SNAP Agreement

This Agreement between the Colorado Farmers’ Market Association (CFMA) and the below named Market describes the benefits and responsibilities of both parties participating in SNAP sponsored by CFMA. SNAP was established by a USDA grant to provide wireless point-of-sale terminals which allow SNAP transactions at Colorado farmers’ markets. Using funds from this grant, the CFMA has purchased the wireless terminals and provides them to participating markets, along with support to implement the program. It is anticipated that the ability to accept SNAP transactions, as well as debit/credit card transactions at the markets’ option, will directly benefit farmers/vendors and the Market with increased revenue and the inclusion of new customers from throughout your community.

I/we operate a multi-vendor farmers’ market authorized by the USDA Food and Nutrition Service (FNS) as a retail outlet in the CFMA SNAP Coupon Program. I/we understand that the wireless point-of-sale terminal (“the terminal”) which we will receive operates by electronically transferring the amount of a SNAP (or debit/credit) transaction made with a customer’s Colorado Quest card (or debit/credit card, at the Market’s option) from his/her account to the Market’s bank account using electronic card services and wireless data networks. I understand that use of the terminal assures on-line verification of valid SNAP/debit/credit cards/accounts and funds availability and transfer. I understand that I may use the terminal at multiple farmers’ markets under the same management on different days of the week.

I/we understand that to enable the program to operate at our market(s), we must operate a “Farmers’ Market Coupon System” that will enable SNAP customers to make purchases from the market cashier of $1.00 denomination “SNAP coupons” for customers’ use in making purchases of eligible food and plant products from market farmers and vendors; and, if the Market opts to include debit/credit transactions, $5.00 denomination “Market Bucks” which can be used for the purchase of any product at the Market. I understand that the Market will be responsible for making SNAP transactions and issuing SNAP coupons for SNAP customers during normal business hours of the Market during the Market’s season, and for securing the SNAP coupons (and Market Bucks) against loss or theft. I understand that the market will be responsible for redeeming the coupons from participating farmers and vendors for each market day, keeping records of redemptions, and providing reimbursement on an established basis using funds from the Market’s business checking account into which the wireless SNAP and debit/credit transactions are credited when the coupons are purchased by SNAP and debit/credit customers at the Market. I understand that this account will also be debited monthly for terminal provider charges and transaction fees.

I/we understand that CFMA is providing the Verifone Vx610 wireless terminal to qualified farmers’ markets who apply to participate in the program, and also providing support materials and services (see below). I/we agree to pay a $10 monthly administrative support fee to CFMA during each month the terminal is in operation in 2013, and payable at the end of the 2013 season. I understand that CFMA cannot fund or reimburse the cost of personnel services for the “SNAP coordinator” or other market staff who will operate the terminal, keep records of coupons sold to customers and redeemed by farmers/vendors, reimburse farmers and vendors for the coupons, or fund or reimburse the cost of printing copies of promotional posters/flyers from the sample materials to be supplied. I/we agree to require participation in the program by farmers and vendors at our Market who sell SNAP coupons eligible food products, to obtain a SNAP and Debit Service Program Vendor Agreement from each eligible farmer/vendor, and to instruct farmers and vendors in Farmers Market SNAP rules and procedures, including acceptance of SNAP Coupons for eligible items only, “no change” for SNAPCoupons, daily redemption of coupons, and posting of “We Gladly Accept SNAP Coupons” signs. I/we understand that in order to participate in the program, the Market agrees that the terminal will be in operation to accept SNAP transactions whenever the Market is open for business.

I/we agree to complete a FNS “SNAP Application for Stores” to receive our FNS number, and a separate eFunds Agreement to establish a card service account under which SNAP (and debit) card transactions that are made using the terminal are credited to the Market’s bank account linked to the terminal. I/we understand that a separate application is required for credit transactions. Upon receipt of the completed eFunds Agreement, I understand the CFMA will authorize delivery of a Verifone Vx610 wireless terminal to the Market to enable SNAP and debit transactions to be made during the 2010 season. I/we understand that in addition to providing a Verifone wireless terminal, the CFMA will: (1) provide a supply of Farmers’ Market SNAP Coupons (and Market Bucks at the Market’s option) and a stamp with our market’s name; (2) provide a sample SNAP and Debit Service Program Vendor Agreement for issuance to farmers/vendors; (3) provide Excel forms for tracking transactions, coupon issuance, and vendor reimbursement ; (4) provide computer files of posters (11×17) and flyers (8-1/2×11) for use in promoting SNAP sales at the market(s); (5) provide a Market Toolkit notebook with applicable program documents and information.

