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FAQs About Becoming an Authorized RetailerContact us if you have questions that are not answered here or elsewhere on our web site.
1. What is the purpose of the Food Stamp Program?The Food Stamp Program is administered by the USDA, Food and Nutrition Service. The mission of the Food and Nutrition Service (FNS) is to ensure access to nutritious, healthful diets for all Americans. Through food assistance and nutrition education, FNS encourages consumers to make healthful food choices. The Food Stamp Program serves as the first line of defense against hunger. The Food Stamp Program enables low-income families to buy food with coupons and Electronic Benefit transfer (EBT) cards. 2. Who can request an application?Anyone interested in obtaining an application to participate as an authorized retailer in the Food Stamp Program can request an application package. 3. How can I obtain an application?You have four ways in which to obtain an application for authorization: (1) You can call our toll free telephone number at 1-877-823-4369 (within the Continental United States), (2) Stop by your local USDA, Food and Nutrition Service (FNS) field office that services your area, (3) Complete the on-line request form to have an application package mailed to you, and (4) Click here to down load the application package (PDF format). 4. How long does it take to get the application package?Customers calling our toll free telephone number or completing the on-line request form usually receive the application package within 3-4 business days. Trained personnel mail out the application and informational materials Monday through Friday, excluding Federal holidays. 5. What kind of information is asked for over the telephone or on the on-line request form?Customers calling our toll free telephone number or completing the on-line request form are asked basic information such as name, mailing address, telephone number, business name, county of business location and State of business location. 6. What do I do once I download or receive the application package? What kind of information should I provide with my application?Regardless if you download the application package or receive it in the mail, the application should be filled out completely and accurately. The majority of applicants may be asked to provide the following documentation with a completed application:
Some applicants may be required to submit additional information. Your field office will let you know if you need to submit additional paperwork to be authorized. You will need to follow the instructions on where to return your application that is provided in your application package or contained within the FNS field office letter that you download. Failure to properly follow the instructions could result in a delay in processing your application. Please click here for a complete listing of all FNS field offices. If you have any questions regarding the application process or need additional information concerning the authorization of your firm to participate in the Food Stamp program you should contact the FNS field office number provided in your application package. You cannot accept any food stamp benefits until your firm is authorized by USDA, regardless if you already have a retail grocery store participating in the Food Stamp Program. 7. How do I complete the on-line application?You can complete the form two ways: (1) You can print the blank application form and complete it by hand (or type-write) and submit it to the FNS field office for processing, or (2) Fill out the application on-line, then print it off and return to the FNS field office for processing. 8. How long will it take to become authorized?The field office has up to 45 days to make a determination of approval or denial of authorization of a completed application. In addition, you may be asked to visit the FNS field office to receive training or answer questions on your application. You also may be visited by a food stamp representative before you are authorized. 9. What types of food items must I stock in order to qualify to participate in the Food Stamp Program?A store may qualify for authorization in one of two ways: One is to stock and sell an ample variety of staple foods in all four categories of staple foods (1) Breads/Cereals (such as: rice, pasta, cereal, crackers, etc.); (2) Dairy Products (such as: milk, cheese, butter, yogurt, etc.); (3) Fruits/ Vegetables; and (4) Meat/Poultry/Fish. These can be fresh, canned or frozen food items. In addition, you must stock perishables in at least two categories. The second way is to obtain more than 50% of gross total sales from the sale of one or more staple foods. 10. How do you complete sales figures on initial applications?Use estimated sales based on receipts of sales for a period of operation such as a week, a month, or more than one month. You may be asked to update this information when actual sales figures are available. 11. Are there any fees that a retailer must pay for food stamp authorization?There are no fees/dues that a retailer must pay for food stamp authorization. 12. Do I have to come to a training meeting?In most cases, yes, to ensure that you understand the Food Stamp Program regulations. Some FNS field offices require retailers to come into the office to view a training video while others mail the retailer a video. Your field office can provide you with more information on training. 13. After I have been approved, will I be given any document(s) that indicates I am authorized to accept and redeem food stamps or EBT benefits?Yes, all authorized firms will be issued a Food Stamp Program Authorization Permit. This permit should be displayed in a conspicuous place at the store. 14. Is there a minimum purchase requirement for food stamps or EBT transactions?No. There is no minimum purchase requirement for food stamps or EBT transactions. As with food stamp coupon purchases or EBT transactions, any eligible food item(s) may be purchased using either food stamps or an EBT card, regardless of the amount of the purchase. 15. How long can we accept paper food stamp coupons? Do they expire?Food stamp coupons do not expire. If a customer wishes to pay for eligible food items with paper food stamp coupon, you must accept them. If you have any coupons on hand, you should contact your local FNS field office to find out how to redeem the paper coupons. The amount of paper coupons you see from recipients from other States, should steadily decrease as more States become EBT operational. 16. How do I deposit my food stamps?Once approved to participate in the program, under the paper system, Redemption Certificates (deposit slips) are mailed to you from our computer center. You must deposit the food coupons to your bank accompanied with a correctly completed Redemption Certificate (deposit slip) to ensure proper credit to your bank account. Under the EBT system, the benefits are electronically deposited into your bank account. 17. How do I get more Redemption Certificates (deposit slips) should I run out?Contact the FNS field office in your area. 18. What types of changes should I report to the Field Office?Retailers should notify the appropriate FNS field office of changes in store name, location, owners/partners/officers, bank changes and telephone numbers. 