Information and Recommendations for Farmers’ Markets Organizations and Direct Marketing Farmers/Producers

DATE: SEPTEMBER 30, 2010

Minnesota Department of Agriculture, 651-201-6494625 Robert Street, N., St. Paul, MNwww.mda.state.mn.us

Authored by Amanda Baesler, Minnesota Department of AgricultureReviewed by Kari Dunn, Rochester Farmers Market and Madeline Kastler Local Foods Institute for Agriculture and Trade Policy

Thank you for your interest in learning more about implementing Electronic Benefits Transfer (EBT) for recipients of food stamps through the Supplemental Nutrition Assistance Program (SNAP). The Minnesota Department of Agricul-ture created this manual through support from USDA’s Specialty Crop Block Grant Program. This is a user-friendly, how-to manual for farmers and farmers’ market managers interested in accepting food stamp SNAP/EBT cards at farmers’ markets.

How to Implement SNAP and EBT Into Your FARMERS’ MARKET

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Table of Contents

• GlossaryofEBTandFoodBenefitRelatedTerms ..........................................................4

• HowDoSNAPandEBTWork? ...................................................................................6

• WhyShouldaFarmerorFarmers’MarketOfferEBT? ..................................................7

• BenefitsofEBT .............................................................................................................7

• GuidelinestoDetermineifYourMarketisReadyforEBT .............................................8

• DecidingtoUseEBT/Debit/Credit ................................................................................10

• HowtoUseEBTTechnologytoAcceptSNAPBenefits .................................................10

• HowtoApplytoAcceptSNAPandUseEBT ................................................................11

• ProcessingElectronicTransactions ................................................................................14

• PurchasingaPOSMachine ..........................................................................................16

• HowShouldaFarmersMarketImplementtheEBTSystem ...........................................17

• GoodRecordkeepingPracticesWhenAcceptingSNAPBenefits .................................20

• ManagerChecklist ........................................................................................................22

• HowtoCommunicatetheNewEBTSystemtoCustomersoftheMarket ......................23

• HowtoReachOuttoNewCustomers..........................................................................23

• AppendixI-AdditionalInformation ..............................................................................24

• AppendixII-TipsforFarmers’MarketsFillingOuttheRetailerApplication .................26

• AppendixIII-SamplePressRelease .............................................................................28

• AppendixIV-SampleMarketDayTransactionDailyRedemptionReport ....................29

• AppendixV-SampleVendorAgreementForm ............................................................30

• AppendixVI-ScripExample .........................................................................................32

• AppendixVII-VendorInformationSheet .....................................................................33

• AppendixVIII-SampleLogandTransactionReport .....................................................34, 35

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Access Card A generic term which refers to the physical cardused to access a commercial or EBT card system.In the on-line EBT “transaction” or “application”,recipients use magnetic stripe cards at POS termi-nalsorATMstoaccessthesystem.Intheoff-lineEBT“transaction”or“application”,recipientswillusein-tegratedcircuit(IC)cards(alsocalled“smartcards”)toaccessthesystem.

Account Afoodstamporcashaccount.

AuthorizationAnaffirmativeresponseby,oronbehalfof, the is-suing member to a request to permit a card or card account to be used in a transaction. No posting to an accountoccursforanauthorization.

Balance InquiryA non-financial transaction that permits the card-holder to obtain the current balance of his or heraccount.

Batch ReceiptsAprintoutfromtheEBTterminalofthedailytrans-actionsatthecloseofmarket.Eitherthestateorthirdparty vendor will provide instructions for printingthebatchreceipts.

Clearing AccountAn accountmaintained for the purposes of settle-mentandpaymentoffees.

Electronic Benefit Transfer (EBT)A system that uses electronic funds transfer, auto-matedtellermachinesandpointofsaletechnologyforthedeliveryofpublicassistancebenefits.

Farmers’ Market Nutrition Program (FMNP)Afederalnutritionassistanceprogramthatprovideslow income women, children and seniors with alimitednumberofcouponstopurchasefruits,veg-etablesandherbs.

Food and Nutrition Service (FNS)TheFoodandNutritionServiceoftheUnitedStatesDepartment of Agriculture. Food Stamp Program (FSP) The government benefits program operatedundertheauthorityoftheFoodStampActof1964,as amended.

Off-lineAn EBT system or transaction inwhich individualpurchases are authorizedwithout telecommunica-tionbetweenthePOSdeviceorATMandacentraldatabase.Inanoff-lineEBTsystem,dataonrecipi-ent account balance is maintained on the accesscard,andpurchaseauthorizationonlyrequirescon-tactbetween thecardand localdevice. In anon-line EBT system, an off-line transaction requires amanualvoucher.

On-lineAnEBTsystemortransactioninwhichauthorizationofindividualpurchasesrequirestelecommunicationbetweenthePOSdeviceorATMandacentraldatabase inwhich data on account balances ismain-tained.

Personal Identification Number (PIN)Analpha-numericcodeselectedbyorassignedtotherecipientandusedtocontrolaccesstoindividu-alaccounts.ThePINmustbeenteredonakeypadbeforeanytransactioncanbeprocessed.

Point of Sale (POS)Typicallyusedtorefertoequipment(e.g.,terminal,PIN pad and printer) deployed at a retail locationandusedtoinitiatetheelectronicdebitofarecipientaccountandcredit to the retailer’saccount.Thesemachinesdonotdispensecash.WhenPOSincludescashback,themerchant,notthemachine,dispens-esthecash.ThisdeviceisusedtoswipeeithertheEBT/CreditorDebitcards.Markettransactionsarecarriedoutwitheither tokensorvouchers thatareexchanged at the central POS station. The devicecanbewirelessoruseaphoneline.

Glossary of EBT and Food Benefit Related Terms---------------------------------------------------------------------------------------------------------------------------

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ReceiptIncommercialnetworks,ahardcopydescriptionofatransactionthattookplaceatanATMorPOS,con-tainingatminimumdate,merchantnameandloca-tion, type of account accessed, amount, referencenumber,andanactioncode.InEBTsystems,receiptmustincludethebalanceremainingintheaccountafterthecurrenttransactionhasbeenprocessed.

ScripScripisanysubstituteforcurrency,whichisnotle-galtender.Itismoneywhichcanonlybeusedwithone company, association or group of companies.Atthefarmers’marketthisisusuallyintheformoftokensorvouchers.

SettlementProcessbywhichfunds(i.e.,debitsandcredits)aretransferredbetweenanytwoprocessingpointsintheflowofanelectronicfinancialtransaction.Thesein-clude: between financial institutions participating in thenetwork;and,betweenthefinancialinstitutionandthemerchantsforwhomitactsasanacquireror“sponsor.”

SNAPSupplementalNutritionAssistanceProgramformallyknown as food stamps.

SurchargeAfeeaddedtoatransactionbyanAcquirer,Termi-nalOperatororMerchantforatransactioninitiatedat a Terminal.

TANFTemporaryAssistanceforNeedyFamilies

Third Party VendorsVendorsthatsellandprovideservicesforEBT/Cred-it/Debit machines. They often charge a monthlytransactionandprocessing fee for their equipmentand services.

USDAUnitedStatesDepartmentofAgriculture

VendorTheentitywithwhichagovernmententitycon-tractsfortheimplementation,maintenanceandoperation of an EBT program.

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How Do SNAP and EBT Work? ---------------------------------------------------------------------------------------------------------------------------TheSupplementalNutritionAssistanceProgram(SNAP)(formerlytheFoodStampProgram)isthefederalgovernment’slargestnutritionassistanceprogramforlimited-resourcefamilies.Theprogramprovidesmonthlybenefitsforeligibleparticipantstopurchasefooditemsatapprovedretailoutlets.Thisprogramformerlyusedpapercouponswhichwereissuedtoeachprogramrecipienttopresenttoparticipatingretailfoodvendors.Inordertomakethisprogrammoreefficient,thefederalgovernmenthasdevelopedanelectronicalternative.Essentially,foodstamprecipientswilluseanelectronicdebitcard,EBT,insteadofpapercouponstopurchasefood.

Thefoodstamp,orSNAPofficewillissueanEBTcardonceanindividualisacceptedintotheprogram.Theycantakethecardtoanygrocerystore,foodretailoutletorfarmers’marketthatacceptselectronicfoodstampsanduseittobuyfood.Atthecheck-outstand,theEBTcardisusedjustlikeabankdebitcard.Thecardisswipedthroughaslotinamachineatthecheck-outcountercalleda“pointofsale”(POS)machine.TheEBTsystemwillautomaticallydeductthecostofthefoodortokens/voucherspurchasedfromtherecipientsmonthlyfoodstampbenefitaccountandprovideareceiptstatingthebalanceoftheaccount.

ThefoodstampofficenotifiesrecipientsonwhichdayofthemonththeirbenefitswillbeavailableandautomaticallydepositsbenefitsintheSNAPsystemeachmonth.Thefundsareavailabletotherecipientatthattime.SNAPregulationsprovideformanualtransactionsasabackupwhentheSNAPsystemisdown.USDApermitsretailerstochoosewhentousethemanualsystemiftheelectronicsystemisdown.

