Implementing a new or improving your
existing EBT program
About the Materials
• This PowerPoint was prepared using information
from…
– Illinois Farmers Market LINK GUIDE.
• Developed By the Downtown Bloomington Farmers Market.
– The USDA’s SNAP at Farmers markets: A how-to
handbook.
– SNAP/EBT at your Farmers Market Seven Steps to
Success Guide.
• Developed by Project for Public Spaces &Wholesome Wave
– The following Case Studies. CS
CS: 61st Street Farmers Market
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Market Serving Chicago’s Woodlawn community.
9am till 2pm on Saturdays.
2010 Season from May 15th - Dec 18th
15-20 vendors (all food).
LINK program, WIC, and Farmers Market Coupons.
Strategically located between University of Chicago &
Woodlawn (food desert).
• The first market in Illinois to implement Wholesome
Wave’s Double Value Coupon Program.
CS: City of Chicago’s Farmers Market
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5 markets spread throughout Chicago.
7am - 1pm (Daley Plaza 7am-3pm) S,T,W,Th,S.
2010 season from May 15th – Oct 30th
2- 26 vendors (Farmers and Merchants).
Pilot year LINK program.
WIC / Farmers Market coupons.
Wholesome Wave DVCP
Sorting out the terminology: LINK, EBT,
SNAP, and Food Stamps
Sorting out the terminology: LINK, EBT, SNAP,
and Food Stamps
• SNAP: Supplemental Nutrition Assistance
Program, formerly known as "food stamps”
– Administered by the USDA office of Food and
Nutrition Services(FNS).
– Federal program that helps low-income individuals
and families buy the food they need for good health.
• EBT: Electronic Benefit Transfer (EBT) is an
electronic system that allows recipients to access
their SNAP benefits using a card similar to a
credit card.
Sorting out the terminology: LINK, EBT,
SNAP, and Food Stamps
Sorting out the terminology: LINK, EBT,
SNAP, and Food Stamps cont..
• LINK: The name for the Electronic Benefits Transfer (EBT)
system used in Illinois to distribute food and cash assistance
benefits, including SNAP.
• The card used to redeem benefits is known as a Link card. Each state
has a different name for its EBT system-- for example, Louisiana
Purchase, Golden State Advantage (California), Oregon Trail, Lone Star
(Texas), or Hoosier Works (Indiana).
Helps Families Make Healthier
Choices
SNAP-Eligible Food Purchases
Households
CAN use
SNAP benefits
for:
Households
CANNOT use
SNAP
benefits for:
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Breads and cereals
Fruits and vegetables
Meats, fish and poultry
Dairy products
• Beer, wine, liquor, cigarettes or tobacco
• Any nonfood items, such as pet foods, soaps,
paper products
• Vitamins and medicines
• Food or hot meals that will be eaten on-site or
in the store
Assists People in Transition
National Characteristics of SNAP Households
48%
$711
79%
58%
of all
participants
are children
is the average
gross monthly
income per
SNAP
household
of all benefits
go to
households
with children
of households
with children
are headed by
single parents
Characteristics of Supplemental Nutrition Assistance Program Households: Fiscal Year 2009, USDA FNS
SNAP Benefit recipients US
45,000,000
40,000,000
40,301,657
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
1,727,963
0
US
Illinois
2010
SNAP Benefit recipients Surrounding
Counties 2011
60,000
47548
50,000
47951
38238
40,000
30,000
20,000
10,000
7,988
6811
9068
3397
3928
Lake
Grundy
0
Mchenry
Will
Dupage
Kane
Kendall
Dekalb
SNAP Benefit $$$ in Billions as of
1/31/2011
2.78
64.70
US
Illinois
Is a LINK Program Feasible for your
Market?
• Concentration of LINK users in your area
– Is your market at or near a low-income area?
– Is your market easily accessible via public
transportation?
– Close to senior centers, churches, or community
centers?
• LINK per ZIP-Illinois Dept. of Human Services.
Is a LINK Program Feasible for your
Market?
* Staffing and support
– LINK/EBT coordinator
• Works the LINK booth/tent/table
• Keeps track of receipts, tokens, incentive program
• Prepares accounting reports
Is a LINK Program Feasible for your
Market?
– Backroom Accounting
• Processes checks for vendors
• Pays transaction fees if any
• Between 2-4 hours work per week
What’s the cost
CS: City of Chicago Lincoln Square Market ($4828 in LINK sales 677 trans)
Item
Sub item
Cost
Wireless EBT Machine
$1067.54
Extra Battery
$65.00
Tent
$320.38
Laminated Signs
$144.44
Start-Up costs
Table, storage bin, dolly/cart
Sub-total
$125.00
$1,722.36
Operating Costs
Thermal Receipt Paper
$30.00
General Office Supplies
$25.00
EBT transaction fees
$380.00
Sub-total
Grand total for 2010
Note: does not include labor costs. This is a 21 vendor market
$435.00
$2,157.35
Voucher System – Free EBT only machine
Provided by the USDA
Voucher System
Free EBT only machine
• Record LINK holder info
on Voucher / receipt.
