Debunking Myths About EBT Processing/SNAP

There’s a lot of myths surrounding EBT processing. Some common concerns may be:

• “My location would not benefit by adding EBT processing.”
• “Isn’t there a high rate of fraud?”
• “I can get EBT processing for free.”
• “I won’t make money.”

These common misconceptions couldn’t be further from the truth. Accepting EBT cards as a form of payment offers your customers another way to pay and take advantage of their benefits.  By accepting EBT/ SNAP, you are creating a new revenue for your business and putting yourself in a better position within the community.

“There are not enough SNAP cardholders in my area.”

In 2017 alone, there was over $63 billion issued in SNAP benefits.  That’s a lot of money that c-store and small grocery store owners could profit from.  The over 42 million SNAP beneficiaries are spread around the United States and made up of a wide variety of demographics. 

Most people who benefit from SNAP are children, elderly, disabled, or parents with kids. You cannot assume because you are in a higher income area that you would not benefit from EBT processing. Stores in higher income neighborhoods have the potential to benefit as well. There are a number reasons why customers may be SNAP EBT cardholders.

• Temporary unemployment
• Employees traveling to the area of work
• Injury or Disablement
• Unexpected Emergencies or household changes

As we all know, unexpected changes in life happen everyday. By accepting EBT you can help your customers adjust to temporary changes smoothly.

“Isn’t there a high rate of fraud? I do not want to take that chance.”

The USDA takes fraud prevention and control very seriously and is always developing processes to reduce and control fraud. Because stopping fraud is such a high priority for the USDA, they have hired teams of hundreds of professionals to investigate and monitor EBT usage.

Like a credit card, EBT cards are protected and suspicious activity is monitored and reported. Fraud among EBT cards is less than 3%. Auditors are always carefully evaluating recipient benefits and usage, as well as the establishments that are accepting EBT.  Bottom line is, as long as you are in compliance with SNAP retailer regulations, your store will be protected from fraud instances. Make sure you are familiar with the SNAP retailer regulations and are only selling SNAP approved items to those using their EBT card.

“I can get EBT processing for free.”

EBT processing and the equipment was free to any approved SNAP retailer through the government until 2014. After the Farm Bill was passed in 2014, retailers had to start paying for the EBT equipment, supplies, and related services like transaction processing. Now, you apply through the USDA for an FNS number and to be approved to start accepting EBT transactions then sign an agreement with the company of your choice to actually get the equipment and EBT processing service.  There are a number of options for EBT Processing, but with goEBT, you’ll just pay one flat-rate fee each month instead of per transaction like other providers.

Some store owners believe that it costs money to apply to become a SNAP retailer.  This is not true.  The application to become a SNAP retailer is completely free.

 “You won’t make money by adding EBT processing”

This is not true at all, and with our flat-rate fee each month, you will benefit even more. No matter the EBT transactions you process, you will pay the same amount every time. Your money is deposited the next day so you are seeing your revenue increase instantly. With no transaction limits, equipment fees, or settlement fees, goEBT will help you build your business. 

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