707 ISSUING FINANCIAL ASSISTANCE BENEFITS SR 10-03, 04/10 (FAM-A)

Financial assistance benefits are issued via Electronic Funds Transfer.

Exceptions:

• Issue benefits via Electronic Benefits Transfer (EBT) when:

- the client does not have a bank account; or

- the client has a bank account that does not accept direct deposit.

• 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 PART 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

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

• EFT can be made to any checking or savings account that 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.

• 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.

• If more than one account exists and the individual, AR, or protective payee does not specify the account to use for EFT, choose:

- the account with the casehead’s name listed as the primary holder; or

- the checking account, if more than one account lists the casehead’s name as the primary holder, or all accounts are joint accounts.

• If the only account available to the casehead is a child’s savings account, deposit cash benefits into that account.

Exception: If the casehead does not have signature access to the child’s savings account, do not deposit cash benefits into that account.

• If the only account available is an account managed by a representative payee for social security benefits or an account used to manage more than one client’s social security benefits, known as a collective account, and the account accepts direct deposit, deposit cash benefits into that account.

ELECTRONIC BENEFIT TRANSFER (EBT)

EBT is an alternative issuance method for financial assistance benefits used only when:

• an individual does not have an accessible bank account; or

• an individual has an account that does not accept direct deposit.

Promote the benefits of EFT to encourage individuals to open a checking or savings account.

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 *2 free cash ATM withdrawals every calendar month. An EBT-related transaction fee is charged for each use over and above the *2 free ATM withdrawals allowed. This fee is automatically debited from the EBT cash account.

EBT Card Activation

Individuals who have financial assistance issued via EBT 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 EBT Unit and provide the client’s name, mailing address, RID, and the date the EBT card was issued.

• The EBT Unit will provide the necessary information to the Bureau of Data Management (BDM) to issue an EBT card.

• Inform the client that he/she will receive the EBT card with PIN Selection instructions through the mail.

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.