The influx of immigrants has had a significant impact on the economy, with many relying on the government’s Supplemental Nutrition Assistance Program (SNAP) or Electronic Benefits Transfer (EBT) to help them meet their basic needs.
This program is designed to provide food to low-income individuals and families, and with the help of EBT, these individuals and families can purchase groceries for their households. In recent years, the number of people redeeming EBT benefits has increased significantly.
As the number of immigrants has grown, and unemployment and inflation are taking a toll on families, the number of people redeeming EBT benefits has also expanded, said Elie Y. Katz, President and CEO of National Retail Solutions (NRS).
According to the U.S. Department of Agriculture, there were more than 44 million people enrolled in the SNAP program in 2019, and the number is expected to keep growing. The same report states that the number of immigrants participating in the SNAP program has more than tripled since 2000. This has had a significant impact on the economy, as more people are relying on the SNAP program to meet their basic needs.
“There are a variety of reasons why the influx of immigrants has caused a surge in the number of people redeeming EBT benefits,” Katz said. “For one, many immigrants are coming to the United States with limited resources, and the SNAP program provides a much-needed lifeline to many of them. Additionally, many immigrants are not able to find employment right away, and the SNAP program helps to bridge the gap until they can find a job.”
Retailer Benefits of Accepting EBT
It is important for grocery and convenience stores to accept EBT payments, as it allows them to serve a larger customer base. Many people rely on the SNAP program to purchase their groceries.
“Additionally, grocery and convenience stores that accept EBT payments often attract more customers, and can provide a larger selection of items at competitive prices,” Katz said. “Finally, stores that accept EBT payments often benefit from increased sales, as they are able to capture a larger portion of the market.”
By accepting EBT payments, stores are able to provide a larger selection of items at competitive prices, which in turn allows them to attract more customers and increase their sales.
“A busy store can leverage their POS system to process EBT efficiently. When paired with a credit card acceptance program that includes EBT redemption, a store’s POS system can automatically determine which items are EBT-eligible, eliminating the need to manually check vouchers, and keeping the checkout process moving,” Katz said.
What is EBT?
EBT is a service that allows people to purchase food and other items with their government-issued Electronic Benefits Transfer card. The card is issued by the U.S. Department of Agriculture (USDA) and is accepted at participating stores. EBT cards are accepted in all 50 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands. EBT cards are issued to individuals who qualify for certain types of public assistance, such as the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF). The cards are linked to accounts that are loaded with money from these programs, and the card can be used to purchase food and other items at participating stores.
How Does EBT Work for Customers?
The types of items that can be purchased with an EBT card vary by state but generally include items such as food, household items, and personal care products. Some states may have particular restrictions on what can and cannot be purchased with an EBT card. To purchase items with an EBT card, shoppers must first look for the EBT logo on the store’s checkout counter. This logo indicates that the store accepts EBT cards. Once the logo is located, shoppers must present their card to the cashier and enter their PIN (Personal Identification Number). The amount of the purchase is then deducted from the shopper’s account balance.
Redeeming an EBT Card
When shopping with an EBT card, it is important to remember that the funds loaded onto the card are limited. Once the account balance is depleted, shoppers will not be able to make any more purchases until additional funds are added to the account. It is also important to remember that EBT cards are not to be used as a form of credit. All purchases must be made with the funds in the account.
“For a retailer, offering EBT can be lucrative in that it attracts more customers. However, with each customer EBT card swipe incurring merchant transaction fees, in high volume, EBT acceptance can become expensive,” Katz said. “It’s important, as a busy store owner, to research carefully and locate a card processor that offers an unlimited EBT program that offers flat fee EBT acceptance with zero transaction fees. For a grocery, convenience or gas station c-store processing EBT frequently, this type of plan can yield great savings.”