Food Retailers Urge Congress to Protect SNAP EBT Customers and Retailers from Additional Fees

Strategic Insights -

Food retailers and trade associations are calling on Congress to protect customers and retailers by prohibiting additional fees from being levied for Supplemental Nutrition Assistance Program (SNAP) electronic benefit transfer (EBT) transactions. The bipartisan "Ensuring Fee-Free Benefit Transactions (EBT) Act" aims to permanently prohibit states and state contractors from charging processing and other related fees from a state's side of a SNAP EBT transaction onto SNAP authorized retailers and their merchant processors. Over 1,000 businesses and organizations, including food retailers of all sizes serving millions of SNAP participants every day, have signed the letter to Congress.

Key Takeaways:

  • The letter to Congress, signed by over 1,000 food retailers and trade associations, calls for the passage of the bipartisan "Ensuring Fee-Free Benefit Transactions (EBT) Act" to prohibit additional fees on SNAP EBT transactions.
  • The EBT Act aims to permanently prevent states and state contractors from charging processing and other related fees onto SNAP authorized retailers and their merchant processors.
  • SNAP authorized retailers invest significant resources to participate in the program, including bearing the cost of equipment updates, software, training for store associates, and processing fees from their own side of a SNAP EBT transaction.
  • Independent grocers have operated under temporary assurances that they wouldn't be burdened by fees on SNAP transactions for years, and now demand a permanent solution to ensure continued service to SNAP families without added costs.
  • The bipartisan EBT Act (H.R. 4158) was introduced in the U.S. House by Representatives Shontel Brown (D-OH) and Tony Wied (R-WI), members of the House Agriculture Committee.
  • The stakeholder letter was signed by state, regional, and national associations representing tens of thousands of SNAP authorized retailers across the country.
  • Food retailers, such as Robert's Supermarkets, Butera's Fresh Markets, and Cooper's Choice, have committed to strengthening the integrity and viability of the SNAP program for millions of Americans in every community.

Statistics:

  • Over 1,000 businesses and organizations, including food retailers and trade associations, signed the letter to Congress.
  • Tens of thousands of SNAP authorized retailers are represented by state, regional, and national associations that signed the letter.
  • The U.S. convenience store industry conducts more than 160 million transactions daily (source: NACS).
  • The convenience store industry had sales of $837 billion in 2024 (source: NACS).
  • SNAP authorized retailers generate more than $250 billion in sales, 1.1 million jobs, $39 billion in wages, and $36 billion in taxes annually (source: NGA).

Sources:

  • Food Marketing Institute (FMI) ù The Food Industry Association
  • National Grocers Association (NGA)
  • National Association of Convenience Stores (NACS)
  • Letter to Congress ù September 8, 2025
  • About the National Grocers Association (NGA)
  • About National Association of Convenience Stores (NACS)