Accepting SNAP/EBT Payments for qualified goods

Topic summary

Small farms and food retailers are seeking ways to accept SNAP/EBT payments through Shopify, both online and at point-of-sale. While SNAP is now allowed for e-commerce in 35 states, Shopify does not natively support EBT payments through its gateway.

Current Solutions Being Explored:

  • Third-party payment processors like Forage and Pay Now Direct that can integrate with Shopify
  • WorldPay with TotilPay integration (mentioned for previous EBT acceptance)
  • Custom private app development through Shopify partners to integrate SNAP/EBT gateways

Key Challenges:

  • EBT transactions require complex API interactions: fund verification, real-time product eligibility parsing, split payments between eligible/non-eligible items, PIN entry, and multi-level government reporting
  • Processing fees are significant: approximately 3.4% from card processors plus Shopify’s additional 2%, totaling 5.4%
  • No plug-and-play solution exists in Shopify’s App Store

Status:
The discussion remains ongoing with no definitive solution implemented. Multiple merchants are USDA-approved for SNAP but struggle with technical integration. Some are considering alternative platforms like WooCommerce due to fee structures. Several development agencies offer custom integration services, but merchants must first secure their own SNAP/EBT payment processor accounts.

Summarized with AI on October 29. AI used: claude-sonnet-4-5-20250929.

Update - We are collaborating with a 3rd party payment provider that is
integrated with the SNAP/EBT system. The EBT’s are unique because they need
more of a conversation with the banking system through the API. First, it
needs to verify the funds are in the account. Second, it needs to parse what
products are being purchased in real-time and sort out the items witch are
eligible. Third, it need to split payment between eligible and non eligible,
plus, taxes. Fourth, it needs the person who owns the card to put in a PIN.
Finally, it needs to record all of this and send it to a various Federal,
State, County, and City (if they are collecting the information).

Fees - The card processor we are working with is charging 3.4% for all the
above, but it depends on the volume, and manual key-ins, etc, etc. Shopify
is saying they add 2% on top of the 3.4% making the total 5.4%. I know,
right? So, we are looking into Woo Commerce as a potential solution. I
brought it up with Shopify and they are escalating the ticket - maybe they
will come down on their 2% for EBT because it services low income families.

If not, the perception is that banks are gouging the poor. From Shopify’s
prersepective, it part of their business model, but its still a gouge to low
income families.

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