New York State is set to upgrade its Electronic Benefit Transfer (EBT) cards with chip and contactless payment technology to prevent criminals from stealing food stamp benefits. The state’s Office of Temporary and Disability Assistance (OTDA) plans to distribute around 2 million new cards starting in early 2027 and has mandated that retailers accepting EBT payments complete the necessary equipment upgrades by December 1st of this year to ensure that public shopping remains unaffected.
On October 22nd, Congresswoman Grace Meng, State Senator John Liu, State Assemblymembers Nily Rozic, Ron Kim, and local business representatives gathered in Flushing for a press conference calling for enhanced security measures for welfare benefits and to assist businesses in transitioning smoothly to the new payment system.
EBT cards are tools used by New York State to provide eligible residents with Supplemental Nutrition Assistance Program (SNAP, commonly known as food stamps) and cash assistance benefits. Traditional magnetic stripe cards are susceptible to skimming and duplication, allowing criminals to use stolen card data and passwords to siphon funds from beneficiaries’ accounts. The new cards utilize chip technology commonly seen in bank and credit cards, significantly reducing the risk of such theft.
Assemblymember Nily Rozic noted that since 2022, her office has received complaints from residents about EBT card data being compromised and benefits being stolen. Past efforts to combat fraud by posting warning signs in stores and reminding consumers to be cautious of skimming devices have proven insufficient.
“To be honest, that’s far from enough,” Rozic pointed out, emphasizing that addressing payment technology is key to effectively reducing welfare fraud.
Congresswoman Grace Meng shared that she has advocated for related federal legislation to help states reduce the costs of EBT card upgrades and supported compensating families who fall victim to benefit theft. However, past compensation measures have been temporary solutions, stressing the need for long-term improvement in payment system security.
She stressed the importance of businesses and financial institutions preparing early for the upgrade to avoid compatibility issues that could impact people’s shopping experiences, stating, “We must ensure that SNAP recipients can still buy food and that small businesses do not lose business.”
Assemblymember Ron Kim shared a personal anecdote. He accompanied an elderly individual whose welfare benefits were stolen to a SNAP office in New York City seeking assistance, waiting for at least three hours without revealing his identity as a legislator and facing multiple reprimands from staff during that time.
Kim argued that victims should not have to navigate through cumbersome and unfriendly assistance procedures after losing their benefits. He believed that the government should not just offer remedies after theft occurs but should establish long-term protective mechanisms to prevent welfare theft at the source.
The new chip-enabled EBT cards are expected to be distributed in batches starting in early 2027. Some retailers will need to update their point-of-sale system software or card readers to accommodate chip and contactless payments.
While many large supermarkets already have the necessary equipment, some small shops may require additional technical support. The state government will provide guidelines to assist businesses in completing the upgrades. Retailers who fail to update their equipment in a timely manner may risk being unable to process transactions with the new cards next year, leading to customer loss and revenue decline.
According to the state’s released schedule, the new cards will begin distribution in the first quarter of 2027, and cardholders will be notified before receiving their new cards. During the card transition period, individuals can continue to use their existing EBT cards without worrying about a sudden interruption in benefits.