WIC Electronic Benefits (EBT) Update

Mark Davis

Missouri WIC Customer Service Manager

(MIS/EBT)

2012 Missouri WIC Conference

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Objectives for Session

After session you will have understanding of: WIC EBT definition WIC EBT background EBT basics Online and smart card Missouri decision Implications for local agencies and participants Implications for WIC-authorized vendors Next steps Questions

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WIC EBT Definition

WIC Electronic Benefits Transfer (EBT) is an electronic method of providing WIC food benefits to participants

An EBT card (similar to debit or credit card) is issued to the household, instead of issuing WIC checks to each participant

Local agencies will still use MOWINS; changes will be made to the benefits issuance component

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WIC EBT Background

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WIC EBT Background (cont.)

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WIC EBT Background (cont.)

Missouri planning activities Planning contractor, 2010-2012

Learned as much as possible about EBT Visited other WIC states already doing EBT Meetings and survey with WIC-authorized vendors Meetings and survey with local agencies Attended EBT user group and other meetings

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EBT Basics

One card for entire household- benefits are aggregated for household

Cardholder uses PIN instead of signing checks Can redeem WIC foods anytime during the

benefit period- no constraint of individual checks No change to issuance periods, e.g. tri-monthly,

bi-monthly, etc Cardholder receives print out of available foods

at cert/recert and with every purchase

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EBT Basics (cont.)

At WIC authorized vendor- EBT system determines if food is WIC-approved

Vendor staff are no longer the food police Every WIC food has a UPC or PLU that is in our

Approved Product List (APL) Vendor receives APL electronically and EBT

system compares the UPC of food against the APL

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EBT Basics (cont.)

State must make two major decisions Online or smart card

Online, magnetic stripe Smart card, offline

EBT host- Outsource or in-house

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Online (Magnetic Stripe)

EBT card is similar to debit or credit card User “swipes” the card Real time transactions to EBT host Vendor must have telecommunication line to

connect to EBT host for each transaction In most cases, vendor pays transaction fee State must have a plan for when

telecommunication line is down

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Smart Card (Offline)

Similar to debit or credit card, except that it has a computer chip embedded

User inserts the card and leaves it until prompted to remove it- does not “swipe” it

The food benefits are stored on the card- the card is the database of record

No telecommunication line is needed at time of purchase

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Missouri Decision

We decided to use the Smart Card and outsource EBT hosting We decided this after much discussion and doing the activities

noted in slide # 6

Main reasons Cost of online would be more, especially for full service

Automatic Voice Response (AVR) for pin changes and benefit updates

U.S. banking industry appears to be moving to smart card, as the rest of world has done

Procedure of participants contacting agency for issues related to check/card would not change as much with smart card

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Implications for Local Agencies and Participants

MOWINS will be changed to issue smart card instead of checks Relatively minor change to system for users

Local agencies will receive training, may be able to do it by webinar

Cardholder will go to local agency to have PIN assigned initially and when they want to change PIN

Cardholder will go to card reader at agency or vendor if they have lost their latest food print out

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Implications for Local Agencies and Participants (cont.)

New equipment Smart card reader- USB, small and light No power cord; there is a driver to install

Used to put participant information on card Load benefits on card instead of printing checks

Participant uses it to assign PIN

No MICR printers for checks Local agency will need a printer to print the food list

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Implications for Local Agencies and Participants (cont.)

Participants will need to be trained in new procedures DVD from Texas Reinforcement by LWP staff

Surveys from EBT states show participants love EBT Much more information available on foods

participants redeem Policy changes

Proxy Lost and stolen wait time- Hot Card List (HCL) May switch from rolling month to calendar month

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Implications for Local Agencies and Participants (cont.)

Smartphone applications Working to have vendor and local agency locations as

a Smartphone app Also want to create an app that shows which foods

are WIC foods May also be able to have WIC appointments and

other information available as Smartphone app QR Code/Reader- can be inserted in publications,

linked to designated web site

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WIC-Authorized Vendor Implications

Time in lane is much faster with EBT Much less chance for cashier error No transaction fees Receive payment from state faster Need smart card reader at all WIC lanes- some

are already doing this Must inform state of UPC, PLU changes Will send claim file daily and receive three files

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Next Steps

Implementation Advance Planning Document Interface- MOWINS and EBT host Funding Hire implementation and quality assurance

contractors- will host EBT Card and folder design DVD for participants Policy changes and vendor participation

agreement changes

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Next Steps (cont.)

Creation of UPC and PLU database Certification of WIC-authorized vendors Training for vendors and local agencies Select pilot and determine implementation plan Timeline- if all goes well- may have pilot in place

as soon as late 2014

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Review

Participants and vendors like EBT (smart card and online) Faster through lane Cashiers are not food police Less stigma for participant

Participant will receive initial food list at local agency and receipt after they go to store

For local agencies, cards are generally faster to issue than checks One card for household (keep same card as long as

they are on WIC) instead of many checks

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Review (cont.)

For local agencies changes include: Use card reader to load benefits- printer used to print

food list Learn changes to MOWINS Changes to policies Instruction to participants on how to use card-

reinforce information in DVD

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Questions