The use of Electronic Funds Transfer (EFT) is a mainstay of consumer finances, whether in the form of the direct deposit of payroll, automatic account debits for bill payment, or the still-growing use of stored value and debit cards to make purchases or obtain cash. EFT technology is providing consumers, business and government with improved financial instruments that control costs and enhance services. With the advent of Internet access, expanding Automated Teller Machine (ATM) networks, a steady growth in retailer Point-of-Sale (POS) debit capabilities, and the adaptable features of new payment instruments, processes have been streamlined and the options for funds delivery have universally multiplied.

Governments have also been reaping the benefits of these advances in consumer EFT to reduce administrative costs and paperwork, improve program accountability and provide more convenience and security for benefit and payment recipients. For example, the federal and state governments have already realized great advantages from Electronic Benefits Transfer (EBT) cards associated with government programs and payments, one of the most spectacular EFT success stories to date. EBT cards completely replaced the use of paper food stamp coupons under the USDA’s Food Stamp Program in mid-2004. EBT improved Food Stamp Program operations and services to program end-users while streamlining the transfer of billions of benefit dollars into local economies through purchases at grocers of all sizes, from national chain stores to farmers’ markets.