{"id":27337,"date":"2021-11-17T20:26:36","date_gmt":"2021-11-18T01:26:36","guid":{"rendered":"https:\/\/goebt.com\/dont-make-these-snap-retailer-mistakes\/"},"modified":"2025-05-20T10:45:56","modified_gmt":"2025-05-20T14:45:56","slug":"dont-make-these-snap-retailer-mistakes","status":"publish","type":"post","link":"https:\/\/goebt.com\/dont-make-these-snap-retailer-mistakes\/","title":{"rendered":"Don\u2019t make these SNAP retailer mistakes\u2026"},"content":{"rendered":"<p style=\"line-height: 1.5;\"><span data-contrast=\"none\">SNAP\u00a0retailer requirements\u00a0are strict, and\u00a0<\/span><strong><span data-contrast=\"none\">keeping track of\u00a0mistakes<\/span><\/strong><span data-contrast=\"none\">\u00a0can be a complex process.\u00a0Although SNAP fraud is\u00a0<\/span><a href=\"https:\/\/fas.org\/sgp\/crs\/misc\/R45147.pdf\" rel=\"noopener\"><strong><span data-contrast=\"none\">relatively rare<\/span><\/strong><\/a><span data-contrast=\"none\">, failure to comply with program rules can result in\u00a0<\/span><strong><span data-contrast=\"none\">severe\u00a0consequences<\/span><\/strong><span data-contrast=\"none\">\u00a0for your business, such as:\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u203a\" data-font=\"Arial\" data-listid=\"38\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Temporary or permanent disqualification from the program<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u203a\" data-font=\"Arial\" data-listid=\"38\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Monetary penalties\u00a0and fines<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u203a\" data-font=\"Arial\" data-listid=\"38\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Criminal prosecution<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">To help you navigate\u00a0program rules,\u00a0we\u2019ve put together a list of common types of fraud and errors\u00a0that you\u2019ll want to avoid as a SNAP-authorized retailer.\u00a0<\/span><span data-ccp-props=\"{&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><!--more--><\/p>\n<div style=\"width: 75%; min-width: 300px; margin: 0 auto; background-color: #eee; padding: 15px 20px;\">\n<h2 style=\"text-align: center;\"><span data-contrast=\"none\">ABOUT SNAP<\/span><\/h2>\n<p><span data-contrast=\"none\">Formerly known as food stamps, the Supplemental Nutrition Assistance Program (SNAP) is the nation\u2019s largest domestic food assistance program, serving more than 40 million recipients at a federal cost of nearly $90 billion in <\/span><a href=\"https:\/\/www.politico.com\/news\/2021\/01\/27\/food-stamp-spending-2020-463241\" rel=\"noopener\"><strong><span data-contrast=\"none\">FY2020<\/span><\/strong><\/a><span data-contrast=\"none\">. These benefits may be used for eligible foods at any authorized SNAP retailer, ranging from independent convenience stores to chain grocery stores.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The program is jointly administered by state agencies and the U.S. Department of Agriculture\u2019s Food and Nutrition Service (USDA-FNS), although the USDA-FNS is mainly responsible for overseeing SNAP retailers.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p aria-level=\"3\"><span style=\"color: #022169;\"><strong>TRAFFICKING<\/strong>\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/fas.org\/sgp\/crs\/misc\/R45147.pdf\" rel=\"noopener\"><strong><span data-contrast=\"none\">Trafficking<\/span><\/strong><\/a><span data-contrast=\"none\">\u00a0is usually defined as\u00a0the\u00a0<\/span><strong><span data-contrast=\"none\">direct exchange of SNAP benefits for\u00a0cash<\/span><\/strong><span data-contrast=\"none\">, which is illegal. Although SNAP benefits have a dollar value, they are not the same as cash because they can only be spent on eligible food for household consumption at authorized stores equipped with Electronic Benefit Transfer (EBT)\u00a0<\/span><a href=\"https:\/\/goebt.com\/payment-solutions\/payment-products\/\"><strong><span data-contrast=\"none\">point of sale (POS)\u00a0devices<\/span><\/strong><\/a><span data-contrast=\"none\">.