits are "trafficked," or exchanged for cash, drugs, or other illegal goods.
Typically, cardholders like the convenience and security of EBT. They can draw their benefits as needed. Only the cardholder is given the PIN in the event the card is lost; and it can be easily canceled and replaced. Many cardholders have said that EBT reduces the stigma associated with Food Stamp voucher use.
Retailers and bankers like EBT because it offers simplicity of accounting and reduces labor costs because there are no coupons to sort, count, and bundle. All the accounting is done automatically.