Whether you’re starting a new retail food store, a farmers market, or you’re looking for a way to offer more opportunities to pay to your existing customer base, becoming an EBT retailer can help add more to your bottom line. However, accepting EBT payments is only possible if you have the right processing equipment. That means you’ll need EBT point-of-sale equipment so that you can process those payments and send them off without any hiccups or problems.
Accepting SNAP payments can expand your customer reach and strengthen your store’s community impact. More than 40 million Americans use SNAP benefits to purchase groceries each month via EBT cards, making your store accessible to a broader market that shops frequently and spends consistently.
But before you can use that equipment to accept those payments, the first step is to become an EBT business. This requires jumping through a few hoops.
Most businesses choose to work with an EBT processing equipment company to help navigate the challenges of becoming an EBT retailer, but you can certainly apply and have a go at it on your own. A helpful partner has already guided many companies through the process, and they’ll be able to help if any problem should arise. They can also help when it comes to the complicated setup of your grocery EBT processing equipment, which must be done meticulously to ensure that all your EBT payments are accepted and paid out. The EBT application and setup process can be simple with the right guidance.
Unfortunately, the government is more in the business of setting regulations rather than helping businesses adhere to them, so it’s largely on you as a retailer to make sure that all your Ts are crossed and your Is are dotted. There are common pitfalls that may trip you up, such as missing information or documents that can delay approval, but the right food stamp point of sale partner will help you navigate any and all issues with ease.
Let’s take a look at how the EBT application process works.
Eligibility Requirements for SNAP Authorization
Before you can start the EBT retailer application process, your business must meet specific eligibility requirements set by the USDA Food and Nutrition Service (FNS). The two primary rules are the Stock Test and the Sales Test.
The Stock Test requires that your store—whether it’s a grocery store, convenience store, or specialty retailer—regularly stocks a variety of staple foods in four essential categories: dairy, fruits and vegetables, breads and cereals, and meat/poultry/fish. To meet this requirement, you must offer at least three different varieties of food items in each category, with a minimum of three stocking units for each variety. Additionally, at least two of these categories must include at least one perishable food option, such as fresh milk or produce.
The Sales Test is another way to qualify. Under this rule, at least 50% of your store’s total gross retail sales must come from staple foods. This is particularly relevant for smaller grocery stores, convenience stores, and specialty markets. However, restaurants generally do not qualify unless they are part of a Restaurant Meals Program approved by the nutrition service.
All SNAP-authorized retailers must also maintain proper business licensing and comply with all local and state regulations. Meeting these requirements ensures your business is eligible to accept SNAP benefits and serve a wider range of customers in your community.
Becoming an EBT Retailer: The Application
While more retailers are interested in accepting alternative payments such as EBT, the EBT retailer application process has indeed become more complicated over the years. Even those that have accepted EBT payments for years are having to adhere to more difficult requirements to maintain their EBT standing — such as specific inventory and revenue requirements — but it all starts with completing the required application form. If you can avoid issues with your application, you’ll be able to implement your grocery EBT processing equipment sooner rather than later, and that can be a boon to your business.
The application process for EBT retailer status includes creating a Login.gov account, completing Form FNS-252, submitting documentation, and awaiting a decision, as outlined in our step-by-step guide to accepting EBT.
1. Documents
A typical EBT application starts with gathering your documents. An EBT license requires that you’re either already open and conducting business or that you’re within 10 days of buying or opening a store that will serve EBT customers. If your store is already open and operating, you’ll need to share certain documents such as:
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Your business’ tax return for the previous year
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Social security cards
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Driver’s licenses for each owner, member, manager, or partner in the business
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Copy of each business license
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Lottery license, alcohol license, and tobacco license that your store has obtained
2. Register for a USDA Account
After you’ve gathered all your documentation, you’ll have to register for a USDA account online. A USDA eAuthentication account can be obtained via their web application process. Simply follow the instructions and register for an account. Once your account has been registered, activate your account according to the email process. Activating your USDA account will enable you to apply to become an EBT retailer via the SNAP application. That said, if you own 10 or more stores, you’ll have to apply as a multi-store owner or MSO.
