Best EBT Payment Processors

April 25, 2023

Electronic Benefits Transfer, or EBT, is a system that allows financial aid recipients to buy goods with their federal and state welfare funds EBT was established following the overhaul of the old physical food stamp system. The program allows users to swipe magnetic stripe cards at participating retailers in a process that closely resembles PIN debit payments. The cardholder simply swipes the card, enters a secret PIN, and is either authorized or denied the purchase amount. The merchant then receives the payment electronically just like other card transactions.

A common misconception about EBT cards is that they are exclusively used to purchase food at grocery stores. This is only true of Supplemental Nutrition Assistance Program (SNAP) funds, which are intended to help families afford basic food staples. Funds from other government programs like Temporary Assistance for Needy Families (TANF) and state-funded aid can be spent in a manner similar to cash. This means that even if you don't sell groceries, you may still benefit from accepting EBT payments from customers.

Here is a list of highly rated merchant services providers that offer EBT processing in addition to their own merchant accounts. Although EBT payments are not subject to interchange costs, processors are still permitted to charge a reasonable amount for processing EBT transactions. You should therefore be sure to inquire about all potential costs before adding EBT acceptance for your customers.

Top-Rated Merchant Services for Accepting EBT Payments

Host Merchant Services

Host Merchant Services is a Newark, Delaware-based merchant account provider that is well-suited for most general business types and some high risk merchants. In addition to EBT acceptance, the company's products and services include point-of-sale solutions (with specific packages for the restaurant, salon, professional service, and contractor sectors), online marketing tools, an online payment gateway and virtual terminal, mobile credit card processing, gift and loyalty programs, merchant cash advance, and offshore merchant accounts. Host Merchant Services specializes in e-commerce businesses and provides a free website and email address to interested merchants.

Host Merchant Services has received only positive feedback on public forums, with most reviewers singling out the company's customer service for praise. Host offers interchange-plus pricing with no early termination fees to all of its merchants, meaning that users will enjoy the most transparent pricing model and can cancel service without penalty. The BBB gives Host an “A+” rating, and CPO also gives the company an “A+.”

For more information, visit the Host Merchant Services website or call (888) 727-4538.

PaymentCloud

Based in Woodland Hills, California, PaymentCloud is a merchant account provider that specializes in serving nearly any business with need to accept EBT payments. Along with EBT, the company also provides payment processing services for businesses in a wide array of industries and assigns a dedicated account manager to all its merchant customers for the life of the account.

Custom Pricing Plans

The company has not received any EBT complaints on consumer forums, and it customizes its pricing according to each merchant’s business type and processing history. The BBB does not maintain a profile for PaymentCloud at this time, but CPO gives the company an “A.”

For more information, visit the PaymentCloud website or call (888) 506-7859.

CDG Commerce

Founded in 1998, CDG Commerce is a merchant account provider that provides online, mobile, and traditional face-to-face credit card acceptance. The company has offices in Virginia and in California and specializes in e-commerce solutions like online payment gateways and integrated shopping carts. CDG Commerce is also able to provide “future-proof” terminals that can process EBT payments and are designed to remain compatible with new payment technologies as they emerge. The company currently maintains an “A+” rating with both CardPaymentOptions.com and the BBB.

For more information, see the CDG Commerce Website or call (888) 393-1079.

Bottom Line

Selecting the right credit card processor for EBT payment acceptance is a crucial step for businesses catering to a diverse customer base. A business should prioritize seeking a processor with a strong reputation for reliability and security, as well as competitive transaction fees and responsive customer support. Additionally, the processor should offer seamless integration with the business's existing systems, along with compatibility across various platforms and devices. By choosing one of our recommendations above, businesses can secure an EBT payment processor that optimizes their operations, fosters customer satisfaction, and ultimately contributes to their long-term success.

About The Author

Phillip Parker

In the late 2000s, as a broke college student struggling to make ends meet, I was contacted by a merchant services company after uploading my resume to a job listings website. This company promised substantial commissions and ongoing residual income for simply persuading businesses to accept credit card payments. It seemed straightforward enough—after all, what business doesn’t need to process credit card payments? Following a phone interview with a persuasive “sales director,” I found myself embarking on what I believed would be an easy job that would significantly boost my bank account with reliable monthly income and large sales commissions. However, the lessons I learned would profoundly change my life in ways I could never have imagined.

After completing my sales training, I hit the ground running, eager to make sales. This broke college student was determined to improve his financial situation! My first attempt at a cold call, with no prior appointment, ended with a burly man in his 50s yelling at me to leave, claiming he had been “totally robbed” by someone like me before. As I hastily exited, puzzled and intimidated by his reaction, I couldn’t help but wonder what he meant. Throughout the day, I encountered similar hostility from other business owners, all expressing disdain for the industry I had been so excited to join that morning. Confused and curious, I decided to shift my approach from selling to listening.

I quickly uncovered that the merchant services sector was riddled with unethical practices, including hidden fees, deceptive marketing, fine-print traps, and much more. It dawned on me that I had nearly been tricked by a dubious company into selling overpriced services under contracts with long-term commitments, all without being fully aware of what I was promoting. Outraged, I resigned from that company but learned that there were indeed ethical credit card processing companies that treated their clients fairly. Over the next four years, I worked for one such company, assisting hundreds of businesses in securing cost-effective processing solutions. Yet, I also met many more who had been misled and trapped in onerous service agreements. Determined to help people steer clear of these unscrupulous providers, I launched this website in my spare time, dedicating myself to researching and sharing my findings on every merchant account provider I could investigate.

Gradually, more and more business owners began to discover my articles. As word spread, search engines started to rank my content highly, amplifying its reach. My efforts were making a difference! Eventually, the website garnered enough traffic to enable me to leave my job and focus on it full-time, a journey that has now spanned over a decade. This path has not been without its challenges; unscrupulous company owners have tried to intimidate and sue me into silence on several occasions. Yet, I have stood firm against each threat. Here I am, continuing to publish reviews and articles, hoping to safeguard others from the pitfalls of the credit card processing industry.

If you believe in my mission and wish to contribute, please share my articles on your websites and social media. Thank you for visiting!

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Reader Comments

Tell Us What You Think

2 User Reviews

Devin Lyttle

April 30, 2020

Hi Phil, I appreciate the effort that went into compiling this list of EBT processors. I’m in the process of setting up a merchant marketplace on Shopify to provide local farmers, small businesses and independent artists a digital platform with local, national, and eventually global distribution channels to continue operating in a time when Main St. USA is on lockdown and the industrial food system is on the brink of failure. Time is of the essence, so I’m reaching out in hopes that you can assist us in navigating the complexities of connecting one of these EBT processors with the Shopify platform. If this is something you have experience with, I’d be grateful if you could shoot me an email with further instruction.

Reply to Devin Lyttle Post Your Own
- Brian Clark
  
  May 4, 2020
  
  Devin,
  
  Merchant accounts listed here also integrate online shopping carts onto websites. They may be best suited to help you on your mission. Good luck.
  
  Reply to Brian Clark Post Your Own

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