19. What if I choose a new bank?Any change in banking arrangements should be reported in advance of the change to your FNS field office. If you accept EBT cards, then you must also contact your state EBT contractor or your EBT processor if it is different. This notification is very important to continue accurate transfer of funds. 20. I have purchased, or want to purchase, a retail grocery store from a person who accepts food stamps. Can I continue to accept food stamp benefits using their authorization number until I get my authorization?No, you cannot accept any food stamp benefits until you are authorized by USDA in your name as the new owner of this business. The previous owner's authorization is NOT TRANSFERABLE. You must contact the local FNS field office to obtain an application and apply for authorization under your ownership. FNS may impose a fine against you for conducting such activity. 21. Since my store is already authorized, if I open another store, can I use the same permit for the other location?You will need equipment that handles EBT cards. Therefore, you won't be able to accept EBT cards immediately when authorized. You need to sign a contract and get a Point of Sale (POS) device installed. FNS will tell the State and the State's EBT contractor that your store is authorized as soon as that occurs. The EBT contractor has two weeks to get you in the EBT system from the time FNS tells them you are authorized. This assumes that you sign a contract with the State's EBT contractor and arrange to let them install a POS device if you need one. 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. 22. I want to sell my store or change ownership, can the new owner(s) use or keep my food stamp authorization?No, the new owner(s) cannot accept any food stamp benefits using your Food Stamp Program Permit number. Your permit is NOT TRANSFERABLE. You must contact the local FNS field office to report any changes in ownership. In addition, the new owner(s) must apply for authorization under their own name/ownership. 23. What happens if the store changes ownership or closes for business?The store owner must notify the appropriate FNS field office immediately when a store changes ownership or closes. This ensures that the authorization permit is canceled immediately. 24. If I sell my store to a new owner what should I do?Contact your FNS field office immediately. In addition, you must turn in your authorization permit to the FNS field office. The new owner must apply for authorization to accept food stamps if he or she wants to. 25. Can a retailer allow a recipient to buy food on a credit account?No. A retailer found to be accepting food stamp benefits for credit accounts is in violation of the Food Stamp Program and can be taken out of the program. 26. Once my store is authorized, will I be able to accept Electronic Benefit Transfer (EBT) cards?If your state has an EBT system, you will need equipment that handles EBT cards. Therefore, you won't be able to accept EBT cards immediately when authorized. You need to sign a contract and get a Point of Sale (POS) device installed. FNS will tell the State and the State's EBT contractor that your store is authorized as soon as that occurs. The EBT contractor has two weeks to get you in the EBT system from the time FNS tells them you are authorized. This assumes that you sign a contract with the State's EBT contractor and arrange to let them install a POS device if you need one. 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. Even if your State does not have an EBT system, there are some circumstances under which you could accept EBT cards from other States. If your store is on the border of an EBT State and needed for client access, the EBT State may ask if you want equipment. If you have your own POS and transaction services, you could ask your service provider to add EBT card acceptance. 27. What do I do if an EBT card does not work?For food stamp transactions, you may key enter the card number and proceed with the transaction as usual if the EBT card does not work in the POS terminal. The food stamp client and his/her EBT card must be present during a key-entered transaction. The client must enter their PIN as usual. Key entry may not be used for cash transactions. 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 processor. It is important to note that retailers, owners, and/or clerks cannot know the recipients PIN number when processing a manual voucher or when doing a key entry transaction. For manual vouchers, customers sign the voucher. 28. How do I handle a customer who has lost his or her EBT card or forgotten the PIN?Retailers cannot conduct business without a card and valid Personal Identification Number (PIN). The recipient will have to get a new 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. 29. How much will getting EBT cost me?EBT should not cost you anything if you use equipment supplied by the State. You need a Point of Sale (POS) device, a PIN pad, a receipt printer, and printer supplies to accept EBT cards. If you want the State to provide these things, you will get them free. In some States, stores purchase the printer supplies and are reimbursed. Each bank working day, money is electronically deposited into your bank account for the previous day's EBT purchases. Your bank may not charge you for the electronic deposits of food stamp amounts. In most States, you cannot use the State POS device for debit card or credit card transactions. In some States, you cannot use the State POS device for anything but FSP transactions although the cards may be used to retrieve cash benefits for the TANF program from ATMs. Many stores do not want State EBT equipment because they already have, or plan to get, their own POS devices for processing commercial debit and credit cards. These stores ask their service provider to make arrangements with the State EBT system contractor so that EBT cards will work on the POS already in the store. This is a store's business decision and the State is not required to reimburse the store for any portion of these costs. Neither the State nor FNS have any role in price negotiations between the store and its POS service provider. 30. Where should I send my EBT machine to return it?If you have a State supplied POS and you need to return it, contact your Retailer Help Desk for instructions on returning the terminal. The information is contained in the materials provided to you with the POS. Do not return a POS terminal to the USDA or FNS field office. 31. Who is responsible for the repair of POS devices?If the State EBT contractor provided the POS, then they will repair or replace it. This assumes that the damage was not caused by abuse or improper handling. 32. May I move a State supplied POS?No. The POS is provided for use in your store because FNS authorized that store to accept FSP benefits. Do not move it to another location. If you need to return a POS terminal, contact your Retailer Help Desk for instructions on returning the terminal. Do not return a POS terminal to the USDA or FNS field office. |
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| Accessibility | Privacy/Security | Nondiscrimination | USDA | Last Modified: 05/14/2004 |
