Retail Merchants
FNS Field Offices are responsible for the
licensing and monitoring of retail food stores participating in the Food
Stamp Program. Any retail merchant that would like to accept food stamp
benefits (Electronic Benefit Transfer (EBT card)) must be licensed to
participate in the Food Stamp Program.
How can I obtain an
application to become licensed to accept food stamp benefits?
 |
Click here
to download and print the Retailer Application package (PDF
format). Note: It is not possible at this time to apply
on-line, or submit an application to us electronically;
however, you can download and print the application package
and start the application process. |
|
|
Call us toll free: 1-877-823-4369
to have an application package mailed to you. |
|
|
Complete the
online request form to have an
application package mailed to you. |
|
|
Contact the
FNS Office. Use the USA
Map to locate the closest FNS Field Office to your
business. |
Any retail merchant that would like to accept
food stamp benefits (EBT) must be licensed to participate in the Food
Stamp Program. Failure to properly follow the instructions could
result in a delay in processing your application.
Retail merchants must notify FNS if there is a change in ownership,
or if they are closing
their business. The previous owner’s authorization and/or EBT
equipment is NOT TRANSFERABLE under any circumstances.
How long does it take to
become licensed?
The FNS Field
Office has up to 45 days from the date they receive a completed
application
to approve or deny your application for participation in the Food Stamp
Program. Your
store may be visited by a food stamp representative before you are
authorized and
licensed by USDA, FNS.
Who should I contact if I
have questions on how to complete the retailer application form?
Contact the FNS
Field Office that services your area for assistance. The FNS Field
Office address and telephone number is also provided in the FNS Field
Office Cover Letter, which
is part of the application package.
Do I have to attend a
training session as part of the licensing process?
In most cases, no. FNS has numerous materials designed to help you
follow the Food Stamp Program rules and regulations. Learn the proper
way to handle food stamp transactions.
The Retailer Training
Guide (available in several languages) will help you learn the
Program rules and answer common questions about the Food Stamp Program.
To ensure that you understand the Food Stamp Program regulations, it is
important to review both the
training
materials and video (CD or DVD) that are provided to you; it is the
responsibility of the
owner to ensure that all employees (paid and unpaid) are also trained.
FNS Field Offices
are available to provide training and answer questions and some may
offer scheduled training opportunities.
What types of changes should
I report to the FNS Field Office?
Retail merchants must notify the
FNS Field Office of
changes in store name, location, owners/partners/officers, and telephone
number. Any planned change in banking
information should be reported to your EBT processor two weeks in
advance of the change. This notification is very important to continue
accurate transfer of funds.
Will I be able to accept
food stamp benefits (EBT cards) immediately? When will
I get my EBT equipment?
You won’t be able to immediately accept food stamp benefits (EBT
cards). You must first be authorized to accept food stamp benefits and
have a Food Stamp Program authorization
permit issued from USDA, FNS. The authorization process can take up to
45 days.
Commercial Point-of-Sale (POS) equipment can process credit card;
debit card; and EBT transactions depending on the terms of the contract
you sign. The equipment is offered at different pricing levels from
companies called Third Party Processors (TPPs) that contract with
retailers to process electronic transactions. If you already have POS
equipment, speak with your TPP regarding specific hardware and software
changes that may be needed to process EBT transactions. If you do not
have POS equipment and do not need to process credit or
debit cards, the State will supply you with POS equipment at no cost if
your store meets the minimum food stamp purchase requirements. This
equipment, installed by the State’s EBT service provider, will only
support EBT transactions.
POS equipment will be provided within two weeks of authorization by
USDA. You must complete an EBT Retailer Agreement to receive the
equipment. Retailers who participate through a TPP or who will connect
directly to the EBT system with their own POS should have access to the
system within 30 days. If you have your own POS, you need to ask your
POS service provider to work with the State's EBT contractor to set up
the telecommunications that are needed to pass data to the EBT system.
Contact your local FNS
Field Office if you have any questions.
Can the same authorization
permit and EBT equipment be used at a different location, or can I let
someone else use it?
Retailers must notify the appropriate
FNS Field Office
immediately whenever a store changes ownership or closes. You must apply
for a new authorization permit for each store location
that you own. The Food Stamp Program authorization permit and EBT
Equipment is NOT TRANSFERABLE from one location to another, or from one
owner to another. You cannot use the previous owner’s authorization
or equipment and you cannot accept Food Stamp Program benefits until
you are authorized by USDA, FNS. If you have any questions, contact
the FNS Field Office
immediately for assistance.
What do I need to do if I’m
buying a store that’s already licensed to accept EBT?
You must notify the
FNS Field Office immediately whenever a store changes ownership or
closes. You must apply for a new authorization under your ownership. You
cannot use the previous owner’s EBT equipment. Each store location must
have a separate Food Stamp Program authorization and permit. The
previous owner's authorization and permit, or EBT equipment is NOT
TRANSFERABLE. It is against the rules and regulations of the Food
Stamp Program for you to accept or redeem food stamp benefits (EBT)
until you are authorized by USDA, FNS.