OperatinganEBTmachinerequiresaFood&NutritionService(FNS)license.FNSallowsmarketstoobtainasingleFNSlicensetoincludealleligiblevendorsatthemarket.SNAPbenefitsareredeemedusingaPOSterminal;transactionsareprocessedthroughoutthefarmers’marketsusingscrip(papercertificates,tokens,orreceipts).SNAPcustomersredeemtheirbenefitsbyswipingtheirEBTcardsatthePOSterminalinexchangeforscrip,whichtheycanusetobuyeligiblefoodproducts.Thisprocessissimilartoonesometimesusedforacceptingcreditanddebitcardsatfarmers’markets.WhileitispossibleforindividualvendorstohavetheirownFNSlicenseandPOSterminal,scripprojectsarethemostcommonwayforfarmers’marketstoacceptSNAPbenefits.

RecipientswithfoodstampbenefitscanusetheirEBTcardforeligiblefoodpurchasesatmostgrocerystores,someotherretailersandparticipatingfarmers’markets.Foodstampscanonlybeusedforfoodand for plants and seeds to grow food.

• Eligible items:Freshfruit,vegetables,meats,dairyproducts,eggs,breads,jam,pickles, pastries, plants or seed to grow food to eat.

• Ineligible items:Anynonfooditem,suchaspetfoods,soaps,paperproducts,household supplies,groomingitems,toothpaste,cosmetics,alcoholicbeverages,tobacco,vitamins or medicines.

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Why Should a Farmer or Farmers’ Markets Offer EBT?---------------------------------------------------------------------------------------------------------------------------ByacceptingSNAPbenefitsatfarmers’markets,themarket,thecommunity,andtheSNAPparticipantarebenefited.Farmersandvendorsatthemarketcanseeanincreaseinsalesandthemarketcanseeanincreaseinthenumberofcustomers.Additionally,lowincomeconsumerswillhavebetteraccesstolocallygrown,nutritiousfoods.

Incommunitieswithoutsupermarkets,afarmers’marketmayserveastheonlyavailablesourceoffreshfruitsandvegetables.Inadditiontofruitandvegetableproducers,farmerswhosellfoodssuchasmeat,milkandmilkproducts,andbakedgoodsmayalsoacceptSNAPbenefits.

Benefits of EBT ----------------------------------------------------------------------

• Replacespaperfoodstampsandchecks

• Saferandmoresecurethancarryingcashorchecks

• Convenientandeasytouse

• Increasesthedemandforlocallygrownfruitsandvegetablesandotherfarmproducts

• Demonstratesthatshoppingatamarketis affordable,easyandfun

• Providesalong-termincentivethatwillchangeshoppinghabitsandresultsinachangein

dietaryhabits

• Increasessalesforfarmersascustomersarenotlimitedtotheamountofcashtheycarry

• IncreasesthenumberofmarketsintheSNAP/EBTprogram,providinggreateraccesstolocalfoods for SNAP customers

Farmers’MarketEBTprojectshaveshownthatsomelocationsandfoodstamprecipientsareaviablemarketsegmentforfarmers’marketvendors.Thefactorsthatcandeterminethelikelihoodofattractingfood stamp recipients are:

1. Beinglocatedinorwithinwalkingdistanceoflowincomeneighborhoods

2.Havingstrongcommunityinvolvementtosupporttheprogram

3.HavingeducationandpromotionprogramsforSNAPrecipients,marketsandvendors

4.Havingaleaderinthemarketorinthecommunitythatiscommittedtotheproject

5.Havingsupportfromthelocal,stateandbusinesses

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Guidelines to Determine if Your Market is Ready for EBT-------------------------------------------------------------------------------------------------------------------------ThefollowingaregeneralguidelinestohelpyoudetermineifyourmarketisagoodcandidatefortakingonSNAP.TosucceedwithSNAPandEBTcards,amarketshouldhave:

1. Sufficient Supply and Demand Numberoffoodstamprecipientsinacountyandadequateselectionoffreshproduce.Whilethereis

agreatneedacrossthestateforlow-incomepeopletohaveeasyaccesstolocallygrown,freshfood,thecostofanEBTsystemmightoutweighthebenefits.Ifyourcommunitydoesnothaveasizeablefoodstamppopulationand/orifyourfarmers’marketsizedoesnotallowforasufficientquantityorvarietyofproduct,thetimemaynotberightforyourmarkettoimplementEBT.

WHAT CONSTITUTES “ENOUGH” FOOD STAMP RECIPIENTS? Thereisnoabsolutelyrightnumber.Tofindoutaboutthenumberoffoodstamprecipientsinyourcommunity,contacttheMinnesotaDepartmentofHumanServicesat651-431-2000.

Itisimportanttotrytogivethisprogramasmuchchanceforsuccessaspossible.Thenumberofpeopleservedisonlyonemeasureofsuccess,anditiscertainlynottheonlythingtotakeintoconsideration.SometimesitwilldependonwhichotherareamarketshaveEBT,howinvolvedacommunitymightget,whothecommunitypartnersmightbe,whattheprospectsforlong-termsustainabilityoftheprogrammightbe,etc.

WHAT IS “SUFFICIENT QUANTITY OR VARIETY” OF PRODUCE? Asageneralruleofthumb,amarketshould,atpeakseason,haveatleast10producevendorsEACHofwhomhasatleasteightvarietiesofproduce.

2. Dedicated Staff Staffingisacriticalcomponenttothisprogram.ThepersonwhorunstheSNAP/EBTprogramcannot

alsobeavendoratyourmarket.ThepersoninchargeofEBTcanbeamarketmanager.TheEBTmanager,themarketmanagerandthevendorsallhaveresponsibilitiestomaketheEBTsystemwork.

EBT STAFF RESPONSIBILITIES• FilingtheapplicationwithFNS.ItiscriticalthatthepersonresponsibleforEBTiswillingto

submittheirsocialsecuritynumbertoFNS.

• CaringfortheEBTmachineonceitisdelivered(includingsecurestorageandchargingsystemasneeded).

• Trackingthetokensthataretakentomarketandusedas“bank.”

• HandlingEBTtransactionsatmarket,andtroubleshootinganyglitchesinthesystem(contactwithterminalleaser/customerservice,asneeded).

• Helpingthemarketmanagerinformgrowershowtoworkwiththetokensystem.

• Meetingthescheduledreimbursementdates,requestingchecksorcashfromanauthorizedstaff member, and reimbursing growers for tokens.

• Distributingauthorizedvendorsignagetovendors.

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• Enteringtransactionrecordsintoanexcelsheetorotheraccountingprogramaftermarket.

• Recordinghowmanytokensyouredeemfromeachvendoreachdayandthetotalnumberoftokensredeemedeachday.

• ReconcilingthebankstatementwithEBTprintouts.

• ProvidingtransactionrecordstotheHumanServiceDepartmentasneeded.

FARMERS’ MARKET ORGANIZATION RESPONSIBILITIES• BecominglicensedtoacceptSNAPbenefitsbyFNS.

• Designingandprovidingtokensorpaperscrip.

• Trainingfarmersinscripredemptionrulesandprocedures.Themarket’sabilitytoacceptSNAPbenefitscouldbejeopardizedifafarmercommitsaSNAPviolationwhileoperatingunderthemarket’s FNS license.

• Creatingsignageforauthorizedvendors,asacustomerreference.

• Developinganaccountingsystemandmethodforreimbursingvendors.

• Trainingstaffinscripredemptionrulesandprocedures.

• DeterminingasecureplacewherethePOSequipment,tokensandsupplieswillbestoredwhennotinuseandwhowillberesponsibleforproperstorage.

FARMER/VENDOR RESPONSIBILITIES• SellingonlyeligibleitemswhenpurchasedwithEBTtokens.

• Turninginpaperwork/tokenstomarketmanagerforreimbursement.

• Readingandunderstandingtherules;askingquestionsofstaffpriortomisunderstandings.

• PostingsignageatstallthatdesignatesvendorasauthorizedforEBTprogram.

3. Desire To Make This Happen Weallknowmarketmanagersalreadyhaveplentytodo,sotakingonanewprogramlikethis,evenif

itisjustinamanagementrole,isnotaneasytask.Considerwhetherornotyouhavesupportstaffforthisproject;lookatresourcestofillthisneed,ifnot.Reallythinkaboutwhetheryouhavethetimeandenergytomakethishappeninyourcommunity.Itisalsoimportantthatthefarmersaresupportiveoftheprogramandarewillingtobeeducatedonhowtousethesystemandhowtobesensitivetotheirchangingcustomerbase.

FormoreinformationonFNSSNAPretailereligibilityrequirements,please visit: www.fns.usda.gov/snap/retailers/store-eligibility.htm.

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Deciding to Use EBT/Debit/Credit ---------------------------------------------------------------------------------------------------------------------------AcceptingSNAPbenefitsatfarmers’marketscallsforawell-thought-outbusinessplan,thiswouldneedtoconsidertheinitialset-upcosts,ongoingoperatingandlaborcostsforadministrationandforpromotingandmarketingtheprogram.Themarketwillspendagooddealoftimeupfrontdevelopingtheinfrastructure(equipment,stafftime,andadditionalaccountingprocedures).WirelessPOSterminalscancostnearly$1,000toinstallandprogram,andtherewillbeoperationcosts.Manyexpenses(monthlywirelessnetworkservice,transactionfees,andlabor)willexistforthelifeoftheprogram.ItmaytakeafewyearsforSNAPredemptionstojustifyprogrammaticcosts,soitisimportanttohaverealisticexpectationsabouthowquicklySNAPandcreditcardsaleswillgrow.

