WASHINGTON – The Farm Bill, signed into law on Feb. 7, 2014, imposes additional obligations on retailers that redeem Supplemental Nutrition Assistance Program (SNAP) benefits. One of the more significant changes for retailers goes into effect on September 21, when retailers participating in SNAP will no longer be offered free Electronic Benefit Transfer (EBT) equipment, supplies and related services.
Under prior law, states were required to provide a no-cost option for retailers’ point of sale EBT equipment, supplies and related services in order to process EBT SNAP transactions. In the new Farm Bill, section 4002 requires non-exempt retailers to pay for their own EBT systems. More specifically:
- Retailers that became SNAP authorized on or before March 21, 2014, and who have already been given free EBT equipment and services by the state, will have to pay for their own equipment, supplies and related services. At the state's option, however, those retailers may continue to use their EBT equipment and services for free until Sept. 21, 2014.
- Retailers that become SNAP authorized after March 21, 2014, have already been paying for their own EBT equipment, supplies and related services.
- Retailers that already pay for their own EBT equipment and related services without assistance from the state (i.e., retailers with a consolidated system that processes commercial debit, credit and SNAP EBT) may continue paying for their systems as they have been doing pre-Farm Bill — there will be no change.
As a result of these changes, SNAP-authorized retailers utilizing no-cost EBT point-of-sale equipment, supplies and services should arrange to lease or purchase EBT equipment in order to ensure their continued participation in SNAP. Retailers are advised to contact their states’ EBT vendors for more information on this, or visit the FDA website for details on the regulations, including a list of third party SNAP EBT payment processors.
For additional information on other Farm Bill changes to the SNAP Program, see this March 2014 Summary of Relevant Provisions for SNAP Retailers.