Your Child Has You. And You Have WIC.

National WIC AssociationYour child has you. And you have WIC. Issuance of electronic benefitsresults in WIC clinic efficienciesallowing more time for nutritioneducation. Electronic benefits provide detailedinformation for the health professional to individualize nutritioneducation.For the retailer: Common errors are averted asparticipants purchase only WICauthorized foods and redeembenefits within specified dates. Participants shop more often,resulting in additional purchasesof other items. Multiple checks/vouchers tocomplete (manually entering dateredeemed, pay exactly amounts,stamping the front of the checkwith a vendor stamp) are a thing ofthe past. Transactions are accomplishedbetween the card and the electroniccash register. Payment for transactions is timelier,through secure pathways. Each transaction is traceable.For the WIC State Agency: EBT ensures the participantpurchases only the approved andprescribed foods. EBT streamlines WIC clinic processes. Clinics are no longer completing handwritten checks/vouchersor printing automated checks. Thecard is issued electronically. EBT provides a record of the typeand amount of foods purchased byeach client at the redeeming retailer. EBT provides formula purchasinginformation that results in moreaccurate rebate billing of the typeand number of cans purchased bythe Program. Review of a retailer’s complianceis easier for these reasons; onlyapproved foods are purchased, theretailer cannot claim more than theshelf price thus decreasing overcharges, adherence to competitivepricing standards is immediate, andmanual completion which resultsin unreadable checks/vouchersis eliminated. The retailer’s transaction settlementis timelier resulting in the increasedability to manage food funds. Reporting is electronic and increases administrative efficiencies. Due to decreased time for issuanceand thus increased time for nutritioneducation, new methods of nutrition education can be examined. Detailed redemption data can beused as needs assessments fornutrition education planning andFood List selection.NWA Supports Standard formats for WIC EBTprocessing as well as supportingthe use of the X9.108 standardsfor offline message processingand the use of the ANSI approvedX9.93 standards Strong stakeholder partnershipsin designing and operating EBT. A National Universal ProductCode (UPC) database for WICeligible foods. A simplified cost evaluation modelthat analyzes the cost to provide afair determination of the use of EBTto assist WIC in transitioning froma paper based system to EBT.Delivering WIC Food Benefits via Electronic Benefit Transfer (EBT) Completion of the Operating Rulesfor Women, Infants and Children(WIC) Electronic Benefits Transfer document. This document is ajoint effort between FNS and otherstakeholders and applies to allWIC EBT processing and environments. This document addressesstandardization of such items as;transaction data content, redemption strategies, split tender, mixedbasket, discounts and coupons, useof cents off coupons, use of loyaltycards and self checkout. Completion of the universal interface document for WIC systems.ConclusionWIC EBT service delivery systems havepositive benefits for WIC participants,retailers, and State Agencies. WIC mustfully implement EBT nationwide by2020. Whatever method of EBT service delivery that is chosen by a StateAgency, whether offline or online, theselected system must be capable ofresponding to WIC Program changes,technology standards and industrystandards. NWA seeks to ensure themost efficient method for each Stateto deliver WIC’s food benefits activelyand fully supporting the issuance offood benefits through EBT by 2020.3

National WIC AssociationYour child has you. And you have WIC.Appendix A WIC EBT Offline and Online ComparisonSystem AreaOfflineCard Smart card technology with WIC prescription stored on microchip embedded in card. Higher cost per card. One card per account. Standard used is International StandardsOrganization (ISO) 7816, Parts 1–4,American National Standards Institute(ANSI) standards and EuropayMasterCard–Visa (EMV) 3.0 or later. Magnetic stripe technology with WICprescription stored in central database,similar to debit card process. Lower cost per card. Multiple cards can be issued per account,i.e., for a proxy. Standard used is International StandardsOrganization (ISO) 7813 (track 2 encoding).Benefit Issuance Requires physical presence of card atissuance location (clinic). Benefits are posted to the card using localcard reader/writer. Requires a terminal equipped with a smartcard reader to write benefits to the card. Card needs not be present at issuancelocation. Benefits are posted to a central databaseover telecommunications lines. Requires reliable telecommunications fromclinic to EBT host system. Requires availability of EBT host system.Benefit Change Requires physical presence of card atissuance location (clinic). Benefits are modified directly on the EBThost system. Card presence is not requiredat issuance location (clinic).Redemption Processing is accomplished within theTransaction Processingconfines of the retailer. The transactionoccurs between the retailer’s system andthe chip on the card. Telecommunications are not required forin-lane transactions. Transactions are posted on the EBT systemduring daily uploads. Transaction fees do not apply.4OnlineNational WIC Association Processing takes place on the EBT hostsystem. The transaction occurs betweenthe retailer and the host system. Requires reliable telecommunicationsbetween the retailer and EBT host systemfor in-lane transactions, similar to the debitcard process. When telecommunications areunavailable, the system could be set to do“store and forward”. Transactions are posted on the EBThost system in real-time. Transaction fees or telecommunicationscosts may apply. WIC’s complex multi-message transactionmay take longer than typical online debitor SNAP EBT transactions.

