1. Establishing Credit/Debit & EBT/LINK Programs at Farmers Markets Corey Chatman Program Manager Experimental Station Corey@experimentalstation.org 773-241-6044 1

2. Credit / Debit 2

3. Why accept Electronic Payments? Small Farmers/Vendors often cant afford a machine – Wireless Machine can cost $600 - $1,200 – Square is good but need smart phone. More revenue streams for your Farmers/Vendors Customers don't carry a lot of cash – May not go to / come back from ATM 3

4. Electronic payment solutions for the farmer/vendor FREE Devices like Square, processes Credit Card Payments only for a flat percentage of transaction. Need Smart phone, tablet, or Computer to work. Great for vendors, but markets can use them as well. 4

5. Electronic payment solutions for the market Wireless machine Can cost up to $1,200. Need to Develop a redemption system (Market Currency). Kept at market tent/table – centralized processing. Great for markets, but vendors may have their own. Can process Credit/Debit & EBT 5

6. How much does it cost. Estimate using numbers provided by Merchant Source. Jan 2012 6

7. Ways to pay for Program Grants – Community Reinvestment Act www.financeproject.org – Using the Community Reinvestment Act to Help Finance Initiatives for Children, Families and Communities Using the Community Reinvestment Act to Help Finance Initiatives for Children, Families and Communities Charge customer a convenience fee – Champaign/Urbana Charges a fee for each transaction. ($1- $2) – On Debit/Credit user only! Cannot charge SNAP/EBT user. Charge the vendor – Raise stall fees. – Pass fee only to vendors that participate Old State Capital charges a 3% trans fee for Credit/Debit 7

8. Redemption systems “Tokens” Easier for Shoppers, more work for Market Management. 8

9. How a system works in the Market Token/Paper System – Purchased by the LINK user from Market Manager – Given directly to Farmer to buy food – Farmer turns tokens in to Market Manager for credit 9

10. Redemption systems “CHITs” Easier for Market Manager, more work for shopper Farmer John 01 $10.00 Apples 10

11. How SNAP/LINK works in the Market Receipt “Chit” System – LINK user goes to Farmer first. – Receives a “CHIT” – Goes to Market Manager to pay for items. – Takes Receipt back to Farmer to Pick up food. Farmer John 01 $10.00 Apples 11

12. 2012 IL markets Credit, Debit, EBT. 12

13. 2012 across the country Credit, Debit, EBT. 13

14. Iowa Credit, Debit, EBT. 14

15. EBT – Electronic Benefit Transfer aka SNAP / Link / Food Stamps 15

16. Supplemental Nutrition Assistance Program State Activity Report Fiscal Year 2011. 1 out of 7 Illinoisans are SNAP Participants. 16

17. The Face of SNAP Participants Ethnicity FY 2010 17

18. The Face of SNAP Participants Young, Elderly, Disabled FY 2010 18

19. The Experimental Station Customer spending patterns Processes SNAP transaction at 15 City of Chicago sponsored markets. Administered the LINK UP Illinois DVCP at these markets. Collected data which help to pin- point customer spending habits. 19

20. More help to obtain a wireless machine 20 Grants Up to $1,200 to obtain a Wireless Machine Must start new SNAP/EBT/Food Stamp program