SNAP households receive an EBT card, which operates like a debit card to buy food at stores and farmers markets or roadside stand(s) authorized to take SNAP benefits. The customer swipes the card in a Point-of-Sale device (POS) at the store and enters a four-digit Personal Identification Number (PIN). The clerk enters the exact amount of the food purchase on the POS. This amount is deducted from the household’s EBT SNAP account and credited within two banking days to the retailer’s bank account. All transactions are electronically processed and recorded. USDA has access to records of all transactions, including the date, time, and dollar amount, on all terminals.

The most common method for redeeming SNAP benefits at farmers markets is the central POS system where the farmers market registers with FNS to operate a central POS terminal for all participating vendors. Customers redeeming SNAP benefits swipe their EBT card at a central location at the market and receive tokens or paper scrip which they spend like cash for eligible food at the market.  Payment is electronically transferred directly into the market’s bank account. The Market management distributes payments for vendors and assumes responsibility for accounting and reporting requirements. 

Alternatively, the individual POS system allows individual farmers or vendors to manage their own SNAP redemption by obtaining their own FNS permit; purchase/lease their own POS terminal; and independently accept SNAP benefits at their booth. With this system the customer swipes their card at the vendors booth and the sale is completed. Payments are directly deposited in the vendor’s bank account and there is very limited reporting required.