Legislation Reintroduced to Ban Processing Fees on EBT Transactions

NACS supports legislation that would protect SNAP retailers.

June 27, 2025

Legislation was introduced yesterday that would permanently ban any electronic benefits transfer (EBT) processing fees in the Supplemental Nutrition Assistance Program (SNAP).

The Ensuring Fee-Free Benefits Transactions Act (EBT Act), co-led by Congresswoman Shontel Brown (OH-11) and Congressman Tony Wied (WI-08), protects small and independent retailers from being penalized for serving SNAP customers and keeps SNAP accessible in underserved and rural areas, according to a press release from Brown.

The 2018 Farm Bill, which authorizes SNAP, included a five-year temporary ban on any new EBT processing fees. That ban was set to lift this year, which potentially would have increased costs for SNAP retailers and customers or lead to a payment processing system that would discourage retailers from participating in SNAP entirely.

“As a former small business owner in the convenience store industry, I know firsthand how burdensome EBT processing fees can be for both retailers and SNAP recipients,” said Congressman Wied. “That’s why I’m proud to join Congresswoman Brown in introducing the EBT Act, ensuring that the 2018 prohibition on these fees is permanent once and for all. This bipartisan legislation will make sure SNAP recipients continue to have access to healthy food, while also continuing to relieve small business owners of unnecessary costs. This is a win-win situation and I look forward to working with my colleagues to get this bill passed.”

“Convenience stores serve as essential access points for food and essentials in communities nationwide, especially in areas without full-service grocery stores. New EBT processing fees would unfairly burden small retailers and could force some out of the SNAP program altogether, limiting access to nutrition for millions of Americans,” said Margaret Hardin Mannion, director of government relations for NACS. “The EBT Act strengthens SNAP by ensuring retailers can continue serving their communities without added financial hurdles. We commend Representatives Brown and Wied for their leadership and urge Congress to pass this much-needed legislation.”

NACS supports the legislation and urges Congress to make the prohibition on EBT processing fees permanent. NACS provides resources for SNAP retailers which can be found here.