• Call in the to approve
the amount (need Cell).
• Must send in vouchers
to USDA for payment.
• Pay NO Transaction fee.
• Need a Phone line &
Electricity.
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On the spot approval.
Pay 2 business days.
Pay NO Transaction fee.
Can be used with
Voucher System
What’s could your costs be.
Projected Cost with free or rented machine for a 21 vendor market
Item
Sub item
Cost
Start-Up costs
If free or rented
Wireless EBT Machine
$0.00
Extra Battery
$0.00
Tent
$320.38
Laminated Signs
$144.44
Table, storage bin, dolly/cart
$125.00
Sub-total
$589.82
Thermal Receipt Paper
$30.00
General Office Supplies
$25.00
Sub-total
$55.00
Operating Costs
Grand Total 1st year
$644.82
Total Merchant
Services
•You can get a free Wireless machine,
rent, or buy.
• Warranty program that pays for
equipment, online access to your
account, and a 25% discount on Fed
Ex shipments.
•For new markets they will even fill
out your FNS application for you.
•Initial start-up cost $100.00 set up
fee.
•Average market can expect to pay
$100-$150 per month for transaction,
service, and rental fees.
www.totalmerchantservices.com
Free, rent, or own
Wireless Machine.
What’s could your costs be.
Projected Cost with free or rented machine for a 21 vendor market
Item
Sub item
Cost
Start-Up costs
If free or rented
Wireless EBT Machine
$0.00
Extra Battery
$0.00
Tent
$320.38
Laminated Signs
$144.44
Table, storage bin, dolly/cart
$125.00
Sub-total
$589.82
Thermal Receipt Paper
$30.00
General Office Supplies
$25.00
Operating Costs
EBT tran fees + Machine Rental $200.00
Sub-total
Grand Total 1st year
$255.00
$844.82
Get your Farmers/Vendors On Board
Benefits of accepting SNAP/LINK
– Opens up new markets.
– Providing Nutrient Dense foods to underserved
community.
– Guaranteed Payment in a timely manner.
– Give numbers for other programs across the State
CS: City of Chicago’s Farmers Market
• All 5 Markets average
– Transaction amount $8.18
– # of transaction 30
– Total daily amount $245.00
• At Daley Plaza (highest producing Market)
– Transaction amount $9.13
– # of transaction 73
– Total daily amount $671.00
CS: 61st Street Farmers Market
• Link program started in 2008 and numbers
steadily grew.
Basic First Steps
• Apply to with Food and Nutrition Service
http://www.fns.usda.gov/snap/retailers/application-process.htm
– Online application.
– Turn around time less then 45 days, faster for Farmers Markets.
• Determine How to process payments
– Free EBT only Machine from FNS
• Need phone line and electricity
– Voucher
• Can combine with EBT machine
– Buy, rent, or get FREE Wireless Machine from third party
processer
• Responsible for processing fees
Why do we need a special Program for
LINK?
• Multiple vendors, One POS device/system
– With an EBT program you can use one machine to
conduct transaction for multiple vendors.
How SNAP/LINK works in the Market
• Needs a special redemption system
– Since most farmers/vendors do not have a
machine at their stand for processing, a method of
exchanging food for payment needs to be in place.
• Token, Script, or Receipt?
Token
Paper
Receipt
How SNAP/LINK works in the Market
• Token/Paper System
– Purchased by the LINK user from Market Manager
– Given directly to Farmer to buy food
– Farmer turns tokens in to Market Manager for credit
How SNAP/LINK works in the Market
• Receipt System
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LINK user goes to Farmer first.
Receives a “CHIT”
Goes to Market Manager to pay for items.
Takes Receipt back to Farmer to Pick up food.
Farmer John
$10.00
Apples
Ideas on Improving your existing program?
• Incentive Programs –
– City of Chicago $5 a day match
– 61st Street Farmers Market $25 a day match
– Of the nearly $60K redeemed at IL. FM’s over $40K
came from markets with Double Value Coupon
Programs.
Ideas on Improving your existing
program?
• Organize a bus route/delivery
• Donation of phone line and electricity from
host site (If possible)
• Flyers at local government agencies / business
Links to resources
• Where Fresh is and Illinois Farmers Market LINK GUIDE
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http://www.agr.state.il.us/farmersmarket/
• USDA’s SNAP at Farmers markets:
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http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELPRDC5085298&acct=wdmge
ninfo
• SNAP/EBT at your Farmers Market Seven Steps to Success
Guide.
•
http://www.pps.org/pdf/SNAP_EBT_Book.pdf
• Total Merchant Services.
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http://www.totalmerchantservices.com/total-merchant-services-home
For help with bringing EBT/LINK to your
market contact…
Corey Chatman
SNAP/EBT Consultant
Email corey@experimentalstation.org
(o) 773-241-6044
(cell) 773-896-4450
Experimental Station
6100 S. Blackstone
Chicago Il 60637