SNAP and CASH EBT 201: The Detailed ins and outs of SNAP ... EBT... · SNAP 10 business days Cash 20 business days If claim denied, cardholder can appeal Retailer claim Cardholder

EBT Next Generation 2016

SNAP and CASH EBT 201:

The Detailed ins and outs of SNAP and CASH EBT

EBT Next Generation 20162 October 4, 2016

Todd Halter, MBA, PMP®Vice PresidentXerox State and Local Solutions, Inc.

Presenters:

Doug Darr, MS, PMP®Regional DirectorXerox State and Local Solutions, Inc.


Overview EBT advanced basics

Retailer management post Farm Bill Adjustment processing Settlement cycle review Disaster operations

Evolution over past few years: Data Warehouse IVR Enhancements Batch Vs Web Services Fraud detection Cash access blocking State funded SNAP Card replacement fees

Trends in the future Mobile Apps Online internet sales EMV cards

3 October 4, 2016


State funded stand beside now limited to only “Exempt” categories such as farmers markets and group homes Majority of retailers use a third party processor (TPP) New FNS certified SNAP retailers identified in FNS REDE files Normally contractor has 14 days to deliver equipment starting from

time the retailer completes a retailer agreement Challenges Not traditional retail locations Connectivity and power can be lacking Terminal may be only used a few days a month

Retailer Management Post Farm Bill

4 October 4, 2016


What type locations now can receive “free” point of sale terminals post Farm Bill?

Retail review:

5 October 4, 2016


Claims can be cardholder or retailer initiated Per rules, only a system error is adjustable Stolen cards/PINs, denied transactions but food leaves the stores, etc., are

not valid claims unless a system error is involved Cardholder claims Retailer / TPP has a set number of days to respond with documentation SNAP 10 business days Cash 20 business days If claim denied, cardholder can appeal Retailer claim Cardholder has right to a fair hearing for SNAP

Adjustment processing (claims)

6 October 4, 2016


What is required for a claim to be valid?

Adjustment review:

7 October 4, 2016


End of Day Cutover EBT System processing day ends, Transaction settlement totals are recorded. totaled, and written to an ACH

file. EOD reports are generated, including Clearing report

Account Management Agent (AMA) system EBT system sends benefit data to FNS AMA system and reconciles against

the Account Management (AMA) system, adjusting State’s Letter of Credit Automated Standard Application for Payments (ASAP) Request from the state for reimbursement for the funds that are distributed to

EBT processors

Daily Settlement

8 October 4, 2016


Settlement Cycles for a 3:30 p.m. ET System Cutoff

9 October 4, 2016


SNAP Settlement flow

10 October 4, 2016


SNAP benefits draw funds against what?

Settlement review:

11 October 4, 2016


Types of disasters Manmade OK City bombing Natural Hurricanes, floods, fires Communications failures Fiber cuts Data center failures Damage, fires, power

Disaster operations

12 October 4, 2016


Extremely important aspect of upfront planning that most States need to have ready at all times.

Typical components include: Plan documented and distributed in advance Vault card stock within State or at Contractor’s card mailing facility PIN contained within the card carrier handout or as part of the card number Ability to receive new account information and card number in real time

(possible follow-up for missing information through batch)

Disaster operations

13 October 4, 2016


Backup data centers Multiple communication paths Buddy States Ability to enter demographics, cards and benefits directly in to EBT

system Planning to support disaster survivors away from the disaster area

Planning considerations

14 October 4, 2016


What type disasters have recently impacted your state?

Disaster review:

15 October 4, 2016


Unique storage method allows for easier and more timely access to data.

Typical functionality includes ad hoc query writing capability and GIS mapping for the user

Advanced fraud capabilities and predictive modeling in some applications

Required in many of the more recent RFPs and typically used by state and OIG staff

Data Warehouse

16 October 4, 2016


How can you promote and encourage more use within the State to retrieve, filter and analyze large amounts of data?

Data Warehouse review:

17 October 4, 2016


IVR card replacement Preclude cardholder from having to speak to a CSR Text message alerts signup Deposit notifications Low balance, etc. Alternative authentication Uses demographic info instead of card number

IVR Enhancements

18 October 4, 2016


What is alternate authentication?

