Illinois Electronic Benefits Transfer (EBT) Wireless Project Implementation Guide

Illinois Electronic Benefits Transfer (EBT) Wireless Project Implementation Guide Information and Recommendations for Farmers Markets

P a g e 2 Table of Contents ----------------------------------------------------------------------------------------------------- Section I: Overview 1 The Illinois EBT Wireless Project 2 The Supplemental Nutrition Assistance Program (SNAP) and Link Cards 3 Illinois EBT Wireless Project Partners 4 Important Terms Section II: Implementation 1 SNAP Certification 2 Electronic Benefits Transfer (EBT) Machine 3 Scrip Implementation 4 Market Manager Checklist 5 EBT Promotion 6 Donations and Sponsorships Section III: Appendices Appendix I Additional Information Appendix II Retailer Application Tips Appendix III Scrip Example Appendix IV EBT Service Provider Questions

P a g e 3 Section 1: Overview ----------------------------------------------------------------------------------------------------- 1 The Illinois EBT Wireless Project This guide will help you implement an Electronic Benefits Transfer (EBT) machine at your farmers market. Included with this guide is a community kit that includes a variety of sample materials that will assist your fundraising and promotional efforts. The Illinois EBT Wireless Project is a grant program jointly administered by Lt. Governor Sheila Simon s office, the Illinois Department of Agriculture and the Illinois Department of Human Services that will provide up to 50 farmers markets in Illinois with free wireless EBT machines using a grant from the United States Department of Agriculture. Experimental Station, the Illinois Farmers Market Association and Southern Illinois University Carbondale are also assisting with the Illinois EBT Wireless Project. EBT machines can be used to accept debit, credit and Link cards. The Illinois Link card is used by Supplemental Nutrition Assistance Program (SNAP) beneficiaries to electronically draw from their SNAP benefits as well as other federal cash assistance programs. 2 The Supplemental Nutrition Assistance Program (SNAP) and Link cards SNAP is the federal government s largest nutrition assistance program for limited-resource families. The program provides monthly benefits for eligible participants to purchase food items at approved retail outlets. In Illinois, SNAP beneficiaries access their benefits by using the Illinois Link card, which is a type of Electronic Benefits Transfer (EBT) card that works the same way as a credit or debit card. The Link card can be used to purchase food at any grocery store, food retail outlet or farmers market that is certified to accept SNAP benefits. SNAP users receive their benefits each month on a day determined by the Illinois Department of Human Services. An individual can use their SNAP benefits for food, certain seeds and plants. Eligible items include fresh fruit, vegetables, meats, dairy products, eggs, breads, jam, pickles, pastries, and food producing seeds or plants. Examples of ineligible items include any nonfood item such as pet foods, soaps, paper products, household supplies, grooming items, toothpaste, cosmetics, alcoholic beverages, tobacco, vitamins or medicines. Food items purchased with a Link card cannot be taxed by state or local governments. Market vendors traditionally fold the tax into the listed price of the food item, but if they do this, they must deduct that from the total price of an item purchased using SNAP benefits.

P a g e 4 3 Illinois EBT Wireless Project Partners Below you will find more information on each of the project partners. Lt. Governor Sheila Simon Lt. Governor Sheila Simon holds the second highest executive office in Illinois and is first in line to succeed the Governor. Her diverse daily duties are derived from the Governor, Legislature, statute, and personal initiative. Among the many committees and councils that Lt. Governor Simon chairs is the Governor s Rural Affairs Council. The 25-member Rural Affairs Council represents a variety of state agencies, organizations and citizen members and is tasked with improving delivery of state services to rural Illinois. Under Simon s leadership, the Rural Affairs Council has worked to expand access to locally-grown, healthy foods, particularly in rural areas. The Office of the Lieutenant Governor is coordinating efforts of the project partners and overseeing administration of the Illinois EBT Wireless Project. Lt. Governor Project Contacts Laura Hepp Kessel, Policy Analyst for Rural Affairs, Laura.Kessel@illinois.gov or 217-558-3728 Illinois Department of Agriculture The Illinois Department of Agriculture (IDOA) administers a $94 million budget and employs more than 350 people statewide. Separate bureaus administer programs and services directed at conserving the state's land and water resources; protecting the health and welfare of livestock and companion animals; overseeing state and county fairs; regulating seed, feed and fertilizer products; ensuring the financial stability of grain dealers and warehouses; promoting Illinois food and agricultural products including farmers markets; and operating the state's horse racing programs. The local foods movement is a priority to the department and farmers markets are integral in making this food widely available to the public. IDOA works to promote local foods through a statewide listing of over 300 farmers markets. IDOA will be administering the grant for the Illinois EBT Wireless Project. IDOA Project Contacts Delayne Reeves, Marketing Representative/Grants Manager, Delayne.Reeves@illinois.gov or 217-524- 9129 Kendra Buchanan, Local Foods Liaison & Sustainability Coordinator, Kendra.Buchanan@illinois.gov or 217-232-0600 Illinois Department of Human Services The Illinois Department of Human Services (IDHS) has more than 13,000 employees and an annual budget of over $5.4 billion. IDHS provides Illinois residents with streamlined access to integrated services, especially those who are striving to move from welfare to work and economic independence, and others who face multiple challenges to self-sufficiency. IDHS also handles administration of the Illinois Link card system. The Link card provides users access to SNAP benefits and other cash assistance benefits, such as Temporary Assistance for Needy Families. The system serves over 1.8 million people in 900,000 households and 88,000 cash assistance cases. Over 9,000 Illinois retailers accept the Link card and each month, $260 million in SNAP and $17.5 million in cash assistance benefits are redeemed through the Link system. IDHS received the USDA grant that made the Illinois EBT Wireless Project possible.

