Indies Throw Support Behind Legislation to Ban Processing Fees on EBT Cards
The National Grocers Association (NGA), the trade organization representing the independent sector of the grocery industry, has offered its support for the Ensuring Fee-Free Benefit Transactions (EBT) Act (S.2449), a bicameral bill introduced by Sens. Ben Ray Luján, D-N.M., and Peter Welch, D-Vt., to prohibit processing fees on electronic benefit cards provided to participants of the Supplemental Nutrition Assistance Program (SNAP).
According to NGA, the implementation of processing fees on EBT transactions would create financial challenges for community and family-owned grocers in urban, rural and high-need regions.
[Read more: “Save A Lot, Food 4 Less, Dollar General Top Retailers for SNAP Customers”]
“Independent community grocers play a vital role in ensuring access to healthy and affordable food for families in need through SNAP,” noted Greg Ferrara, president and CEO of Washington, D.C.-based NGA. “These retailers make substantial investments in software, equipment and training to facilitate SNAP benefits for their communities. NGA is proud to work alongside Sens. Luján and Welch to secure a permanent solution that eliminates processing fees on SNAP transactions. This step is crucial in avoiding potential restrictions on SNAP access for beneficiaries and mitigating adverse effects on the indispensable retailers who contribute to the program’s success.”
The bill aims to shield retailers from such fees and ensure that they’re responsible only for their own costs while the United States Department of Agriculture (USDA) works on updating EBT with chip cards and mobile payments.
“At John Brooks Supermarket, we believe in delivering an unparalleled shopping experience each and every day,” said Kathy Dominguez, of John Brooks Supermarket, a New Mexico independent with stores in Albuquerque, Milan, Santa Fe and Soccoro. “Our unwavering dedication to the communities we serve has led to our expansion from a single store to four locations across New Mexico. We are dedicated to ensuring exceptional freshness, a diverse product assortment, and unbeatable value for all shoppers, regardless of their participation in SNAP. Imposing additional processing fees on retailers through the SNAP program would hamper our ability to fulfill our commitment of serving our local communities to the fullest.”
The 2018 Farm Bill contained a provision that banned processing fees on EBT transactions until 2023. As a top priority for the Farm Bill reauthorization, NGA is urging Congress to permanently prohibit these fees, which have not historically existed.
NGA and Arlington, Va.-based FMI – The Food Industry Association originally expressed their support for the bill last month when it was introduced in the House.
The independent grocery sector accounts for about 1.2% of the nation’s overall economy and is responsible for generating more than $250 billion in sales, 1.1 million jobs, $39 billion in wages and $36 billion in taxes.