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><img decoding=\"async\" style=\"width: 293px; margin-left: auto; margin-right: auto; display: block;\" src=\"https:\/\/goebt.com\/wp-content\/uploads\/2025\/01\/undefined.png\" alt=\"undefined\" width=\"293\" \/><\/p>\n<p><span data-contrast=\"none\">Trafficking can also include the exchange of SNAP benefits for controlled substances, firearms, ammunition or explosives. It also includes\u00a0<\/span><strong><span data-contrast=\"none\">indirect exchanges<\/span><\/strong><span data-contrast=\"none\">, such as\u00a0providing cash refunds for products purchased with SNAP benefits.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Retailer trafficking of SNAP benefits\u00a0<\/span><strong><span data-contrast=\"none\">usually occurs when a SNAP recipient sells their benefits for cash<\/span><\/strong><span data-contrast=\"none\">, often at a loss, to a store participating in SNAP. Trafficking is one of the most serious forms of SNAP fraud, and\u00a0<\/span><a href=\"https:\/\/www.cspdailynews.com\/technologyservices\/12-retailers-charged-largest-ever-case-food-stamp-fraud\" rel=\"noopener\"><strong><span data-contrast=\"none\">some\u00a0retailers<\/span><\/strong><\/a><span data-contrast=\"none\">\u00a0have\u00a0even\u00a0been prosecuted for\u00a0<\/span><a href=\"https:\/\/www.wabe.org\/atlanta-convenience-store-owners-plead-guilty-snap-fraud\/\" rel=\"noopener\"><strong><span data-contrast=\"none\">participating in SNAP benefit trafficking<\/span><\/strong><\/a><span data-contrast=\"none\">.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">In FY2020, USDA-FNS implemented 2,192 administrative sanctions against SNAP retailers, including 1,144\u00a0<\/span><a href=\"https:\/\/www.fns.usda.gov\/\" rel=\"noopener\"><strong>permanent disqualifications as a result of trafficking<\/strong><\/a><span data-contrast=\"none\">.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\"><span lang=\"EN-US\" data-contrast=\"none\">Don\u2019t confuse trafficking with the legal use of cash benefits.\u00a0Cash benefits are monthly cash stipends provided by the government and\u00a0can be used on items other than food.\u00a0Cash benefits\u00a0are\u00a0legal in all 50 states and are usually administered through the state\u2019s\u00a0<\/span><a href=\"https:\/\/www.acf.hhs.gov\/ofa\/programs\/temporary-assistance-needy-families-tanf\" target=\"_blank\" rel=\"noreferrer noopener\"><span lang=\"EN-US\" data-contrast=\"none\">Temporary Assistance for Needy Families<\/span><\/a><span lang=\"EN-US\" data-contrast=\"none\">\u00a0(TANF)\u00a0funds or an equivalent program.\u00a0<\/span><\/span><\/p>\n<p>&nbsp;<\/p>\n<p aria-level=\"3\"><span style=\"color: #022169;\"><strong>RETAILER APPLICATION FRAUD\u00a0<\/strong>\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">To obtain SNAP authorization,\u00a0<\/span><strong><span data-contrast=\"none\">retailers must meet certain requirements<\/span><\/strong><span data-contrast=\"none\">. When a retailer initially applies to receive authorization to participate in SNAP or\u00a0<\/span><a href=\"https:\/\/goebt.com\/fnsreauthorization\/\"><strong><span data-contrast=\"none\">applies for reauthorization<\/span><\/strong><\/a><span data-contrast=\"none\">\u00a0to continue SNAP participation, the store owner must\u00a0submit documentation\u00a0to verify eligibility for SNAP participation. If a retailer deliberately submits\u00a0a substantial amount of\u00a0<\/span><strong><span data-contrast=\"none\">false or misleading information<\/span><\/strong><span data-contrast=\"none\">\u00a0to receive SNAP authorization despite their ineligibility, then they have committed\u00a0<\/span><strong><span data-contrast=\"none\">falsification<\/span><\/strong><span data-contrast=\"none\">, which is a type of\u00a0retailer application fraud.