National WIC AssociationYour child has you. And you have WIC.Appendix A WIC EBT Offline and Online ComparisonSystem AreaOfflineOnlineTransaction Routing Each WIC Authority has its own BankIdentification Number (BIN); multiple BINScan be accommodated in the retailer’spayment terminal. Individual retailers generally send dailyclaim files directly to the WIC Authorityfor processing. Corporations responsiblefor multiple retailers may opt to submit allclaim files from the corporate office. Chain retailers operating under multipleWIC Authorities route claim files to thoseWIC Authorities directly by InternetProtocol (IP) address. Each WIC Authority has its own BankIdentification Number (BIN); multiple BINScan be accommodated in the retailer’spayment terminal. Retailers’ online transactions often makeuse of intermediary processors (Third PartyProcessor-TPP and Gateway) to facilitatemoving a transaction from the retailer tothe processing EBT host. Using a TPP and gateway or a direct connect makes seamless the issues of a chainor border retailers processing redemptionsfor multiple WIC State Agencies. Fees may apply to the use of these intermediaries. However, a WIC Authority may offera direct connect without any transaction fees. Intermediaries need technology upgradesto integrate the existing retailer POS, (inaddition to what is required of the in-retailersystems) to accommodate the complexWIC message format and flows.System Availability Card and card reader/writer must befunctional to access benefits. No manual alternative is available as benefitinformation is stored on the microchip. Requires operational telecommunicationsbetween the retailer and the EBT host system, including any intermediate processors. Manual card entry and manual telephoneauthorization are possible but cumbersome. Store and forward processing is possiblebut has issue of financial liability, similarto SNAP.Host Processing The host interface with the retailer is typically once daily in batch mode at the retailerdesignated timeframe. At this time, theretailer will download the current AuthorizedProduct List (APL) and Hot Card List (HCL)files as well as submit a claim file and/orretrieve an Auto Reconciliation File (ARF). The EBT host system transaction processingrequires reliable telecommunications,7x24 availability and rapid transactionresponse times. A terminal driving layer is required in thetransaction architecture. This is a more complex environment thanoffline processing.Delivering WIC Food Benefits via Electronic Benefit Transfer (EBT)5

National WIC AssociationYour child has you. And you have WIC.Appendix A WIC EBT Offline and Online ComparisonSystem Area6OfflineOnlineCard/BenefitReplacement Cardholder must come to the clinicto receive a replacement card andreplacement benefits. There is generally a waiting period (usually48 hours) to replace lost benefits so asto ensure all outstanding redemptiontransactions have cleared. A replacement card can be mailed to theparticipant or can be issued immediatelyin the clinic. A card replacement will immediatelyrestore access to existing benefits in thehousehold account.Hot Card andCard Inactivation Lost or stolen cards are inactivated by listingthem on a current HCL provided to retailersthrough download every 48 hours. Cards onthe HCL are invalid for in-lane transactions. A lost or stolen card can be immediatelyinvalidated in the EBT host database whenreported; thus preventing any further useof that card.Security Uses PIN security to access benefitscontained on card. Requires presence of card and cardholderat clinic location to select or change the PIN. An encryption key is required to updatebenefits on the card. WIC Authority must manage key encryptionprocess for state, clinic and retail equipment. An electronic transaction signature generated from the card on the POS is used toensure validity of all transactions presentedin a claim file. Uses PIN security, encrypted fortransmission and validated at EBT host. PIN can be selected and changed remotelyusing a telephonic interface. Encryption keys are changed on adynamic basis. WIC Authority must manage keyencryption process for state, clinic and retailequipment with an in-house model.Settlement Claim files are processed, in batch mode,and reconciled, daily. Not-to-exceed (NTE) exceptions are appliedduring this process. Settlement generally occurs the next business day or within two (2) days for thosetransactions that are successfully uploaded. Settlement is generally deposited to theretailer’s bank account that submittedthe claim file. Settlement and reconciliation files areupdated as transactions are approved atthe EBT host system. NTE exceptions are applied as eachtransaction is processed. Based on a system end-of-day process,retailers may be reimbursed electronically the next business day for transactionsapproved prior to the daily cut-off. Settlement is generally deposited toeach retailer’s bank account. The system may make use of intermediaryprocessors to effect settlement which mayprovide retailers with a combined (WICplus other tender types) settlement.National WIC Association