P a g e 5 IDHS Project Contacts Barbara Payne, Associate Director Division of Family and Community Services, Barb.Payne@illinois.gov or 217-785-0480 Experimental Station The Experimental Station is a Chicago not-for-profit that launched the 61st Street Farmers Market in 2008 to increase local food access in Chicago s underserved Woodlawn neighborhood. The market has accepted Link cards since its inception and in 2009, in partnership with Wholesome Wave, the 61st Street Farmers Market piloted Illinois' first Double Value Coupon Program, exponentially increasing the Market's Link sales over 2008 levels. In 2010, Experimental Station partnered with the City of Chicago to offer EBT service at five City-operated farmers markets, a program that now serves 15 markets. Experimental Station has used funding from the USDA Farmers Market Promotion Program (FMPP) grant to provide free consultation regarding EBT and SNAP to farmers markets and direct producer-toconsumer venues. Experimental Station, in partnership with Wholesame Wave and the Illinois Farmers Market Association, also created the LINK Up Illinois program which provides 38 farmers markets with funding to establish double-value coupon programs. Experimental Station is providing technical assistance by consulting with markets and leading trainings for the Illinois EBT Wireless Project. Experimental Station Project Contacts Connie Spreen, Executive Director, 773-241-6044 Corey Chatman, LINK Up Illinois Program Manager, corey@experimentalstation.org or 773-241-6044 Illinois Farmers Market Association The Illinois Farmers Market Association (IFMA) is a newly formed not-for-profit operating for its first two years under the FMPP grant. The IFMA aims to improve and expand the capacity of farmers markets in Illinois by providing educational support for farmers market organizers, farmers, vendors and other community food and nutrition organizations. By providing education, training and outreach, IFMA will assist farmers markets in expanding and providing local food access to all income levels in their communities. IFMA will work with markets to connect with community partners in obtaining resources such as small grants to provide support for EBT programs. The IFMA helped identify eligible markets, promoted the Illinois EBT Wireless Project, and helped plan the trainings for project participants. IFMA Project Contacts Pat Stieren, Executive Director, pstieren31@comcast.net or 217-522-4274 Southern Illinois University Carbondale Southern Illinois University Carbondale (SIUC) received the FMPP grant that has made creation of the IFMA possible. SIUC will measure the Illinois EBT Wireless Project s effectiveness in increasing overall sales at farmers markets and providing greater access to SNAP beneficiaries by using monthly sales data and market surveys. SIUC will release findings at the end of 2013 or early 2014. SIUC Project Contacts Dr. Sylvia Smith, Assistant Professor, ssmith8@siu.edu or 618-536-7567

P a g e 6 United States Department of Agriculture Food and Nutrition Service The Food and Nutrition Service (FNS) administers USDA nutrition assistance programs, including the Supplemental Nutrition Assistance Program (SNAP). As part of a $4 million nationwide effort to increase SNAP use at farmers markets by expanding the availability of wireless technology, USDA provided Illinois $60,000 in grant funding. This funding made the Illinois EBT Wireless Project a reality. Logo Creation & Artwork were provided by: James Kelly, slankydesign in Urbana, Illinois. Photographs were provided by our project partners and from various markets in Illinois.

P a g e 7 4 Important Terms Access Card A generic term which refers to the physical card used to access a commercial or EBT card system. In the on-line EBT transaction or application, recipients use magnetic stripe cards at POS terminals or ATMs to access the system. Account A SNAP or TANF account. Authorization An affirmative response by, or on behalf of, the issuing member to a request to permit a card or card account to be used in a transaction. No posting to an account occurs for an authorization. Balance Inquiry A non-financial transaction that permits the cardholder to obtain the current balance of his or her account. Batch Receipts A print out from the EBT terminal of the daily transactions at the close of market. Either the state or third party vendor will provide instructions for printing the batch receipts. Clearing Account An account maintained for the purposes of settlement and payment of fees. Electronic Benefits Transfer (EBT) A system that uses electronic funds transfer, automated teller machines and point of sale technology for the delivery of public assistance benefits. Farmers Market Nutrition Program (FMNP) A federal nutrition assistance program that provides low income women, children and seniors with a limited number of coupons to purchase fruits, vegetables and herbs. Food and Nutrition Service (FNS) The Food and Nutrition Service of the United States Department of Agriculture. Food Stamp Program (FSP) The government benefits program operated under the authority of the Food Stamp Act of 1964, as amended. Also see definition for SNAP. 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). Off-line Transaction An EBT system or transaction in which individual purchases are authorized without telecommunication between the POS device or ATM and a central database. An off-line transaction requires a manual voucher. On-line Transaction An EBT system or transaction in which authorization of individual purchases requires telecommunication between the POS device or ATM and a central database in which data on account balances is maintained. Personal Identification Number (PIN) An alpha-numeric code selected by or assigned to the recipient and used to control access to individual accounts. The PIN must be entered on a key pad before any transaction can be processed. Point of Sale (POS) Typically used to refer to equipment (i.e., terminal, PIN pad and printer) deployed at a retail location and used to initiate the electronic