IndividualvendorscanacceptSNAPbenefitcardsand/ordebit/creditcardsattheirstands.Anotheralternativeisthatthefarmers’marketacceptsSNAPasacollectiveorganization.ThemarketwouldhaveacentrallylocatedplacewhereEBTcardswouldbeaccepted.

How to Use EBT Technology to Accept SNAP Benefits---------------------------------------------------------------------------------------------------------------------------ImplementingascripprojectisthemostcommonwayforfarmersmarketstoparticipateinSNAPbecauseitallowsmultiplevendorsatamarkettoacceptSNAPbenefitswithouthavingtoobtainindividualSNAPlicensesandPOSterminalsforeachvendor.Instead,thefarmersmarketgetsoneSNAPlicenseandusesanalternateformofcurrency(paperscriportokensarethemostcommon)tocompletethetransactionbetween individual vendors and SNAP customers, using a single POS terminal. Scrip can also be used to acceptbank-issuedcreditanddebitcardswhenthereisasinglePOSterminalinuse.Vendorsprocessthescripcurrencythesameway—whetherornottheshopperismakinganEBToradebit/creditcardpurchase—whichcanhelplessenthestigmasometimesassociatedwithusingSNAPbenefits.Themarketisresponsibleforthedesignandcostofthescrip.

HOW ARE SNAP PURCHASES MADE IN FARMERS MARKETS THAT OPERATE A SCRIP PROJECT?Therearemanytypesofscripthatcanbeused:paperscrip/tokensorreceipts.MarketscaneitherswipetheSNAPcustomer’sEBTcardonacentralPOSterminal,ortheycanfilloutapapervouchertoredeemSNAPbenefitsinexchangeforscrip/tokensorreceipts.Regardlessofthesystemused,thedepositismadedirectlyintothemarket’sbankaccountwithin2businessdaysafterthepurchasesareenteredintothePOSterminal.Themarketthenfollowsitsownproceduresforreimbursingvendors.

OPTION 1Using Scrip or Tokens

1. ASNAPcustomerswipestheEBTcardatthecentralPOSterminal.

2. Thestaffpersonenterstheamountofscriportokensrequestedintotheterminal.

3. TheSNAPcustomerentershis/herPIN.

4.Oncethetransactionisapproved,theSNAPcustomerisgivenatransactionreceiptandscripor tokens.

5. TheSNAPcustomerthenusesthescriportokensatanyparticipatingvendor’sstandtopur-chaseeligibleitems.

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OPTION 2Using Receipts

1. ASNAPcustomershopsatavendor’sstandandreceivesareceiptfromthevendorforfooditemspurchased,andthenleavesthepurchaseditemswiththevendor.

2. TheSNAPcustomergoestothecentralPOSterminalwithoutthepurchasedgoodstoswipetheEBTcardfortheamountonthevendor’sreceiptandentersthePIN.

3.Onceapprovalisgranted,themanagergivesthecustomeranothertransactionreceiptto confirmpayment,whichthecustomerbringsbacktothevendortoretrievethe purchaseditems.

OPTION 3Manual Vouchers FarmersmarketswithoutaPOSterminal,orthosethatuseanoffsiteterminal,canemploymanual vouchers.ManualvouchersarealsousedifaSNAPcustomer’sEBTcardortheEBTsystemisnot functioning.Manualvoucherscanbeusedwithscrip,tokens,orreceipts.

1. Themarketstaffcallsacustomer’sEBTcardnumberintotheretailerEBTcustomerservicenumberfortransactionapproval,placingaholdonthecustomer’sSNAPaccountfortheamountofthetransaction

2. Thestaffmemberrecordsthetransactiononamanualvoucherthatthecustomersigns,aswellasinthemarket’slogbookforbookkeeping.

3. ThenextstepdependsonwhetherthemarkethasanoffsitePOSterminal:

a. Ifitdoes,themanualvouchersarekeyedintotheoffsiteterminalforprocessingattheendofthemarketday.

b. IfthemarketdoesnothaveaPOSterminal,themanualvouchersaremailedtotheState’sEBTcontractor.Marketsgenerallyhave15daystomailinthevouchers.The

directdepositintothemarket’sbankaccountoccurswithin2businessdaysaftertheEBTcontractorreceivesthevouchersinthemail.

How to Apply to Accept SNAP and use EBT---------------------------------------------------------------------------------------------------------------------------STEP 1Make Sure You Qualify as a Farmers’ Market or Direct Marketing FarmerAfarmers’marketisdefinedasamulti-stallmarketatwhichfarmer/producerssellagriculturalproductsdirectlytothegeneralpublicatacentralorfixedlocation.Typicalproductsareusuallyfreshfruitsandvegetables,butcanalsoincludemeatproducts,dairyproducts,and/orgrains. Individualfarmers/farmsthataredirectlymarketingproducttotheconsumermayalsoapply.Theseareindividualproducersofagriculturalproducts,particularlyfreshfruitsandvegetables,aswellasmeat,dairy,and/orgrains,thataresoldtothegeneralpublicthroughadirectmarketingvenuesuchasaroadsidefarmstand,pick-your-ownoperation,and/ormarketstallwithinafarmers’market.

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STEP 2Apply for a PermitEachstatehasaUSDAFoodandNutritionOfficerdesignatedtoapprovethefoodstampretailerpermits.YoucanapplyonlinetobecomeauthorizedtoacceptSNAPbenefitsatyourfarmers’marketorstand.Applyingtoacceptbenefitsatyourmarketisasimplethreestepprocess:1)getaUSDAaccount,2)filloutanapplicationonline,3)mailinyoursupportingdocumentationtocompleteyourfile.

Toapplyonlineyoufirstneedtosetupausernameandpassword.Gotowww.fns.usda.gov/SNAP/ebt/fm.htmwhichisthehomepage.Second,activateaUSDAeAuthenticationaccount.Tocreateanac-count,clickonthe“SetUpAnAccount”linkatthefollowingwebaddress,http://www.fns.usda.gov/snap/retailers/register.htm.YoumusthaveavalidemailaddressasUSDAwillsendyouaconfirmationemail.Onceyoureceivetheemail,itincludesahyperlinktoactivateyouraccount.

Ifyoudonothaveinternetaccessorpreferapaperapplication,callthetoll-freehotlineat1-877-823-4369.

STEP 3 Fill out the ApplicationFillingouttheonlineapplicationisfast,easyandconvenient.Youcanstartandstoptheapplicationprocessatanytime.Youhaveupto30daystocompleteandsubmittheonlineapplicationtoFNS.

Bepreparedwiththefollowinginformationaheadoftime:1. Bank Account

2. Owners information

3. Socialsecuritynumber,copyofaphotoID,andestimatedsales

4. YouwillalsoneedtoindicatehowyouwillacceptSNAPbenefitsandEBTcardsatyour farmers’ market.

EachmarketneedstodetermineifitwillprocessonlyEBTcardsforSNAP,orifitwillalsoacceptdebitorcreditcardsfromitscustomers.EligibleproductsandEBTfeesaredifferentforeachoftheseoptions.Again,it’simportantthateachmarketevaluatethedemandforEBTanddebit/creditcardtransactions.

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EBT FOR SNAP ONLYEBTforSNAPonlymeansthatyourmarketwillaccepttheEBTcardsundertheregulationsofthefederalfoodstampprogram.AnymarketcustomersthatdonothaveSNAPbenefitswouldhavetopaycashorwriteacheckforeachtransaction.

PROS• NoservicefeesareattachedtousingelectronicSNAPpaymentsovercashtransactions.

• Vendorsneedverylimitededucationtoimplementtheprogram.

CONS• Manyconsumersuseonlytheircreditordebitcardforpayment.

• Nopotentialrevenuestreamfromservicefeestocardusers.

• SNAPbenefitrecipientsmayfeelmoreconspicuousbeingtheonlycustomersusing electronicpayment.

DEBIT/CREDIT TERMINALThisoptionrequiresaddingtheEBTforSNAPfunctiontoaterminalalreadyinuseforacceptingdebit/credit transactions.

PROS• Theterminalmayexpandthecustomerbasebecauseallincomegroupscanuse electronic transactions.

• SNAPbenefitrecipientsmayfeellessconspicuousasotherconsumersareusing electronicpayment.

• Themarketmaybeabletooffsetterminalleaseandfinancechargesbycharginga usage fee.

CONS• Terminalservicefeesandtransactionfeesmayapplytonon-EBTtransactions.

• HigherstartupcostthanaSNAPonlyterminal.

• SNAPtransactionsanddebit/credittransactionsmustbetrackedseparately.

• VendorsneededucationonrulesofacceptingSNAPEBTtransactionsversus debit/credit transactions.

Visitthefollowingwebsitetoregister:https://eauth.sc.egov.usda.gov/eAuth/selfRegistration/selfRegLevel1Step1.jsp

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NOTE:Theapplicationprocessisthesameforfarmers’marketorganizationsasitisforindividuals.Amemberofthemarket’sboardshouldsubmittheapplication.Themarketbankaccountinformationgoesontheapplication;however,theapplicationmustincludethenameofacontactpersonwhosenamewillthenappearonthepermit.ThedesigneewillbecomethecontactpersonforallcorrespondencefromFNSandthepersonwhoreceivesthePOSterminalifthemarketchoosesthatoption.

