A group of food industry associations are urging Congressional leaders to prohibit additional fees from being levied for Supplemental Nutrition Assistance Program (SNAP) electronic benefit transfer (EBT) transactions.
The groups – Food Industry Association (FMI), National Grocers Association, and National Association of Convenience Stores (NACS) – sent a letter to lawmakers requesting that the Ensuring Fee-Free Benefit Transactions (EBT) Act (H.R. 4158) be enacted to prohibit states and state contractors from levying processing and other related fees onto SNAP retailers and merchant processors.
The letter was signed by over 1,000 food retailers, serving millions of SNAP participants.
“SNAP authorized retailers are committed to strengthening the integrity and viability of the program for millions of Americans in every community. Retailers invest significant resources to participate in SNAP, including bearing the cost of equipment updates, software, training for store associates, and processing fees and other costs from retailers’ side of a SNAP EBT transaction. SNAP retailers should not then be assessed processing fees on top of these costs from a state’s side of a SNAP EBT transaction,” Christine Pollack, vice president of government relations at the Food Industry Association, said.
The bipartisan EBT Act was introduced in the U.S. House by Reps. Shontel Brown (D-OH) and Tony Wied (R-WI), members of the House Agriculture Committee.
“For years, independent grocers have operated under only temporary assurances that they wouldn’t be burdened by fees on SNAP transactions,” Stephanie Johnson, group vice president of government relations at the National Grocers Association, said. “Congress’s intent has always been clear: retailers should not be charged fees to accept SNAP payments in order to create the greatest possible access for families in need. Now is the time for a permanent solution. Community grocers are proud to serve their neighbors with fresh, healthy food, and with the EBT Act, they can continue doing so without the threat of burdensome fees.”
Stakeholders are would like to see the EBT Act included in a multi-year Farm Bill or other legislative vehicle that will be enacted this year.
“Congress must act quickly to pass the EBT Act and give retailers the certainty they need to keep serving SNAP families without added costs,” Margaret Mannion, NACS director of government relations, said. “Processing fees on EBT transactions have long been prohibited and reversing that protection would hand windfall profits to payment processors while driving up the cost of food.”