P a g e 8 debit of a recipient account and credit to the retailer s account. These machines do not dispense cash. When POS includes cash back, the merchant (not the machine) dispenses the cash. This device is used to swipe the EBT, debit or credit cards. Market transactions are carried out with either tokens or vouchers that are exchanged at the central POS station. The device can be wireless or use a phone line. Receipt In commercial networks, a hard copy description of a transaction that took place at an ATM or POS, containing at minimum: date, merchant name and location, type of account accessed, amount, reference number, and an action code. In EBT systems, receipt must include the balance remaining in the account after the current transaction has been processed. Scrip Scrip is any substitute for currency, which is not legal tender. It is money which can only be used with one company, association or group of companies. At the farmers market this is usually in the form of tokens or vouchers. Settlement Process by which funds (i.e., debits and credits) are transferred between any two processing points in the flow of an electronic financial transaction. These include: between financial institutions participating in the network and between the financial institution and the merchants for whom it acts as an acquirer or sponsor. SNAP Supplemental Nutrition Assistance Program formerly known as food stamps. Also see definition for Food Stamp Program. Surcharge or Convenience Fee A fee added to a transaction by an Acquirer, Terminal Operator or Merchant for a transaction initiated at a Terminal. TANF Temporary Assistance for Needy Families Third Party Vendors Vendors that sell and provide services for EBT/Debit/Credit machines. They often charge a monthly transaction and processing fee for their equipment and services. USDA United States Department of Agriculture Vendor The entity with which a government entity contracts for the implementation, maintenance and operation of an EBT program. What is a Farmers Market? According to the United States Department of Agriculture, a farmers market is defined as a multi-stall market at which farmer-producers sell agricultural products directly to the general public at a central or fixed location, particularly fresh fruit and vegetables (but also meat products, dairy products, and/or grains). Funds from the Illinois EBT Wireless Project have been made available to farmers markets who met the following criteria: Not currently participating in SNAP Defined as: Farmers Markets that did not have SNAP authorization (or FNS certification) on or before November 18, 2011

P a g e 9 Section II: Implementation ----------------------------------------------------------------------------------------------------- 1 - SNAP Certification Before a farmers market can begin accepting SNAP benefits or seek reimbursement from the Illinois EBT Wireless Project, it must become certified by the United States Department of Agriculture s Food and Nutrition Service (FNS). Below is a short, step-by-step description of the SNAP certification application process. The application can be found at http://www.fns.usda.gov/snap/retailers/applicationprocess.htm and should be submitted by a member of your market s board. Note: The SNAP certification application refers to farmers markets as farmers market organizations. Step 1 - Create a USDA account To create an account, click on the Set Up An Account link at http://www.fns.usda.gov/snap/retailers/application-process.htm. After creating an account you will receive a confirmation email that includes a hyperlink to activate your account. If you do not have internet access or prefer a paper application, call the toll-free hotline at 1-877-823-4369. Step 2 - Fill out the Application Filling out the online application is fast, easy and convenient. You can start and stop the application process at any time and have up to 30 days to complete and submit the application to FNS. You will need to have the following information available: 1. Bank Account, 2. Owner s information, 3. Social security number, copy of a photo ID, and estimated sales. 4. You need to determine if you will accept debit and credit cards in addition to Link cards. Note: If you need additional help filling out the FNS application, contact Corey Chatman at Experimental Station at corey@experimentalstation.org or 773-241-6044. You can find additional tips on the application process in Appendix II. Step 3 - Complete Your Application After you have completed the online application, send all required documentation to your servicing FNS office. A list of required documents and contact information for your servicing FNS office is provided during your online application process. If you choose to use the paper form, this information will appear in the application packet that is mailed to you. FNS may take up to 45 days to process an application once it s completed. However, applications from Illinois EBT Wireless Project participants are being expedited, so although it is not guaranteed, you will likely receive certification in less time than usual. After your FNS application has been approved, you will be provided a farmers market training manual that can be found at www.ams.usda.gov. FNS will also notify ACS, Illinois EBT contractor, of your approved application and ACS contact information will be included in your information packet. ACS will assist you in determining the equipment needs at your farmers market. You are not required to purchase your wireless machine from ACS, but ACS will be a key contact if you experience issues with customers Link cards.

P a g e 10 NOTE: The market bank account information goes on the application; however, the application must include the name of a contact person whose name will then appear on the SNAP permit. This designee will become the contact person for all correspondence from FNS and the person who receives the EBT machine. The primary contact to assist farmers market and respond to their questions about becoming an approved retailer is Robin Masters: Robin.Masters@fns.usda.gov (preferred) or 317-478-3180. Vendor Requirements Neither vendor training nor vendor agreements are required by law, but it s a good idea for market managers to institute agreements and offer training to vendors participating in your EBT program so they will know what to expect. At least one training meeting should occur before Link is accepted at the market. This meeting should allow vendors an opportunity to walk through every step of the process and become familiar with the signage, equipment and the scrip, tokens, or receipts (more on this in your community kit). This will ensure your vendors understand the reimbursement procedures and record keeping forms that will be used in conjunction with the EBT system. A sample vendor agreement form that helps explain the program to vendors is included in your community kit. Be sure to list eligible and ineligible items, how to record the number of tokens used, how to redeem tokens, and any rules of operation for the program. It is helpful to have the token samples on the agreement form. It should also include instructions on how vendors will be reimbursed for their tokens and receive their money each week. It is important that each vendor has a record of their sales and is reimbursed each week for the amount of the previous week s sales. Examples of accounting forms and record keeping examples used by other markets can also be found in your community kit. 2 - Electronic Benefits Transfer (EBT) Machines In addition to receiving your SNAP certification, you must also have an EBT machine in order to accept Link, debit and credit cards. While the Illinois EBT Wireless Project will reimburse a market for the cost of purchasing a wireless EBT machine, the market must make the purchase on its own. The cost of purchasing an EBT machines varies, so markets are encouraged to shop around, but most machines will cost around $800. An inexpensive machine will often have higher service fees, so be thorough in your price comparisons. As part of the Illinois EBT Wireless Project, markets can be reimbursed for their wireless access fees. Wireless fees average approximately $18 per month. The market is responsible for all service, card provider and transaction fees. If you agree to accept debit and credit cards, there are various charges you will be responsible for paying that cannot be reimbursed by the Illinois EBT Wireless Project. These fees may include: 1. A percentage fee -- the amount of money charged multiplied by a percentage fee (i.e., 1.79% credit cards or 1.49% check cards x $ charged, estimate only) 2. A transaction fee -- the amount charged each time a transaction is processed (i.e., 25 cents x each transaction, estimate only) 3. A monthly settlement fee -- the amount charged each month for settling the account (i.e., $10.00 per each month for settling the account, estimate only) 4. A monthly minimum usage fee (i.e., $25.00 charged each month, which is deducted from the percentage fee, estimate only) 5. An account termination fee

