- Accepting EBT at your gas station can bring in many new customers and increase your profits.
- Offer customers healthy food options to become a convenient stop for them.
- Learn the rules for products and set up your store to accept payments easily.
Did you know that accepting EBT at your gas station could bring in hundreds of new customers each month?
In 2023, over 41 million Americans utilized SNAP benefits (the program within EBT covering food purchases). That’s a large potential customer pool.
Imagine dozens of new customers walking through your gas station doors every week, ready to spend.
How EBT and Your Gas Station Can Attract New Customers
Here’s a breakdown of what it is and how it’s used:
- EBT is a system for distributing government benefits: It allows the electronic distribution of government benefits like food stamps or cash assistance.
- Works like a debit card: Participants get a card with a magnetic strip, similar to a debit card, and their benefits are loaded monthly.
- Used at authorized locations: The cards are accepted at approved grocery stores, some farmers’ markets, and sometimes other designated locations.
Key Programs Using Electronic Benefits Transfer
- SNAP (Supplemental Nutrition Assistance Program): This is the most well-known program that uses EBT, formally known as “food stamps.” SNAP assists low-income families in buying groceries.
- TANF (Temporary Assistance for Needy Families): This program offers cash assistance to help families with basic needs.
- WIC (Women, Infants, and Children): This program provides food assistance and nutrition resources to pregnant women, new mothers, and young children.
Important Notes:
- Eligibility: Each program has eligibility requirements based on income and household size.
- Prohibited Purchases: The funds are meant for specific purposes (healthy food for SNAP, necessities for TANF) and cannot be used for alcohol, tobacco, or non-essential items.
Where to Find More Information
- USDA Food and Nutrition Service (SNAP)
- Your state’s social services or human resources department will have information on all the programs it manages.
How Does EBT Benefit Your Gas Station
There are a few key reasons why accepting EBT at your gas station could be beneficial:
- Increased Customer Base: Many individuals and families rely on the program for essential purchases. Opens your gas station to a broader pool of potential customers who might otherwise be unable to afford fuel.
- Community Support: Supporting those in need can build a positive reputation for your gas station. This can lead to increased community goodwill and customer loyalty.
- Additional Revenue Stream: Provides a way for customers to pay, potentially increasing your overall revenue.
- Convenience for Users: Cardholders sometimes have a cash benefits component in addition to programs like SNAP. Allowing customers to use their cash benefits at your gas station, especially if you also have a convenience store, provides them more options and convenience.
Things to Consider:
- Eligible Products: Before accepting EBT, ensure you understand which products in your store are eligible for purchase with cards. SNAP benefits, for example, cannot be used to purchase fuel directly.
- Fees: Transaction fees may be associated with processing payments, so factor these costs into your decision. Some merchant providers offer unlimited transactions for a monthly fee.
- Setup: You’ll need the proper equipment and approval to become an authorized retailer. Your state’s social services or human resources department can guide you through the application process.
Overall, it could be a positive move for your gas station, financially and in terms of building a positive impact on your community.
What to Offer Customers
| Eligible | Ineligible |
| Essential Staples (bread, milk, eggs, cereal, rice, pasta, canned goods) | Alcohol and Tobacco |
| Fresh Produce (fruits, vegetables) | Items with Supplement Facts Labels (energy drinks, protein powders, some sports drinks) |
| Protein Options (yogurt, cheese, peanut butter, nuts, seeds) | Non-food items (gasoline, pet food, cleaning supplies, paper products in some states) |
| Beverages (water, 100% juice, unsweetened tea) | Vitamins and Medicines |
| Hot Foods and Prepared Meals | Cosmetics and Personal Hygiene Products |
| Foods and Prepared Meals That Are Hot or Cooked at the Point of Sale, including pizza |
Since SNAP benefits are intended for healthy food purchases, focus on stocking your gas station convenience store with items that align with this purpose. Here’s a breakdown of categories and specific examples:
Essential Staples:
- Milk: Various sizes and options (whole, skim, 2%, lactose-free, etc.)