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\"><img decoding=\"async\" style=\"width: 450px; margin-left: auto; margin-right: auto; display: block;\" src=\"https:\/\/goebt.com\/wp-content\/uploads\/2025\/01\/FNS-SNAP-Documentation.png\" alt=\"FNS SNAP Documentation\" width=\"450\" \/><\/span><\/p>\n<p><span data-contrast=\"none\">Retailers can also\u00a0<\/span><a href=\"https:\/\/fas.org\/sgp\/crs\/misc\/R45147.pdf\" rel=\"noopener\"><strong><span data-contrast=\"none\">engage in application fraud<\/span><\/strong><\/a><strong><span data-contrast=\"none\">\u00a0<\/span><\/strong><span data-contrast=\"none\">by\u00a0<\/span><strong><span data-contrast=\"none\">transferring ownership<\/span><\/strong><span data-contrast=\"none\">\u00a0of their store to a spouse or relative\u00a0to avoid SNAP disqualification. The new \u201cowner\u201d then applies to participate in SNAP, claiming that the former disqualified owner is no longer associated with\u00a0the store. This is often referred to as \u201cstraw ownership\u201d and qualifies as\u00a0<\/span><strong><span data-contrast=\"none\">circumvention<\/span><\/strong><span data-contrast=\"none\">, which is another type of retailer application fraud.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p aria-level=\"3\"><span style=\"color: #022169;\"><strong>IMPROPER\u00a0CONDUCT<\/strong>\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">There are several rules that you must follow\u00a0when processing EBT transactions\u00a0to keep your SNAP authorization status. Some of the most important rules are:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"padding-left: 40px; line-height: 1.5;\"><strong style=\"background-color: transparent;\"><i><span data-contrast=\"none\"><span style=\"background-color: transparent;\"><span style=\"font-weight: bold; color: #ff9902;\">\u203a<\/span> <\/span>DON\u2019T<\/span><\/i><\/strong><span style=\"background-color: transparent;\" data-contrast=\"none\">\u00a0enter a customer\u2019s PIN information.<\/span><\/p>\n<p style=\"padding-left: 40px; line-height: 1.5;\"><strong style=\"background-color: transparent;\"><i><span data-contrast=\"none\"><span style=\"background-color: transparent;\"><span style=\"font-weight: bold; color: #ff9902;\">\u203a<\/span> <\/span>DON\u2019T<\/span><\/i><\/strong><strong style=\"background-color: transparent;\"><i><span data-contrast=\"none\">\u00a0<\/span><\/i><\/strong><span style=\"background-color: transparent;\" data-contrast=\"none\">store a customer\u2019s EBT card information for any purpose.<\/span><\/p>\n<p style=\"padding-left: 40px; line-height: 1.5;\"><strong style=\"background-color: transparent;\"><i><span data-contrast=\"none\"><span style=\"background-color: transparent;\"><span style=\"font-weight: bold; color: #ff9902;\">\u203a<\/span> <\/span>DON\u2019T<\/span><\/i><\/strong><strong style=\"background-color: transparent;\"><i><span data-contrast=\"none\">\u00a0<\/span><\/i><\/strong><span style=\"background-color: transparent;\" data-contrast=\"none\">charge a sales tax on any SNAP eligible item purchased with SNAP benefits.