FOR IMMEDIATE RELEASE
Washington, D.C. – The National Grocers Association (NGA) today announced its strong support for the Ensuring Fee-Free Benefit Transactions (EBT) Act, bipartisan legislation led by Congresswoman Shontel Brown (D-OH-11) and Congressman Tony Wied (R-WI-08) to prohibit processing fees on Supplemental Nutrition Assistance Program (SNAP) electronic benefit transactions.
The EBT Act is a critical safeguard against new financial burdens in the form of burdensome debit and credit card “swipe fees” on SNAP purchases that threaten to undermine both food access for program participants and the ability of independent grocers to serve their communities. If passed, the bill will ensure retailers are protected from these excessive costs while allowing the U.S. Department of Agriculture (USDA) to continue modernizing EBT technology.
“Independent grocers are on the front lines of the fight against food insecurity, investing heavily in technology and training to ensure SNAP works for families who rely on it,” said Stephanie Johnson, group vice president for government relations at NGA. “The EBT Act is a necessary and common-sense solution to protect community-based retailers from new swipe fees that could compromise their ability to provide SNAP benefits and threaten food access in low-income areas. We applaud Representatives Brown and Weid for their thoughtful leadership on this important issue.”
For years, SNAP EBT transactions have been exempt from fees under USDA’s vendor-managed network, helping grocers of all sizes participate in the program without being penalized for serving customers in need. Congress did not intend to allow fees on EBT transactions, but a loophole was created that this legislation closes. With the transition to chip cards and mobile payments, grocers are incurring significant software and hardware costs, and there is growing concern that EBT processors may begin charging fees for SNAP transactions, similar to the exorbitant fees imposed on non-SNAP debit and credit card purchases.
Such fees would be difficult for independent grocers, many of whom operate on razor-thin margins of 1.4 percent. A typical independent grocer that services SNAP participants can process thousands of SNAP transactions every month. The imposition of even a small fee per transaction could result in tens of thousands of dollars in new annual costs, an unsustainable burden for family-owned stores serving urban neighborhoods, rural communities, and areas with limited food access.
“Grocers already absorb significant upfront and ongoing costs to participate in SNAP, from purchasing EBT-compliant point-of-sale systems to training staff and ensuring program compliance,” Johnson reinforced. “Adding processing fees would not only punish retailers for serving vulnerable populations.”
NGA urges Congress to act swiftly on this bipartisan proposal and ensure that modernization efforts do not come at the expense of SNAP’s core mission: helping low-income Americans access healthy, affordable food.Washington, D.C. – The National Grocers Association (NGA) today announced its strong support for the Ensuring Fee-Free Benefit Transactions (EBT) Act, bipartisan legislation led by Congresswoman Shontel Brown (D-OH-11) and Congressman Tony Wied (R-WI-08) to prohibit processing fees on Supplemental Nutrition Assistance Program (SNAP) electronic benefit transactions.
The EBT Act is a critical safeguard against new financial burdens in the form of burdensome debit and credit card “swipe fees” on SNAP purchases that threaten to undermine both food access for program participants and the ability of independent grocers to serve their communities. If passed, the bill will ensure retailers are protected from these excessive costs while allowing the U.S. Department of Agriculture (USDA) to continue modernizing EBT technology.
“Independent grocers are on the front lines of the fight against food insecurity, investing heavily in technology and training to ensure SNAP works for families who rely on it,” said Stephanie Johnson, group vice president for government relations at NGA. “The EBT Act is a necessary and common-sense solution to protect community-based retailers from new swipe fees that could compromise their ability to provide SNAP benefits and threaten food access in low-income areas. We applaud Representatives Brown and Weid for their thoughtful leadership on this important issue.”
For years, SNAP EBT transactions have been exempt from fees under USDA’s vendor-managed network, helping grocers of all sizes participate in the program without being penalized for serving customers in need. Congress did not intend to allow fees on EBT transactions, but a loophole was created that this legislation closes. With the transition to chip cards and mobile payments, grocers are incurring significant software and hardware costs, and there is growing concern that EBT processors may begin charging fees for SNAP transactions, similar to the exorbitant fees imposed on non-SNAP debit and credit card purchases.
Such fees would be difficult for independent grocers, many of whom operate on razor-thin margins of 1.4 percent. A typical independent grocer that services SNAP participants can process thousands of SNAP transactions every month. The imposition of even a small fee per transaction could result in tens of thousands of dollars in new annual costs, an unsustainable burden for family-owned stores serving urban neighborhoods, rural communities, and areas with limited food access.
“Grocers already absorb significant upfront and ongoing costs to participate in SNAP, from purchasing EBT-compliant point-of-sale systems to training staff and ensuring program compliance,” Johnson reinforced. “Adding processing fees would not only punish retailers for serving vulnerable populations.”
NGA urges Congress to act swiftly on this bipartisan proposal and ensure that modernization efforts do not come at the expense of SNAP’s core mission: helping low-income Americans access healthy, affordable food.
