EBT Overview

Understanding the Electronic Benefits Transfer (EBT) Program

Guidance for Convenience Store Owners & Employees

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Understanding EBT

SNAP State Directory of Resources

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• 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).

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.

Administering Agencies

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• Provide low-income families with access to food and promote food security.

Primary Goal

• Support nutritious food choices for families.
• Stimulate local economies, especially for small businesses like convenience stores.

Secondary Objectives

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Benefits of Accepting EBT in Your Store

Expanded Customer Base

Increase foot traffic by serving SNAP beneficiaries

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Potential Revenue Increase

Community Impact

Attract new customers and retain existing ones who rely on SNAP benefit

Enhance food access in your local area, helping low-income families

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Store Requirements

Eligibility Requirements

Application Process with FNS

• 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.

• Stores apply through FNS to become authorized to accept EBT.

• Complete an online application and submit supporting documentation.

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Store Responisbilities When Accepting EBT

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.

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Gas

Alcohol

EBT Prohibited Items

Tobacco

Lottery

Tip: Politely inform customres if an item is ineligible for EBT and suggest eligible alternatives if possible.

Non-food Items

Hot prepared foods

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Common Violations

EBT Compliance and Sanctions

• Selling ineligible items to EBT customers
• Charging additional fees
• Misusing EBT cards

Penalties & Sanctions

• Violations may result in warnings, fines, or disqualification from the program
• Penalties depend on the violation severity

Best Practices for Compliance

• Conduct regular staff training
• Keep clear signage
• Follow FNS guidelines closely to avoid violations.

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Reconciling & Maintaining EBT Records

Daily Reconciliaiton Process: Verify daily EBT transactions by comparing POS records with EBT transaction summaries.

Record Keeping Requirements: Maintain transaction records and reports for a minimum of three years for audit purposes.

Audit Preperation: Organize all EBT-related documents and conduct regular checks to ensure all records are complete and accurate.

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