Is it against the law not to accept E.B.T.?
No, because the ONLY form of payment a merchant is required to take according to federal law is the "coin of the realm", as in US Currency and coins.
Not all merchants take an EBT card, and most wouldn't take a defective one because it might be counterfeit or altered.
The same caution would likely apply to all debit and/or credit cards, too!
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Excerpted from the EBT Guidelines:
When an EBT card is swiped through a POS device, the device reads account
information from the magnetic strip on the back of the card. If a strip is damaged,
it won't be read by the POS device. If this happens, you may use the POS keys to
enter the card number. Don't manually enter numbers from an EBT card unless
the SNAP customer is present.
The customer must enter his or her PIN to authorize a key-entered transaction. SNAP
rules allow key entry as a convenience for customers, but the customer should get a
replacement card.
Don't use the manual key-entry method unless the POS device or the customer's
card is not working. If your POS device frequently fails to accept EBT cards, it may
need to be serviced. FNS will monitor how often you use the key entry method and
investigate suspicious behavior.
(Author's note: Walmart has the "no input" policy to avoid being investigated and to reduce fraud.)
I suggest you take the defective card issue up with the agency that issued you your card.
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The written word on EBT cards:
https://fns-prod.azureedge.net/sites/default/files/snap/Retailer-Training-Guide.pdf
