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North Carolina

36 Electronic Funds Transfer (EFT)

All Work First cash assistance payments are issued by electronic funds transfer (EFT). The two primary methods of issues are direct deposit to a financial institution or electronic benefit transfer (EBT) card.

Direct deposit allows for the monthly cash assistance payment to be electronically deposited to a personal savings or checking account of the case head. There may be fees associated with direct deposit that are imposed by the financial institution. These fees are the responsibility of the recipient. The financial institution cannot impose charges for an account that it does not impose on its other customers for that same type of account.

EBT is an electronic system that allows recipients to access their benefits with a plastic card, similar to a bank card. Work First Family Assistance households shall receive the first EBT card at no cost. The first cash withdrawal transaction at an Automated Teller Machine (ATM) is free. There is a $0.85 for each additional cash withdrawal. There are not any fees for point-of sale (POS) transactions. Work First Family Assistance households that request a replacement EBT card shall be charged a $2.50 fee. The fee shall be deducted from the account of the WFFA household. The client will not incur a charge if the EBT card: a) was lost in the mail or damaged by the vendor prior to receipt by the WFFA household b) is being replaced due to a name change on card c) was lost due to a natural disaster such as a fire, flood, tornado or hurricane d) was damaged by a retailer or vendor.

Fees associated with the use of the EBT card will be deducted from the balance of the card based on the available benefits in the account. If the recipient is receiving FNS benefits and WFFA or RCA the $2.50 card replacement fee will be deducted from the FNS allotment first. If there are not sufficient funds in the FNS EBT account or the recipient does receive FNS, the replacement card fee will be deducted from the program account with funds available to cover the fee. If there are not sufficient funds in any single account, the EBT system will issue the card and deduct the funds at the next benefit issuance. Recipients’ cash assistance payments may be terminated if used at restricted locations. The federal law prohibits Work First recipients from using EBT cards “in any liquor store, any casino or gambling establishment, or retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for establishment.”

EBT Monitoring

The Division implemented compliance measures to monitor usage and impose penalties when it is determined there is EBT misuse.

Monitoring includes reviewing selected cases to ensure that purchases/transactions were not made at any restricted locations: casinos, gambling casinos or gaming establishments; or any retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment.