By Hannah Adamson
Following a decision to accept EBT and credit-card payments this Farmers’ Market season, vendors and officials said the program has proved successful so far, but they hope to see it grow.
The Iowa City Farmers’ Market started accepting these payments in May, calling them “Market Money.”
To use the service, customers can purchase $1 tokens with an EBT card or $5 tokens with a credit card at the information booth. The customer then uses these tokens to purchase produce and other local foods throughout the market.
Before the program, only three vendors were certified to accept EBT. Now, approximately 80 out of 150 vendors accept “Market Money.” Since the program began, approximately $12,000 in revenue has been obtained via credit-card sales, and $600 in revenue has been attributed to EBT payments.
For most of the vendors, Market Money still has yet to catch with the general public.
Cassidy Bell, the executive director of Iowa City nonprofit “Local Food Connection,” said the goal was just to make the market a more accessible and inclusive place for people who are part of the EBT program.
“It’s something that I have personally wanted to do for a long time,” Bell said.
Market Money has also helped the vendors by taking away the hassle of bank fees whenever a customer’s credit card is swiped with a machine.
However, most vendors do not have credit-card readers or machines because using them can prove to be expensive, especially for smaller vendors.
Mike Zimmer, the owner of IC Pie, said retailers using credit card and EBT card machines have “swipe” fees for small transactions that can become costly in the long run, with some fees running 2 to 3 percent per transaction.
“It eats away into what you’re charging,” Zimmer said.
Tamry Osborn, who co-owns J.T.’s Unlimited, said the program has helped her save $2,800 per year on credit-card swipe fees.
Osborn said that when EBT cards replaced food stamps, it became increasingly difficult for vendors to sell because of the fees associated with card readers.
Now, she said, the new program is a “win-win” deal for both her and for those in need.
“I like the idea of our SNAP recipients being able to use it,” she said.
For Donna Warhover, a new vendor at the market, Market Money has proven to be a much better alternative to card readers.
With vendors who do use card readers, Warhover said she runs the risk of unintentionally turning away those low on cash, but she said she remains optimistic that Market Money is the best way to go.
“I’m taking a bit of a risk, but people who are shopping here, they know the routine,” she said.
In addition to adjusting to the changes EBT and credit cards bring, market officials also hope to establish a new program called “Double Up Food Bucks” starting July 2 that will run until the end of the season in October. Bell said for every dollar spent on EBT tokens, the market will double the amount of spending money available for buying produce at the market.
Although many vendors said Market Money still has yet to increase in popularity, Osborn said officials remain hopeful it will grow because of its easy-to-use nature and because it benefits everyone involved.
