New Version of X9.58 Standard Upgrades USDA SNAP EBT Cards To Include Chip-on-Card Technology, Significantly Decreasing Opportunity for Fraud

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Judith Vanderkay
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The Accredited Standards Committee X9 Inc. (X9) today announced a new version of its X9.58 standard, which covers financial transaction messages associated with Electronic Benefits Transfer (EBT) for the United States Department of Agriculture's Supplemental Nutrition Assistance Program (SNAP, colloquially known as food stamps) and cash benefit programs. The revised standard is now available from ANSI for download.

While SNAP and cash benefits help millions of Americans, the magnetic-stripe EBT cards currently in use have been subject to widespread fraud, due to skimming and card cloning. The revised X9.58 standard, which supports the use of contact and contactless (tap-to-pay) chips, will significantly increase card security and prevent fraudulent use. The new standard will also increase the security of online purchases via a new security code that may be added to EBT cards and used when shopping online.

The X9.58 standard provides all parties involved in EBT transactions with technical specifications for exchanging financial transaction messages between an acquirer and an EBT card issuer processor. It specifies message structure, format and content, and data elements and values for data elements used in SNAP.

Card users will benefit from the increased security of the new EBT cards, and all consumers will potentially benefit from the lower fraud levels associated with the standard's use. Other beneficiaries of the revised standard include, in addition to the USDA Food and Nutrition Service, state agencies that administer SNAP and cash benefits, SNAP EBT processors, software providers, point-of-sale device manufacturers and retail grocers.

The new version of the standard was developed by the X9A11 EBT work group, with input from X9's USDA EBT Card Industry Forum, which is open to all interested parties. The purpose of this industry forum is to provide an environment for the groups associated with the issuance, processing and redemption of SNAP benefits to discuss issues related to the upgrading of the SNAP EBT card to a chip card, as well as the associated updates around mobile NFC payments, SNAP online purchasing and the SNAP Electronic Healthy Food Incentive Program (eHIP).

"This new version of the X9.58 standard will greatly increase the security of in-person and online purchases made by EBT cardholders and reduce the likelihood that benefits are stolen from their intended recipients. The revisions align with existing standards already implemented by merchants, to help facilitate a faster and easier transition," said Jamie Topolski, senior director of payment products at Conduent Incorporated, and chair of the X9 card forum and the X9 A11 EBT work group. "The new version was created and approved quickly, and we are grateful to the more than 500 participants in the EBT card forum who supplied their invaluable expertise, as well as to the members of the X9 work group who developed the standard."

About the Accredited Standards Committee X9 Inc.
The Accredited Standards Committee X9 Inc. is a non-profit organization accredited by the American National Standards Institute (ANSI) to develop and maintain national and – through ISO -- international standards for the financial services industry. The subjects of X9's standards include: retail, mobile and business payments; corporate treasury functions; block chain technology; processing of electronic legal orders issued to financial institutions; tracking of financial transactions and instruments; financial transaction messaging (ISO 8583 and 20022); quantum computing; AI, PKI; checks; cloud; data breach notification and more.

X9 acts as the U.S. Technical Advisory Group (TAG) for ISO TC68 (Financial) and TC321 (E-Commerce) and performs the secretariat functions for ISO TC68. Please visit our website (www.x9.org) for more information.

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