I Was Charged With SNAP Trafficking – Will I Lose My Store?

I Was Charged With SNAP Trafficking – Will I Lose My Store?

Getting that letter in the mail accusing you of SNAP trafficking can be terrifying. I know, because it happened to me. As the owner of a small convenience store in a low-income neighborhood, I rely on customers using SNAP benefits to stay in business. So when I got a letter from the USDA saying they were permanently disqualifying me from accepting SNAP due to “trafficking,” I was scared I would lose everything.

Trafficking sounds bad, right? Like I was doing something illegal? Well let me tell you, I had no idea what trafficking even meant! I thought it had something to do with drugs or smuggling people. Come to find out, trafficking is when you exchange SNAP benefits for cash instead of food. But I swear, I never did that! I run an honest business.

The letter said there were “unusual patterns” in my EBT transactions that made them suspect trafficking. But how could I fight that? They didn’t give me any details, just said I was permanently disqualified, effective immediately. I only had 10 days to request an appeal and administrative review, or that decision would be final. Needless to say, I requested that appeal right away!

While waiting for my hearing, I did a lot of research to try to understand what happened. Here’s what I learned about SNAP trafficking that I wish I’d known before:

What is SNAP Trafficking?

SNAP trafficking happens when someone exchanges SNAP benefits for cash instead of food[1]. This is illegal. There are two main types of SNAP trafficking[2]:

• Direct trafficking – This is when a retailer directly exchanges cash for a person’s SNAP benefits. For example, giving a customer $50 cash for $100 in SNAP benefits.
• Indirect trafficking – This is when a retailer buys inventory from a SNAP recipient who purchased it using their SNAP benefits. For example, if a customer buys cases of soda with their SNAP card and then sells it to the retailer at a big discount.

Trafficking defrauds the SNAP program and takes away benefits meant to help feed families in need. Offenders can face stiff penalties[3].

SNAP Trafficking Penalties

If found guilty of SNAP trafficking, the penalties can be severe[4]:

• Permanent disqualification – This bans your store from ever accepting SNAP again. For small retailers like me who rely on SNAP customers, this would destroy my business.
• Fines – You can be assessed a fine based on the amount of SNAP benefits trafficked. These fines can be tens of thousands of dollars.
• SNAP debt – You have to repay all the SNAP funds you obtained illegally.
• Criminal prosecution – SNAP trafficking over $5,000 is a federal crime. You could get sent to prison.

Yikes! No wonder I was freaking out about the trafficking charge. This could completely ruin me.

How Does the USDA Detect Trafficking?

The USDA uses data analytics to try to identify suspicious patterns in EBT transactions that may indicate trafficking[5]. Some things they look for include[6]:

• Unusually large purchase amounts
• Many even-dollar transactions
• High volume of transactions compared to inventory
• Transactions during unusual hours
• Frequent manual/voice authorizations

However, innocent mistakes can sometimes create “false positives” that appear like trafficking. For example, I learned that entering the wrong product codes when ringing up SNAP purchases can flag your store. But it doesn’t mean you actually trafficked!

How to Avoid SNAP Trafficking

To avoid accidentally getting flagged for trafficking, retailers should:

• Train employees on SNAP rules and how to properly accept EBT payments
• Pay close attention to the eligible food items list – only sell what is allowed
• Never exchange cash for SNAP benefits
• Only buy inventory from authorized wholesalers, not individual customers
• Report any suspicious EBT card activity to the USDA immediately

It’s also smart to have a good EBT point-of-sale system that ensures you ring up all items properly. And be very careful about manually entering SNAP transactions or using voice authorizations over the phone. These practices can raise red flags.

My SNAP Trafficking Hearing

When I finally had my administrative review hearing, I was able to present evidence showing the “trafficking” was just innocent mistakes. For example, we had some new cashiers who didn’t fully understand EBT payment procedures. And our point-of-sale system had Here is a 3000 word article in HTML format about being charged with SNAP trafficking and potentially losing your store:

I Was Charged With SNAP Trafficking – Will I Lose My Store?

Getting that letter in the mail accusing you of SNAP trafficking can be terrifying. I know, because it happened to me. As the owner of a small convenience store in a low-income neighborhood, I rely on customers using their SNAP benefits. When the charge letter arrived from the USDA alleging “trafficking” at my store, I was scared I might lose my business forever.

But take a deep breath – having a trafficking charge does not automatically mean you’ll be disqualified from SNAP. There are steps you can take to fight the allegations and keep your store. I learned a lot going through this process, and I want to share my story to help other retailers in this situation understand what to expect and know your rights.

What is SNAP Trafficking?

First, trafficking does not necessarily mean you were intentionally committing fraud. The USDA defines SNAP trafficking as exchanging SNAP benefits for cash. But this can happen in ways you or your employees don’t realize:

• A customer asks to “pay” for items with their EBT card, then you give them cash back as change. This is illegal – cash should never exchange hands in SNAP transactions.
• You allow customers to purchase ineligible items like cigarettes or alcohol with SNAP benefits. Even if unintentional, it’s still considered trafficking.
• You purchase inventory from a supplier who offers you suspiciously discounted goods that they bought using SNAP benefits. This is called “indirect” trafficking.

Sometimes trafficking happens without the retailer’s knowledge. But as the store owner, you are responsible for the actions of your employees. Make sure you train staff on SNAP rules and monitor transactions closely.

Penalties for SNAP Trafficking

If the USDA determines trafficking occurred in your store, you will likely face permanent disqualification from SNAP.