H.R. 7316: SNAP Payment Security and Fraud Prevention Act of 2026

H.R. 7316 would move SNAP cards closer to the security features you already expect from other payment cards — chips, fraud alerts, account freezing, and merchant-specific virtual numbers for online use.

The bill says states would have to issue chip-enabled EBT cards, then phase out magnetic-stripe cards on a longer timeline. According to the bill text, states would begin issuing chip cards within 2 years after final regulations, stop issuing new magnetic-stripe cards within 4 years, and replace all existing ones within 5 years.

It also requires account tools that let you manage risk in real time. States would have to offer opt-in transaction alerts with the amount and merchant information, let households report fraudulent transactions through the account interface, and allow cardholders to freeze or unfreeze card-number-entry purchases.

If your card is lost, damaged, or hit by fraud, the bill says you should receive a replacement within 3 business days. In several situations — including suspected fraud, malfunction, expiration, or security-related replacement — states could not charge a replacement fee.

The bill also expands enforcement. It gives the USDA Inspector General broader authority to investigate cyber-enabled theft across jurisdictions, and it creates a civil penalty equal to twice the value of stolen benefits, with recovered money directed toward reimbursement costs and investigations.

The tradeoff is cost and implementation: states, EBT vendors, and SNAP retailers would need new systems, new terminals, and tighter cybersecurity rules to make this work.