EBT Chip Card Transactions: What VARs, ISVs, and Payments Providers Need to Know

By: National Grocers Association (NGA)

With the rollout of chip-enabled EBT cards, it’s critical that payment professionals and technology providers ensure their merchant clients are ready to support secure and seamless SNAP transactions at the point of sale. Here’s a breakdown of best practices and troubleshooting protocols to help your retail partners avoid transaction disruptions and deliver a smooth customer experience.

How to Process EBT Chip Card Transactions

  1. If the first attempt at an insert/tap transaction fails, and the POS terminal instructs the customer to swipe the magnetic stripe instead, the cardholder should swipe the EBT card as instructed. This transaction should be successful.
  2. If the magnetic stripe attempt fails, follow the instructions on the POS terminal for the next attempt. You may be asked to retry the magnetic stripe OR insert/tap the card again. Instructions vary based on POS terminals. A successful transaction may require multiple attempts.
  3. If the transaction cannot be completed by magnetic stripe or insert/tap, use a key-entered (manual) transaction as the last option. It’s important that SNAP participant scan complete a purchase using their SNAP balance.

he customer that it’s not their fault; it’s a technology (point-of-sale) issue. Their chip card should work in other stores that are set up for insert/tap-enabled EBT cards.

What to Do If You Can’t Complete an EBT Chip Transaction

  1. Assure the customer that it’s not their fault; it’s a technology (point-of-sale) issue. Their chip card should work in other stores that are set up for insert/tap-enabled EBT cards.
  2. Inform store management of any insert/tap card transaction failures and any error messages on the POS terminals.
    1. Print a duplicate receipt, or write down transaction details such as date, time, transaction amount, and any error codes or messages.
  3. Contact your POS service provider to find out why insert/tap card transactions are failing. Provide specific examples, including the error message received and the time of the transaction attempt.