USDA proposes chip and tap-to-pay SNAP EBT cards that all authorised retailers would have to accept

The US Department of Agriculture has proposed a rule that would require every state to issue SNAP electronic benefit transfer (EBT) cards with chip and tap-to-pay capability. Retailers authorised to accept SNAP would also have to accept those cards. The proposal was published in the Federal Register on 23 October 2026 and reported by Payments Dive on 27 October. Public comments are open until 22 December 2026. If the rule is finalised, states would have two years to make the switch. Today most EBT cards rely on magnetic stripes and PINs, which makes them easy targets for skimming devices on store terminals. USDA says chip cards are harder to copy. The National Grocers Association, which backs the proposal, points to at least $360 million in stolen benefits that USDA had replaced through the second quarter of fiscal 2025, and says states that have issued chip cards have seen skimming fall significantly. Nearly a dozen states, including California, Michigan and Massachusetts, already issue chip EBT cards, and about six more are moving to them. USDA acknowledges the change will cost the state agencies and EBT processors that run the system. Coverage so far gives no dollar estimate, and the proposal sets no separate timetable for retailers. In practice, retailers will need terminals and software that can read chip and contactless EBT cards and route them correctly. The proposal also keeps the SNAP EBT operating standards open to updates as payment technology changes. For grocers and convenience stores that take SNAP, this would change how benefit cards are accepted at the counter, and the comment window is the chance to raise concerns about cost and timing.