<\/span><\/p>\n<p style=\"padding-left: 40px; line-height: 1.5;\"><strong style=\"background-color: transparent;\"><i><span data-contrast=\"none\"><span style=\"background-color: transparent;\"><span style=\"font-weight: bold; color: #ff9902;\">\u203a<\/span> <\/span>DON\u2019T<\/span><\/i><\/strong><strong style=\"background-color: transparent;\"><i><span data-contrast=\"none\">\u00a0<\/span><\/i><\/strong><span style=\"background-color: transparent;\" data-contrast=\"none\">process an EBT transaction unless the customer has their EBT card.\u00a0<\/span><\/p>\n<p style=\"padding-left: 40px; line-height: 1.5;\"><strong style=\"background-color: transparent;\"><i><span data-contrast=\"none\"><span style=\"background-color: transparent;\"><span style=\"font-weight: bold; color: #ff9902;\">\u203a<\/span> <\/span>DON\u2019T<\/span><\/i><\/strong><span style=\"background-color: transparent;\" data-contrast=\"none\">\u00a0give cash in exchange for SNAP food stamps or SNAP refunds.<\/span><\/p>\n<p style=\"padding-left: 40px; line-height: 1.5;\"><strong style=\"background-color: transparent;\"><i><span data-contrast=\"none\"><span style=\"background-color: transparent;\"><span style=\"font-weight: bold; color: #ff9902;\">\u203a<\/span> <\/span>DON\u2019T<\/span><\/i><\/strong><span style=\"background-color: transparent;\" data-contrast=\"none\">\u00a0accept SNAP benefits as payments on credit accounts.<\/span><span style=\"background-color: transparent;\" data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">As a SNAP-authorized retailer,\u00a0<\/span><strong><span data-contrast=\"none\">you must follow\u00a0all of\u00a0the\u00a0program rules and regulations<\/span><\/strong><span data-contrast=\"none\">. If you do not follow the rules, you can lose your\u00a0license\u00a0and\/or face other consequences, which can be detrimental to your business.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span style=\"color: #022169;\"><strong>FAILING TO APPLY FOR OR RENEW YOUR\u00a0SNAP\u00a0LICENSE<\/strong>\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The biggest mistake you can make as a retailer is not\u00a0<\/span><a href=\"https:\/\/www.fns.usda.gov\/snap\/retailer\" rel=\"noopener\"><strong><span data-contrast=\"none\">applying for\u00a0your FNS license<\/span><\/strong><\/a><span data-contrast=\"none\">\u00a0to accept SNAP benefits. You\u00a0<\/span><strong><span data-contrast=\"none\">cannot accept SNAP benefits<\/span><\/strong><span data-contrast=\"none\">\u00a0at your business if you are not licensed.\u00a0Additionally, EBT-authorized merchants are required to go through a\u00a0<\/span><a href=\"https:\/\/goebt.com\/fnsreauthorization\/\"><strong><span data-contrast=\"none\">reauthorization process<\/span><\/strong><\/a><strong><span data-contrast=\"none\">\u00a0<\/span><\/strong><span data-contrast=\"none\">approximately every five years to continue accepting SNAP benefits.\u00a0<\/span><strong><span data-contrast=\"none\">Failing to renew your license<\/span><\/strong><span data-contrast=\"none\">\u00a0will result in\u00a0deauthorization\u00a0from the program.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Now that you know some of the common examples of SNAP mistakes,\u00a0your business\u00a0is prepared to accept SNAP benefits responsibly.\u00a0Need more SNAP resources? Check out\u00a0some additional resources from USDA-FNS below.