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 What is EBT?
Who can accept EBT cards?
How does it work?
Why accept EBT Funds?
How do I become an authorized Merchant?
What is EBT?
Electronic Benefit Transfer (EBT) is an electronic system that allows a recipient to authorize transfer of their government benefits from a Federal account to a retailer account to pay for products received. EBT is used in all 50 States, the District of Columbia, Puerto Rico, the Virgin Islands, and Guam. EBT has been implemented in all States since June of 2004.
Who can accept EBT cards?
To accept food stamp EBT cards, merchants must be authorized for food stamp acceptance by the USDA-FNS. The most suitable businesses are:
- Supermarkets
- Grocery stores
- Convenience stores
Any type of retail merchant can accept cash benefit EBT cards. Most states have no set qualifying criteria, although a few states do have restrictions on EBT card use for purchasing nonfood items and for using the card in gambling establishments. The most suitable businesses are:
- Drugstores
- Pharmacists
- General discount stores
- Clothing and shoe stores
- Fast-food restaurants
How does it work?
The payment procedure is similar to a debit card transaction: When paying for groceries or other goods or services, a recipient’s card is run through an electronic reader or a point-of-sale (POS) terminal; then the cardholder enters a PIN to access a food stamp or cash benefit account. Next, the EBT processor electronically verifies the PIN and the account balance, and sends an authorization or denial back to the retailer. The recipient’s account is debited for the purchase and the retailer’s account is credited. No money or food stamps ever change hands. Payment is made to the retailer through a settlement process at the end of the business day.
Why accept EBT Funds?
The government has mandated that every U.S. state implement an EBT program by 2002, and most states have already complied. Merchants in nearly every state in the union now have the opportunity to accept customer payments via an EBT card. EBT almost sells itself to current food stamp merchants because of the government mandate.
How do I become an authorized Merchant?
Merchants can apply for authorization by following the procedures listed below.
Meramak does not assist merchants in becoming authorized food stamp merchant, but provides these instructions on an information-only basis. For up-to-date details, please refer to the FNS site at http://www.fns.usda.gov/fsp/Default.htm
Step One: Merchants must fill out applications for each of their locations to gain authorization from the FNS. The applications can be obtained from a local FNS field office. The Food and Nutrition Service offers good overview for merchants of the EBT food program and its requirements, as well as the location of their field offices on the service’s Web site at the above link.
Step Two: Once the application is submitted, the FNS will assess the nature of the business. As a general rule, at least 50% of the merchandise sold must be staple food items. FNS will make a determination of eligibility within 30 days of all paperwork being submitted.
Step Three: When FNS authorizes a merchant location, the merchant will receive a card in the mail with a seven-digit FNS number. This is the merchant’s official license to accept food stamps.
Step Four: Provide Meramak your FNS number and schedule an appointment to have your terminal activated to accept EBT, Usually in 3-5 business days.
For more information or a quote call 800-225-3400
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