P a g e 11 (e.g., if the account closes in less than 3 years, estimated costs are 1 to 12 months - $295.00, 13 to 36 months - $195.00, estimate only) Below is a list of possible EBT vendors. This is not a complete list and the Illinois EBT Wireless Project does not endorse any particular EBT provider. Chase Paymentech : (800)435-9789 or www.chasepaymentech.com Fidelity National Information Services (formerly efunds): (800)558-6980, ext. 3422 www.fisglobal.com First Data: (800)456-5902 or www.firstdata.com First National Merchant Solutions: (800)354-3988 or www.firstnationalmerchants.com Go Mobile Commerce: (866)924-8955 or www.gomobilecommerce.com Total Merchant Services: (800)313-5198 or www.merchantsource.com What to Accept It is up to the farmers market to decide whether or not to accept debit and credit cards in addition to the Link card. Each option carries potential benefits and drawbacks. It is also important to note that Link and debit card service charges have a relatively fixed fee structure, which makes it easier to project future costs. Credit card usage fees, on the other hand, are calculated using a percentage of sales, which means it can be less predictable and require more complex accounting. Link Only As mentioned earlier in this guide, accepting only Link cards means that any customer that is not a SNAP beneficiary will have to pay cash or write a check for each transaction. Pros Link card users cannot be charged a service fee. Vendors need limited training to implement. Cons Many consumers use only their debit or credit card for payment. No potential revenue stream from service fees to card users. Link benefit recipients may feel more conspicuous being the only customers using electronic payment. Link, Debit and Credit Cards Using an EBT machine to accept debit and credit cards in addition to Link cards means that no one has to pay using cash or check at a market, although a customer still can. Pros May expand the customer base because all income groups can use electronic transactions. SNAP recipients may feel less conspicuous as other consumers will be using electronic payment. The market may be able to offset lease and finance charges by charging a usage fee to debit and credit card users. Cons Service fees and transaction fees may apply to non-link transactions. Link transactions must be tracked separately from debit and credit transactions. Market vendors need more extensive training than is necessary when just accepting Link cards.

P a g e 12 Reimbursement from the Illinois Wireless EBT Project cannot be used to cover the costs associated with debit and credit card transactions. 3 Scrip Implementation Once a market has obtained SNAP certification and purchased an EBT machine, markets must develop a system of scrip or alternate currency. This allows shoppers to take their Link, debit or credit cards to a central location, predict how much they want to spend and purchase that amount of scrip for use at individual vendor stalls. It also allows an entire market to operate on a single EBT machine, alleviating the need for each vendor to pay for its own machine. How scrip works The market designates a central location where the EBT machine will be located and customers purchase the amount of scrip they want. This location should be well marked so that customers can easily find it, but should be labeled as an information booth or something equally neutral if you only accept Link, as it will reduce the stigma often associated with receiving SNAP benefits. Farmers markets are responsible for the design and cost of scrip, and developing denominations for scrip, which are usually $1, $2, $5 and $10. A trained staff person will act as the EBT operator and swipe cards for the total dollar amount of purchases a customer chooses. The operator then records the approval code for the sale and issues the scrip to the customer in that same amount. Customers can then use this scrip to purchase items. If a market has chosen to accept Link, debit and credit cards, a different type of scrip should be created to distinguish between purchases made using a Link card and those made with debit or credit cards. This will make it easier for vendors to know whether the product a customer wants to purchase is allowed under SNAP regulations. A scrip sample can be found in Appendix III. Scrip Rules There are different spending rules for Link card purchases versus debit and credit card purchases. If a Link customer doesn t use all of the scrip purchased for the day, they may return to the EBT stall and have the remainder credited back to their Link card or they may save the scrip for later use. Debit and credit card users cannot be given a credit to their account. They either have to use the scrip on that market day or hold it for another visit. Link card accounts may also contain non-snap benefits. Scrip issued in exchange for these cash benefits, such as those provided by Temporary Assistance for Needy Families (TANF), can be used to purchase non-food items and is not subject to the above rules. Tokens There are various types of scrip a farmers market can create but the Illinois EBT Wireless Project partners suggest using tokens, which are generally wooden or plastic and are made specifically for the market at which they are used. Tokens should be designed with the market logo or name and a value on one side and the phrase NO CASH VALUE on the other side. You should also sign an agreement with the token vendor that no other parties be authorized to print tokens with your market s name on them. If your market has decided to

