Becoming an electric benefits transfer (EBT) retailer can boost your business and open up a whole new segment of customers. When you apply to accept EBT, you also stand out from competitors who may not offer the same benefits. However, many companies aren’t sure how to start accepting SNAP benefits or become an EBT retailer. Read this EBT retailer manual to learn everything you need to know about EBT and SNAP to start benefiting.
SNAP Benefits and EBT
When individuals previously used SNAP benefits, they used paper coupons every time they shopped. Now, most states use a plastic EBT card that works like a debit card. An EBT card usually includes SNAP benefits, as well as cash benefits such as unemployment and housing assistance. Every time someone uses an EBT card for food, the amount they spend is automatically subtracted from their EBT account and added to your bank account. You should see the money deposited into your account within two business days. This benefits your store and also provides a more discreet payment option for those using SNAP benefits.
The Difference Between EBT and SNAP
The Supplemental Nutrition Assistance Program (SNAP) is a federal nutrition program that helps eligible individuals stretch their food budgets and purchase healthy food. The program used to be called food stamps. SNAP benefits are used to buy food at grocery stores, convenience stores and some farmers’ markets and co-op programs. Since SNAP is a federal entitlement program overseen by the United States Department of Agriculture (USDA), anyone deemed eligible can receive benefits. It is not a cash assistance program, and individuals don’t take away benefits from others who apply. EBT is the format in which the government gives out SNAP benefits. Every month, individuals eligible for SNAP get a plastic card called an EBT that looks like a debit card. SNAP benefits come already loaded on the card, so people can simply visit an EBT retailer and use the card to purchase food through the SNAP program.
What Are the Benefits of EBT and SNAP?
There are benefits of EBT and SNAP for both consumers and businesses. Consumers using SNAP benefits won’t go hungry every month, and they can supplement their monthly food budgets with the benefits. They can also purchase higher quality, healthy food that may have been too expensive to afford before receiving benefits.
Your business also benefits as an EBT retailer. Accepting EBT can increase your customer base, allowing you to reach a wider range of consumers. You’ll also improve your cash flow and reduce the amount of wait time in checkout lines. As word spreads that you accept SNAP benefits through an EBT card, you’ll notice profits rise.
Update Your EBT Equipment
After your business has a permit to accept EBT transactions, the next step is to get the right equipment. SNAP retailers must provide their own EBT equipment for accepting these kinds of sales.
For your SNAP POS system, choose the experts in EBT and SNAP transactions. Velocity Merchant Services has a team of experts in EBT and SNAP who will help your business find the right equipment. An EBT card machine can help your business — and your profits — grow.
Equipment for Processing SNAP EBT
To start accepting EBT, the hardware you use must:
- Accept PIN transactions in a stand-alone unit or PIN pad in the terminal
- Be programmed with the encryption keys from your provider
- Use a seven-digit FNS account number so your merchant account can accept EBT payments
You may be able to use the equipment you already have by reprogramming the terminals to make it an EBT card reader. However, it is often quicker to purchase a new EBT terminal machine, allowing your business to accept EBT transactions sooner.
When deciding on the right equipment for your EBT card machine, remember to consider the cost. You may have to pay extra fees if you choose to add EBT card processing to your current machine. Between the cost of paying per transaction and hidden fees, your profits might decrease. With new equipment, you won’t have to pay any fees aside from transaction processing. Talk to an expert at Velocity Merchant Services to determine what solution is right for your business.
What to Look for in Your EBT Implementation
After installing your EBT equipment, implementing this new form of payment will bring many benefits to your business and your customers. Your customers will trust your store as a place where they can use their SNAP benefits, and since your store sells staple food items and accepts EBT cards, these customers will purchase your products week after week. When your equipment can handle many kinds of transactions, your profits will rise as an EBT retailer, and your business will grow.
