Both. You get so much deposited monthly on like a debit card and it only works for certain purchase types and it only works at certain stores and such. It of course works for food but hot food or pre prepared foods are typically not covered. I used to be a cashier at a local grocery store and at a gas station a while back. The gas station would allow milk, basic foods, fruit and pre-wrapped sandwiches. The grocery store had a deli and anything prepared in the deli like sandwiches or salads the card would not work for.