Is accepting SNAP EBT in my store the right choice?
Before deciding whether you should accept SNAP EBT purchases in your store, you first need to understand what SNAP EBT is.
Electronic Benefits Transfer (EBT) is a payment system that allows its recipients to get assistance under the Supplemental Nutrition Assistance Program (SNAP) or other aid programs that the Federal and state government have sponsored to purchase foods and goods. In short, EBT now replaces the old-school food stamps program and allows its recipients to use a more convenient and secure card that is quite similar to a PIN debit card when making their purchases.
Pros of accepting SNAP EBT payments
Considering that over 43 million individuals receive SNAP benefits, you can see how you, as a merchant, can benefit by allowing EBT payments in your store.
First of all, this will tremendously expand your customer base, not to mention that processing costs for these transactions are a lot lower compared to the traditional credit and debit cards. By adding
SNAP EBT payments to your store, you are opening a path to more customers, which means a bigger profit overall.
Over 50% of individuals who shop through SNAP benefits prefer to do so online. They might have a disability that makes it difficult for them to go to a physical store, or they might just be practicing safe social distancing. Incorporating SNAP online purchases just means that you will expand your customer base even further.
Cons of accepting SNAP EBT payments
For your store to become eligible for SNAP purchases, you need to go through a lot of paperwork and regulatory requirements. This can be a rather tedious task, but it should not cause such a big problem considering that everything can be done online.
GG Hive can guide you through the entire process of SNAP authorization > Internet Retailer Authorization (IR) > eCommerce site setup > Online SNAP sales processing
In short, by accepting SNAP EBT payments in your store, you are expanding your customer base and tremendously increasing your yearly profit.