SNAP should move to chip-enabled cards to curb benefit theft, commentary argues
A commentary contends that SNAP should adopt chip-enabled cards because the current magnetic-stripe EBT system is vulnerable to skimming and cloning. It cites an ATARC white paper that puts total costs at $4.14 for every dollar stolen and notes that chip cards create a unique code for each transaction. California's fraud losses are cited as evidence that the technology can help.
SNAP’s prevailing EBT cards use magnetic stripes, which can be skimmed or cloned. An ATARC white paper estimates that each stolen dollar can create $4.14 in broader costs, including benefit replacement, card reissuance, call-center work, investigations, and lost confidence.
Chip cards produce a one-time code per purchase, making duplication much harder. California’s monthly EBT theft dropped from $16.16 million in December 2024 to about $3.58 million in September 2025—a 78% decline—with chip technology and other changes credited. States would still face inventory, contract, and system-readiness costs, and safeguards must avoid blocking eligible households.
Moving SNAP to chip-enabled cards could reduce skimming and cloning losses for recipients and lower administrative burdens for states, while potentially improving trust in benefit delivery. It may also create transition risks: card replacements, contract changes, and system upgrades could cause short-term disruption, and eligible households might face access problems if safeguards are poorly implemented. Retailers and fraud investigators could see changes in transaction data and workload.