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SNAP EBT

The Supplemental Nutrition Assistance Program (SNAP) is a United States federal program that provides nutrition benefits to low-income individuals and families. Electronic Benefits Transfer (EBT) is an electronic system that allows a SNAP participant to pay for food using SNAP benefits. When a participant shops at a SNAP-authorized retail store, their SNAP EBT account is debited to reimburse the store for food that was purchased.

For more information about the program and the payment system, see the following pages on the USDA Food and Nutrition Service site:

Example journey​

SNAP participants want to be able to use their EBT card to pay for SNAP-eligible food while shopping online. According to Instacart research, these customers purchase SNAP-eligible items first and then other food and household products they need. By offering EBT cards as another payment method, you can attract new customers to your storefront while also improving access to food for SNAP participants. You can offer this payment method at some or all of your store locations.

A typical customer journey for a SNAP participant starts on your landing page. A return customer usually logs in, especially if they know you offer deals to your customers. A guest customer who wants to use their EBT card will check to see if you offer payment by EBT card, shop, and then sign up at checkout. This example follows the return customer path.

  1. A returning customer logs in to your site. If they don’t already have an EBT card associated with their account, they can add it and also enable SNAP labels on products throughout the site from their account settings.

    Shows the account settings with the SNAP eligibility option and the Add a EBT SNAP card.

    Shows the Add EBT SNAP card dialog where the customer can enter their name and card number.

  2. The customer searches for a food item that they want to buy. In the search results, the customer selects the EBT > SNAP eligible filter. Only foods that can be paid for with an card are displayed.

    Shows the filters you can apply to search results. The EBT filter contains a SNAP option.

  3. The customer selects a SNAP eligible item tile to open the product details page. The SNAP label appears below the price.

    Shows a product details page with a SNAP label after the price.

  4. The customer continues to shop, filling their cart with items that are eligible for SNAP and items that aren’t.

  5. The customer clicks Checkout from the cart. In the checkout page, the customer provides the requested information. When the customer gets to the payment methods section, they select the EBT card that they entered at the beginning of this process. The customer must also select a debit or credit payment method for all charges not covered by the EBT card. An amount that covers the rest of the total, including a buffer to accommodate potential changes in weighed product prices, is sent to the payment provider for authorization.

  6. In the summary, the customer can see subtotals for the SNAP-eligible items along with a subtotal for other items and the usual fees and taxes. Taxes are calculated on the items that are not eligible for SNAP plus the other scenarios described in Taxes.

    Shows the checkout page. The EBT SNAP card option appears in the payment section. An EBT SNAP item subtotal appears in the totals area.

  7. The customer ensures all their details are correct, and then places the order.

  8. The customer enters their EBT card PIN in an online keypad.

    Shows a keypad with the numbers 0 to 9, clear, and backspace. The EBT PIN is a four-digit code and a Submit button appears after the buttons.

    If the PIN is not valid, the customer is prompted to try again. If there are repeated failures, the customer will be prompted to select a different payment method.

  9. After the PIN is successfully validated by the EBT payment processor, the order is created and the customer receives a confirmation. The order is batched and assigned to a shopper.

  10. During shopping, if a selected SNAP-eligible item is not available, the shopper is shown other SNAP-eligible items to suggest as replacements to the customer. If none exist, the shopper chats with the customer to discuss options or refunds the item.

  11. After the customer receives their order, the following activities occur:

    1. The shopper sets the order status to complete.
    2. A final total is calculated for the order and a reconciliation process runs. For more information, see Payments and reconciliations.
    3. The customer receives their receipt, which includes subtotals for SNAP EBT items and other items plus tip, delivery fee, service fee, sales tax, and the total amount. If a refund was made to the SNAP EBT card after the final order total calculation, the refund amount also appears on the receipt.

Site changes​

You can expect the following site changes after the site is configured to support SNAP EBT.

Account profile​

The following changes are visible to all:

  • Account settings. An EBT SNAP section includes a toggle for showing or hiding SNAP labels on item tiles and product details.
  • Payment methods. The list includes EBT card. When a card is added, the last 4 digits are displayed.
  • Add an EBT card. The customer can add a card to their payment methods. The card number is sent to the payment processor for verification.

Catalog​​

The following changes are visible when a customer enables the SNAP option in the account settings:

  • Search. Displays the EBT > SNAP eligible filter to the list of filters customers can use with search results.
  • Item tiles. Displays a SNAP label on SNAP-eligible items.
  • Product details pages. Displays a SNAP label on SNAP-eligible items.