Theprimarycontacttoassistfarmers’marketandrespondtotheirquestionsaboutbecominganapproved retailer is Robin Masters. Robin’s contact information is: Robin.Masters@fns.usda.gov Phone:317-510-7226FieldOfficestaffinourlocalofficescanalsoprovideservice.

STEP 4Complete Your Application.

Tocompleteyourapplication,sendallrequireddocumentationtoyourservicingFNSoffice.AlistofrequireddocumentsandyourservicingFNSofficeisprovidedduringyouronlineapplicationprocessorinyourapplicationpacketifyouprefertoapplyviapaper.FNSmaytakeupto45daystoprocessan application once it’s completed.

WhathappensaftertheFNSapplicationisapproved?• FNSwillsendatrainingmanualtothefarmersmarket.Additionalguidanceisavailableat:

www.fns.usda.gov/FSP/retailers/pdfs/Retailer_Training_Guide.pdf.

• FNSnotifiestheStateEBTcontractor.(EachStatecontractswithanEBTcontractorwhois responsibleforSNAPEBTservicesinthatState.)

• TheEBTcontractorwillcontactthefarmersmarkettodeterminePOSequipmentneeds.

Processing Electronic Transactions---------------------------------------------------------------------------------------------------------------------------ThewaystoprocessEBTcardswitheachrequiringdifferentequipment.

1) Standard POS TerminalAstandardPOSterminaliswhatyouseeinanyretailstoreatcheck-outlanes.Theterminalrecordscardtransactionsandgeneratesabatchtotalreportoftransactionsatthecloseofeachmarketday.AstandardPOSterminalrequiresasourceofelectricityandaland-basedtelephoneline.Mosttelephonecompanieswillinstallaninterfaceboxatmarketlocationsifthereisanearbytelephonepoleorbuilding.

GETTING A FREE POS DEVICEMoststatesoffertoprovideafreewiredPOSdevicetomostSNAPretailers.Statesusuallyrequirethattheretailerhas,orexpectstohave,aminimumamountofSNAPtransactions(typically$100amonth)togetandkeepthefreePOSdevice.Ifafarmers’marketisinterestedinreceivingafreePOSdevice,itmustcompletetheEBTRetailerAgreementthatyouwillreceiveinthemail.OnceacompletecontractisreceivedbytheState’sEBTvendor,theywillprovideaPOSdevicetoqualifiedretailers.ThefreePOSdevicewillbea“wired”deviceneedinganelectricalconnectionandahard-wiretelephoneline.Itwillonly process EBT cards. It will not process debit or credit cards.

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PROS• Theseterminalsarereliable.

• Moststatesmayprovidethemfreewith or more in sales.

• Theterminalmaybemovedandused

CONS• Itrequiresatelephoneline.

• Itrequiresanelectricaloutlet.Aportab

• Transactionfeesandservicechargesap

noservicechargesifyouhave$100

atyourfarmstandifyouhaveone.

legeneratorandcarbatteryalsoworks.

ply.StateswillmostlikelynotcoverawirelessdeviceandwillonlycoverEBTtransactionsnotcreditordebit.

IF YOU WANT A POS DEVICE WITH OTHER CAPABILITIESAnotheroptionistocontractwithathirdpartyprocessor.Forafee,thesecompanieswillprovideaPOSdevicethatacceptsdebitandcreditcardsaswellastheState’sEBTbenefitscard.YoucanalsopurchaseorleaseaPOSdeviceonyourownandenterintoacontractwithathirdpartyprocessorjustfortheirprocessingservice.Ifyouchoosetoprocessdebitandcreditcardtransactions,additionalfeeswillapply.However,acceptingdebitandcreditcardsdoeshavethepotentialtosubstantiallyincreaseyoursales.

Anoptionforfarmers’marketswithoutaccesstoelectricityandtelephonelinesisusingawirelessPOSdevice.MostStatesdonotofferwirelessmachinesfreeofcharge,soyourfarmers’marketwouldneedtogetthedevicethroughathirdpartyprocessor.WirelessPOSdevicesfromthirdpartyprocessorscanhandledebitandcreditcardtransactionsinadditiontoEBTtransactions.

Informationaboutthirdpartyprocessorsand/orvariousPOSdevicesforsaleisavailableontheInternet.Additionalsourcesofinformationareotherfarmers’marketsthathavecontractswiththirdpartyprocessorsoryourStategrocers’association.Itiswisetoshoparoundandaskaboutallfeesaspricescanvarygreatly.

Thethird-partyPOSproviderthatsellsorleasesthemachinewillsetupanaccounttoautomaticallytransferfundsfromthecustomer’saccounttothemarket’saccount.Inadditiontoamonthlyhandlingfee,eachtransactionthatoccurswillalsohaveaswipefee.

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2) Wireless POS TerminalAwirelessPOSterminalfunctionsinthesamewayasastandardPOSterminalexceptthatitcanbeusedanywheretheserviceproviderhasasignal.Itusescell-phonetechnologyandworksonabatteryorwithanACadaptor.Manyserviceprovidersincludeanextrabatteryorhavethemavailableforpurchase.

PROS• Theseterminalsarereliable.

• Itcanbeusedatthefarmers’marketoratthefarmstand.

• Itdoesn’trequirealandlineorelectricity.

• It’sportable.

CONS• Itmaybeexpensivetopurchase,orlease.

• Transactionfeesandservicechargesapply.

• Theprinterneedsfrequentpaperreplacement.

Purchasing a POS Machine ---------------------------------------------------------------------------------------------------------------------------TherearemanyvendorsthatsellorleasePOSmachines.Ontopofthatcost,feesaregenerallychargedpertransaction.Thecostofpurchasingamachinecanrangefrom$700to$1,500.Vendorswillwanttoshoparoundforbestprices.Aninexpensivemachinewilloftenhavehigherservicefees,sobethoroughinyourpricecomparisons.Themarketwillberesponsibleforallservice/lease,cardproviderandtransac-tion fees.

Ifyouagreetoacceptcreditcards,youaresigningacontractwithaprocessor.Anexampleofthefeeschargedforusingtheirservicesarelistedbelow.

1. Apercentagefee--theamountofmoneychargedmultipliedbyapercentagefee (e.g.,1.79%creditcardsor1.49%checkcardsx$charged,estimate only).

2. Atransactionfee--theamountchargedeachtimeatransactionisprocessed (e.g.,25centsxeachtransaction,estimate only).

3. Amonthlysettlementfee--theamountchargedeachmonthforsettlingthe account(e.g.,$10.00pereachmonthforsettlingtheaccount,estimate only).

4. Amonthlywirelessaccessfee--$12.00chargedeachmonthforusingthe wirelesssystem(estimate only).

5. Amonthlyminimumusagefee--$25.00chargedeachmonth,whichisdeducted fromthepercentagefee.

6. Anaccountterminationfee--iftheaccountclosesinlessthan3yearsestimatedcostare (1to12months-$295.00,13to36months-$195.00).

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Theequipmentcostswillvary,dependingonwhichmodelyouchoose.Themostpopularequipmentusedinalandlinemodelcurrentlycosts$375.00+tax(estimate only).Themostpopularequipmentusedinawirelessmodelis$795.00+tax(estimate only).Theequipmentcanbepurchasedneworused,andinmostcasesitcanhaveafreeplacementwitha$25.00monthlyusagefee.Thisfeeisappliedtothemonthlyusagepercentagefee.Iftheamountofthemonthlyusagepercentagefeeexceedstheminimumusageamountthentheequipmentistrulyfreetouse.

3) Manual VouchersManualvoucherscanbeusedinsteadofaPOSdevice.ThismethodisthemostcosteffectivewhenyouhaveverylowSNAPsales(lessthan$100amonth)oryoudonothaveawaytoconnectaPOSdevicetoanelectricaloutletandatelephoneline.Amanualvoucherisfilledoutforeachtransactionandcom-pletedvouchersaremailedtotheprocessorforpayment.

4) A Third Party Processor

PROS• Youdon’tneedtobringequipmenttothemarketexceptforacellphone.Transactionscanbe enteredonaPOSterminalathomeattheendoftheday.

• Lessexpensivethanothermethods.

CONS• Thetransactiontakesafewminuteslongertocomplete.

• Callinginalltransactionsattheendofthedayrunstheriskthatcustomerbenefitfundsmayno longer be available.

MarketscanacceptEBTpaymentsinseveralways.TheUSDAWebsitehttp://www.fns.usda.gov/snap/ebt/fm-script-EBT_equipment.htm hasalistofEBTfarmers’marketprojectswithspecificinformationonacceptingpayments.

How Should a Farmers’ Market Implement the EBT System?---------------------------------------------------------------------------------------------------------------------------EachmarketneedstodecidehowitwillacceptSNAPpayments.EachindividualvendormayhavetheirownequipmenttoprocessEBTpayments.WhenitisnotpracticalforindividualfarmerstoobtainanFNSlicensetoacceptSNAPusingtheirownindividualpoint-of-sale(POS)device,afarmers’marketsponsorcanstepinbygettingonelicensethatallowsalleligiblefarmersinthemarkettoacceptSNAPbenefitsusingonecentralizedPOSdevice.Thisworkswellforenclosedmarkets;openmarketsriskthepossibilitythatcustomerscouldvisitseveralvendorsandnotpayatthecentrallocation.Whenamarketdecidestouseacentralizedcardreaderfordebit/creditand/orSNAPtransactions,typicallythemarketwillimple-menta“scrip”system.

