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EBT Overview
Keisha
Created on October 25, 2024
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Guidance for Convenience Store Owners & Employees
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Understanding the Electronic Benefits Transfer (EBT) Program
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SNAP State Directory of Resources
Understanding EBT
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Administering Agencies
What is EBT?
- USDA’s Food and Nutrition Service (FNS): Manages the SNAP program and oversees EBT.
- State Governments: Administer SNAP benefits at the state level, and FNS authorizes stores to accept EBT.
- Electronic Benefits Transfer (EBT) is an electronic system that allows government benefits recipients to use a debit-like card to purchase eligible food items.
- EBT primarily serves as the payment system for the Supplemental Nutrition Assistance Program (SNAP).
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Secondary Objectives
Primary Goal
- Support nutritious food choices for families.
- Stimulate local economies, especially for small businesses like convenience stores.
- Provide low-income families with access to food and promote food security.
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Attract new customers and retain existing ones who rely on SNAP benefit
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Potential Revenue Increase
Enhance food access in your local area, helping low-income families
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Community Impact
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Increase foot traffic by serving SNAP beneficiaries
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Expanded Customer Base
Benefits of Accepting EBT in Your Store
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- Stores must meet minimum inventory requirements, stocking staple foods in four categories: dairy, breads/grains, fruits/vegetables, and meat/fish/poultry.
- Minimum stock levels and variety are required for each category.
Eligibility Requirements
- Stores apply through FNS to become authorized to accept EBT.
- Complete an online application and submit supporting documentation.
Application Process with FNS
Store Requirements
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Record Keeping
Employee Training
Transaction Compliances
- Keep accurate records of EBT sales and retain these for audit purposes for at least three years.
- Train staff to recognize eligible items and understand the process for EBT transactions.
- Use FNS-authorized POS systems.
- Ensure no discrimination against EBT cardholders.
Store Responisbilities When Accepting EBT
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Gas
Hot prepared foods
Non-food Items
Lottery
Tobacco
Alcohol
Tip: Politely inform customres i an item is ineligible for EBT and suggest eligible alternatives if possible.
EBT Prohibited Items
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- Conduct regular staff training
- Keep clear signage
- Follow FNS guidelines closely to avoid violations.
Best Practices for Compliance
- Violations may result in warnings, fines, or disqualification from the program
- Penalties depend on the violation severity
Penalties & Sanctions
EBT Compliance and Sanctions
Common Violations
- Selling ineligible items to EBT customers
- Charging additional fees
- Misusing EBT cards
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Audit Preperation: Organize all EBT-related documents and conduct regular checks to ensure all records are complete and accurate.
Record Keeping Requirements: Maintain transaction records and reports for a minimum of three years for audit purposes.
Daily Reconciliaiton Process: Verify daily EBT transactions by comparing POS records with EBT transaction summaries.