What is an EBT Charge Letter? How to Respond

What is an EBT Charge Letter? How to Respond

Getting an EBT charge letter from the USDA can be scary. This article will explain what an EBT charge letter is, why you might get one, and most importantly, how to respond to protect your business. We’ll go over some do’s and don’ts so you know the best way to handle this situation.

What is an EBT Charge Letter?

An EBT charge letter is sent by the USDA when they suspect your business of violating the rules of the Supplemental Nutrition Assistance Program (SNAP), which used to be called food stamps. SNAP benefits are paid out on EBT cards, like debit cards. The USDA monitors EBT transactions to look for suspicious patterns that might indicate trafficking or other program violations.

If the USDA’s monitoring systems flag your business, they will send you a charge letter detailing the violations they suspect you of. This starts an investigation process where you can respond to the charges and submit evidence in your defense before the USDA makes a final determination.

Why Did I Get an EBT Charge Letter?

There are a few reasons the USDA might send a charge letter:

• Suspicious EBT transaction patterns – This is the most common trigger. The USDA’s systems look for things like multiple transactions in a short time period or transactions of rounded dollar amounts like $50 or $100, which can indicate trafficking.
• Complaints – Someone could have reported you for violating EBT rules.
• Undercover investigation – The USDA may have sent undercover inspectors to try to improperly use EBT cards in your store.
• Follow up on previous violations – If you’ve been cited before, you may get charged again for similar issues.

What Are the Consequences?

If the USDA ultimately determines your business committed SNAP violations after the charge letter process, there are a few possible penalties:

• Permanent disqualification – You would lose the ability to accept SNAP/EBT payments forever.
• Lengthy disqualification – You could be banned from SNAP for several years.
• Monetary fine – The USDA could fine you up to $59,000.

Needless to say, you want to avoid any of these if possible! Responding properly to the charge letter is the first step.

Responding to an EBT Charge Letter

You only have 10 days to respond after receiving an EBT charge letter, so you need to act fast. Here are some tips:

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Get Help from a Lawyer

These cases can be complicated, with lots of rules and regulations. Having an experienced lawyer guide you through the response process is highly recommended. They can help gather evidence and put together the strongest defense. Don’t go it alone!

Gather Evidence

Pull together any records, like:

• Sales reports
• Inventory logs
• Employee training materials
• EBT/SNAP policies and procedures
• Security footage

These can help rebut the USDA’s charges and show you try to comply with all rules.

Explain Your Business

If you have unusual transaction patterns, explain why. For example, if you sell in bulk or cater to specific ethnic groups, your typical EBT usage may look different. Provide context so the USDA understands your business.

Describe Your Compliance Efforts

Show all the ways you try to prevent SNAP violations, like employee training, posted signs about EBT use, regular monitoring of transactions, etc. This shows you take compliance seriously.

Be Truthful

Don’t lie or cover anything up. It will only make things worse if the USDA finds out later. Be cooperative and transparent.

Submit Written Response

The USDA will likely ask for a formal written response in addition to any conversations. Having a lawyer help with this is highly recommended, as you want to be sure you don’t accidentally say something incorrect or admit fault.

What Happens After I Respond?

After you submit your response, the USDA will review it and make a determination about whether they believe violations occurred or not. There are a few possible outcomes:

• Case closed – If you make a strong case, they may close the investigation with no penalties.
• Lesser disqualification – They might reduce the proposed disqualification period or issue a warning instead.
• Same penalties – The USDA could uphold the original charges.
• Harsher penalties – In rare cases, they may actually increase proposed penalties if they don’t believe your response.

If the determination goes against you, in most cases you can request an administrative review hearing to appeal the decision and present your evidence to an impartial reviewer. Having a lawyer to help with the appeal is highly recommended.

Avoid Common Mistakes

When responding to an EBT charge letter, be sure to avoid these common mistakes:

• Ignoring it – You must respond within 10 days or you’ll automatically lose.
• Waiting too long to get help – These cases can be very complex legally, and you want an experienced lawyer on your side advising you as early as possible.
• Incomplete or disorganized response – Provide every piece of helpful evidence and make sure your response is coherent and easy to follow.
• Getting emotional – Stick to the facts in your response. Don’t get accusatory or upset, as this can undermine your credibility.
• Inconsistent information – Make sure you don’t contradict yourself when talking to USDA investigators versus writing the formal response. Stick to one coherent explanation.

Conclusion

Getting an EBT charge letter can be scary, but trying to handle it alone can make things much worse. Speak to a lawyer right away so they can start helping you gather evidence and plan the strongest response. Be honest and cooperative with the USDA to show you take the situation seriously. With the right legal help and a thorough, well-supported response, you have a good chance of avoiding penalties and keeping your SNAP privileges.

Good luck! And let us know in the comments if you have any other tips for responding to EBT charge letters.

Useful Resources

• What to do when you receive a SNAP charge letter
• How to respond to a SNAP charge letter

• What is an EBT Charge Letter? How to Respond

  Getting an EBT charge letter from the USDA can be scary. This letter means the government thinks your store did something wrong with the SNAP program. But don’t panic! There are things you can do to protect yourself and your business. This article will explain what an EBT charge letter is, why you got one, and most importantly, how to respond.

  What is SNAP?

  First, some background. SNAP stands for Supplemental Nutrition Assistance Program. It used to be called food stamps. SNAP provides money on a special debit card called an EBT card that low-income people can use to buy food at participating stores[1]. As a retailer, being able to accept EBT cards brings in a lot of customers. But you have to follow SNAP’s rules.

  What is an EBT Charge Letter?

  The EBT charge letter comes from the USDA’s Food and Nutrition Service (FNS) [2]. It says they think your store broke SNAP rules. There are three main violations they look for:

  • Trafficking – buying someone’s SNAP benefits for cash[3]
  • Suspicious transactions – unusual patterns that might mean trafficking[4]
  • Policy violations – not following rules about what can be bought with SNAP[1]

  The letter will explain what violation they think happened and what the evidence is. It will also say what the punishment might be if you are guilty. This could be a fine, getting suspended from SNAP for a while, or even permanent disqualification[4].

  Why Did I Get an EBT Charge Letter?

  There are a few reasons the USDA might think your store broke the rules[5]:

  • An undercover investigation found trafficking or suspicious transactions.
  • Their ALERT system flagged your store for unusual EBT patterns.
  • A compliance investigator visited and thought something seemed wrong.

  You may not remember the investigator’s visit months ago. They usually don’t tell you they are from USDA. The letter will explain what made them suspicious.

  Responding to the EBT Charge Letter

  You only have 10 days to respond after getting an EBT charge letter! Here are some tips for responding[1][2][5]:

  • Contact a lawyer immediately. The charges are serious and you need expert help.
  • Gather evidence like sales records, employee training manuals, and inventory logs.
  • Interview employees involved to get their side of the story.
  • Respond to every allegation in detail. Explain why you didn’t break the rules.
  • Provide proof you had effective compliance policies before any violations.
  • Ask for a civil money penalty instead of disqualification.
  • Be 100% truthful. Getting caught in a lie makes it much worse.

  With an experienced lawyer, you can put together a convincing response. Be thorough and provide documentation. Make it clear you take EBT compliance seriously.

  After Responding to the Charge Letter

  After you respond, the USDA will review your case again[4]. Here are the main possibilities:

  • They could close the investigation if you disproved the allegations.
  • They could agree to a civil money penalty