SCRIPScripisanon-monetarycurrencyusedatthemarkettomakepurchasesfromvendorsinsteadofusingcashorEBTcards.Scriphasasetdenominationusually$1,$5or$10.Thescripmustnotbeabletobeeasilycounterfeited.

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THERE ARE TWO BASIC SCRIP SYSTEMS• Paper scrip- or Market Bucks Apapercurrencydevelopedtobeusedlikecashinaspecificmarket.Paperscripshouldbe

designedwiththemarketnameprominentlydisplayed.Sequencedserialnumbersonallscriparestronglyadvised.Marketbucksareeasiertocounterfeit,butitispossibletoavoidthisproblembyusingwatermarkedpaper.Useofnon-photocopy-ablepaperisrequired.

• Tokens Tokensaregenerallywoodenorplastic.Thetokensshouldbeprintedspecificallyforeach

market.Itisrecommendedthatmarketsdesignonesideofeachtokenwiththemarketlogoornameandavalueamount,andthephraseNOCASHVALUEontheotherside.Sincetokensaremoredifficulttoduplicatethanpaper,theyaremoresecure.Tokensmaybepurchasedonlinefromanumberofvendors.Pricesvarydependingonstyleandcolor.Itisadvisedtorequestanagreementwiththemanufacturerofthetokensthatnootherpartiesbeauthorizedtocommissiontheprintingoftokenswithyourfarmersmarketnameonthem.

Tokenstravelgenerallyfromthemarkettenttoshoppersandvendors,thevendorsthengivethemtothemarketstaff.Itisthedutyofthemarketmanagerorauthorizedstafftokeeprecordsoftransactions.

PURCHASING MARKET TOKENSTokensareeasytouseandmakeshoppingatthemarketfun.Sincetokensaremoredifficulttoduplicatethanpaper,theyaremoresecure.Tokensmaybepurchasedonlinefromanumberofvendors.Pricesvarydependingonstyleandcolor.Thetokensshouldbeprintedspecificallyforeachmarket.Itisrecommendedthatmarketsdesignonesideofeachtokensidewiththemarketlogoornameandvalueamount,andthephraseNOCASHVALUEontheotherside.Itisrecommendedusing$2tokensforSNAPand$5tokensfordebitandcredit.ThedebitandcredittokensshouldbesimilarbutdifferentiatedfromtheSNAPtokens.Youcandothisbyusingdifferentcolors,andhaving“EBT”or“CC/DEBIT”printedoneachseries.Tokenscanonlybeusedatthemarketwheretheywerepurchased,somarketsshouldputtheirnameorlogoonthetokens.

SCRIP RULES• OnlyeligiblefoodcanbepurchasedwithscrippurchasedwithSNAPbenefits.

• NocashbackcanbegiventoSNAPcustomers.Thesalemustbefortheexactamountofthescriporthecustomercanmakeupthedifferencewithcash.

• Thecustomermustbeabletogetarefundbackontohis/herEBTcardforunusedSNAPscrip.

• EBTaccountsmayalsocontainnon-SNAPcashbenefits.Scripissuedinexchangeforthesecashbenefits,suchasTANF,canbeusedtopurchasenon-fooditemsandisnotsubjecttotheaboverules.However,scripissuedforSNAPbenefitsmustbedistinctfromscripissuedforcashbenefits.

HOW THE SCRIP SYSTEM WORKSNow,thatyouhaveyourscripproduced,howdoyouprocessthetransactions?ThemarketdesignatesacentrallocationwhereSNAPcustomersmaypurchasetheamountofscriptheywant.Thislocationshouldbewellmarkedsothatcustomerscaneasilyfindit.It’srecommendedthatyoulabelyourscriplocationasaninformationboothorsomethingequallyneutralespeciallyifyouareaSNAP-onlyEBTmarket.Thisway,customerswillnotfeelsingledout.Astaffpersonmustbetrainedtooperatethescripsystem.TheEBTterminaloperatorswipesthecardforthetotaldollaramountofpurchasesthecustomerchoosesforthatday,recordstheapprovalcodeforthe“sale”andissuesthescriptothecustomerinthatsame amount.

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Customersthenspendtheirscripatanyfoodvendorusingitjustlikecash.TherearedifferentspendingrulesforSNAPbenefitsversusdebit/creditpurchases.IfaSNAPbenefitscustomerdoesn’tuseallofthescrippurchasedfortheday,theymayreturntotheEBTstallandhavetheremaindercreditedbacktotheirSNAPaccount.Or,he/shemaysavethescriptoshopatthemarketthefollowingweek.Debit/Creditcustomerscannotbegivenacredittotheiraccount.Theyeitherhavetousethescriponthatmarketdayorholditforanothervisit.

Marketsdifferinhowtheydecidetohandlevendorreimbursement.Somemarketswillreimbursetheirvendorsthesameday.Whenafarmerturnsintheirscripfortheday,he/shesignsavendortokenredemptionlog,andreceivesacheckonthespot.Thisrequiresextramoneyinthemarket’scheckingaccounttocoverthecostuntilthereimbursementamountistransferredtothemarketaccountbytheEBTvendor.Analternativesystemistoplaceaseparatelogsheetinanenvelopeforeachvendoratthebeginningofeachmarketday.ForMarketsthatfinditmoreconvenientandcosteffectivetoreimburseonceortwicepermonth,anotheralternativeistokeepanotebook–withindividualvendorforms–whereturnedintokensarerecordedeachMarketday,untilthedesignatedreimbursementdate.

Attheendofthedaythemarketmanagerorrepresentativewillcollecttheenvelopes,alongwiththetokens.Thefollowingweekthevendorwillreceiveacheckfortheamountoftokensalesfromthepreviousweek.Thecheckcanbeplacedinthevendor’senvelopepriortothemarket.Ifthissystemisused,thecheckfromthelastmarketdayoftheseasonshouldbemailedtothevendorwithinaweek.SeeAppendixVIforScripExample.

VENDOR INSTRUCTIONS ON ACCEPTING TOKENS• VendorswillnotexchangetokensforU.S.currencywithanypersonexceptauthorizedmarket

staff.

• Tokensareacceptedonparwiththeircashvalue,i.e.a$1tokenhasavalueofa$1bill.

• ProductswillbepricedthesameforSNAPcustomersascashcustomers.

• Donotmailtokenstothemarketofficeinanenvelope.Damagedtokenswillnotbe reimbursed.Tokensshouldberedeemedinperson.

• Ifthereareanyquestionsorconcernsaboutthisprogram,pleasetalktoadesignated market staff person.

NOTE:Themarketmanagerorboardmemberisresponsibletotrainfarmersinscripredemptionrulesand procedures.

ACCEPTING SNAP IN OTHER WAYSThemarketcanuseacentralterminalwhereallSNAPcustomerspayfortheirgoods,withthemarketreimbursingeachvendorseparately.

• Receipts:Customersgetareceiptfromeachfarmerforfoodpurchases,leavetheiritemsatthestand,bringthereceipttothecentralizedPOSdevicetopayfortheiritemswiththeirEBTcard,andthenreturnwiththepaidreceipttoeachfarmertopickuptheirpurchases.

SNAPanddebitcardservicechargeshavearelativelyfixedfeestructureand,consequently,it’seasiertoprojectfutureprogramcosts.Creditcardusagefeesarebasedonapercentageofsaleswhicharemuchlesspredictableandrequiremorecomplexaccounting.Thefollowingdocumentsprovidesupportforthemarket’s pursuit to add card services.

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Whenchoosingaprovideritisimportantthatthefarmers’marketdeterminewhatcardservicefitsbest.Keepinmindthateachcompanyusesdifferenttechnologieswhicharenotnecessarilytransferabletoothercompanies.Thismeansthateachcardservicedeviceisspecifictothatcompanyonly.Keepinmindthatifyouareinaruralareayouwillneedtouseaproviderthathascellphoneserviceinyourarea.Belowisjustasamplenotacompletelistofvendorsthatofferservicesthatmaybeofusetoyouandyourmarket.

FIS-FidelityNationalInformationServices.For more information email efundsGovernment@FNIS.com orcall800-558-6980x3422

GlobalPayments.Formoreinformationvisittheirwebsite www.globalpaymentsinc.com or call 1-888-876-4093.

* MDA does not endorse any specific provider. Each market should research and select a provider that is best suited to their specific needs as each provider has a different financial structures and fees for EBT and Debit/Credit usage.

Good Record keeping Practices When Accepting SNAP Benefits---------------------------------------------------------------------------------------------------------------------------Marketsthatoperateascripprojectshouldkeeprecordsofscripsales.TheAppendixsectionincludessamplerecordkeepingforms.Farmersmarketstypicallytrack:

• Amountspentonscripbycustomersusingeachofthedifferentacceptedpaymenttypes(EBT,debit,orcreditcards).

