SECTION 372.1701. Definitions

The following words and terms, when used in this subchapter, have the following meanings unless the context clearly indicates otherwise.

(1) Automated Clearing House Network (ACH)--A secure payment system of the U.S. Federal Reserve Bank that provides electronic funds transfer between banks.

(2) Advice--An electronic message a retailer sends to receive reimbursement for a transaction. The Electronic Benefit Transfer (EBT) system acknowledges receipt of the Advice, but does not send another approval. The Advice may be declined if it does not match the record of information associated with the original transaction authorized by the call center.

(3) Banking business day--A calendar day (begins at midnight and ends the following midnight), not including a Saturday, Sunday, or a holiday when banks are closed.

(4) Cash-back--The disbursement of funds from a TANF account transacted through a point-of-sale (POS) terminal.

(5) Chargeback--An account adjustment entry against the respondent's settlement account. The adjustment is made as a result of the resolution of the dispute in favor of the initiator.

(6) Client--A person authorized to receive benefits and perform transactions.

(7) Day--A calendar day unless otherwise specified.

(8) Electronic Benefit Transfer (EBT)--An electronic system that allows public assistance benefits to be issued to a client via a debit card. The client authorizes transfer of benefits from the client's account to a retailer account to receive cash or pay for products.

(9) EBT contractor--A vendor that contracts with the Texas Health and Human Services Commission (HHSC) to provide EBT services in Texas.

(10) EBT program transaction--Benefit or account transaction involving:

(A) authorization;

(B) issuance;

(C) redemption;

(D) accounting;

(E) settlement;

(F) reconciliation; or

(G) inquiry.

(11) EBT system--An electronic payments system that uses electronic funds transfer, automated teller machines, and point-of-sale technology for the delivery of public assistance benefits. The major components of the Texas EBT system are call center, retailer management, application software, and central processing.

(12) Entertainment--The sale of alcoholic beverages, legalized games of chance, sexually oriented material, coin-operated amusement machines, or amusement services as defined by the Comptroller of Public Accounts for tax purposes in 34 TAC §3.298 (relating to Amusement Services).

(13) Equipment--The hardware, including POS terminals, personal identification number (PIN) pads, cables, connectors, and power cords, the retailer management EBT contractor provides to state-supported retailers on behalf of HHSC.

(14) Food and Nutrition Service (FNS)--The division of the U.S. Department of Agriculture responsible for administering SNAP at the federal level.

(15) Initiator--The party initiating the process to resolve a disputed EBT account discrepancy with the respondent.

(16) Personal identification number (PIN)--A four-digit alphanumeric code selected by or assigned to a client. A PIN is used to verify the identity of a cardholder when performing an online EBT program transaction at an automatic teller machine or POS terminal.

(17) Point-of-sale (POS) terminal--A range of electronic devices deployed at retailer locations and used to initiate the electronic debit of client accounts and credit retailer accounts as a purchase is made, or to initiate the electronic credit to the client account and debit to the retailer account for a return.

(18) Respondent--The second party to a disputed EBT account discrepancy identified by the initiator.

(19) Retailer--A merchant authorized by the U.S. Department of Agriculture, Food and Nutrition Service to accept SNAP benefits, or that chooses to accept TANF cash for purchases or chooses to provide TANF cash.

(20) Retailer management EBT contractor--The vendor that contracts with HHSC and is responsible for retailer services, including settlement and reconciliation; dispute resolution; retailer agreement; retailer operating rules; and training, managing, and supplying equipment and help desk services for state-supported retailers.

(21) Settlement--The exchange of information that results in the transfer of funds from one entity to another to complete a financial transaction.

(22) Settlement date--The date on which settlement occurs.

(23) Software--The EBT applications program operated on or in connection with the equipment.

(24) State-supported retailer--A retailer that chooses to operate POS terminals supplied by the retailer management EBT contractor on behalf of HHSC.

(25) Switch provider--An entity that records, tracks, and accounts for EBT transaction activity and relays Texas EBT program transactions between the central processing system and the proper third-party processor or retailer.

(26) Third-party processor (TPP)--An entity that relays EBT program transactions through its own host system to the Texas EBT central processing system for authorization. The entity may be:

(A) a financial institution;

(B) a cardholder authorization processor other than a Texas EBT contractor; or

(C) a retailer that operates its own POS terminals.

Source Note: The provisions of this §372.1701 adopted to be effective September 1, 2009, 34 TexReg 5361