**GAO-08-645**                      Published: Jun 23, 2008. Publicly Released: Jun 30, 2008.                  

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## Highlights

Traditionally, federal agencies made benefit payments by paper check, but they faced increased pressure to reduce costs and increase the convenience, security, and timeliness of payment delivery. In response to a 1996 congressional mandate, the U.S. Department of Agriculture's Food Stamp Program implemented Electronic Benefit Transfer (EBT) to distribute food stamps. According to agency evaluations, EBT has reduced program costs and fraud and offered recipients a quick, secure way to receive payment. These results spurred interest in using electronic payment methods for other benefit programs. GAO was asked to report on (1) the extent to which federal benefit programs are using electronic payments, and factors agencies consider for their use and (2) options for increasing the use of electronic payments, particularly the Department of the Treasury's (Treasury) actions to that end. GAO surveyed federal benefit programs identified from two federal databases; reviewed documents, reports, and studies on electronic payments; and interviewed federal and state agency, industry, and consumer representatives.

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## Topics

Government Operations

BeneficiariesCheck disbursement or controlElectronic benefits transfersElectronic funds transferFederal agenciesFederal aid programsFederal social security programsstate relationsFinancial institutionsLending institutionsPaymentsProgram evaluationTransfer paymentsProgram costsSocial programsWaste, fraud, and abuse