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

1. (1) ACH--Automated Clearing House Network. The Federal Reserve and financial institutions operate the ACH to electronically process fund transfers between financial institutions.
2. (2) Advice--Electronic message a retailer sends to receive reimbursement for a manual transaction previously authorized verbally by the call center. The EBT system acknowledges receipt of the Advice, but does not send another approval. The Advice may be declined if it does not match the information on the original transaction authorized by the call center.
3. (3) Banking business day--A calendar day (begins at midnight and ends the following midnight) other than a calendar day that is a Saturday, Sunday, or day on which banks and federal institutions are closed.
4. (4) Cash-back--The disbursement of funds from a cash benefit account transacted through a point-of-sale (POS) terminal.
5. (5) Chargeback--An account adjustment entry against the respondent's settlement account made as a result of the resolution of the dispute in favor of the initiator.
6. (6) Client--A household member or the household member's authorized representative eligible to receive Temporary Assistance for Needy Families (TANF) and/or Food Stamp Program benefits and to perform transactions using an EBT card.
7. (7) Day--A calendar day unless otherwise specified.
8. (8) EBT--Electronic Benefit Transfer. The delivery of government benefits through electronic means and media.
9. (9) EBT contractors--Vendors that contract with DHS to provide EBT services in Texas.

10. (10) EBT program transactions--Benefit or account transactions involving:

    1. (A) authorization;
    2. (B) issuance;
    3. (C) redemption;
    4. (D) accounting;
    5. (E) settlement;
    6. (F) reconciliation; or
    7. (G) queries.
11. (11) EBT system--A computer-based system in which the benefit authorization is received from a central computer through a POS terminal.
12. (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. (13) Equipment--The hardware and equipment, if any, the retailer management EBT contractor provides to a retailer on behalf of DHS.
14. (14) FNS--Food and Nutrition Service. The division of the U.S. Department of Agriculture responsible for administering the Food Stamp Program at the federal level.
15. (15) Initiator--The party initiating the process to resolve a disputed EBT account discrepancy with the respondent.
16. (16) PIN--Personal identification number. A four-digit alphanumeric code selected by or assigned to the client. Used to verify identity of a cardholder when performing an online transaction at automatic teller machines or POS terminals.
17. (17) POS terminal--Point-of-sale terminal used in connection with the authorization and redemption of EBT program benefits. A terminal may be used for other purposes.
18. (18) Respondent--The second party to a disputed EBT account discrepancy identified by the initiator.

19. (19) Retailer--A merchant located within the physical borders of Texas that:

    1. (A) is certified by FNS to accept food stamp benefits; or
    2. (B) chooses to accept TANF cash for purchases or provide TANF cash.
20. (20) Software--The software operating on or in connection with the equipment.
21. (21) Switch--An entity that electronically routes an interstate transaction by transmitting the details of an EBT card transaction in one state to the issuer of the card in another state.

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

    1. (A) financial institution;
    2. (B) cardholder authorization processor other than the Texas EBT contractors; or
    3. (C) retailer that operate its own POS terminals.
23. (23) USDA--United States Department of Agriculture.

Source Note:The provisions of this §372.1701 adopted to be effective March 17, 2004, 29 TexReg 2661; transferred effective April 1, 2004, as published in the Texas Register July 2, 2004, 29 TexReg 6359.