• Scripreturnedandcreditedbacktothecustomer’sEBT/debit/creditaccounts.(SNAPcustom-erscannotreceivechangeorcashback.Allreturnsmustbecreditedbackontothecustomer’sSNAPEBTaccount.)

• Scripturnedinforreimbursementbyeveryvendoroneachmarketday.

• Monthlyandyearlysalesreports.

MONTHLY ACCOUNTING Whiletherearefewaccountingrecordsthatneedtobekept,howamarkettrackstheflowofmoneythroughthesystembecomesmorecomplexasfarmers’marketsadddebitandcreditcardservicestotheirSNAP/EBTservices.It’simportantthataccuraterecordsarekept.EachmonththemarketmanagerormarketSNAPcoordinatorwillreceiveastatementshowingtheEBT,debitandcreditcardtransactionsfromeitherthethird-partyPOSproviderorthestateofficedependingonwhichdeviceisused.Theseshouldcorrespondtothebatchreceiptsthatthemachineprintsoutattheendofeachmarketday.

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ARE TAXES CHARGED ON SNAP PURCHASES?SomeStateshavesalestaxonallfoodpurchases;however,SNAP purchases cannot be taxed regardlessofStateorlocalfoodtaxrules.InStateswherefoodistaxed,marketvendorstraditionallyfoldthetaxintothelistedpriceofthefooditem.However,vendorsmustdeductthetaxfromthetotalpriceofanitempurchasedwithSNAPbenefits.Eachstatehasdifferenttaxratesand,insomecases,theyvarybycountieswithinStates.Checkwiththestate’sfarmers’marketassociationorotherdesignatedstateagencyaboutobtainingarelevanttaxadjustmenttablethatvendorscanusewhenadjustingforSNAPpurchases.

Itisimportantthateachvendorhasarecordofhis/hersalesandisreimbursedeachweekfortheamountofthepreviousweek’ssales.

ExamplesofaccountingformsandrecordkeepingexamplesusedbyothermarketsareintheAppendix VIII.

CHECKING ACCOUNTTohavereimbursementsautomaticallytransferred,eachparticipatingmarketmusthaveanactivecheck-ingaccount.TheSNAPreimbursementswillbetransferredinalumpsum,orbatch,totheaccountusuallyeachweekend.Debitandcredittransactionswillbetransferredaccordingtothecardcompany’sschedule,typicallywithin48hours.Checkstothevendorswillbewrittenoutofthisaccountanddistrib-utedaccordingtoeachmarket’soperatingprocedures.

VENDOR REDEMPTIONEachweekamarketrepresentativeshouldrecordthenumberoftokensdistributedtocustomers,thenumberreturnedbythevendors,andthecheckswrittentoreimbursethevendors.Remember,thedailybatchtotaloftransactionsanddailytotaloftokensredeemedwillbedifferentassometokensarekeptbycustomerstospendanotherday.

ARE VENDOR TRAINING AND AGREEMENTS NECESSARY TO PARTICIPATE IN SNAP?Neithervendortrainingnorvendoragreementsarerequiredbylaw,butit’sagoodideaformarketmanagerstoinstituteagreementsandoffertrainingtovendorsparticipatinginSNAPsotheywillknowwhattoexpectfromtheEBTsystemandwhattheywillneedtodotoacceptSNAPbenefits.Atleastonetrainingmeetingshouldhappenbeforethemarket’sopeningday,givingvendorsanopportunitytowalkthrougheverystepoftheprocessandbecomefamiliarwiththesignageandequipmentandthescrip,tokens,orreceipts.TheywillneedtounderstandthereimbursementproceduresandrecordkeepingformsthatwillbeusedinconjunctionwiththeEBTsystem.

ThesamplevendoragreementformislistedinappendixV;thiswillhelpyouexplaintheprogramtovendors.Besuretolisteligibleandineligibleitems,howtorecordthenumberoftokensused,howtoredeemtokens,andanyrulesofoperationfortheprogram.Itishelpfultohavethetokensamplesontheagreementform.Itshouldalsoincludeinstructionsonhowvendorswillbereimbursedfortheirtokensandreceivetheirmoneyeachweek.

Itmightbehelpfultopersonallyhandouttheinformationsheettoeachparticipatingvendorandaskiftheyhaveanyquestionsorconcernsabouttheprogram.Thiswouldbeanotherwaytoensurethatthevendorssupporttheprogramandthatanyconcernsareaddressed.

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Manager Checklist---------------------------------------------------------------------------------------------------------------------------PRE-MARKET PREPARATION

• Makesurethatyouhaveallneededsupplies

• Receiptbox-forlostsalesnotesandpaperreceipts

• Tokens-forEBTand/orDebit

• Scrappaper-torecordlostsales

• Largeenvelope-forVendorreturntokens

• ElectronicCardMachine(fullycharged)

• Agoodsupplyofextrapaperrollsformachine

• Distributevendorreimbursementenvelopes

• PutupsignagetoidentifySNAP/EBTservice

MARKET DAY, BEFORE THE MARKET OPENS

• Organizeboothandsetupequipment.

• Hangsignageandcheckthatallparticipatingvendorshavetheirsignsdisplayed.

• Checkinwithstafftoanswerquestionsandreceivefeedback.

• Reviewredemptionandotherprocedureswithvendors.

• Giveparticipatingvendorsscripredemptionenvelopestostoretheirscripandcompletedlogforthatmarketday.

MARKET DAY, DURING OPERATING HOURS• Ensurethatsomeoneisavailabletoanswercustomerandvendorquestions.

• EnsurethatsomeoneisavailabletooperatethecentralPOSterminalatalltimes.

• RecordallscripthatisreturnedontheDailyScripIssuanceLog.

MARKET DAY, AFTER OPERATING HOURS• Collectvendorreimbursementenvelopes,whichcontaintheirscripandlog.

• Givevendorsareceiptforscripthathasbeenturnedin.

• RunabatchreportfromthePOSterminal,whichisalongpaperdocumentshowingtheday’stransactions.

• Reconcilethebatchreportwithallofthereceipts,scripreceived/returned,andvendorreim-bursements.

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• Recordtheamountofscripgivenoutandtheamountreturnedinthedailyscripissuancelog.

• Completebookkeepingforvendorreimbursement.

How to Communicate the New EBT System to Customers of the Market---------------------------------------------------------------------------------------------------------------------------MARKET SIGNAGE

• PlacesignswithinthemarkettodirectSNAPcardholderstoPOSmachines.

• HaveasignforeacheligiblevendortodisplaythatshowstheyacceptSNAP/EBT.

• MakeanSNAPcardbuttonforfarmers/vendorstowear.

• Advertiseonlocalbusandrailsystems.

• Havelocaltownorcountypostsignsalongroadleadingtomarket.

• Addinformationabouttheprogramtowebsiteandbrochures.

• Posters/brochuresatofficeswhereSNAPrecipientsreceivetheirbenefits.

How to Reach Out to New Customers---------------------------------------------------------------------------------------------------------------------------CASE STUDIES AND SUCCESS STORIES

• www.fns.usda.gov/snap/ebt/fm-scrip-success_stories.htm

• www.midtownfarmersmarket.org

• www.ecologycenter.org/ebt

TheOregonFarmersMarketAssociationhasprovidedmanyonlineresourcesforparticipatingfarmers’marketmanagers.Theyhaveseveralonlinetemplatesforaccounting,recordkeeping,andvendortallysheets.www.portlandfarmersmarket.org/index.php

TheNewYorkFarmersMarketFederationhashelpedmanagerswithin-persontrainingandanonlinetrainingpresentation.Theyalsoprovidethemanagerswithamediakitandaccesstomanyonlineforms.http://www.nyfarmersmarket.com/ebt.htm

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Appendix IAdditional Information ---------------------------------------------------------------------------------------------------------------------------USDA – FOOD AND NUTRITION SERVICE

• Generalinformationaboutfarmers’marketsinSNAP. Readthematerialsatthiswebsite:http://www.fns.usda.gov/snap/ebt/fm.htm

• ToapplytoUSDAtobecomeanauthorizedretailertoserveSNAPcustomers Fill-outtheon-lineapplicationat:

http://www.fns.usda.gov/snap/retailers/application-process.htm

• TotalktosomeoneatUSDAifyouhaveproblemsfillingouttheretailerapplication Robin.Masters@fns.usda.gov,Phone:317-510-7226

STATE AGENCY

• AFTERyoubecomeanauthorizedUSDAretailer,youwillautomaticallybemailedaretaileragreementpackagebytheState’sEBTvendor.Ifyouhavenotgottentheagreementwithin10daysafterbeingauthorizedbyFNS,contacttheStateEBTDirector.Ifyouhaveaquestionabouthowtofillouttheretaileragreement,contacttheEBTvendor.Youmustreturnthe

application,ifyouwantafreePOSdevice. • InformationaboutwirelessPOSdevicesand/orPOSdevicesthatacceptdebitandcreditcards.

IfyoudonotwantthefreewiredonefromtheState,youwillneedtoresearchthisonyourown.Talktootherfarmers’markets.OntheInternetdoasearchfor“creditcardprocessors”

or“thirdpartyprocessors”

• Talkwithotherfarmers’markets.Ontheinternetfor“woodentokens”or“cointokens”.

