SNAP and CASH EBT 201: The Detailed ins and outs of SNAP and CASH EBT. EBT Next Generation 2016

Transcription

1 SNAP and CASH EBT 201: The Detailed ins and outs of SNAP and CASH EBT

2 Presenters: Todd Halter, MBA, PMP Vice President Xerox State and Local Solutions, Inc. Doug Darr, MS, PMP Regional Director Xerox State and Local Solutions, Inc. 2 October 4, 2016

3 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

4 Retailer Management Post Farm Bill 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 4 October 4, 2016

5 Retail review: What type locations now can receive free point of sale terminals post Farm Bill? 5 October 4, 2016

6 Adjustment processing (claims) 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 6 October 4, 2016

7 Adjustment review: What is required for a claim to be valid? 7 October 4, 2016

8 Daily Settlement 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 8 October 4, 2016

9 Settlement Cycles for a 3:30 p.m. ET System Cutoff 9 October 4, 2016

10 SNAP Settlement flow 10 October 4, 2016

11 Settlement review: SNAP benefits draw funds against what? 11 October 4, 2016

12 Disaster operations Types of disasters Manmade OK City bombing Natural Hurricanes, floods, fires Communications failures Fiber cuts Data center failures Damage, fires, power 12 October 4, 2016

13 Disaster operations 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) 13 October 4, 2016

14 Planning considerations 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 14 October 4, 2016

15 Disaster review: What type disasters have recently impacted your state? 15 October 4, 2016

16 Data Warehouse 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 16 October 4, 2016

17 Data Warehouse review: How can you promote and encourage more use within the State to retrieve, filter and analyze large amounts of data? 17 October 4, 2016

18 IVR Enhancements 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 18 October 4, 2016

19 IVR review: What is alternate authentication? 19 October 4, 2016

20 Batch Vs Web Services 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 20 October 4, 2016

21 Fraud EBT is a prime target 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. 21 October 4, 2016

22 Fraud Detection Methods 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. 22 October 4, 2016

23 Fraud review How can geocoding help with fraud detection? 23 October 4, 2016

24 Cash access blocking 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). 24 October 4, 2016

25 State funded SNAP 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 25 October 4, 2016

26 Card replacement fees 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 26 October 4, 2016

27 Mobile Apps 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 27 October 4, 2016

28 Mobile apps review: Who used a mobile app while travelling to the Next Gen conference 28 October 4, 2016

29 Online internet sales 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 29 October 4, 2016

30 Online Purchase Requirements Included in 2014 Farm Bill 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 30 October 4, 2016

31 Online Internet sales review Who has bought something on-line within the past week? 31 October 4, 2016

32 EMV cards 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??? 32 October 4, 2016

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