The Consequences of Manual EBT Card Entries in My Store

The Consequences of Manual EBT Card Entries in My Store

Hey there! My name’s Alex and I manage a small grocery store in town. Lately I’ve been dealing with some issues around manual EBT card entries by my cashiers, and wanted to talk about the consequences this can have. I know from personal experience that this can be a tricky situation, so I thought I’d share what I’ve learned in case it helps other small business owners like myself.

First off, what do I mean by “manual EBT card entries”? Well, normally when someone pays with their Electronic Benefits Transfer (EBT) card, the cashier swipes the card at checkout. But sometimes, if the card reader isn’t working or there are other technical issues, cashiers will manually type in the card number rather than swiping it. This isn’t necessarily wrong – there are valid reasons for doing manual entries. But it also opens up the possibility of fraud or misuse[1].

The big thing I’ve learned is that a high volume of manual EBT transactions at a store can raise red flags with the government. It might indicate that something fishy is going on, like employees entering fake card numbers or letting people make purchases without their card present. Even if everything is above board, a lot of manual entries can make it look like fraud or trafficking is happening.

For instance, let’s say one of my cashiers does a manual entry because the card reader stopped working. That’s fine – a few isolated incidents like that happen and are understandable. But if I notice a cashier is routinely entering card numbers by hand, that’s a problem. It could mean they are colluding with customers to misuse benefits, or it could just be they keep having “issues” with the card reader as an excuse to manually punch in cards. Either way, it’s going to draw scrutiny from the USDA, which oversees the EBT program.

Penalties for High Manual EBT Transactions

If the USDA detects unusual levels of manual EBT entries, my store could face serious penalties:

• Fines of up to $100,000 per violation
• Disqualification from the Supplemental Nutrition Assistance Program (SNAP), meaning we could no longer accept EBT payments
• Permanent ban from participating in SNAP ever again

Needless to say, these penalties could cripple or destroy my small grocery store business. I rely on EBT transactions for a good chunk of my revenue. Getting kicked out of SNAP would mean losing many of my customers and really hurt my bottom line.

How to Avoid Issues

So how can I prevent problems with manual EBT entries? Here are some best practices I’ve put in place:

1. Train employees on proper EBT card processing procedures – swipe whenever possible!
2. Reinforce that manual entries should only be done if swiping fails, not out of convenience
3. Monitor the number of manual transactions and re-train cashiers who do too many
4. Make sure card readers are maintained and replaced if defective
5. Watch for red flags like customers who insist on manual entries or cashiers who frequently have card reader “issues”

I try to nip any problems in the bud before things get out of hand. For example, if I notice a cashier doing a ton of manual entries, I’ll re-train them on our EBT card policies. Or if a customer is acting sketchy and demanding we enter their card number by hand, I’ll politely refuse the sale. It’s not worth the risk of getting hit with USDA violations.

I also keep detailed records of when manual entries occur and why, so I have proof that my store isn’t mishandling EBT transactions. That way if the USDA ever audited or investigated us, I could show we had legitimate reasons for any unusual activity.

How Investigations Work

So what happens behind the scenes if my store does get flagged for its manual EBT activity? Well first, the USDA will send me a “charge letter” detailing the accusations against my business[1]. This is my chance to respond and provide evidence showing why the manual transactions were justified.

If the USDA isn’t satisfied with my response, they move forward with a full investigation. This involves analyzing my EBT transaction history and talking to employees and customers. If they find clear evidence of trafficking or fraud, my store will face disqualification from SNAP for sure. I may even get hit with criminal charges!

However, there are still opportunities to negotiate even if some violations did occur. For example, I could argue for a shorter disqualification period or agree to pay fines instead of getting banned outright. The key is responding to that initial charge letter quickly and presenting a compelling case.

Avoiding Violations

The best protection is having solid policies in place to prevent EBT issues in the first place. I require all my cashiers to go through training on proper handling of EBT transactions. We also have posters at each register reminding staff to swipe cards whenever possible.

Ongoing training is important too, as employees can develop bad habits over time. Every so often I rerun our EBT training as a refresher for staff. I also keep an eye out for cashiers who might need re-training based on their transaction patterns.

The other key is maintaining our equipment. I make sure our card terminals get inspected frequently and replaced at the first sign of problems. That way, cashiers don’t have excuses for manual entries due to malfunctioning card readers.

Advice for Fellow Retailers

I hope this overview has been helpful for other small retailers who accept EBT payments. My advice boils down to this:

• Train employees on proper EBT policies and enforce them
• Watch out for red flags like excessive manual entries
• Maintain equipment to avoid technical issues
• Keep detailed records just in case of an audit or investigation

Following these basic practices can help protect your business and avoid the severe consequences that can come from mishandling EBT transactions. Don’t let your guard down – it takes consistent vigilance! But it’s worth it to safely serve our community and avoid jeopardizing the viability of your store.

Let me know if you have any other questions! I’m always happy to chat more about my experiences and strategies around this issue. Wishing you the best with your retail business!

References

[1] https://www.robertslawteam.com/criminal-defense-overview/usda-food-stamp-trafficking-and-snap-violation-enforcement/examples-of-snap-violations/