Food Stamp Guide for Storeowners

Becoming an authorized food stamp retailer will increase your sales and provide an important service to your customers and your community. The Food Stamp Program supports both the people who receive benefits and local food retailers. Food Stamps significantly increase the purchasing power of lower-income households: In 2003, the Food Stamp Program gave Vermonters $36 million to spend in the state's grocery stores

If you would like to accept food stamps in your store, you can apply for retailer authorization from the U.S. Department of Agriculture. The authorization process usually takes about 30 to 45 days and involves and application form, a site visit, training and equipment set up.

Becoming a food stamp retailer is easier that you think. Below is a step-by-step guide to help you through the process.

Is my store eligible for authorization?

The application process

Getting Started

Equipment Options

Additional Information

What's Next?

Contact Information

• Is my store eligible for authorization?
  In order to participate as a food stamp retail store, your business must either
  1. Sell at least three varieties of foods in each of the following four staple good groups (including perishable foods in at least two of the following categories):
     • Meat, poultry or fish
     • Bread or cereal
     • Vegetables or fruits
     • Dairy products
  2. Receive more than 50% of gross total sales from the sale of these staple foods
• Note: USDA authorization does not transfer from one storeowner to another. Therefore, if you purchase a store that was previously authorized to accept food stamps, you will have to receive approval from the USDA under your ownership before you can accept food stamps*

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• The Application
  • Getting an application:
    Click here to download and print an application packet from the USDA Food and Nutrition Service, or call 1-877-823-4369 to have one sent to you. The packet will be mailed to you from the USDA office in Concord, N.H. You should receive the packet within 5 days.
  • Completing your application
    The USDA provides detailed instruction with the four-page application. Follow these instructions carefully. An incomplete application will be returned to you and will delay the authorization process.

    If you have questions about the application, contact Robert Hughes, Officer-in-Charge, Vermont/NH Field Office, USDA Food and Nutrition Service, 279 Pleasant Street, Room 200, Concord, NH 03301, 802-828-4492.

  • Notice of approval or denial
    The USDA has 45 days from the date it receives your complete application to approve or deny your application. During this time, the USDA will review your application and conduct a site visit of your store. The USDA will notify you of its decision by mail. If your application is approved, the USDA will send you an approval package that includes a retailer guidebook, video and program rules. If you application is denied, you can apply again after 6 months.
  • What to expect during a site visit
    Once you have submitted your application, a representative from the USDA Food and Nutrition Service (FNS) may visit your store to take pictures, sketch the store layout and ask some questions. In combination with you application, the information gathered in this visit will be used to determine whether your store is eligible and if you will be approved as a Food Stamp Retailer. The visit should take approximately 30 minutes and should not interfere with store operations.

    Site visits usually occur within 10 days of an application being submitted to the FNS field office. The FNS field office will not notify you of the date or time of their visit, but will likely confirm your hours to be sure the store is open.

    The FNS site visitor will present you with photo identification or a Letter of Introduction. You will be asked to sign a form indicating your consent to the site review. If you are not in the store when FNS visits, an employee may provide consent. If you do not wish to consent to the site visit, you may refuse; however, your store cannot be approved to accept food stamps without the site review.

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• Getting Started
  • Training
    If your application is approved, you may be asked to attend a training meeting at the Food and Nutrition Service office in New Hampshire. In some cases, particularly if you have been authorized in the past, the Food and Nutrition Service may mail you a training packet and you will not have to travel for the training.

    The training provides and introduction to the Food Stamp Program and teaches you how to handle food stamp transaction, including topics such as eligible foods, sales tax, EBT systems, and penalties for retailers who violate program rules.

    If you are approved and choose to use state-supplied EBT equipment, you will also receive training about the equipment from the state's EBT contractor. This training is provided by phone and takes 30-45 minutes.

  • Getting equipped
    Once you have been authorized as a food stamp retailer, you will need to get the equipment necessary to process food stamp transactions. The states EBT contractor will contact you within several days after your application is approved to discuss different was in which your store can process food stamp sales.
  • For retailers with electronic capability
    If you have electricity and have or can install a phone line, you will be able to accept food stamps electronically (EBT). You can receive EBT equipment from the state or add EBT capability to commercial debit/credit equipment. If you are a large retailer, you may have an "in-house" contractor who will provide your equipment.
  • For retailers without electronic capability
    A paper voucher system is available for retailers without the technology or resources to process food stamp sales electronically

