The move follows reports of hundreds of millions of dollars in stolen benefits in recent years. States including New Jersey, Virginia, Maryland, Massachusetts, California, Alabama, Michigan and Oklahoma have introduced or started projects involving more secure payment cards.
Why States Are Replacing Magnetic-Stripe EBT Cards
Traditional Electronic Benefit Transfer (EBT) cards have relied on magnetic stripes, a technology that can be targeted by criminals using skimming devices placed on payment terminals. These devices can capture card information and PIN entries, allowing thieves to create cloned cards and access recipients’ accounts.
Chip-enabled cards work differently by generating a unique transaction code during each payment, making copied payment information harder to reuse. Contactless tap payments use similar security features. According to the Government Accountability Office (GAO), most SNAP cards previously lacked theft-prevention features such as embedded microchips, which are commonly used in commercial debit and credit cards.
The financial impact of benefit theft has been significant. According to a GAO analysis of USDA data, states replaced more than $320 million in stolen SNAP benefits for nearly 679,000 households between October 1, 2022, and December 20, 2024. The agency noted that the figure only covered approved claims submitted by victims and may not represent the full scale of theft.
The new cards do not change the amount of assistance recipients receive. Benefit balances are transferred automatically, though cardholders must activate replacement cards and follow instructions provided by their state.
States Expand Chip Card Rollouts While Recipients Adjust
Several states have already completed major parts of the transition. California finished its statewide conversion in April 2025, issuing replacement chip and tap cards to all 4.4 million EBT clients, according to the California Department of Social Services. Alabama also distributed new cards statewide in February 2026 after a pilot program.
New Jersey completed its statewide rollout on September 10, 2026. According to the New Jersey Department of Human Services, the state’s pilot program recorded more than 100,000 chip transactions and 41,000 tap-to-pay transactions before expansion to all SNAP and Work First New Jersey recipients.
Virginia began issuing new chip-enabled cards between September and December 2026, replacing older magnetic-stripe-only cards. The Virginia Department of Social Services said existing balances would transfer automatically and advised recipients to keep their current cards until the new ones arrive.
Other states have focused on helping recipients manage the change. In Maryland, more than 294,000 of nearly 507,000 recipients had activated their new cards by August 23, 2026, according to the state’s Department of Human Services. Officials reminded users that current benefits would remain unchanged after activation.
The transition does not remove every form of fraud. Phishing attempts can still target recipients who reveal card numbers or PINs. Agencies continue to advise users to protect their account information, check balances regularly and use available card security tools such as locking and unlocking features.
