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Who Can Accept EBT Cards from Customers

Posted by : on Mar 27,2021 07:38 AM
In order to figure out if you can accept payments through EBT cards you would have to understand what they are and how they are used. Usually, not all retail outlets are able to accept EBT cards from their customers.

EBT Explained

Electronic benefits transfer is what is known in common terms as EBT. This is a facility that is provided by the government for families that are below the average income earning capacity. EBT works in connection with USDA food and nutrition service of the government.

This entity is also called as FNS in the United States of America. The government essentially sends funds to the EBT card which can be used to purchase goods and essentials for a family. Only retailers who are approved are capable of accepting EBT cards from customers.

Process to Begin Accepting EBT

In order to begin accepting EBT cards you would have to apply for a permit with the FNS (Food and Nutrition Service). SNAP food stamps are what the FNS governs and approves you as a business to accept EBT cards. You should also have an EBT merchant services as well.

This is not similar to how credit card processing is done but works like a debit card instead. Once a person has been sent money from the government, they are able to use this card to make purchases of essentials for their family.

The process to accept EBT cards requires you to possess an account with a firm offering EBT merchant services for your business. This would allow you to accept these cards from customers who wish to make purchases from your business.

MCC Code Uses

A lot of people confuse MCC code along with the way that the EBT machine is used in the country. However, there is no direct connection between the MCC code and the EBT merchant services whatsoever.

MCC or the merchant category code is something that is of four digits and is provided by the merchant services provider. A business is essentially categorized by this code for any of the goods or services that they have to offer their customers and can change with vendors.

Bottom Line

If you as a business is able to successfully apply and obtain a permit can begin accepting EBT cards from your customers. This way you increase your scope of business by an extent apart from just allowing credit and debit card transactions.


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