3. Provide Necessary Documents
When you start your application, you’ll have 30 days to complete it. This includes supplying the necessary information and submitting the completed application. If you manage not to complete your application within 30 days, it’ll be deleted and you’ll have to start over. So it’s important to complete your EBT retailer application within the time allotted. Note that you’ll need the names, addresses, and social security numbers for each store owner and manager. You will also need sales information for the store in question as you work your way through the application.
Once you’ve submitted the required information, you may also have to submit additional information to complete your application. You may receive communication through email or regular mail with instructions on how to submit this additional information, but it’s also visible at the end of your application, so don’t assume that you’re done with the application when you reach the end.
After submitting the completed application and all necessary documentation, you can check your application status directly with the FNS and track your FNS number application journey. Once you sign in you’ll be able to see the status of your application. If any additional information is needed, you’ll be contacted by the FNS. If you have any questions about your application, you can also call the SNAP Retailer Service Center at 1-877-823-4369.
Setting Up Your Business to Accept EBT
Once you’ve determined your eligibility, the next step is to set up your business to accept EBT payments. This begins with completing the EBT retailer application process, which involves submitting an online application and providing all required documents, such as your business licenses and tax information. After your application is reviewed and approved, you’ll receive an FNS number, which is essential for processing EBT transactions.
With your FNS number in hand, you’ll need to choose and install an EBT-compatible POS system or payment terminal. It’s important to select equipment that is certified to process EBT payments smoothly and securely, including support for new chip-only EBT card technology. Our team can guide you through the process, helping you choose the right equipment for your store and ensuring your POS system is set up correctly.
By accepting EBT, your business can serve more customers and boost sales of staple food items like bread, milk, fruits, and vegetables, and our complete EBT payments guide for business owners explains how to maximize these benefits. Our specialists are here to support you every step of the way, from completing your application to getting your equipment ready to accept EBT payments.
Finalizing the Application and Next Steps
After you submit your EBT retailer application, the USDA FNS will review your information and determine your eligibility for SNAP authorization. This review process typically takes between 4 to 6 weeks. While you wait for approval, it’s a good time to prepare your business by setting up your POS system and training your employees on how to process EBT payments.
Once your application is approved, you’ll receive your SNAP license and instructions on how to access your FNS number. At this point, you’re ready to start accepting EBT payments and serving customers who rely on SNAP benefits. Our team will continue to support you, ensuring a smooth transition as you begin to accept EBT payments in your store.
By following these steps and meeting all requirements, you can become a SNAP-authorized retailer, start accepting EBT payments, and expand your customer base while increasing your sales by understanding why your business should take EBT. Let us help you navigate the process and make your business more accessible to your community.
Additional SNAP and EBT Information
EBT machines are now required by law to report all EBT income directly to the IRS. This went into effect in 2012 and affects all EBT point-of-sale purchases. Along with each purchase, your business’ tax information must also be passed over to the IRS. This means that all EBT processing equipment must be configured to report this information to the IRS.
If you neglect to report your EBT sales information to the IRS, the law states that the money will be held back from your bank deposits until you can remedy the issue. While you can certainly configure your existing point-of-sale machines to report this information to the IRS, most grocery businesses obtained new EBT processing equipment that does this automatically, thereby minimizing any issues. That can help make processing EBT payments easier, as well as reduce the burden on you as the retailer.
Streamline Your EBT Payments With VMS
Here at Velocity Merchant Services, we aim to help businesses that want to offer EBT payment options to their customers, including gas stations and convenience stores looking to accept EBT. Whether you’re just starting out or you’ve accepted EBT payments for years, you can upgrade your EBT and food stamp point-of-sale equipment without interruption to your EBT transactions or services. Learn more about how VMS can help you become an EBT retailer. We can even help you during the application process, backed by our 24/7 VMS support for Clover POS and EBT!
