707 ISSUING FINANCIAL ASSISTANCE BENEFITS SR 03-15, 11/03 (FAM-A)

There are two methods used to issue financial assistance benefits:

• Electronic Funds Transfer (EFT); or

• Electronic Benefit Transfer (EBT).

Exceptions:

• Recipients in nursing facilities may continue to receive supplemental payments for a personal needs allowance in the form of a check unless EFT is requested by the individual or Authorized Representative (AR).

• Recipients who have a "Guardian," "Conservator," or "Protective Payee," may request payment via check.

ELECTRONIC FUNDS TRANSFER (EFT)

EFT is the primary method of delivering financial assistance benefits to a recipient, AR, or protective payee, and is the only method of benefit delivery for vendors. See FAM 115, Vendor Payees. In this method of delivering financial assistance benefits, the benefit is directly deposited into the recipient’s, AR’s, or protective payee’s bank account.

Suitability of Accounts/Client Authorization for EFT

• Recipients, ARs, or protective payees must have an open checking or savings account to receive EFT.

• The individual, AR, or protective payee must complete Form EFT-R to complete the authorization for EFT. Form EFT-R summarizes the individual and bank identifying information contained in New HEIGHTS, as supplied by the applicant during the interactive interview, and contains a space for the individual’s signature to authorize EFT.

• EFT can be made to any checking or savings account which can receive deposits through the bank’s electronic address, known as the "transit and routing number." This number is a series of coded entries contained on the bottom of a check or a checking account deposit form. All in-state checking accounts are capable of receiving EFT.

- If EFT is requested and the account is an in-state checking account, the individual, AR, or protective payee only needs to complete the Form EFT-R to authorize EFT.

- If the individual, AR, or protective payee uses an out-of-state bank not contained in New HEIGHTS, the recipient must complete Form EFT-R and provide a voided, blank checking account deposit form or voided check from the specific account designated to receive EFT. The Family Services Specialist contacts the New HEIGHTS Help Desk with the information provided by the individual in order to add the new bank information into New HEIGHTS.

• Recipients may designate only one account for EFT deposits. Recipients may not split EFT payments between separate accounts, unless an amount is being deposited into the account of a vendor payee.

ELECTRONIC BENEFIT TRANSFER (EBT)

EBT is an alternative issuance method for financial assistance benefits. Recipients access financial assistance benefits from an electronic EBT account with a magnetic stripe debit card (the "EBT card").

• Recipients control access to the EBT account by a 4-digit Personal Identification Number (PIN).

• EBT cash assistance recipients are allowed 4 free cash withdrawals every month. A small transaction fee is charged for each use over and above the 4 free withdrawals. This fee is automatically debited from the EBT cash account.

EBT Card Activation

Individuals who have chosen EBT as their financial assistance issuance method must:

• come to the District Office to pick up the EBT card; and

• activate it by selecting a PIN of their own choosing.

Exception: If the individual is homebound, unable to come into the District Office for EBT card pick-up and PIN activation, and does not wish to designate an Authorized Representative for this task, District Office staff must do the following:

• Contact the Bureau of Data Management for a Control Number for PIN activation over the telephone.

• Provide the recipient with the Control Number.

• Instruct the recipient to call the EBT customer service center at 1-888-979-9929, provide the Control Number, and activate the card by selecting a PIN over the telephone.

Individuals involved in the determination of eligibility, including Family Services Specialists and DFA Supervisors, are prohibited by federal regulations from assisting recipients in the EBT card activation and PIN selection process.

Authorized Representatives and EBT

Generally speaking, applicants and recipients may choose an AR to assist in the EBT process by so designating on Form 778, Authorized Representative Declaration. A recipient or AR obtaining an EBT card at the District Office must present proof of identity before being given the EBT card.

AR’s may be designated to receive and access benefits on behalf of the recipient by:

• obtaining and activating their own EBT card;

• obtaining the EBT card for the recipient but conveying the card to the recipient for activation; or

• performing the card activation at the District Office with the PIN provided by the recipient to the AR.

An AR designated to receive benefits on behalf of the recipient must obtain his or her own EBT card at the District Office and select his or her own PIN.