EBT costs less than paper-based benefit delivery. The private sector will also share these cost savings. Before being burned after only one use, food stamps are counted dozens of times by merchants, depository financial institutions, and the Federal Reserve. With EBT, the costs for this excess processing will no longer be passed on to the public. In partnership, the government and private sector have built the foundation for nationwide EBT and now are focusing on national rollout of EBT systems for food stamps and simple cash payments.
Several nations use smart cards as telephone cards.
In Spain they are used as Social Security Cards, and in Germany smart cards are used as health and medical records. One of the biggest advantages of EBT is its potential to reduce theft, fraud, and abuse. The American taxpayers look to their governments to end this abuse. Smart card systems can further enhance security to ensure that government benefits are used as intended. The same security capabilities can actually increase privacy, preventing unauthorized access.