P a g e 13 accept debit and credit cards in addition to Link cards, you will need different tokens for each kind of transaction. This can be done by using two different colors and having Link and CC/Debit printed on the different sets of tokens. This makes it easier for vendors to determine whether a purchase by a Link card user is allowed under SNAP regulations. Shown above are examples of tokens from the Illinois Products Farmers Market at the Illinois State Fairgrounds in Springfield (left) and tokens from various farmers markets in Oregon (right). Market Reimbursement You must have an active checking account so that Link, debit and credit card purchase amounts can be automatically transferred to that account. Reimbursements for Link card purchases will be transferred in a lump sum, usually each weekend. Debit and credit transactions will be transferred according to the card company s schedule, typically within 48 hours. Vendor Reimbursement After receiving reimbursement for transactions made via the EBT machine, you must reimburse your vendors for the tokens they collected. Markets usually reimburse vendors on either a daily, weekly or monthly basis. Markets that want to reimburse vendors daily will need enough money in the market s checking account to cover the cost until the reimbursement amount is transferred to the market s account by DHS or the issuer of the debit and credit card. Under a daily reimbursement schedule, farmers turn in their scrip, sign a redemption log, and then receive a check. Farmers markets that find it more convenient and cost effective to reimburse once or twice per month, can keep a notebook with individual vendor forms where turned in tokens are recorded each market day, until the designated reimbursement date. At the end of the designated day, the market manager or representative will collect tokens from vendors and then a check will be sent to the vendor the following week. If this system is used, the check from the last market day of the season should be mailed to the vendor within a week. Record Keeping It is important for markets to keep good records of scrip sales. A sample record keeping form is included in your community kit. Farmers markets should track the following: Amount spent on scrip by customers using each of the different accepted payment types Scrip returned and credited back to the customer s account Scrip turned in for reimbursement by every vendor on each market day

P a g e 14 Monthly and yearly sales reports Weekly Accounting Each week a market representative should record the number of tokens distributed to customers, the number returned by the vendors, and the checks written to reimburse the vendors. Remember, the daily total of transactions and daily total of tokens redeemed will be different as some tokens are kept by customers to spend another day. Monthly Accounting Each month the market manager or EBT coordinator will receive a statement showing the Link, debit and credit card transactions from either the debit and credit card issuer or DHS. These should correspond to the batch receipts that the machine prints out at the end of each market day. 4 Market Manager Checklist Use the list below on each market day. Pre-Market Preparation Make sure that you have all needed supplies: Receipt box - paper receipts Tokens for Link, debit and credit Large envelope for Vendor return tokens EBT Machine (fully charged) and extra batteries A good supply of extra paper rolls for machine Vendor reimbursement envelopes Signage that identifies Link, debit and credit cards are accepted Plastic zip-loc baggies to provide to customers who purchase a large number of tokens and need a way to carry them (however, reusable token bags would be preferable) Container to organize scrip (if using tokens, a poker chip case works well) Market Day, Before the Market Opens Organize booth and set-up EBT machine Hang signage and check that all participating vendors have their signs displayed Ensure that SNAP signage is posted (provided by USDA when FNS authorization is approved) Check in with staff to answer questions and receive feedback Review redemption and other procedures with vendors Give participating vendors scrip redemption envelopes to store their scrip and completed log for that market day Ensure a supply of manual vouchers are available (in case the terminal or Link card doesn t work) Market Day, During Operating Hours Ensure that someone is available to answer customer and vendor questions Ensure that someone is available to operate the central POS terminal at all times Ensure that a cell phone is available to call for service, if needed Record all scrip that is returned on the Daily Scrip Issuance Log Market Day, After Operating Hours Collect vendor reimbursement envelopes, which contain their scrip and log Give vendors a receipt for scrip that has been turned in

P a g e 15 Run a batch report from the POS terminal, which is a long paper document showing the day s transactions Reconcile the batch report with all of the receipts, scrip received/returned, and vendor reimbursements Record the amount of scrip given out and the amount returned in the daily scrip issuance log Complete bookkeeping for vendor reimbursement 5 EBT Promotion It is important to have visible signage at your market that lets customers know Link is accepted. Signs should be placed within the market to direct Link and debit and credit card holders to the location of the EBT machine. Each eligible vendor should have a sign that says Link Accepted Here. Vendors can also be provided with buttons that say Link Accepted Here. Here is an example of signage that sits at an entrance to the 61 st Street Farmers Market in Chicago that is run by the Experimental Station. New Customers There are many ways to reach new customers, but below are a few suggestions on how to disseminate the information about your program: Send/Post one-page informational sheet or flyer, create a postcard size flyer, and/or leave bookmarks to/at the following places: Local Department of Human Services office Post flyer in waiting area and ask that each SNAP beneficiary receive a postcard and/or bookmark during their market season visits Local Department of Employment Security office Ask that each unemployed individual receive a postcard and/or bookmark when they sign up for unemployment benefits Local Health Departments Post flyer in waiting area and ask that each WIC client and Senior Coupon recipient (if applicable) receive a postcard and/or bookmark during their market season visits Local healthcare providers Ask to post information at any and all healthcare provider offices in your area, however you might want to target those providers who accept Medicaid patients Local food pantries

P a g e 16 Post flyer at food pantry and ask that customers receive a postcard and/or bookmark in their bag of goods for the week/month Local churches Ask for information to be included in the church bulletin and/or newsletter Local community centers, senior centers, etc. Ask to post information on a bulletin board and that the information be included in weekly/monthly newsletters, meal menus, etc. Local gas stations/convenience stores, coffee shops, etc. Post information about the program on a bulletin board or on the wall Local post office Ask for flyer to be displayed on bulletin board Local University of Illinois Extension office Ask that information be posted in their office as well as shared with their clients and program participants Local IL Farm Bureau office Explain the benefit of increased sales for farmers because of this program and ask to post information in their office Local college or university Ask to post information on bulletin boards in student hang-outs, in social service or health centers, or that information be included in school newspaper, emails, etc. Local not-for-profits Post information or leave postcards and/or bookmarks at not-for-profits where low-income individuals might frequent (i.e. homeless shelters, thrift stores) Submit information to local media, including: Local newspaper, television station and radio station Press release about program can be sent to local newspaper Public Service Announcement can be sent to local television and radio station Print advertisement - $$ There are several sample templates for promotion available in your community kit including flyer templates and a sample poster. Good Idea from the Illinois Products Farmers Market Bookmarks We ve found that distributing bookmarks (bookmark shown above) to various social service agencies and in public areas to be very beneficial. Consumers take it home and actually bring it to the market with them. People are so excited to learn this is available to them that they show us the bookmark to ask if it s true, said Kendra Buchanan with the Illinois Products Farmers Market