• ProblemswithyourPOSDevice.ContactwhoevergaveyouthePOSdevice.IfitwastheState’sEBTvendor,calltheirhelpline.Ifyouhaveacontractwithathirdpartyprocessor,

contactthem.

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Website Links for Additional Information ---------------------------------------------------------------------------------------------------------------------------USDA- FOOD AND NUTRITION SERVICE WEB SITES

Main page for information for farmers’ market in SNAP:http://www.fns.usda.gov/snap/ebt/fm.htm Whatisafarmers’market:http://www.fns.usda.gov/snap/ebt/fm-scrip-what_is_fm.htm On-line Retailer Application: http://www.fns.usda.gov/snap/retailers/application-process.htmhttp://www.fns.usda.gov/snap/ebt/fm-scrip-what_is_scrip.htm

POSDevices(free,wireless)andManualVouchers:http://www.fns.usda.gov/snap/ebt/fm-scrip-EBT_Equipment.htm

RulesforUsingScrip:http://www.fns.usda.gov/snap/ebt/fm-scrip-scrip_rules.htm10

Farmers Market Responsibilities related to SNAP: http://www.fns.usda.gov/snap/ebt/fm-scrip-market_responsibilities.htm

DebitandCreditCardsIfandIssues:http://www.fns.usda.gov/snap/ebt/fm-scrip-Debit_Cards.htm

USDAGrantOpportunities:http://www.fns.usda.gov/snap/ebt/fm-scrip-Grant_Resources.htm

Bonus Incentives to Attract SNAP customers: http://www.fns.usda.gov/snap/ebt/fm-scrip-Bonus_Incentives.htm

Success Stories: http://www.fns.usda.gov/snap/ebt/fm-scrip-success_stories.htm

Eligible Food Items: http://www.fns.usda.gov/snap/retailers/eligible.htm

ListofProducts–eligible/ineligibleproductsforpurchaseusingSNAPbenefits:http://www.fns.usda.gov/snap/retailers/generic.pdf

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Appendix IITips for Farmers’ Markets Filling Out the Retailer Application ---------------------------------------------------------------------------------------------------------------------------Applicationforfarmersmarketscanbefilledouton-lineorbyfillingoutapaperapplicationand mailing it in.

Tofillouttheapplicationon-line,goto:http://www.fns.usda.gov/snap/retailers/application-process.htm Thewebsiteisatwostepprocessrequiringtheusertoregisterforausernameandpassword.Besuretosavethewebsitenotedabovetoyourfavorites,asyouwillreturntothatpagetocompletetheprocess.

Ifyoudon’twanttousethewebsite,butratherdoapaperapplication,youcanrequestonebycallingthetoll free number 877-823-4369.

HOW DO I FILL OUT THE RETAILER APPLICATION? Belowaresometypicalquestionsaskedregardingcompletionoftheapplication.Ifyouareanonprofitcooperative,documentationofnonprofitstatusmustbesubmittedwiththeapplica-tion;i.e.IRSexemptionletterorArticlesofIncorporationforaDomesticNon-ProfitCorporation.

QUESTION #10Type of ownershipSelectthemostspecifictypethatappliestoyourfarmers’market.Mostfarmers’marketsareeithernonprofitcooperatives,governmentowned(municipal,town,county),orsoleproprietorships.Soleproprietorshipswouldincludealooselyconnectedgroupofvendorsinwhichthereisnolegalassociation,butforwhichasinglemarketmanageristakingresponsibilityforthegroup.

Herearesomecommondefinitionsfortheownershiptypes:

Privately held Corporationacorporationownedbyafewpeople;shareshavenopublicmarketPubliclyownedcorporation:aprivatecompanythathasaclassofsharestradedinthepublicmarket.

Sole Proprietorshipbusinessorfinancialventurethatiscarriedonbyasinglepersonandisnotatrustorcorporation.Asoleproprietor(soleowner)hasunlimitedliability.

Partnershipformofbusinessorganizationcreatedbyanagreementbetweentwoormorepersonswhocontributecapitaland/ortheirservicestotheorganization.

Limited Liability Companybusinessformthatprovideslimitedpersonalliability,asacorporationdoes.Owners,whoarecalledmembers,canbeothercorporations.

Nonprofit Cooperativeorganizationfortheproductionormarketingofgoodsownedcollectivelybymemberswhosharethebenefits,forexample,agriculturalcooperative.

Government Ownedgovernmentownedandoperatedfacilityforthepurposeofprovidingsomegoodsorservicetocitizens.Thisincludescity,town,countyormunicipalownership.

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QUESTION #11Contact info for Parent CorporationHowmightthisapplytofarmers’markets?

This question has no application for farmers’ markets and can be left blank – this question pertains to multi store chains or franchises.

QUESTION #12Primary Owners or Major Shareholders or Cooperative OfficersIfthereisagoverningboardofsomesort,isitsufficienttoprovideinformationaboutitsofficersratherthanabouteachboardmember?

Yes. Provide information on each of the officers. If there are no officers or board members, provide information for the market manager.

Whataboutmarketsthatareoperatedbyamunicipality?This question is not applicable for farmers’ markets that are government owned. Skip question 12 and go to question 13.

Issomeonerequiredtoprovideidentification?Yes. Whether they are an officer, board member or a market master, photo identification and docu-mentation of social security number must be received for an individual responsible for the opera-tion of the SNAP benefits program at the farmers’ market.

QUESTION #17Estimate Your Annual RETAIL SalesHowdoIestimatemyannualsales?

For a farmers’ market with multiple vendors, ask each vendor to estimate a dollar amount of what they think they may sell in a month, then multiply that by the number of months you are open.

Copy of Current License Required to Operate WhatshouldIattach?

Some municipalities will issue a license to operate a market while others do not. If you have a local business operator’s/seller’s/or vendor’s license you may submit that with your application. If you do not have a local permit, provide a statement that no local permit is required.

Howlongwillittaketobecomeauthorized?Although we are usually able to process applications more quickly, the USDA Food and Nutrition Service field office has up to 45 days from the date they receive a complete application to approve or deny your application for a SNAP permit. An FNS representative may contact you about addi-tional questions in order to process your application.

AfterI’mauthorized,whattypesofchangesshouldIreporttotheUSDAFoodandNutritionServiceFieldOffice?

Retailers must notify the Food and Nutrition Service field office of changes in store (farmers’ mar-ket) name, location, responsible party, and telephone number. Any planned change in banking information should be reported to your EBT processor two weeks in advance of the change. This notification is very important to continue the uninterrupted transfer of funds.

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Appendix IIISample Press Release---------------------------------------------------------------------------------------------------------------------------

PRESS RELEASE

Date:

Contact:MarketManager_________________,Phonenumber#########

SHARING MINNESOTA’S BOUNTYA State-wide Celebration of the Farmer’s Market EBT Project

AsofSeptember1st,fourfarmersmarketswillbeacceptingfoodstampEBTcards.Tocelebratethis

momentouseffort,eachfarmersmarketwillbeholdingkick-offcelebrationsonSeptember8th.

WhilethetransitionfromfoodstampstoSNAPcardshasreducedthestigmaassociatedwithfood

stamps,ithasmadeitdifficultforfarmersmarketsandsmallerretailerstohavethecapacitytoaccept

them.Farmersmarketsareofteninlocations,suchascitystreetsandparks,whichhavenophoneline

toenablethemtoutilizeaPointofServicedevicetoswipetheEBTcard.

NowfourfarmersmarketsinMinnesotahavesuccessfullyinstalledadevicethatenablesSNAP

cardholderstousetheirbenefitstobuyfresh,healthyandlocalfoods.Thefourfarmersmarketsare

the__________marketin_________.The___________Marketwillalsobeacceptingcreditand

debit cards!

Thekick-offcelebrationswillincluderafflesoflocalcraftsandfoods,doorprizes,cooking

demonstrations,andkidactivities.“Ourcustomersareanxiouslylookingforwardtoit,”saysmarket

manager____________.“ThenewEBTmachineswillgivethemanexcellentopportunityinamarket

thattheyotherwisewouldnothavehadtheopportunitytoparticipatein.”

Formoreinformationaboutthekick-offcelebrationsortheFarmersMarketEBTProjectcontact:

Market Manager __________________________

###

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Appendix IVSample Market Day Transaction Daily Redemption Report ---------------------------------------------------------------------------------------------------------------------------

Date___________________DayoftheWeek_______________

VENDOR NAME VENDOR SIGNATURE TOTAL VALUE OF TOKENS REDEEMED FOR CASH

INITIALS OF MANAGER/STAFF PERSON REDEEMING TOKENS FOR CASH

TOTAL VALUE OF TOKENS REDEEMED TODAY

SAMPLE BENEFITS TRANSFER REPORT

MARKET DATE & DAY OF THE WEEK

TOTAL EBT SALES FROM DAILY RE-PORT PRINT OUT

TOTAL TOKENS REDEEMED BY VENDORS

DIFFERENCE (EBT SALES MINUS TO-KENS)

CUMULATIVE BALANCE OF OUTSTANDING TOKENS

Month___________________

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Appendix VSample Vendor Agreement Form---------------------------------------------------------------------------------------------------------------------------

FoodStampEBTProgramVendorAgreement[ASSOCIATIONNAME],[MARKETNAME]

Thisagreementisbetween___________________________,anassociationofeligiblefoodvendors(hereinreferredtoas“ASSOCIATION”)organizedwithin[MARKETNAME]and_________________________,anauthorizedfoodvendor(hereinreferredtoas“VENDOR”).

