EBT Processing POS System
(100% Compliant)

EBT compliance is critical because it keeps your business aligned with USDA SNAP regulations, which are strictly enforced. If your POS system allows non-eligible items to be purchased with EBT, or if it doesn’t properly adjust sales tax, your store can face fines, penalties, and even disqualification from the SNAP program.

Beyond avoiding penalties, compliance also builds trust with your customers. Shoppers who rely on SNAP benefits expect a smooth checkout experience where their eligible items are correctly processed. By staying fully compliant, you protect your business, maintain eligibility to accept EBT, and provide a reliable service to your community.

Yes — Merge Stream POS automatically enforces SNAP product eligibility, but each item must be set up correctly in your inventory. When creating or importing an item, you simply mark it as EBT eligible if it qualifies under SNAP guidelines.

Once that’s done, the system will:
- Automatically apply EBT funds to eligible items in the cart.
- Block ineligible items (like alcohol, tobacco, or hot prepared foods) from being paid with EBT.
- Keep transactions compliant without relying on cashier judgment.

This setup process ensures your store database is accurate, and from that point forward, checkout runs smoothly with automatic enforcement of SNAP rules.

Merge Stream POS is designed to make mixed payments simple and fully compliant. When a customer checks out, the system automatically applies their EBT balance to all eligible items first.

If the customer’s EBT card doesn’t cover the full amount or if there are non-eligible items in the cart, the system instantly shifts the remaining balance to cash, card, or another tender type. This ensures customers only pay what their EBT card allows, while still completing the sale without any delays. At the end of the transaction, the receipt clearly shows what portion was covered by EBT and what portion was paid with cash or another method, giving both the customer and the business full transparency.

An EBT split transaction happens when part of a customer’s purchase is paid with their EBT benefits and the rest is covered by another payment method such as cash, debit, or credit. For example, if a shopper buys both SNAP-eligible groceries and non-eligible items, the POS system will automatically apply the EBT funds only to the eligible items.

If the EBT balance runs out before the total is covered, the remaining amount is shifted to another tender type. This process ensures the checkout is seamless, fully compliant with USDA rules, and transparent for both the merchant and the customer — all in one transaction.

Yes — customers can absolutely use their EBT benefits together with a credit or debit card in a single transaction. The POS will first apply the EBT funds to all SNAP-eligible items in the cart. If the EBT balance doesn’t cover the entire purchase, or if there are non-eligible items included, the system will automatically prompt for a secondary payment method such as credit or debit.

This ensures the transaction is completed smoothly, with EBT covering what it can and the card handling the rest. A clear receipt is printed showing exactly which portion was paid by EBT and which was covered by the card, giving full transparency to both the customer and the store.

Merge Stream POS automatically recognizes which products are SNAP-eligible and removes sales tax from those items at checkout. When you set up or import inventory, each product is flagged as either EBT-eligible or non-eligible.

During the transaction, the system enforces these rules by only applying sales tax to items that are not covered under SNAP guidelines, such as alcohol, tobacco, or household goods. This way, customers are never overcharged, your store remains fully compliant with USDA regulations, and you avoid the risk of costly errors or penalties during audits.

Yes — Merge Stream POS automatically separates EBT-eligible items from non-eligible items during checkout. When items are scanned, the system checks your inventory setup to see if each product is flagged as SNAP-eligible. Eligible items are grouped together and covered by the customer’s EBT balance, while non-eligible items (like alcohol, tobacco, or hot prepared foods) are placed in a separate category and require payment by cash, debit, or credit.

This process happens instantly, giving your cashier and the customer a clear view of what’s being paid with EBT versus another payment method, and ensuring your store stays fully compliant.

Yes — customers will see exactly how much of their purchase was paid with EBT and how much came from another payment method such as cash, debit, or credit. Merge Stream POS also highlights the sales tax savings from SNAP-eligible items, showing customers the benefit of paying with EBT.

Yes — Merge Stream POS fully supports running dual pricing alongside EBT payments. When a customer pays with EBT, the system automatically applies the cash price to SNAP-eligible items, since EBT transactions cannot have additional card fees or surcharges under USDA rules. If the same customer also buys non-eligible items and pays for them with a debit or credit card, the non-cash adjustment fee is only applied to that portion. This way, your store stays compliant, your cash discount program continues to work, and customers see a clear breakdown on their receipt showing EBT coverage, sales tax savings, and any non-cash fees.

Yes — Merge Stream provides hands-on training for your staff to make sure they’re confident handling EBT transactions. During onboarding, we walk your team through how to scan items, process EBT payments, handle split transactions, and explain receipts to customers.