This study is part of a larger FNS effort to ensure WIC program integrity and to comply with the Improper Payments Information Act of 2002 which requires FNS to estimate improper payments in its programs.

SEBTC demonstration offered a rigorous test of the impact of providing a monthly benefit of $60 per child - using existing electronic benefit transfer (EBT) systems - on food insecurity among children during the summer when school meals are not available.

This report explores the feasibility and potential cost of enabling EBT systems to differentiate between program-eligible and ineligible items. It considers the cost of upgrading systems in stores that now have scanners and the cost of installing new systems in stores without scanners. The report also examines the potential for the purchase of ineligible items even with the introduction of new technological controls.

This report inventories technological approaches to portable on-line authorization and reports on their technical and cost feasibility, advantages/disadvantages and potential impacts.