I/we understand that the Verifone Vx610 terminal to be provided under this program is the property of CFMA, is for use only by our market, and may not be transferred, assigned, or subleased. I understand that if the terminal is lost, stolen, or damaged due to accident or misuse, and is not available or operable, the CFMA is not responsible for replacing or repairing it. The terminal will remain with the market in the off-season.

I/we understand that there may be uncertainties in the use of the wireless terminal and the coupons, including the possibility that wireless service could be temporarily interrupted (requiring suspension of coupon sales), that coupons in the market’s possession could be lost or stolen, then accepted by farmers/vendors and presented for redemption, or that the Market could accidentally redeem coupons bearing another market’s name. I agree to hold the CFMA harmless for any problems/claims arising from the program.

What CFMA agrees to provide to the Market:

  • Use of a Verifone Vx610 point-of-sale terminal for the 2012 season including activation fee (programming), carrying case, charger, and extra paper. Ownership of the terminal remains with CFMA.
  • Training and assistance (as needed) in implementing CFMA SNAP and assistance in obtaining FNS authorization for SNAP transactions
  • Coupons for SNAP and debit/credit card transactions along with a stamp bearing the Market’s name
  • Assistance in training the Market’s vendors in use of the program
  • Sample promotional materials to be used by the Market
  • Excel accounting forms for tracking transactions and vendor redemption
  • SNAP Program Market Toolkit

The Market agrees to:

  • Enter into a contract with the terminal provider (eFunds) for operation of the point-of sale terminal
  • Pay monthly fixed costs to terminal provider (Terminal Support Fee and wireless fee as applicable)
  • Pay processing fees including any applicable transaction fees to terminal provider
  • Pay CFMA a monthly fee of $10 per month during the months that the terminal is in operation
  • Display the FNS “We Accept SNAP Benefits” poster at the Market booth/table and welcome all eligible SNAP transactions while terminal is in operation
  • Follow all applicable federal and state regulations regarding SNAP transactions
  • Require all eligible vendors to participate in SNAP program and obtain a signed SNAP and Debit Service Vendor Agreement from all eligible vendors
  • Train market vendors in SNAP regulations and program practices
  • Provide eligible farmers/vendors with “We Gladly Accept SNAP Coupons” signage supplied by FNS to be posted at their market stands at all times to ensure that SNAP customers are aware that SNAP coupons are accepted
  • Designate one person as SNAP Coordinator who is responsible for CFMA SNAP at the Market and any additional person(s) necessary to do administer the program
  • Ensure that the terminal is operated only by persons trained in or familiar with its operation
  • Operate a Farmers’ Market SNAP Coupon (and Market Bucks Coupon) System utilizing only coupons provided by CFMA
  • Stamp each SNAP Coupon and Market Bucks Coupon with the Market’s name before issuing
  • Redeem only coupons stamped with the Market’s name, and return coupons issued by another market to the farmer/vendor
  • Establish a plan for reimbursement of farmers/vendors for the coupons they redeem and fully reimburse all vendors according to that plan
  • Maintain a business checking account for electronic deposits, fee payments and vendor reimbursement
  • Follow good business accounting practices for tracking transactions, issuing coupons and vendor reimbursement
  • Provide for the care and security of tangible assets received as part of the program, including terminal and coupons
  • Contact eFunds Customer Service at (1-800-737-5834) immediately regarding any wireless service interruptions or terminal malfunction
  • Notify CFMA (303-887-5972) immediately of damage to or loss of the wireless terminal, and/or loss, theft, or low supply of coupons
  • Report to CFMA on the Market’s SNAP status at the end of the 2013 market season

Upon failure to abide by the terms of this agreement, the Market will relinquish all rights to participate in CFMA SNAP and will return the wireless point-of-sale terminal to CFMA.

Please initial to acknowledge acceptance of this agreement:
Market Name:
Market Website:
SNAP Administrator:
Full Name:
Zip Code:
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