IVR review:

19 October 4, 2016


Trend is moving to real time web service interface Real time balances and current card status can be displayed in MIS eligibility

system EBT demographics and benefits can be posted / updated real time Common in WIC systems Recommend web services be considered for new eligibility systems

Batch Vs Web Services

20 October 4, 2016


1 in 7 Americans receive food stamps (Huffingtonpost.com) Many programs issue cards with cash options Other cards are becoming a tougher target due to EMV adoption EBT Programs seeing more “traditional” bank card fraud threats –skimming /

counterfeiting, phishing, and social networking/id theft.

Fraud – EBT is a prime target

21 October 4, 2016


Multiple cases/same address, variable matching.

Alert on merchant activity that increases or decreases by certain amounts.

Address changes across large ZIP code differentials.

Compare data with corrections intake information to link and identify persons no longer eligible or temporarily not eligible.

Track normal enrollment data and alert on spikes by county, city, etc.

Fraud claim dollars by customer, merchant, fraud type.

Month over Month, Year over Year, Week over Week tracking and trending of any activity or behavior.

Fraud Detection Methods

22 October 4, 2016


How can geocoding help with fraud detection?

Fraud review

23 October 4, 2016


Goal: Prevent transactions liquor stores, casinos, gaming establishments or adult-oriented entertainment establishments in which performers disrobe or perform in an unclothed state for entertainment. (TANF EBT NPRM 2014)

Methods: MMC code blocking Block based on the merchants Merchant Category Code (MMC) Location/TID blocking Identify and block based on name, business location or terminal ID (TID).

Cash access blocking

24 October 4, 2016


Becoming more common, examples California, Maryland, etc. Differences: Federal SNAP settles against a Letter of Credit at the Federal Reserve Bank State SNAP settles against a State bank account, similar to Cash benefits Uses a separate benefit type Reported separately by benefit type Drawdown hierarchy depends on benefit type Authorized same as federal SNAP FNS authorized retailer verification, etc

State funded SNAP

25 October 4, 2016


Several states now charge cardholders a few after a certain number of replacement cards Examples: Michigan, Virginia Provides an incentive to cardholders to not abuse or lose their cards (Is it

effective?) Can be on a yearly basis, lifetime basis, etc. Funds generated normally returned to State IVR and CSR warnings that fee will be charged

Card replacement fees

26 October 4, 2016


SNAP and cash account balance inquiries Transaction history and claim status Pending SNAP/cash deposits Card activation (initial PIN) and PIN change Card cancellation and replacement Announcements ATM and merchant locator with turn-by-turn directions Alerts and notifications Live chat with customer service

Mobile Apps

27 October 4, 2016


Who used a mobile app while travelling to the Next Gen conference

Mobile apps review:

28 October 4, 2016


Retailers are moving to shop online and pickup later or home delivery Recent examples: both WalMart and Krogers are testing shop online and

pickup at drive through FNS would like to pilot concept in 2017 Challenges for EBT Cards are never present for online transactions EBT is a PIN based card only - no card security code on back For security, must use FNS-approved secure PIN-entry service provider PINless refunds required Paper receipt not provided unless customer prints

Online internet sales

29 October 4, 2016


Online retailers may accept and redeem benefits prior to the delivery of food if the delivery occurs within a reasonable time (to be defined by FNS)

Requires recipient protections regarding privacy, ease of use, access, and support similar to the protections provided for transactions made in retail food stores

Retailer must ensure benefits are not used to pay delivery, ordering, convenience, or other fees or charges

Retailer must ensure the security of on-line transactions by using the most effective technology available that the Secretary considers appropriate and cost-effective and that is comparable to the security of transactions at retail food stores

Online Purchase Requirements Included in 2014 Farm Bill

30 October 4, 2016


Who has bought something on-line within the past week?

Online Internet sales review

31 October 4, 2016


EMV - Europay, Mastercard, Visa Card has an embedded chip, making it harder to clone Example – current Credit Cards Liability shift for POS occurred in October 2015 Liability shift for ATMs occurred in October 2016 Will EBT ever need to move to EMV???

EMV cards

32 October 4, 2016

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Documents

SNAP and CASH EBT 201: The Detailed ins and outs of SNAP ... EBT... · SNAP 10 business days Cash 20 business days If claim denied, cardholder can appeal Retailer claim Cardholder