The U.S. Department of Agriculture proposes requiring chip and tap-to-pay SNAP cards and stronger account protections to combat criminals stealing food benefits through card skimming, cloning and similar electronic fraud, with the changes extending to the U.S. Virgin Islands. The proposed rule addresses weaknesses in Electronic Benefit Transfer systems that USDA says have fallen behind security standards used by commercial payment networks, leaving approved households vulnerable to losing the benefits they depend on to buy food.
Published October 23 in the Federal Register, the proposal is open for written comments through December 22, 2026. It is not a final rule, and the proposed two-year timetable for implementing chip and contactless cards would begin after publication of a final rule, rather than from the October announcement.
The proposed operating standards expressly include the Virgin Islands among jurisdictions administering the Supplemental Nutrition Assistance Program through EBT systems. The requirements would reach agencies issuing benefits, contractors processing transactions and authorized retailers accepting SNAP payments.
USDA identifies magnetic-stripe technology as a major vulnerability. Criminals can use devices attached to payment terminals to capture card information, then combine it with stolen or compromised personal identification numbers to access accounts. Cloning allows that information to be copied onto another card and used to spend the original household’s benefits.
The department says stronger protections in the credit and debit card industry have encouraged experienced criminals to target EBT cards, which have continued to rely heavily on magnetic stripes. Online purchasing presents additional risks when systems allow repeated attempts to identify usable card and PIN combinations.
Congress directed USDA to establish security measures against skimming, cloning and similar benefit theft in the Consolidated Appropriations Act, 2023. The proposed rule would respond with updated payment technology and a minimum set of account protections that administering agencies would have to offer.
Households would be able to freeze and unfreeze their cards, block out-of-state transactions, block online purchases and set a maximum purchase amount per transaction. The proposed standards would allow users to switch card blocks on and off immediately, including unblocking a card at checkout and locking it again afterward.
Agencies would also have to offer email or text alerts for purchases and specified account activity, including rejected purchases, PIN changes, balance inquiries and changes to personal contact information. Households would gain access to 12 months of transaction history.
The options would have to be accessible through an EBT internet portal, a mobile application, telephone requests and in-person requests. USDA says access must accommodate people with disabilities and households whose primary language is not English.
Other proposed protections include issuing cards that remain inactive until recipients activate them and prohibiting easily guessed PIN combinations. Examples include sequential digits, one repeated digit and certain alternating-number patterns.
The proposal also addresses program-integrity risks beyond card theft. Its provisions include monitoring payment terminals for unauthorized access and patterns indicative of trafficking.
Moving to chip and contactless payments would require coordinated changes among administering agencies, EBT contractors, payment processors and retailers. USDA says the proposed two-year implementation period would allow testing intended to prevent the transition from interfering with households’ ability to buy food.
Agencies would have to notify households and retailers in advance of changes in payment methods. USDA also encourages agencies to work with retailers so that as many stores as possible are ready to accept the new cards before existing cards are replaced.
Magnetic-stripe transactions would continue during the transition. For cards equipped with chips, fallback rules would require an attempt to insert or tap the card before using the magnetic stripe when the newer payment method fails or is unavailable.
USDA is separately seeking comments on the eventual removal of magnetic stripes, including barriers, alternative payment methods when chip or contactless technology fails, and a suitable timetable. The proposed two-year chip transition would not itself immediately eliminate magnetic-stripe payments.
The department also seeks feedback on implementation costs and effects on issuing cards directly to households at local offices. Comments may be submitted through Regulations.gov under docket FNS–2025–0137 or by the email and mailing methods listed in the Federal Register notice.
