Are you looking for ways to increase your grocery store’s revenue while also serving as a valuable resource to your community? Become a food stamp retailer!
Over 12 percent of Americans get federal help to purchase household essentials, including groceries. Stores that meet the Supplemental Nutrition Assistance Program (SNAP) retailer requirements can both enjoy the increased profits from this federal program and help those struggling in their communities to make ends meet. But how do you get approved to be part of this program?
This article provides a step-by-step guide to answer the question: How do I accept food stamps at my business? We’ll also walk you through the advantages of participating in this program and some systems and point of sale (POS) technologies you’ll need to support your store after getting approved.
How Do I Accept Food Stamps at My Business: Getting Started
Before you can start accepting food stamps at your business, you must understand what food stamps are. You’ll often hear three terms related to government food programs: SNAP, food stamps, and EBT. What’s the difference between these?
SNAP is the official name of the USDA’s federal food assistance program. “Food stamps” is the previous name of the SNAP program, and is still used conversationally to describe the benefits.
EBT stands for Electronic Benefits Transfer and refers to the electronic system that state welfare agencies use to issue SNAP funds monthly to enrolled recipients. EBT cards work similarly to debit cards and can be used at authorized retail locations to purchase food.
So, in summary, SNAP is the name of the overall assistance program, "food stamps" refers to the actual benefits, and EBT is the electronic system used to distribute those benefit funds.
Many smaller grocery stores and markets wonder whether accepting SNAP is worth it. As a retailer, accepting SNAP payments comes with numerous advantages:
- Expanded Customer Base: Accepting SNAP benefits grants your store access to the 45+ million program beneficiaries who actively shop with their benefits each month.
- Increased Sales: Most SNAP households spend their entire benefits allowance each month. Additionally, beneficiaries will likely purchase non-SNAP items since they’re already in your store.
- Reimbursement Guarantee: Stores get fully reimbursed for every SNAP purchase, ensuring reliable payment.
- Increased Customer Loyalty: Customers using SNAP will be more likely to return to your store since they know they can use their benefits.
- Enhanced Community Bond: You can help make healthy foods accessible to more families in need. It also aligns with corporate social responsibility values.
To accept EBT card SNAP payments, food retailers need the right point of sale technology. An integrated POS system lets you accurately track and update SNAP-eligible inventory, seamlessly process EBT card transactions, and gain visibility into program sales and trends. Upgrading technology makes it simple to accept food stamps and equips smaller retailers to serve their communities better.
Related Read: Unpacking the Functionality of an EBT POS System
With this understanding, we can now explore our five-step process to begin accepting food stamps at your business.
5 Steps To Accept Food Stamps at My Business
1. Determine Your Eligibility
The first step to accepting food stamps at your business is to ensure you qualify as a SNAP retailer. The SNAP program aims to provide low-income consumers with access to food, and your store’s product mix and sales volume must meet specific requirements to qualify.
Let’s examine the specific requirements stores must meet to qualify.
Qualify Based on Product Mix:
- Sell at least three varieties of foods in four staple groups: meats, bread/grains, vegetables/fruits, and dairy.
- Two of the four groups must carry perishable options (fresh, refrigerated, or frozen).
Related Read: How Grocery Store Inventory Leads to Increased Profits
Qualify Based on Sales Mix:
- More than 50 percent of your store’s food sales must come from SNAP-eligible items.
Ensuring your store carries a well-rounded mix of essential grocery products emphasizing fresh foods provides the best shot at getting approved. Before applying, check if your current retail operations meet program standards around eligible inventory and sales volume.
2. Apply Online
Once you’re confident your store meets the qualifications, you need to apply. You can apply to become an authorized SNAP retailer online. Your application must include several crucial bits of information, such as:
- Store name, ownership details, location, and contact info
- Estimate of annual SNAP redemption volume
- Supporting permits, licenses, and tax documents
After submission, SNAP will verify the provided information and run background checks on all owners. Each location needs its own permit — so if you have multiple stores, apply for each separately. Your permit also doesn’t transfer if your store changes address or if ownership changes hands.
Related Read: ANSWERED: How Much Does It Cost To Open a Grocery Store?
