VMS is a registered ISO/MSP for Deutsche Bank AG, New York

Q. “What is EBT?”A. EBT programs – short for electronic benefits transfer are government-run programs in which qualified U.S. residents receive funds to pay for a number of personal necessities. These funds are distributed on payment cards that merchants can accept the same way they accept PIN debit cards.

Q. Where can I read the Farm Bill or this notice from the government?A. We have set up a website www.ebtupdate.com that contains links to the USDA’s FNS website as well as a link to the notice issued by FNS in April of this year announcing the changes to the farm bill.

Q. How are you able to provide a lower cost solution than other providers?A. VMS is a direct processor, we can o�er you a discounted rate on your EBT because we are processing that transaction for you.

Q. What if I have my own equipment, do I have to purchase new equipment from VMS?A. If you have equipment that is not out dated we may be able to use it but you will still need to lease or purchase a pin pad with the proper encryption that allows you to take the EBT cards as well as Debit cards.

Q. What options do I have?A. You have 2 options: 1. You sign up with VMS and (list benefits) new equipment lease to own, $59.99 tax write o�, .05 transaction fee for EBT, warranty on terminals.

2. Stay with the Governments’s third party vendor and use old machines, pay $75 per month forever and no warranty on your terminal, if its broken you have to wait for a new one or pay for repaid

Q. What are the changes to the federal EBT (SNAP) program?A. The federal government has made changes to your state’s EBT merchant accounts. All merchants are required to supply their own equipment to continue to process EBT Transactions. Starting September 21st, 2014 businesses accepting EBT will no longer be able to use their EBT compatible terminals free of charge. Merchants will now accept all transactions (EBT, Visa/MasterCard, and PIN based debit) through one piece of equipment.

Q. “What are the di�erent types of EBT?”A. There are two major types of EBT programs: Supplemental Nutrition Assistance Program (SNAP), which was formerly known as the Food Stamp Program, and cash benefits, which include Temporary Aid to Needy Families (TANF), state general assistance and refugee benefits.

Q. What do I do with the equipment I have from the government? Can I keep it and continue to use it? A. If you have equipment issued to you by the government you must return it to them or be subject to a $250.00 fine, also this equipment cannot be used by any other processor.

Q. The FNS notice has a date of September 21, 2014 as the deadline for the free equipment program. What does this mean to my business?A. If you do not update your equipment before September 21, 2014 your EBT acceptance ability will be discontinued.

Q. Who are exempt retailers? How can I find out if I am exempt?A. We have a website you can check out www.ebtupdate.com that contains a link to a document that identifies all retailers who are still eligible to keep their free equipment. Primarily these are federally run commissaries, health treatment and rehabilitation facilities, non-profits, some farmers markets and group living communities.

Q. “Who uses EBT cards?”A. EBT payment cards are issued to people whose income is low enough that they qualify for financial assistance from the government. In our current economic climate, there are far more people than before from all walks of life who use EBT benefits to purchase the necessities they need for themselves and their families.

Q. “How many people use EBT?”A. According to the U.S. Department of Agriculture, more than 40 million people are currently receiving SNAP benefits; individual state governments track cash benefit users.

VMS is a registered ISO/MSP for Deutsche Bank AG, New York

Q. “What do people purchase with the EBT SNAP cards?”A. A full list of eligible foods is available at www.fns.usda.gov/snap/retailers/eligible.htm. Most edible foods – whether canned, fresh, frozen or in jars – are acceptable for purchase; these may include:

• All dairy products• Uncooked meats, including tuna fish and canned meats• All vegetables, canned, fresh and frozen• All fruit, canned, fresh and frozen

• Breads, cereals, packaged baked goods• Seeds and plants that produce food• Fruit juices, soda, drink mixes in packets• Boxed pastas and boxed baking mixes• Sugar, condiments, peanut butter/jelly• All baby formulas and baby foods

Q. “If I accept EBT food payments, must I also accept EBT cash payments?”A. No; when you apply with FNS, you will be given the option to choose to accept or not accept cash payments.

Q. “Do I need to pay a fee to accept EBT food payments?”A. Yes; the state and federal rules allow only that the reasonable processing costs can be charged but no interchange is assessed on EBT transactions. For additional questions, please speak with your merchant representative.

Q. “Can I charge a fee to my customers for accepting EBT payments?”A. Federal regulations prohibit any retailer from charging a fee for the redemption of EBT food benefits. You do have the option to charge a fee for EBT cash payments; however, you must apply the same surcharge to all debit and EBT transactions. Many retailers choose not to surcharge EBT customers.

• Clothes• Rent or mortgage• Utilities (gas, water, electricity, etc.)• Furniture• Transportation (bus passes, gas, etc.)

Q. “What do people purchase with EBT cash benefits?”A. Cash benefits may be used to purchase anything that can be legally purchased with currency. Some of the items EBT cardholders are likely to purchase using cash benefits include:

• Phone• Laundry• Household supplies and equipment (toilet paper, cleaning supplies, etc.)

VMS is a registered ISO/MSP for Deutsche Bank AG, New York

Q. “Must an EBT card be present for a key-entered EBT transaction?”A. Yes; a PIN is also required to process all EBT transactions. If, and only if, the card strip cannot be read by the POS machine, and the customer is present, then you may use the keys to type in the card number. You cannot keep the card numbers on file or enter them manually unless the EBT cardholder is present. The cardholder must still enter his or her PIN to authorize a key-entered transaction.

Q. “If I accept EBT food payments, must I also accept the old food stamp coupons?”A. No; paper coupons may no longer be redeemed at stores as of June 17, 2009. Cardholders may only use their EBT cards to buy eligible food at stores authorized by FNS.

Q. “I’m purchasing a store that currently accepts EBT and I would like to continue to be able to do this. Can I use the existing license or get it transferred to me?”A. When a business changes ownership, the new owner must apply for a new license.

Q. “How can I get more information about accepting EBT payments?”A. Please contact VMS at 888-902-6202 and speak with a live EBT Specialist for additional information.

VMS is a registered ISO/MSP for Deutsche Bank AG, New York