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• Equipment Options
  • Choosing the best option for your store
    The best option for your store will depend on your electronic capability, volume of food stamp sales and debit and credit card usage. Each option and some important consideration are explained in further detail on this site. Click ***here for an equipment options chart.
  • Option #1: Use state-supplied EBT equipment
    • The state's EBT contractor will pay the monthly leasing fee for the EBT for the first year and any year thereafter as long as your monthly food stamp sales average over $100.
    • You must have or install a phone line (a residential access phone will do). This phone line can be either a dedicated line or it can be your store's all-purpose telephone line. The state's EBT contractor will reimburse you for the basic monthly fee for the phone line (about $8 per month) for the first year and any year thereafter as long as your monthly food stamp sales average over $100.
    • You will not have any EBT transaction fees
    • You cannot add credit/debit capability to the state-supplied equipment.
  • Option #2: Add EBT capability to commercial debit/credit equipment
    • Check with your bank to be sure their debit/credit processor can also process EBT transactions
    • You will have to pay a monthly service fee (if you already have debit/credit equipment, the majority of suppliers do not charge an additional fee to add EBT)
    • Depending on the supplier, you may have to pay a monthly fee for the equipment.
    • You will have to pay for any EBT, credit and debit transaction fees
    • You will have one machine for debit/credit and EBT transactions.
    • You will have to pay for a phone line for debit/credit and EBT transactions. You can either install a dedicated phone line or use your store's main telephone line (in that case, you will not be able to use the phone during a sales transaction).
  • Option #3: Use both the state supplied EBT equipment and commercial debit/credit equipment
    • You will have two separate machines: one for debit/credit and one for EBT transactions
    • You will have to pay a monthly service fee for debit/credit processing.
    • Depending on the supplier, you may have to pay a monthly fee for the commercial equipment
    • You will have to pay credit and debit transaction fees
    • You will not have to pay for the EBT equipment for the first year or any year thereafter as long as your food stamp sales average over $100 per month.
    • You will not have any EBT transaction fees
    • You must have or install a phone line (a residential access phone will do). This phone line can either be a dedicated line or it can be your store's all-purpose telephone line. The state's EBT contractor will reimburse you for the basic monthly fee for the phone line (about $8 per month) for the first year and any year there as long as your monthly food stamp sales average over$100.
  • Option #4: Use the paper voucher system
    • You do not need access to electricity
    • You do not need access to a telephone
    • This is a manual system in which the retailer phone in to the state's EBT contractor for approval of each food stamp sale and mails vouchers for reimbursement. Reimbursement is deposited directly into the store's bank account.

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• Additional Information
  • Retailers using state-leased EBT equipment
    Stores using state-leased EBT equipment pay nothing for the equipment for the first 12 months. After 12 months, the state contractor will evaluate your average monthly food stamp sales. If your store's food stamp sales average over $100 each month, the state will continue to pay for your EBT equipment after the first year

    If your average monthly food stamp sales are less than $100, you will no longer qualify for free state-leased EBT equipment.

    You will then have four options

    • Pay the monthly leasing fee (approximately $20) and continue using the state-leased equipment. At this point, you will also have to pay the monthly cost of the phone line.
    • Lease commercial debit/credit equipment if you do not already have it, add EBT capability and discontinue the use of the state-leased EBT equipment,
    • Add EBT capability to existing debit/credit equipment and discontinue use of the state-leased EBT equipment
    • Use the paper voucher system to process food stamps
  • Retailers using commercial equipment
    • Third party processors charge different amounts for equipment and transaction fees. Shop around for the best deal for your store.
    • Be sure to find a certified EBT processor. For a list of certified third-party processors or more information, contact JP Morgan Electronic Financial Services at 1-800-350-8533.

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• What's Next?
  • Your rights in the application process
    You have the right not to be discriminated against on the basis of race, color, national origin, sex, age, religion, political beliefs or disability.

    You have the right to have your questions about the application process answered when you call the Vermont/New Hampshire Food and Nutrition Service field office.

    You have the right to have a decision from the Food and Nutrition Service within 45 days of the office receiving your completed application.

    You have the right to have site visit personnel present photo identification and obtain your written consent to the business review.

    If you application is denied, you have the right to apply gain after six months.

    To file a complaint of discrimination, write to USDA, Director, Office of Civil Rights, Room 326W, Whitten Building, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410 or call 202-720-5964 (voice or TDD).

  • Welcoming food stamp customers to your store
    Food stamps provide Vermonters with over $36 million to spend on food at authorized food stamp retail stores. You can increase your revenues by welcoming food stamps customers to your store.
    • Treat food stamp customers like any other customer. Many seniors and people with disabilities receive food stamps in the form of cash. Therefore, you may not necessarily be able to identify your food stamp customers.
    • Respect your customers' right to choose the kinds of food they want to buy. Food stamps can be used to buy breads, cereals, fruits, vegetables, meats, dairy products, cold prepared foods, non-alcoholic beverages, snack foods, soft drinks, candy and ice.
    • Help make your customers feel more comfortable using the EBT card by posting a sign that says you gladly accept EBT.
    • Respect you customers' privacy - handle EBT transactions discreetly.

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• Contact Information

  For questions about the application process, contact:
  Robert Hughes
  Officer-in-Charge
  Vermont/NH Field Office
  USDA FNS
  279 Pleasant Street
  Room 200
  Concord, NH 03301
  Phone: 802-828-4492

  For questions about Vermont's EBT equipment contract, contact:
  Allan Merritt
  Food Stamp/EBT Director
  Agency of Human Services
  103 South Main Street
  Waterbury, VT 05671
  Phone: 802-241-2867

  Note: For questions about your commercial EBT equipment, contact your EBT contractor directly.

  Additional Resources:
  U.S. Department of Agriculture (USDA) Food and Nutrition Service (FNS)
  Phone 877-823-4369
  Web: www.fns.usda.gov

  USDA FNS VT/NH Field Office
  279 Pleasant Street
  Room 200
  Concord, NH 03301
  Phone: 802-828-4492
  Fax: 603-225-1620

  Vermont Campaign to End Childhood Hunger
  180 Flynn Avenue
  Burlington, VT 05401
  Phone: 802-865-0255
  Web: www.vtnohunger.org

  To speak with grocers in Vermont about their experiences with the Food Stamp Program, contact:
  Vermont Grocer's Association
  33 Lafayette Street
  Rutland, VT 05701
  Phone: 800-842-8503
  Web: www.vtgrocers.org

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