<\/span><span data-ccp-props=\"{&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<div style=\"background-color: #022169; padding: 15px 20px;\">\n<p><span style=\"color: #fff;\" data-contrast=\"none\">Additional Resources<\/span><\/p>\n<p style=\"padding-left: 40px; line-height: 1.5;\"><strong style=\"background-color: transparent;\"><strong style=\"background-color: transparent;\"><i><span style=\"background-color: transparent;\"><span style=\"font-weight: bold; color: #ff9902;\">\u203a <\/span><\/span><\/i><\/strong><span style=\"color: #fff;\">SNAP Retailer Service Center: 877.823.4369<\/span><\/strong><\/p>\n<p style=\"padding-left: 40px; line-height: 1.5;\"><a style=\"background-color: transparent;\" href=\"https:\/\/www.fns.usda.gov\/snap\/state-directory\" rel=\"noopener\"><strong><span data-contrast=\"none\"><strong style=\"background-color: transparent;\"><i><span style=\"background-color: transparent;\"><span style=\"font-weight: bold; color: #ff9902;\">\u203a <\/span><\/span><\/i><\/strong><span style=\"color: #ffffff;\">SNAP State Directory of Resources<\/span><\/span><\/strong><\/a><\/p>\n<p style=\"padding-left: 40px; line-height: 1.5;\"><a style=\"background-color: transparent;\" href=\"https:\/\/www.fns.usda.gov\/snap\/reauthorization-application-sign\" rel=\"noopener\"><strong><span data-contrast=\"none\"><strong style=\"background-color: transparent;\"><i><span style=\"background-color: transparent;\"><span style=\"font-weight: bold; color: #ff9902;\">\u203a <\/span><\/span><\/i><\/strong><span style=\"color: #ffffff;\">Reauthorization Application<\/span><\/span><\/strong><\/a><\/p>\n<p style=\"padding-left: 40px; line-height: 1.5;\"><a style=\"background-color: transparent;\" href=\"https:\/\/www.fns.usda.gov\/snap\/retailer\/eligible\" rel=\"noopener\"><strong><span data-contrast=\"none\"><strong style=\"background-color: transparent;\"><i><span style=\"background-color: transparent;\"><span style=\"font-weight: bold; color: #ff9902;\">\u203a <\/span><\/span><\/i><\/strong><span style=\"color: #ffffff;\">Current SNAP Requirements<\/span><\/span><\/strong><\/a><span style=\"background-color: transparent; color: #ffffff;\" data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>SNAP\u00a0retailer requirements\u00a0are strict, and\u00a0keeping track of\u00a0mistakes\u00a0can be a complex process.\u00a0Although SNAP fraud is\u00a0relatively rare, failure to comply with program rules can result in\u00a0severe\u00a0consequences\u00a0for your business, such as:\u00a0\u00a0 Temporary or permanent disqualification from the program\u00a0 Monetary penalties\u00a0and fines\u00a0 Criminal prosecution\u00a0 To help you navigate\u00a0program rules,\u00a0we\u2019ve put together a list of common types of fraud and errors\u00a0that [&hellip;]<\/p>\n","protected":false},"author":244,"featured_media":27341,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[1],"tags":[197,199,201],"class_list":["post-27337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-important-announcement","tag-featured","tag-industry-news-snap-ebt","tag-retailer-trends-c-stores-convenience-stores"],"_links":{"self":[{"href":"https:\/\/goebt.com\/wp-json\/wp\/v2\/posts\/27337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goebt.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goebt.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goebt.com\/wp-json\/wp\/v2\/users\/244"}],"replies":[{"embeddable":true,"href":"https:\/\/goebt.com\/wp-json\/wp\/v2\/comments?post=27337"}],"version-history":[{"count":4,"href":"https:\/\/goebt.com\/wp-json\/wp\/v2\/posts\/27337\/revisions"}],"predecessor-version":[{"id":31852,"href":"https:\/\/goebt.com\/wp-json\/wp\/v2\/posts\/27337\/revisions\/31852"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/goebt.com\/wp-json\/wp\/v2\/media\/27341"}],"wp:attachment":[{"href":"https:\/\/goebt.com\/wp-json\/wp\/v2\/media?parent=27337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goebt.com\/wp-json\/wp\/v2\/categories?post=27337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goebt.com\/wp-json\/wp\/v2\/tags?post=27337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}