What items can and can’t be
bought with food stamp benefits?
Households CAN use food stamp benefits to buy foods for the
household to eat, such as:
|
|
Breads and cereals; |
|
|
Fruits and vegetables; |
|
|
Meats, fish and poultry; |
|
|
Dairy products; and |
|
|
Seeds and plants which produce
food for the household to eat |
Households CANNOT use food stamp
benefits to buy:
|
|
Beer, wine, liquor, cigarettes, or
tobacco |
|
|
Any nonfood items, such as pet
foods; |
|
|
Soaps, paper products; and |
|
|
Household supplies |
|
|
Vitamins and medicines |
|
|
Food that will be eaten in the
store |
|
|
Hot Foods |
In some areas, restaurants can be authorized to
accept food stamp benefits from qualified homeless, elderly, or disabled
people in exchange for low-cost meals. Food stamp benefits cannot be
exchanged for cash.
Can sales tax be charged on
food stamp purchases?
No, retail merchants are prohibited from charging State or local
taxes on food purchased with food stamp benefits (EBT). However,
eligible food items purchased with manufacturer’s cents-off coupons may
be subjected to sales tax under State revenue laws.
Can I require Food Stamp
customers to make a minimum purchase?
No. Food Stamp Program regulations prohibit retail merchants from
setting a minimum purchase requirement for purchases made with food
stamp benefits (EBT). Any eligible food item(s) may be purchased using
food stamp benefits, regardless of the amount of the purchase.
Can food be bought on a
credit account using food stamp benefits (EBT card)?
No. A retail merchant found to be accepting food stamp benefits (EBT
card) for credit accounts is in violation of the Food Stamp Program and
can be taken out of the program.
Can I give cash refunds for
purchases made with food stamp benefits (EBT card)?
No. A retail merchant must credit the EBT card for the amount of the
food stamp refund. Contact the
FNS Field Office
servicing your account if you have additional questions.
Can food stamp benefits (EBT
card) be used to pay Military Commissary Surcharges on eligible food
stamp purchases?
Yes, food stamp customers may pay the commissary surcharge on food
stamp eligible items with their food stamp benefits (EBT card). Contact
the FNS Field Office
servicing your account if you have additional questions.
Can food stamp benefits (EBT
card) be used to pay for Bottle Deposits on eligible items?
Yes, bottle deposits are eligible to be paid for with FSP benefits.
The FSP regulations do not prohibit the payment of bottle deposits with
food stamp benefits. Food stamp benefits can and should be accepted to
cover the entire cost of items, such as drinks in returnable bottles,
where the price includes a specific bottle deposit. No sales tax can be
charged on such transactions. The value of the deposit may be either
returned as cash or refunded to the EBT card.
What happens if there is a
power outage when a customer is using their EBT card?
You will be able to process food stamp purchases using manual
vouchers, after obtaining an approval code for each transaction. A
supply of vouchers will be provided by your TPP or State’s EBT service
provider. Instructions on processing vouchers will be provided by your
State’s EBT service provider.
Is there a way to complete
a sales transaction if the customers EBT card is defective or does not
work?
Yes, if the food stamp customer has the defective card with them,
you may manually key enter the EBT card number into the Point-of-Sale
(POS) device. The food stamp customer and his/her EBT card must be
present during a key-entered transaction. The food stamp customer must
enter their Personal Identification Number (PIN) as usual. Key entry may
not be used for cash transactions. It is important to note that retail
merchants, owners, and/or clerks cannot know the food stamp customers
PIN number when processing a manual voucher or when doing a key entry
transaction. For manual vouchers, food stamp customers sign the voucher.
Manual voucher forms are NOT to be used in this situation.
For more information on manual vouchers, manual claims resolution or
daily settlement, refer to your EBT Policies and Procedures Manual or
call your EBT processor.
How do I handle a customer
who has lost his or her EBT card or forgotten the Personal
Identification Number (PIN)?
Retail merchants cannot conduct business without an EBT card and
valid Personal Identification Number (PIN). The customer will have to
get a new EBT card or PIN. Usually the food stamp customer has had
training on how to do this or they will have a pamphlet that tells them
how.
Can I still accept paper
food stamp coupons from my customers if I have EBT?
Although EBT transactions are now the norm, retail merchants must
continue to accept paper food stamp coupons. Paper food stamp coupons do
not expire. If you have any questions about how to redeem paper food
stamp coupons, contact your local
FNS Field Office.
Do paper food stamp coupons
expire?
No, paper food stamp coupons do not expire. If you have any
questions about how to redeem paper food stamp coupons, contact your
local FNS Field Office.
Who should my customers
contact if they have questions about their food stamp benefits (EBT
card)?
Your customers should contact their
local food stamp office. Your customers can find local food stamp
offices and each State's food stamp application on our
national map. Local food stamp offices
are also listed in the State or local government pages of the telephone
book. The office may be listed under "Food Stamps," "Social Services,"
"Human Services," "Public Assistance," or a similar title. Your
customers can also call their State's food stamp information/hotline
number. Most are toll-free numbers.
Last modified:
03/26/2008