- Bread: Loaves of sliced bread, buns, rolls
- Eggs
- Cereal: Nutritious options with lower sugar content
- Rice & Pasta: Different varieties to offer choice
- Canned goods: Tuna, beans, vegetables, and fruits (look for low sodium and no added sugar options)
Fresh Produce:
- Fruits: Apples, bananas, oranges, berries (consider pre-portioned options for ease)
- Vegetables: Carrots, lettuce, tomatoes, onions, potatoes, salad mixes
Protein Options:
- Yogurt: Individual servings and larger containers
- Cheese: Blocks and string cheese
- Peanut butter: Healthy fats and protein source
- Nuts and seeds: Pre-portioned packs for snacks
Beverages:
- Bottled water
- 100% fruit juice (no added sugar)
- Unsweetened tea
Additional Considerations:
- Meal Kits: Simple meal kits with eligible ingredients could be a unique selling point.
- Baby Supplies: It can be used for items like formula and diapers if your location attracts families.
- Household Essentials: Certain states allow the purchase of paper towels, toilet tissue, and other cleaning products. Check your state’s guidelines.
Important Reminders:
- Clear Labeling: Make it very easy for customers to identify which items are eligible.
- Variety Within Categories: Offer various options for different preferences and dietary needs.
- Freshness: Prioritize the quality and freshness of your produce.
By carefully curating your inventory, you can become a valuable resource in your area, seeking affordable and nutritious food choices.
Prohibited Purchases :
Here’s a breakdown of the main categories of items you CANNOT sell to Electronic Benefits Transfer customers at your gas station convenience store:
- Alcohol and Tobacco: This includes beer, wine, liquor, cigarettes, cigars, and any other tobacco products.
- Hot Foods and Prepared Meals: It cannot be used to purchase items intended to be eaten immediately or consumed on-site. This includes hot dogs, rotisserie chicken, pizza slices, etc.
- Non-Food Items: The funds are meant for essential items; therefore, the following are prohibited:
- Gasoline
- Pet food
- Cleaning supplies (unless your state specifically allows it)
- Paper products (unless your state specifically allows it)
- Vitamins and medicines
- Cosmetics or personal hygiene products
- Items with Supplement Facts Labels: Energy drinks, protein powders, sports drinks, and certain health supplement products cannot be purchased.
Important Notes:
- SNAP vs. Cash Benefits: SNAP benefits (food stamps) are generally the most restrictive program. Some states may allow cash benefits on EBT cards to be used for some non-food essentials.
- State Variations: It’s best to check your state’s specific guidelines, as there might be minor differences. Your state’s social services or human resources department website should have this information.
- Staying Compliant: It’s essential to be clear about what’s eligible and ineligible for EBT purchases to avoid violations or penalties.
Managing Transactions Smoothly
- Cost-Effective Payment Processors: Services like NRS’s “EBT Unlimited!” offer predictable flat-fee structures, avoiding the per-transaction costs of traditional credit card processing. Other providers also exist, so compare your gas station convenience store options.
- POS Integration: To become an authorized retailer, you’ll need the proper equipment and approval. Your state’s social services or human resources department can guide you through the application process. Providers like National Retail Solutions (NRS) also offer assistance with setup and can streamline the process.
- Customer Awareness: Clear signage and simple materials explaining how it works at your gas station can alleviate confusion and streamline the process.
Frequently Asked Questions:
Q: How long does it take to get approved?
A: The approval process can vary between states. It generally takes a few weeks, but contacting your state’s social services or human resources department for the most accurate timeline is best.
Q: Is there a minimum sales amount for SNAP customers?
A: No minimum purchase amount is required for transactions.
Q: What equipment do I need?
A: A Point-of-Sale (POS) system compatible with SNAP processing. Companies like National Retail Solutions (NRS) can help with setup and provide the necessary equipment.
Q: Are there any fees associated with it?
A: Yes, there may be transaction fees. Be sure to compare different payment processors. Services like NRS’s “EBT Unlimited!” program offer transparent pricing with a flat-fee structure.
Take advantage of this opportunity to increase your sales and serve your community.
Click here or call (888) 677-3280 to learn more about accepting EBT at your gas station today!
