Transcript The 38 markets that LINK Up Illinois supported in 2012

Establishing Credit/Debit & EBT/LINK Programs
at Farmers Markets
Corey Chatman
Program Manager
Experimental Station
[email protected]
773-241-6044
1
Credit / Debit
2
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
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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
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
How much does it cost.
Estimate using numbers provided by Merchant Source. Jan 2012
6
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
• 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
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Redemption systems
“Tokens”
Easier for Shoppers, more work
for Market Management.
8
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
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Redemption systems
“CHITs”
Farmer John 01
$10.00
Apples
Easier for Market Manager, more
work for shopper
10
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
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2012 IL markets
Credit, Debit, EBT.
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Oak Park
EBT
Credit Debit
$5,804
$23,282
Bloomingto
n
$7,618
$17,663
Urbana
$11,714
$72,552
Glenwood
Sun.
$8,294
$44,000
Old State
Cap
$8,361
$9,774
Logan
Square
$6,103
$33,420
Grand Tot
$47,894
$200,691
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2012 across the country
Credit, Debit, EBT.
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
EBT
Credit Debit
Farmers Market Co. VA
$20,542
$96,000
Athens FM, GA
$55,553
$71,603
13
Iowa
Credit, Debit, EBT.
$1,000,000
$876,423
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$82,142
$0
Iowa EBT project
EBT
Credit Debit
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EBT – Electronic Benefit Transfer
aka SNAP / Link / Food Stamps
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Supplemental Nutrition Assistance Program
State Activity Report Fiscal Year 2011.
1 out of 7
Illinoisans are SNAP Participants.
14,000,000
$12,875,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
$1,793,000
2,000,000
State Pop
Number of People
in SNAP
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The Face of SNAP Participants
Ethnicity
FY 2010
Ethnicity Not
reported, 20%
Whites, 34%
Native American,
4%
Asian, 3%
Hispanic, 16%
African-Americans,
22%
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The Face of SNAP Participants
Young, Elderly, Disabled
FY 2010
Other, 25%
Under 18, 47%
Disabled, 20%
60 +, 8%
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Customer spending patterns
The Experimental Station
• Processes SNAP transaction at 15
City of Chicago sponsored markets.
•
Administered the LINK UP Illinois
DVCP at these markets.
•
Collected data which help to pinpoint customer spending habits.
Customer Purchase %
of LINK & DVCP sales 2012
Honey
Meat 3%
Dairy
5%
4%
LINK+DVCP
Confec ons
1%
Value Added
6%
Baked Goods
17%
Fruits &
Vegs
64%
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More help to obtain a wireless machine
• Grants Up to $1,200 to obtain a Wireless Machine
• Must start new SNAP/EBT/Food Stamp program
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