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CalWORKs
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44-302.1 Electronic Benefit Transfer
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Purpose
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( ) To release a new policy
( ) To release a new form
( ) To convert existing policy to new writing style only – No concept changes
(X) Revision of existing policy and/or form(s)
What Changed?
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In January 2019, the California Department of Social Services (CDSS) sent out a Client Mailer informing participants about the:
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Changes to the surcharge-free Automated Teller Machine (ATM) network. As of February 1, 2019, Bank of America was added to the list of surcharge-free ATMs.
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Note: Additional banks, such as Bank of the West, Chase, and Wells Fargo, have since been added to the list of surcharge-free ATMs. As such, the list of California Surcharge-Free ATMs continues to be updated.
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MoneyPass network ending its surcharge-free service;
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New texting functionality. Participants can use the text messaging feature to check their balances and to find all ATMs, surcharge-free ATMs, restaurants, farmers’ markets, and stores that accept Electronic Benefit Transfer (EBT); and
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EBT scams and how to protect their benefits from being stolen by reminding participants that the County, State, and/or federal government will never call, email, send text messages, or use any social media to request personal information or discuss the status of their case.
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Participants can now make unlimited withdrawals and balance inquiries with no vendor fees; however, surcharge fees may still apply when accessing a non-surcharge-free ATM.
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Note: Changes are shown highlighted in grey throughout the document.
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Policy
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EBT is an electronic payment delivery system using debit card technology. This system is used to deliver cash benefits to participants (primary cardholders) and designated alternate cardholders. EBT does not impact the benefit amount, eligibility requirements, or what cardholders may purchase using their EBT card. Much like an ATM card, cardholders will use the EBT card with a Personal Identification Number (PIN) to access their benefits electronically. All cardholders will use their EBT card at participating retailers with a Point-of-Sale (POS) device and ATM’s displaying the Quest® logo.
The law [Welfare and Institutions [W&I] Code Section 10072(d)], requires that the EBT System be designated to provide alternative methods of issuance for those participants who demonstrate their inability to successfully use EBT. In cases in which a participant cannot successfully use EBT due to physical or mental incapacity or living in a remote area with limited access to an ATM or POS, he/she should be made aware of the available alternatives, such as direct deposit or in rare instances, the issuance of cash benefits via a warrant.
All applicants/new payees must receive important information about the use, safety, and care of the EBT card, as well as benefit inquiry and availability. In addition, participants must be provided information regarding surcharge-free access to their cash benefits.
Note: It is never allowed for a surcharge fee to be charged for a CalFresh transaction [CFR, Title 7, 274.7(c)].
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Background
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In August 1997, California Assembly Bill 1542, Chapter 270, Statutes of 1997, authorized the EBT Project and provided counties with the option of issuing cash benefits via EBT. Statewide implementation of EBT began in July 2001 and was successfully completed in all 58 counties by May 2005.
During the weekend of June 23 and 24, 2018, the EBT vendor changed from Conduent, Inc. (formerly known as Xerox) to Fidelity Information Services. Along with this change, there was a change to the network of surcharge-free ATMs. This change increased the number of surcharge-free ATMs available to participants.
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Definitions
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Term
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Description
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EBT Surcharge
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A service fee that some banks and stores charge each time cash benefits are withdrawn.
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Vendor Fee
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A fee charged by the EBT vendor for balance inquiries and excessive (more than four) cash withdrawals.
Note: Vendor fees have been eliminated. Unlimited withdrawals and balance inquiries can be requested without vendor fees; however, surcharges may still apply for withdrawals if cash is withdrawn from a non-surcharge-free ATM.
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Stagger Date
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Cash benefits are staggered over the first three days of the month. The stagger date is based on the last digit of the participant’s case number.
For CalWORKs, the stagger date can be changed to the first of the month if the participant shows proof they need the cash on the first of the month to pay bills or to avoid paying late fees. Some reasons include, but are not limited to:
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Living in Public Housing (not Section 8);
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The rent is due before the stagger date;
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The participant has an eviction notice;
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The participant has a three-day notice to pay rent or quit;
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The participant has a Summons and Complaint for Unlawful Detainer; or
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The participant has monthly bills (for example, bus pass, child care, car insurance, etc.) that are due before their stagger day.
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The stagger date can be changed by updating the Staggered Issuance Exemption field on the Issuance Method Detail page.
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Requirements
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N/A
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Verification Documents
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N/A
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