P a g e 17 6 Donations and Sponsorships In order to make this project a success, it s important that you identify additional funding sources to help pay for costs. There are a variety of different businesses and organizations that might be willing to serve as sponsors. Corporate Partners Large businesses that have a presence in the neighborhood may want to help underwrite or help to establish your EBT program. Some businesses are making it a policy to encourage healthier lifestyles which could include better eating habits. Approach a local business that you think might want to work towards this goal with their employees and offer them some sort of package deal. For example, the employer might be interested in offering Market Bucks to employees as incentives for productivity at work, meeting deadlines/goals, or for healthy lifestyle changes. The market might be able to offer the employer a certain amount of Market Bucks and advertisement at the market in exchange for the employer paying the face value of the Market Bucks as well as an additional amount of money to help cover the printing of the bucks and a donation to go towards your EBT program. This will bring in sponsorship dollars as well as bring more customers to market. Hospitals are also great corporate partners for your farmers market. See the excerpt below from a recent press release from the Downtown Springfield Farmers Market which is sponsored by St. John s Hospital: St. John s Hospital, which has sponsored the market for nine years, believes in the importance of fresh, locally grown produce to help people live healthy lives. The hospital promotes healthy lifestyle activities, distributes informational materials and offers health screenings and programs such as a body fat analysis and interactive educational programs which help children and adults learn about the importance of proper nutrition. St. John s provides free blood pressure checks and other tests periodically throughout the season. Last fall, through collaboration between vendors, Sangamon County Public Health and St. John s Hospital, free bags of produce were distributed to over 600 WIC clients. Small Business Small businesses are direct beneficiaries of local markets that can draw more people to the area. You can assist these businesses by allowing them to pass out their flyers while volunteering to staff a booth. Local restaurants can help promote your farmers market by donating 10% of proceeds on a particular night. In exchange the restaurant can be promoted at the market. Restaurants could also have a chef provide cooking demonstrations. Local Banks The Community Reinvestment Act of 1977 (CRA) encourages efforts to meet the credit needs of all community members, including residents of low and moderate income neighborhoods. Banks receive ratings that are determined by the banking communities demographic and economic data, and lending, investment and service opportunities.

P a g e 18 Grants Various organizations will have grants available for healthy eating initiatives or programs in underserved communities that could apply to your EBT program. Potential grant opportunities may be found at: Local Banks (as mentioned previously) Neighborhood Associations or Service Organizations (Rotary Club, Kiwanis, Lion s Club, sororities/fraternities, etc.) Membership-based local food organizations (i.e. Buy Fresh, Buy Local, Slow Food) Healthcare organizations (medical centers and hospitals) Foundations (college, hospital, community foundations, etc.) USDA has a variety of grant opportunities for farmers markets Market Shoppers Soliciting donations from market customers can help bring in additional funds. Additional ways to raise money from market include: Special Events: Educational sessions held at $10/person on topics such as healthy eating/nutrition, cooking classes, etc. Providing options to round up their debit/credit transactions by $1, $5, $10, etc. Donation jar onsite at the market booth Debit and Credit Card Fees Charging a small convenience fee to debit/credit card users is one way to recoup fees associated with offering the convenience of an EBT machine at your market. These fees can be used to cover monthly fees and transaction costs. It is important to note, however, that no fees can be charged to Link card users. Creating Sponsorships Whether you are approaching your local bank or the biggest neighborhood employer, it is important to know in advance what you are willing to offer in exchange for their donation/sponsorship. Most donors are going to ask what they get in return for their donation.

P a g e 19 Good Idea Donation or Sponsor Benefits Below are sample sponsorship levels and sponsor benefits your market could offer to potential donors: Pea Sponsor or Bag Sponsor: Up to $99 Donation Sponsor listed in the end-of-the-season market newsletter Grape Sponsor or Bushel Sponsor: $100-$249 Donation In addition to previous sponsorship level, Sponsor receives a certificate of appreciation Cherry Sponsor or Cart Sponsor: $250-$499 Donation In addition to previous sponsorship level, Sponsor to be included on sponsorship board at market and in all print materials sent out by the market Apple Sponsor or Garden Sponsor: $500-$999 Donation In addition to previous sponsorship level, Sponsor is allowed to display materials for their business at an informational table during each market day Orange Sponsor or Community Garden Sponsor: $1,000-$2,499 Donation In addition to previous sponsorship level, Sponsor to be associated with a special event at the farmers market during the season such as a cooking demonstration, recipe handouts, live entertainment, etc. Cantaloupe Sponsor or Acre Sponsor: $2,500-$4,999 Donation In addition to previous sponsorship level, Sponsor can set-up their own booth during each market day Watermelon Sponsor or Farm Sponsor: $5,000+ Donation In addition to previous sponsorship level, The market is named after this sponsor for the year Incentive Programs You might also find that organizations are willing to donate to help you establish incentive programs at your farmers market such as a double value incentive program. A double value incentive program matches the purchase of a Link customer up to a certain amount. For more information about SNAP rules regarding incentive programs visit www.fns.usda.gov and for information on the LINK Up Illinois program visit www.experimentalstation.org. Donations and Sponsorships Acceptance Before a market begins outreach to potential donors or creates outreach materials, it must establish a mechanism through which donations can be collected and tracked separately from the overall market budget. Creating this mechanism is also helpful because businesses and private donors are more likely to offer a contribution if they can claim the tax deduction. This will require 501(c)3 status from the IRS. While your market may not have this designation, you can team with applicable organizations to manage the funds. One idea is to work with a fiscal sponsor who

