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FMI MARKETECHNICS

NEW ORLEANS -- As the majority of individual states move toward establishing electronic benefits transfer programs, retailers are awaiting the launch of a pilot this summer that would make the process interoperable for customers using their benefits between states offering EBT.This summer, a test will be conducted in Humble, Texas, near the New Mexico border, which will explore the functionality of

NEW ORLEANS -- As the majority of individual states move toward establishing electronic benefits transfer programs, retailers are awaiting the launch of a pilot this summer that would make the process interoperable for customers using their benefits between states offering EBT.

This summer, a test will be conducted in Humble, Texas, near the New Mexico border, which will explore the functionality of a state-interoperable EBT program, according to Elizabeth Tansing, manager of state government relations for the Food Marketing Institute, Washington.

"State interoperability is very important," said Jennifer Hatcher, government relations representative for the FMI. "There is no reason to expect people who live near the borders not to shop in different states."

The only way to successfully ensure the complete commonality of EBT programs, however, according to Hatcher, is if the federal government takes action to oversee the development of electronic benefits programs.

Until the government sets up such a nationwide EBT initiative, Hatcher said, getting full interoperability across all 50 states would not occur. "Legislation needs to be passed first to help us in this cause," she said.

Hatcher, along with Tansing, discussed these issues at the MarkeTechnics Convention, held here Feb. 26 to 28. As of this summer, 39 states will have some form of EBT program in place, according to Tansing. Yet, until the program is widespread nationwide, there will continue to be glitches in the system.

"I had an example of [an out-of-state] customer coming to Virginia to use their [EBT] card," Hatcher said. "Virginia does not take any EBT cards yet. They were unable to use their card and that customer got very upset. Such examples will only become more common as more states implement EBT."

Another concern addressed at the seminar as states move toward EBT was the issue of transaction fees for retailers accepting EBT. "FMI supports all conversions to EBT as long as the cost of doing it is not shifted to the retailers," said Tansing.

Tansing cited states like Wisconsin and Minnesota where retailers receive a refund for each EBT transaction. This was initiated to counter any cost that might be passed on to the retailer.

"Ten million people who receive benefit checks do not have bank accounts," said Hatcher. "The idea is to get these people to open more accounts and to have access to using cards. But the biggest thing is to make sure no added cost is passed