SNAP benefits are changing how they look and how they work in Alabama, starting with one simple move: replacing swipe-only EBT cards with chip-enabled versions. The shift is already underway and it’s aimed straight at a problem that has drained millions from the program in just months.
For SNAP benefits recipients, the change matters now, not later. Fraud tied to stolen card data has forced the state to reimburse close to $16 million, and officials say the old system simply couldn’t keep up with modern theft methods. The rollout puts SNAP benefits at the center of a broader federal push to reduce skimming and digital fraud, while keeping monthly food assistance flowing without interruption. Alabama is one of the first states to move at scale.
Supplemental Nutrition Assistance Program (SNAP benefits)
SNAP benefits in Alabama reach roughly 750,000 residents and move about $140 million every month. That volume makes the system an attractive target for criminals using card cloning, phishing and automated attacks. Between May 2023 and December 20, 2024, the state reimbursed $15.9 million in stolen SNAP benefits. Those losses triggered a faster transition to chip-enabled cards, similar to standard debit cards.
The new EBT cards include embedded microchips, an expiration date and a three-digit security code. Personal details are printed on the back, not the front, another small but relevant change.
According to the Alabama Department of Human Resources, the cards are being mailed out after a pilot program covering 11 counties. The testing phase lasted between 30 and 45 days. Once received, cards must be activated within 180 days. Old cards are expected to be destroyed to avoid confusion or misuse.
Why chip-enabled SNAP benefits cards matter
SNAP benefits fraud isn’t theoretical. At the national level, the U.S. Government Accountability Office estimates that states recorded more than $320 million in stolen benefits between October 2022 and December 2024. The real number could be higher. Not all theft is detected, and not all victims report it right away.
Most SNAP benefits cards historically lacked basic security features. Magnetic stripes alone are easy to skim, especially at outdated terminals.
Microchips don’t eliminate fraud completely, but they raise the cost and difficulty of stealing benefits. For many attacks, that’s enough to push criminals elsewhere.
How purchases will work at stores
SNAP benefits recipients are encouraged to insert the card into the point-of-sale terminal, not swipe it. That’s where the chip does its job. If the chip fails or the store hasn’t upgraded its system, the magnetic stripe can still be used as a fallback, for now. That option is temporary.
Retailers play a role here. Some stores still rely on older terminals, and upgrading a large network can be expensive. Estimates suggest big chains could spend hundreds of thousands of dollars.
To smooth the transition, state officials coordinated with grocery and convenience store associations so terminals would be ready before cards arrived.
What stays the same for SNAP benefits users
Despite the new hardware, SNAP benefits rules and monthly amounts are unchanged. Eligibility, deposit schedules and approved food purchases remain exactly the same. Recipients do not need to reapply or take extra steps beyond activating the new card. Funds transfer automatically.
One thing that does change is accountability. Using chip-based transactions makes it easier to detect abnormal activity faster, which could reduce reimbursement delays in the future.