P a g e 20 can provide administrative support and oversight to the program in exchange for a percentage fee to cover their administrative costs. Fiscal Sponsor Role Accepts donations Ensures that donated funds are used only for approved program purposes which align with IRS requirements for 501(c)3 status Tracks individual donor information and provides list so program staff can personally thank donors Provides regular account balance reports to the program Receives compensation of a percentage (i.e. 7.5%) of received funds to cover management costs Making the Pitch In order to make a proper market program pitch, it s wise to have these four pieces ready to go: 1. Donor request letter 2. One-page program description 3. Invoice 4. Thank you notes Donor Request Letter A good donor letter includes a strong lead, brief description of the market program, statistics explaining specifically how the donor s support will impact Link card users and, most importantly, a request for support. An example of this can be found in your Community Kit. One-Page Program Description A solid one-page program description is just that! It describes the market that is requesting funding, the reason for the request, and how financial support will impact the project. One-page descriptions can also include, if applicable, short customer stories and statistical success from prior years and other markets. An example of this can be found in your Community Kit. Invoice The invoice is an important tool to send to prospective donors who have committed to a gift but are pending payment. Not all donors will require this extensive follow-up, but it s good to have a specificprogram invoice from the market available. Thank You Notes All good fundraisers know how important it is to thank donors (and potential donors!). Always have thank you notes available to hand write a quick thank you to donors who have supported the program. Typed letters are fine to accompany an invoice, but find time to include a handwritten note as well. This can be done after the first meeting or following the donation. Program Evaluation In order to receive additional funding for your EBT project in the future, adjust it to meet the needs of the recipients, and remain sustainable, it is important to survey and evaluate those involved with the program. A sample customer survey is included in your community kit.

P a g e 21 Appendix I: Additional Information --------------------------------------------------------------------------------------------------------------------------- USDA Food and Nutrition Service General information about farmers markets involved in SNAP Read the materials at this website: http://www.fns.usda.gov/snap/ebt/fm.htm To apply to USDA to become an authorized retailer to serve SNAP/Link customers Fill-out the on-line application at: http://www.fns.usda.gov/snap/retailers/application-process.htm If you have problems filling out the retailer application, contact Robin Masters at USDA at Robin.Masters@fns.usda.gov (preferred) or by phone at 317-478-3180. USDA - Food and Nutrition Service Web Sites Main information page for farmers market interested in SNAP: http://www.fns.usda.gov/snap/ebt/fm.htm What is a farmers market?: http://www.fns.usda.gov/snap/ebt/fm-scrip-what_is_fm.htm On-line Retailer Application: http://www.fns.usda.gov/snap/retailers/application-process.htm What is Scrip?: http://www.fns.usda.gov/snap/ebt/fm-scrip-what_is_scrip.htm POS Devices (free and wireless) and Manual Vouchers: http://www.fns.usda.gov/snap/ebt/fm-scrip-ebt_equipment.htm Rules for Using Scrip: http://www.fns.usda.gov/snap/ebt/fm-scrip-scrip_rules.htm Farmers Market Responsibilities related to SNAP: http://www.fns.usda.gov/snap/ebt/fm-scrip-market_responsibilities.htm Debit /Credit Cards: http://www.fns.usda.gov/snap/ebt/fm-scrip-debit_cards.htm USDA Grant Opportunities: http://www.fns.usda.gov/snap/ebt/fm-scrip-grant_resources.htm Bonus Incentives to Attract SNAP customers: http://www.fns.usda.gov/snap/ebt/fm-scrip-bonus_incentives.htm Success Stories: http://www.fns.usda.gov/snap/ebt/fm-scrip-success_stories.htm Eligible Food Items: http://www.fns.usda.gov/snap/retailers/eligible.htm List of Products eligible/ineligible products for purchase using SNAP benefits: http://www.fns.usda.gov/snap/retailers/generic.pdf

P a g e 22 Appendix II: Retailer Application Tips --------------------------------------------------------------------------------------------------------- Included below are some of the more difficult questions that appear on the SNAP certification application form. Also note that if your market is a not-for-profit cooperative, documentation of nonprofit status must be submitted with the application (i.e. IRS exemption letter or Articles of Incorporation for a Domestic Non-Profit Corporation). Question #10 - Type of ownership Select the most specific type that applies to your farmers market. Most farmers markets are either nonprofit cooperatives, government owned (municipal, town, county), or sole proprietorships. Sole proprietorships would include a loosely connected group of vendors in which there is no legal association, but for which a single market manager is taking responsibility for the group. Here are some common definitions for the ownership types: Privately Held Corporation A corporation owned by a few people; shares have no public market. Publicly Owned corporation: A private company that has a class of shares traded in the public market. Sole Proprietorship Business or financial venture that is carried on by a single person and is not a trust or corporation. A sole proprietor (sole owner) has unlimited liability. Partnership Form of business organization created by an agreement between two or more persons who contribute capital and/or their services to the organization. Limited Liability Company Business form that provides limited personal liability, as a corporation does. Owners, who are called members, can be other corporations. Nonprofit Cooperative Organization for the production or marketing of goods owned collectively by members who share the benefits, for example, an agricultural cooperative. Government Owned Government owned and operated facility for the purpose of providing some goods or service to citizens. This includes city, town, county or municipal ownership. Question #11 - Contact Info for Parent Corporation How might this apply to farmers markets? This question has no application for farmers markets and can be left blank this question pertains to multi-store chains or franchises. Question #12 - Primary Owners or Major Shareholders or Cooperative Officers If there is a governing board of some sort, is it sufficient to provide information about its officers rather than about each board member? Yes, provide information on each of the officers. If there are no officers or board members, provide information for the market manager.