National WIC AssociationYour child has you. And you have WIC.Appendix A WIC EBT Offline and Online ComparisonSystem AreaOfflineOnlineReconciliation An auto-reconciliation file (ARF) documenting the disposition and settlement amountfor each individual claim (containing thatbusiness day’s transactions) is available forretrieval by the retailer shortlyafter claim file processing. ARFs are retrieved during the batchprocessing. Corporations may opt tomanage ARFs from the corporate office. Chain retailers operating in multipleWIC Authorities will receive reconciliationdata from each Authority. NTE exceptions are calculated real time oneach transaction and returned to the retaileras an integral part of the approval message. Reconciliation is between the partiesoriginating and accepting a transaction.Consequently, a retailer may reconcilewith its chosen transaction acquirer whoin turn will reconcile with the EBT issuer(or maybe a Gateway processor). A reconciliation file of all of that day’stransactions is made available to the retailer(or the TPP) that sent the transaction tothe EBT host on a daily basis. Automated reconciliation processes areoften available from intermediary processors. Retailers using a TPP may be ableto receive a combined (WIC plus othertender types) reconciliation. Chain retailers operating in multiple WICauthorities will receive reconciliation datafrom each authority.Balance Inquiry The card is the database of record andrequires a smart card reader that canprovide the participant with a printed listof available benefits. Card must be present to inquire onthe balance. The EBT host is the database of recordand a balance inquiry can be provided overthe phone or via interactive voice responseunit (IVR). Card does not have to be present to inquireon the balance but the card number andPIN are generally required. Balance can also be provided through aprinted account summarization, from a POSdevice or internet connection.Audit Trail Audit trail of redemption activity is maintained in the retailer system and by the EBThost for a time frame determined by theretailer and the state. Audit trail of redemption activity ismaintained at the retailer and by EBT hostprocessor at time of purchase.Delivering WIC Food Benefits via Electronic Benefit Transfer (EBT)7

National WIC AssociationYour child has you. And you have WIC.Appendix A WIC EBT Offline and Online ComparisonSystem Area8OfflineOnlineCustomer Service Current account balance or card statusinformation is available at WIC-enabledsmart card reader. Transaction history is available for thosetransactions that have been settled. Current account balance and card statuscan be available from central help desk. Up to the minute transaction historiesare possible. Existing SNAP processes and datacommunications lines can be shared andutilized by WIC.Infrastructure A change in card capabilities may lead toreprogramming of the devices that interfacewith the card. Smart card technology is not widespreadin retail locations in the United States, butis growing. Use of technology is new in most retailenvironments and requires technologyintegration and training. Proven functionality for WIC. Retailerenvironments are certified and operational. Magnetic stripe card standards, technologyand infrastructure have been in place. Magnetic stripe technology is widely usedin United States retail locations. Implementation of WIC using this approachrequires significant upgrades in retailer’ssystem capabilities and training. Proven functionality for WIC. Retailerenvironments are certified and operational. Proven functionality for SNAP, TANF, Visa,Master Card, etc.UPC Database of WIC-approved UPC/PLUs ismaintained at the state EBT host. An APL file is retrieved by the retailersduring batch processing. Database of WIC-approved UPC/PLUs ismaintained at the state EBT host. UPC verification is performed real time throughthe transaction’s connection with the EBT host.Backup It is the retailers’ responsibility to securelybackup transaction data. Any data lost prior to uploading to theEBT host is at the retailer’s risk. The central site creates a backup of all data atthe time of purchase, thus, assuring retailersof accurate and complete settlement.Disputes Data required in proving a dispute may befound in the transaction claim log, claim file,on the card and in the EBT host system. Once a transaction is approved by the EBThost, proof exists that the transaction tookplace and the retailer is assured of settlement.For further information visit www.nwica.org

National WIC Association Your child has you. And you have WIC. The WIC Program The WIC Program is America’s premier public health nutrition program serving over 9 million mothers and young chil-dren (over half of all America’s infants and one-quarter of its young children 1-5 years of age) through 12,200 service provider agencies nationwide .