The Food Stamp program is administered by the USDA's Food and Nutrition Service to help low income families buy the food they need for a healthy diet. All food items can be purchased with food stamps. Household goods such as tissues, soaps, vitamins and pet foods may not be purchased with food stamps and doing so is punishable by law.

If your buying club is interested in the food stamp program, first apply for an E.I.N. number (see 'Opening a Checking Account For Your Buying Club'). Then contact your nearest USDA food and nutrition office for an application to accept food stamps.

Visit the USDA's Food and Nutrition Services web site at http://www.fns.usda.gov for a state by state listing of USDA field offices. You may also call these offices if you need help filling out the application (many of the questions are directed towards retail stores, so it can be a little confusing). It may be helpful to send a copy of a recent invoice along with your application as "proof of existence". In 2-4 weeks. you will receive an authorization card and a helpful booklet explaining the rules of the program.

The present system uses EBT cards, also known as "swipe cards" which are issued to the individual food stamp user. There are two ways a buying club can handle the redemption process. If the group is averaging $100 or more per month in food stamp sales it is possible to have the electronic equipment necessary for swiping the cards provided by the state. For those groups with a lower volume the transaction is handled by first calling for an approval number for each transaction and then mailing a voucher in to the processing center. The processing of a food stamp purchase using the vouchers can take a week or more due to mailing time.