P a g e 23 What about markets that are operated by a municipality? This question is not applicable for farmers markets that are government owned. Skip question 12 and go to question 13. Is someone required to provide identification? Yes. Whether they are an officer, board member or a market manager, photo identification and documentation of social security number must be received for an individual responsible for the operation of the SNAP/Link benefits program at the farmers market. Question #17 - Estimate Your Annual RETAIL Sales How do I estimate my annual sales? For a farmers market with multiple vendors, ask each vendor to estimate a dollar amount of what they think they may sell in a month, then multiply that by the number of months you are open. Copy of Current License Required to Operate What should I attach? Some municipalities will issue a license to operate a market while others do not. If you have a local business operator s/seller s/or vendor s license you may submit that with your application. If you do not have a local permit, provide a statement that no local permit is required. How long will it take to become authorized? Although we are usually able to process applications more quickly, the USDA Food and Nutrition Service field office has up to 45 days from the date they receive a complete application to approve or deny your application for a SNAP permit. An FNS representative may contact you about additional questions in order to process your application. After I m authorized, what types of changes should I report to the USDA Food and Nutrition Service Field Office? Retailers must notify the Food and Nutrition Service field office of changes in store (farmers market) name, location, responsible party, and telephone number. Any planned change in banking information should be reported to your EBT processor two weeks in advance of the change. This notification is very important to continue the uninterrupted transfer of funds.

P a g e 24 Appendix III: Scrip Example --------------------------- For this example, Link tokens are RED and debit/credit tokens are GREEN. The Process for a SNAP Benefit Recipient A customer with a Link card decides they will spend $10 at the market. They swipe their card at the EBT booth for the amount of $10. **Link card users cannot be charged a fee for this service. The customer will get RED tokens valued at $10 to use as currency. A combination of tokens can be given. For this example, the customer gets five $2 tokens. Customers can then spend tokens in the market at individual vendor stands. Eligible purchases: vegetables, fruit, dairy products, meat, eggs, bread, jam, pickles and pastries. Also, seeds or plants that produce food (i.e., tomato or basil plants) can be purchased. Flowers, shrubs, and other non-edible plants cannot be purchased with RED tokens. Change cannot be given for Link tokens. If a sale is less than the face value of the token, the vendor can add product to the sale to make up the difference. If a sale is more than the face value of the token, the customer can pay with their own change to make up the difference. If the customer does not use all of their tokens during a visit, the market can either issue a credit to the card or allow customers to use tokens on another day. Cash refunds cannot be given. The Process for a Debit/Credit Card Customer A customer with a debit or credit card decides to spend $10 at the market. They swipe their card at the EBT booth for the amount of $10. **For this example, there is no fee to the customer for this service; however, some markets choose to charge a convenience fee to debit and credit card users to help offset the market s expenses for EBT transactions. The customer will get GREEN tokens valued at $10 to use as currency. For this example, the customer gets one $5 token and five $1 tokens. GREEN tokens can be used to purchase any item, food or non-food, in the market, the same as cash. Change for debit/credit tokens can be given in GREEN tokens or in cash, but NOT in RED tokens. Customers can save tokens to be spent at a later date. Cash refunds will not be given by the market s EBT manager for unused tokens.

P a g e 25 Appendix IV: EBT Service Provider Questions ------------------------------------------------------------------------------------------------------------------ Questions for EBT service providers: 1. Do you supply Electronic Benefits Transfer (EBT) services for the Supplemental Nutrition Assistance Program (SNAP)? 2. Do you have any EBT/SNAP clients? Approximately how many? 3. How long have you been providing EBT/SNAP services? 4. Am I in your wireless service area? Wireless terminals operate just like cell phones. They use data networks such as AT&T and Sprint. So it is important to ensure that they provide good data coverage for your area. 5. How much does your Wireless Terminal cost? 6. How long will it take to receive a terminal? 7. What is your return/repair policy for your Wireless terminal? a. If I need a new terminal sent out, how long will it take to get to me? 8. Is your Wireless Terminal software upgradable? a. How often are the upgrades? 9. What warranty comes with the terminal? 10. Can I extend my warranty? If so how much does it cost? 11. What is the life of the battery? 12. How much does an extra battery cost? 13. Will I receive paper or online statements? a. Are all fees listed separately on my statement? If not can they be? b. Can I have a breakdown of all fees? c. Do I pay the following fees and how much for each? i. Transactions ii. Batch iii. Activation iv. PCI compliance v. Customer Service vi. Wireless access 14. Customer support, is it 24/7? 15. How long does it take to transfer funds to my account? 16. Can I run and print reports from my terminal? If so what kind? 17. Can I add codes and or names to identify separate vendors on each printed receipt in my terminal? 18. Do you supply voice authorization/voucher slips? The next 2 questions are best asked after choosing a company to purchase a machine from. 19. Who is your processor and what is the ID number? You need the ID number of their Financial Data Processor in order to complete voice authorizations if your machine is down. The Financial Data Processor handles secure transactions for and between financial institutions. The two largest processors are efunds and First Data Corp. What is the merchant ID number? This number identifies both you and the wireless terminal provider, also needed to complete voice authorizations. Both the Processor ID and the merchant ID work together much like a routing number for a bank account. In order to transfer funds for voice authorization or vouchers you need them both.