Electronic Benefits Transfer (EBT) is an electronic system that enables a Supplemental Nutrition Assistance Program (SNAP) participant to pay for food with SNAP benefits. When a participant shops at a SNAP-authorized retail store, the SNAP EBT account is debited to reimburse the store for the purchase of food. If one wants to integrate and accept EBT payments with a POS system, one would need to learn a few essential things about the program.
How does it work?
Beneficiaries of EBT receive a plastic card with a magnetic strip and PIN. Cash and food stamp benefits get deposited into the electronic benefit account, which can be accessed using the PIN. This card works at EBT-participating merchants, ATMs, and point-of-sale (POS) terminals.
Eligibility and requirements
A store that wishes to accept EBT cards may need to meet certain criteria.
- The store must have a wide range of qualifying food items and a broad spectrum of food types like vegetables, meats, fruits, bread, and canned foods.
- If a store does not have food items on this level, they could still qualify for EBT payments if a major part of revenue comes from food-related purchases.
Since EBT transactions require a physical card swipe, a business will need a POS system that accepts EBT payments. In addition to providing access to a large population participating in SNAP, the POS will also offer additional benefits through automation and streamlining of internal business processes.
Acquiring a permit
One will require a permit to offer EBT in a store. The documentation is overseen and regulated by the Food and Nutrition Service, part of the United States Department of Agriculture. The agency enforces the qualification rules associated with accepting EBT payments and will also require the business to qualify for EBT payments to approve the permit. One can apply by calling the Food and Nutrition Service to get an application form, fill it out, and mail it back to the department. A store could also apply for the permit online via the Food and Nutrition website.
Benefits
A store that accepts this government assistance program will have some benefits, apart from offering a lifeline for low-income individuals.
Expanded customer base
The store will gain access to a broader customer base, enabling low-income families to shop at the store. Allowing EBT transactions will allow the store to create a more inclusive shopping environment, welcoming everyone in the community.
Higher sales revenue
Since more customers can use EBT cards for purchases, the store’s revenue might notice a boost. This is because there are areas where more people may use EBT cards, subsequently having a positive impact on sales.
Community support
The acceptance of EBT cards goes beyond sales and shows one’s commitment to supporting the local community. By enabling access to essential groceries for those in need, one will play an integral role in improving food security and helping individuals and families put food on the table during tough times.
Compliance
The ability to process EBT payments ensures the grocery store is compliant with government assistance programs. Compliance is essential to maintain eligibility for other business-related benefits and grants typically available through various government initiatives.
Top picks
A few POS systems, such as EBT, are designed for more advanced payment transactions. Additionally, one can learn about other unique features provided by each system, allowing seamless transactions and benefits for customers.
Clover
The company has an app that enables EBT transactions on Clover Mini, Clover Flex, and Clover Mobile. Through the app, one can add “EBT” in the system as an accepted tender type and then track and process EBT with other transactions. The user can confirm which products are EBT-eligible. Additionally, Clover offers low flat rates for in-person payment processing, exceptional monthly rates and features, and reliable hardware. There is also a massive library of available software integrations. The prices start from about $14.95 per month (plus hardware).
Plexis POS
The sale software is designed for small businesses and offers a cash register mode with a touchscreen or barcode-scanning interface to ensure quick and accurate sales entries. The POS software includes inventory tracking to reduce errors and prevent shrinkage. This allows instant reports on current inventory value and reorder status. EBT processing is a notable integration on Plexis POS, with other accounting integrations, like general ledger, accounts receivable, and purchase orders. A single-station plan for this POS software starts at a one-time purchase price of $399.99. One could also look into the subscription package on their website, which is available on a monthly payment basis.
EHopper
The company offers software that can easily integrate with most third-party hardware components. It is designed to function across a suite of business types, like supermarkets and grocery stores, where shoppers can use the EBT card to pay for purchases. The system offers several value-added features, including customer relationship management (CRM) capabilities and email marketing. EHopper is known for its simple interface and easy setup process. Plus, it has a range of plans, including the Omnichannel Plan, starting at $39.99. One can check the brand’s website for what’s included in the deal.
Markt POS
This is an all-inclusive solution designed for local markets to streamline operations. The POS system is equipped with an EBT integration and other payment options. Additionally, Markt POS has inventory management features that let the store manager receive low-stock notifications, efficiently track stock levels, and create vendor purchase orders. The software also offers cloud-based technology to ensure the store runs smoothly with a reliable service accessible from any location. Moreover, Markt POS offers 24/7 support and flexible payment options, including contactless payments. One can customize the price for the POS and features based on their needs directly on the company’s website.