Thisagreementallowstheabove-mentionedVENDORtoparticipateintheFoodStampElectronicBenefitsTransfer(EBT)CardProgramatthe[MARKETNAME].

• VENDORisboundbythisagreementtofollowallguidelines,assetforthbyfederalandstateauthoritiesandASSOCIATION.

• ASSOCIATIONreservestherighttoimmediatelysuspendorterminateVENDORfromthe programifASSOCIATIONobserves,orreceivesevidenceof,failuretoabidebyanyofthe

agreements below.

• VENDORmayvoluntarilyquitparticipatingintheEBTprogramatanytime,butmustnotify ASSOCIATIONofsuchaction.

THE EBT CARD PROGRAM WILL OPERATE IN THE FOLLOWING MANNER: PatronswhohavebeenissuedanauthorizedEBTcardmaypurchasescripintheformofwoodentokens,uptotheamountauthorized,fromdesignatedASSOCIATIONstaff.Thepatron’sEBTcardwillbedebitedforthevalueofthetokenspurchased.PatronswillusethetokensonlyforpurchaseofeligiblefoodsfromauthorizedvendorsattheASSOCIATION.PatronshavenotimelimitontheuseofpurchasedtokensattheASSOCIATION.PatronsmayreturnunusedtokenstoASSOCIATIONstaffforcreditonlyonthesamedayaspurchase.Creditforthevalueofthesetokenswillbereturnedtothepatron’sEBTCard.Nopatronwillbecreditedfortokensreturnedabovetheamountofthatday’spurchasebythatpatron.ASSOCIA-TIONstaffwillexchangetokensforcash,eachmarketday,onlywiththedesignatedagentofeachautho-rizedvendor,andonlywhenthedesignatedagentpresentstheappropriatewrittenpermit.

TheonlytokensusedwillbewoodentokenswiththeuniqueimprintofASSOCIATIONoneachside,withthecurrencyamountalsoimprintedoneachside.Theonlytokensusedwillbein50¢and$1denomina-tions.

TheEBTProgramwillbestrictlyandcarefullymonitoredatalltimesbyASSOCIATION.

VENDOR AGREEMENTS:• VENDORagreestodesignateaspecificpersontobeanagentforthisprogram.Thedesignated

agentshallberesponsibleforthevendor’sparticipationintheprogram.ThedesignatedagentwillbetheonlyindividualthatmayconductEBTtokenredemptionswithASSOCIATIONstaff.ThedesignatedagentwillbeprovidedwithawrittenpermitfromASSOCIATION,andmustalwayspresentittoASSOCIATIONstaffwhenredeemingEBTtokensorotherwiserepresentingthevendorinEBTbusiness.

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• Thedesignatedagentforthisvendoris:________________________.Anychangeindesig-natedagentmustbemadebytheauthorizedvendor,inwriting,beforeadifferentauthorizedagent will be allowed to redeem tokens.

• VENDORagreestoacceptonlyASSOCIATIONwoodentokens,andwillnotacceptanyothermarket’s tokens and/or printed scrip.

• VENDORagreestoaccepttokensonlyforthepurchaseoffoodstampprogrameligiblefoods,including:breadproducts,produce,meat,fish,poultry,eggs,dairyproducts,seeds,andplantswhichproducefoodtoeat.

• VENDORagreesthatnoU.S.currencywillbereturnedtothecustomeraschange,ifpaymentforproductissolelybytokens.ThevalueofthetokensreceivedbyVENDORwillnotexceedthepostedvalueoftheproductpurchasedbythecustomer.(Thecustomerwillreceivefullvalueforhisorhertokens.)

• VENDORagreestonotexchangeanytokensforU.S.currencywithanypersonexceptautho-rizedASSOCIATIONstaff.

• VENDORagreestopostasign(tobeprovidedbyASSOCIATION)identifyingVENDOR’sstallasanauthorizedEBTvendor.

_________________________________ ________________ ________EBTProgramVENDORAgent SpaceNumber Date

_________________________________ ________________ ________ASSOCIATIONRepresentative Title Date[MARKETNAME]

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Appendix VIA Scrip Example ---------------------------------------------------------------------------------------------------------------------------

FOR THIS EXAMPLE, SNAP EBT TOKENS ARE RED AND DEBIT/CREDIT TOKENS ARE GREEN.

The Process for a SNAP Benefit Recipient• AcustomerwithaSNAPEBTcarddecidestheywillspend$10atthemarket.

• TheyswipetheircardatthecentralEBTboothfortheamountof$10.**Thereisnofeetofarmers’marketcustomersforthisservice.

• ThecustomerwillgetREDtokensvaluedat$10touseascurrency.Acombinationoftokenscanbegiven.Forthisexample,thecustomergetsfive$2tokens.

• Customerscanthenspendtokensinthemarketatindividualvendorstands.

Eligible purchases: vegetables, fruit, dairy products, meat, eggs, bread, jam, pickles and pastries. Also, seeds or plants that produce food (i.e. tomato or basil plants) can be purchased. Flowers, shrubs, and other non-edible plants cannot be purchased with RED tokens.

• ChangecannotbegivenforSNAPtokens.Ifasaleislessthanthefacevalueofthetoken,thevendorcanaddproducttothesaletomakeupthedifference.Ifasaleismorethanthefacevalueofthetoken,thecustomercanpaywiththeirownchangetomakeupthedifference.

• Ifthecustomerdoesnotusealloftheirtokensduringavisit,themarketcaneitherissueacredittothecardorallowcustomerstousetokensonanotherday.Cashrefundscannotbegiven.

The Process for a Debit/Credit Card Customer• Acustomerwithcreditordebitcarddecidestospend$10atthemarket.

• TheyswipetheircardatthecentralEBTboothfortheamountof$10.**Forthisexample,thereisnofeetothecustomerforthisservice.

• ThecustomerwillgetGREENtokensvaluedat$10touseascurrency.Forthisexample,thecustomergetsone$5tokenandfive$1tokens.

• GREENtokenscanbeusedtopurchaseanyitem,foodornon-food,inthemarket, thesameascash.

• Changefordebit/credittokenscanbegiveninGREENtokensorincash,butNOT in RED tokens).

• Customerscansavetokenstobespentatalaterdate.Cashrefundswillnotbegivenbythemarket’s EBT manager for unused tokens.

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Appendix VIIVendor Information Sheet ---------------------------------------------------------------------------------------------------------------------------

Food Stamps EBT at the ___________ Farmers MarketVendor EBT/Food Stamp Information Sheet

WewillstartacceptingFoodStampson____________.Customerswillcometoyourboothwith$1or$2MarketTokens.Youcancollectthemthroughouttheday,andreturnthemtotheEBTpersonattheendofthemarket.Youwillreceiveacheckthefollowingweekfortheamountoftokensyoucollect.

ThefollowingaresomeguidelinesandrulessetbytheUSDepartmentofAgriculture:• Thecustomerwilldecidehowmuchtheywanttospend.

• TheFoodStamprepresentativewillswipetheircardattheEBTmarketboothandgetinstantauthorization.

• Customerswillreceiveeither$1tokensor$2tokens(orboth)andusethematstandsthatareauthorizedtoacceptEBTapprovedproducts.

• Attheendofthemarket,youcanturninthetokensandwillbereimbursedthefollowingweekforthetotalamountsold.

Pleasedisplayyour“WeAcceptEBTTokens/Vouchers”signatyourbootheachweek.TheseproductsARE ELIGIBLEtobepurchasedwithSNAPbenefits:

• Produce • Dairyproducts• Meat • Wrappedbakedgoods• Wrappedcoldsandwiches • Vegetableorherbseedsorbeddingplant

TheseproductsareNOT ELIGIBLEforpurchasewithEBTtokens:• Alcohol • Tobacco• Petfood • Anynon-fooditem• Anyfoodservedhotsuchascoffeeorteadrinks• Anypreparedfooditemmeanttobeeatenon-site,suchasicecreambars,hotdogs,burritos,

cinnamon rolls and more NOCHANGE-youmaynotgivechangeinanyamountforthetokens.Theywillbein$1and$2denomi-nations.ItisillegaltoexchangecashforFoodStampbenefits,sothecustomerwillbeencouragedtousethefullamount.EBTholdersmustpayfortheirpurchasesatthetimeofsale.Soyoumaynottakepay-mentsbeforetheygettheitemsandyoumaynotgivethemitemsandacceptpaymentlater.

IMPORTANT:Yourfeedback,commentsandquestionsaboutthispilotwillcontributetoitssuccessandourabilitytohelpfarmersintheregionandacrossthecountryexpandstheirabilitytoutilizethissystem.Violating the rules will not only stop us from being able to accept EBT Cards,butalsoaffecttheeasewithwhichotherfarmersandmarketsaroundtheregioncanusethem.

Thanks for your cooperation and participation. Please contact Market manager

Phone # and Email with any questions or concerns.

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Market Date and day of week

Total EBT Sales from Daily Report

Print out

Total Tokens Redeemed by

Vendors

Difference(EBT Sales minus

tokens)

Cumulative balance of outstanding

tokens

Appendix VIIISample Log and Transaction Report

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