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Originally Posted by BigV
The savings of not having to pay for printing and distribution of the stamps, including the redemption side of the equation probably were greater than the cost to run the program electronically.
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It could also diminish fraud by preventing the sale of food stamps. If you sell your card, you can't use it (or sell it again) next month. But if you've got a food stamp scam going on (ie you receive but don't need them), you can sell them each month as you receive them.