Checkout - Payment​​

SNAP labels are not displayed in the cart. However, the following changes are visible through the checkout process:

  • Payment methods. In the Payment methods section, EBT card appears as an option. If the customer already has a card associated with their account, the last four digits are displayed.
  • Add an EBT card. The customer has the option to add an EBT card at this time. The card number is sent to the payment processor for verification before the card can be used.
  • Order summary - payment breakdown. When an EBT card is selected, displays the EBT SNAP items subtotal and the amount to be charged to the EBT card. If an EBT card is not selected as a payment method, these items are hidden.
  • PIN keypad. Appears after the customer places their order. There are a few screens associated with the PIN keypad to cover the unsuccessful scenarios, such as:
    • The PIN is not valid.
    • The maximum number of attempts has been reached.
    • The card cannot be processed by the payment processor.

Order​

After placing the order, SNAP labels are not displayed on the replacements page, post-checkout aisle, or the order status page.

  • Manage order dialog. Displays a Charge more to EBT option. Customers can change the amount charged to the card.
  • Receipt. Displays the SNAP EBT item subtotal and the amount charged to the card. If a refund was made to the SNAP EBT card after the final order total calculation, the refund amount also appears on the receipt.

Configuration​

Before Instacart can configure your site to support SNAP EBT, you must be an approved retailer for SNAP in your physical stores. Then you must apply to offer EBT payments online. The time required to add support to your site depends on the length of time spent on each step in the process.

The following steps outline the high-level process and include links to the USDA Food and Nutrition Services SNAP site. The process and links can change without notice. If a link becomes unavailable, search the USDA site for answers to your questions. If there is a discrepancy between this document and the USDA site, always follow the USDA site.

Your Instacart team helps guide you through the following steps:

  1. Retailer applies to Food and Nutrition Services to offer SNAP benefits.

    1. If your retailer is not approved to offer SNAP in their physical stores, apply on the Food and Nutrition Services SNAP site: How do I apply to accept benefits?
    2. After your retailer is approved to offer SNAP in their physical stores, send a letter of intent to Food and Nutrition Services to apply to offer SNAP online. The following guide outlines the steps to take, including what goes into the letter of intent, where to send it, and what happens after the letter is received: Retailer Requirements to Provide Online Purchasing to SNAP Households

  2. Instacart configures SNAP EBT for the retailer’s site in the user acceptance testing environment.

    1. Implements the changes describe in Site changes. The site changes inherit the retailer's storefront branding and styling. No other customizations are available.
    2. Adds a help topic.
    3. Adds a program launch page.

  3. Retailer sets up a meeting with Food and Nutrition Services where Instacart demos the site.

  4. Food and Nutrition Services performs end-to-end testing of the site.

  5. Instacart resolves all high-severity issues that are identified during testing.

  6. Retailer creates an account with a payment processor who is authorized to support payment by EBT card, including PIN entry. See the guide for the currently authorized third-party providers.

  7. Retailer updates their catalog to identify the items that are eligible for SNAP benefits. In your inventory file, add the column usa_snap_eligible. For the items that are eligible for SNAP, set this field to true. Default is false. For more information, see SNAP EBT requirements.

  8. Food and Nutrition Services approves the retailer’s site.

  9. Retailer says they are ready to launch.

  10. Instacart updates the production version of the retailer’s site.

Policies​

The following policies apply to SNAP EBT as a payment method.

Shoppers app​

Customer privacy is important to us. Personal shoppers do not know whether a customer’s order includes a payment by EBT card. The Instacart Shopper app uses a modified replacement logic for SNAP-eligible items. If a SNAP-eligible item is unavailable, the app suggests other SNAP-eligible items as replacements.

EBT card as a payment method​

For sites hosted by Instacart where we enable payment flows, the following topics apply.

Payment at checkout​

The customer can choose to pay for their SNAP-eligible items with their SNAP EBT card. The amount deducted from the card is the subtotal for SNAP-eligible items or the balance on the card, whichever is less. Funds are deducted from the card after the customer places their order and enters a valid PIN for the selected EBT card.

Taxes​

SNAP-eligible items that are paid for by an EBT card are not taxable.

The following scenarios are factored into tax calculations on retailer sites:

  • SNAP-eligible items not paid for with an EBT card. The amount of SNAP-eligible items that are not paid for with the EBT card is taxable at the applicable state tax rate. The tax calculation attempts to minimize the overall tax burden by applying the highest-taxed items to the EBT card first.
  • Coupons. When a coupon fully covers the cost of a SNAP-eligible item, the customer is charged tax for this product.
  • Cart-level credits, discounts, and gift cards. The deductions are applied first to the taxable items in the cart. If deductions remain, they are applied to the SNAP-eligible items.

Order changes​

If a SNAP-eligible item is unavailable, the Instacart Shopper app suggests other SNAP-eligible items as replacements. If a customer decides that none of the SNAP-eligible replacements are suitable, the customer can request a refund or ask for a non-SNAP-eligible item as a replacement. The cost of a non-SNAP-eligible item is applied to the customers’ other payment method, not the EBT card.

Final calculation​

After the customer receives their order, the order is marked as complete. A final calculation occurs. For more information, see Payments and reconciliations.

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