There is no fee to submit your SNAP application. After submitting your application, you will receive a response within 30 to 90 days. If your store is not approved, you may reapply after one year.
Completing the application and providing accurate documentation is important to get approved quickly. This allows your business to reap the many benefits of servicing SNAP recipients as soon as possible. Display your permit proudly in-store once received so customers know you accept food stamps.
3. Document and Publicize Your Approval
Once the USDA Food and Nutrition Service (FNS) approves your SNAP retail application, your store will receive an FNS permit. Ensure you have copies documenting this approval on file.
Also, clearly communicate that you accept SNAP both in-store and on your website and marketing materials. This outreach lets potential customers know they can reliably purchase food with their benefits at your location.
As the store owner, you are liable for employees' violations of SNAP policy. These violations include refusing EBT cards, requesting cash back, or not adhering to program guidelines. Violations can result in canceled permits and financial penalties, including losing authorization to participate in SNAP entirely for a set time.
Post signage for staff on key program compliance and eligibility policies to avoid misunderstandings. Be extremely familiar with rules around allowed SNAP purchases, manual voucher processing, and card reader troubleshooting. Making SNAP acceptance easy, reliable, and understandable at your store ensures you reap the many benefits that supporting EBT shoppers provides.
4. Train Your Team
As briefly discussed above, one of the most important things you can do to maintain your ability to accept food stamps is to ensure your team does not commit violations. As a result, the fourth step of your SNAP implementation process is training your team.
Team members should clearly understand program rules, appropriate equipment use, and processes related to EBT acceptance. All staff and owners must complete SNAP training within 30 days of receiving the FNS permit and complete a refresher course annually to stay compliant.
Related Read: Improve Grocery Store Operations: 10 Tips, Tools, and Tactics
Keep detailed records of all your staff’s training materials, and ensure you have processes in place to ensure all new hires complete their mandatory SNAP training during onboarding.
Be sure all cashiers, managers, and relevant staff understand how to accept EBT cards and handle transactions properly. Cover what benefits recipients can purchase with SNAP benefits versus other payment types.
Having well-trained staff makes the process of accepting SNAP seamless for customers and store operations alike. Include expectations around mandatory USDA training in official policies so all owners and employees complete requirements on schedule. Maintaining thorough, accurate records also helps retailers demonstrate SNAP compliance if any issues arise.
5. Follow Food Stamp Best Practices
Once your store is approved to accept SNAP benefits and your staff training is complete, the only thing left is to ensure you follow proper procedures and best practices. Maintaining best practices ensures your systems run smoothly and provides the best experience for your EBT shoppers.
Let’s examine a few key best practices.
- Accept Customer EBT Cards: Treat SNAP EBT cards like credit/debit card transactions. Once your point of sale system is properly set up, it can automatically deduct the purchase amount from the customer's available benefits.
- Use Approved Equipment: Utilize an EBT-approved card reader to process transactions. You can get a free terminal if you qualify based on your store's SNAP sales volume. Lower-volume retailers may be issued paper vouchers to use during system outages.
- Invest in an EBT-Friendly POS System: The right POS system and payment terminal hardware streamlines food stamp acceptance. Work with a provider familiar with SNAP retailer requirements to ensure you have compliant technology and equipment tailored for specialty food and grocery operations.
Following protocols around processing EBT purchases, voucher issuance, and handling any troubleshooting protects your store from penalties due to inadvertent noncompliance with SNAP requirements.
Answered: How Do I Accept Food Stamps at My Business
Expanding your customer base by accepting SNAP EBT payments provides a reliable source of revenue while allowing you to support hard-working families in your community. Taking on food stamp transactions can feel like a burden, but with the right tools in place, it doesn’t have to.
The right point of sale solution makes accepting electronic benefits seamless. Choose a system designed specifically for high-volume grocers, markets, and specialty food retailers. Utilize integrated reporting and inventory management alongside secure EBT payment processing.
Markt POS enables merchants to easily accept SNAP EBT payments using top compliance standards. Our unified POS platform is purpose-built to help stores serve their communities while simplifying operations for maximum efficiency.
Schedule a demo with Markt POS to learn how our dedicated grocery technology can help you profitably accept food stamps and better manage your business.
