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Establishing Credit/Debit & EBT/LINK Programs at Farmers Markets

Corey ChatmanProgram ManagerExperimental StationCorey@experimentalstation.org773-241-6044

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Credit / Debit

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Why accept Electronic Payments?

• Small Farmers/Vendors often cant afford a machine– Wireless Machine can cost $600 - $1,200– Square is good but need smart phone.

• More revenue streams for your Farmers/Vendors• Customers don't carry a lot of cash

– May not go to / come back from ATM

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Electronic payment solutions for the farmer/vendor

• FREE Devices like Square, processes Credit Card Payments only for a flat percentage of transaction.

• Need Smart phone, tablet, or Computer to work. • Great for vendors, but markets can use them as

well.

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Electronic payment solutions for the market

• Wireless machine

• Can cost up to $1,200.• Need to Develop a redemption system (Market

Currency).• Kept at market tent/table – centralized processing.• Great for markets, but vendors may have their own.• Can process Credit/Debit & EBT

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How much does it cost. Estimate using numbers provided by Merchant Source. Jan 2012

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Ways to pay for Program

• Grants– Community Reinvestment Act

• www.financeproject.org– Using the Community Reinvestment Act to Help Finance Initiatives for C

hildren, Families and Communities

• Charge customer a convenience fee– Champaign/Urbana Charges a fee for each transaction. ($1-

$2)– On Debit/Credit user only! Cannot charge SNAP/EBT user.

• Charge the vendor– Raise stall fees.– Pass fee only to vendors that participate

• Old State Capital charges a 3% trans fee for Credit/Debit

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Redemption systems“Tokens”

Easier for Shoppers, more work for Market Management.

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How a system 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

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Redemption systems“CHITs”

Easier for Market Manager, more work for shopper

Farmer John 01

$10.00Apples

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How SNAP/LINK works in the Market• Receipt “Chit” System

– 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 01

$10.00Apples

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2012 IL markets Credit, Debit, EBT.

Oak Park Blooming-ton

Urbana Glenwood Sun.

Old State Cap

Logan Square

Grand Tot

EBT 5804 7618 11714 8294 8361 6103 47894

Credit Debit 23282 17663 72552 44000 9774 33420 200691

$25,000

$75,000

$125,000

$175,000

$225,000

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2012 across the country Credit, Debit, EBT.

Farmers Market Co. VA Athens FM, GA

EBT 20542 55553

Credit Debit 96000 71603

$10,000

$30,000

$50,000

$70,000

$90,000

$110,000

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Iowa Credit, Debit, EBT.

Iowa EBT project$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

$82,142

$876,423

EBT Credit Debit

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EBT – Electronic Benefit Transferaka SNAP / Link / Food Stamps

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Supplemental Nutrition Assistance Program State Activity Report Fiscal Year 2011.

1 out of 7 Illinoisans are SNAP Participants.

State Pop in SNAP -

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000 $12,875,000

$1,793,000

Number of People

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The Face of SNAP ParticipantsEthnicity

FY 2010

Whites; 34%

African-Americans; 22%

Hispanic; 16%

Asian; 3%

Native American; 4%

Ethnicity Not reported; 20%

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The Face of SNAP ParticipantsYoung, Elderly, Disabled

FY 2010

Under 18; 47%

60 +; 8%

Disabled; 20%

Other; 25%

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The Experimental Station

Customer spending patterns

• Processes SNAP transaction at 15 City of Chicago sponsored markets.

• Administered the LINK UP Illinois DVCP at these markets.

• Collected data which help to pin- point customer spending habits.

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More help to obtain a wireless machine

• Grants Up to $1,200 to obtain a Wireless Machine• Must start new SNAP/EBT/Food Stamp program