Are Small Massachusetts EBT Retailers (Bodegas, Convenience Stores) Declining to Accept EBT Benefits?

Have you heard from Massachusetts SNAP recipients about local stores/corner markets that have STOPPED accepting their EBT benefits? In the past month, we have become aware of a few stores that announced they no longer participate in EBT, and put up signs on their front doors or counters including a Cambridge fish monger (who sold other foods) store and a Portuguese food store on the South Shore.

 

As reported in an earlier email, the 2014 Farm Bill includes three provisions that may especially impact local convenience stores, bodegas and small markets:  

• EBT retailers must increase the minimum variety of foods that they offer.
• EBT retailers must provide additional bookkeeping and send it electronically to FNS/USDA.
• USDA will no longer pay the cost of the Point of Sale (POS) devices and the POS transaction costs -with the exception of farmers markets and CSAs.

Here is a blog for SNAP Vendors that contains a brief summary of these Farm Bill provisions. Of most concern around the country is the cost shifting of the POS transactions and equipment. USDA continues to update a list of the "third party processors" who will provide EBT transaction services, but those processors charge for their services - which could be a significant cost for a small retailer, bodega, ethnic food market, convenience store. In some news reports, it could be as high as $1,000 per year.

 

News stories from around the country indicate that some small retailers are pulling out of the EBT program because of the costs involved. We are very concerned this may be happening in areas of MA where there is little or no public transportation and/or few grocers and retailers. 

• In September, the Baltimore Sun News reported concerns about the impact of this cost shifting on corner stores: http://touch.baltimoresun.com/#section/-1/article/p2p-81388945/
• In July, the Iowa Grocer Industry Association raised significant concerns including identifying the potential cost to small retailers of $80/mo
• Interestingly the state of West Virginia managed to negotiate lower fees for EBT retailers: https://www.wvgazettemail.com/business/state-assists-retailers-in-snap-system-switch/article_05613834-2872-5bb3-8ed2-34dfcd303291.html 

MLRI recently received calls from some reporters on this issue. We would like to know if you are seeing. Please also try to find out WHY the retailer is stopping EBT, and how much they think keeping EBT will cost them. As USDA notes on it's third party processor flier, states have the option to continue to pick up some or all of the POS equipment and transaction costs and/or negotiate a better deal for small retailers. It's important for us to know how this is impacting MA SNAP recipients.