The U.S. Department of Agriculture is transitioning its Supplemental Nutrition Assistance Program (SNAP) electronic benefits transfer cards from magnetic stripe to chip technology—commonly known as Europay, Mastercard and Visa or EMV. For convenience retailers, the change introduces operational and compliance updates at the point of sale (POS).
The goal of this shift is to reduce card fraud and enhance payment security.
According to guidance from Conexxus, a technology standards organization serving the convenience and fuel retailing industry, retailers nationwide must be prepared to accept the new chip cards—even if their own state has not yet issued them. Since benefits can be used across state lines, retailers may see chip-enabled cards before a local mandate takes effect.
“Reduction of fraud is critical in our industry,” said Mark Holloway, chief information officer for Hammer Williams – Jiffy Trip, Enid, Oklahoma. “Each card type that converts to EMV represents a monumental undertaking by support, installation, POS software solutions and site-level team members, but they are necessary to reduce chargebacks and fraud. Our involvement with Conexxus helps us plan and gain knowledge that would otherwise be out of reach for a small to mid-sized retail company.”
What retailers should expect
Retailers may receive letters from their states requesting that they contact their vendors to address compatibility and readiness.
If a store is using a standalone terminal that only reads magnetic stripe cards, it may need to be replaced. Retailers' home offices, oil brands or wholesalers should be communicating with payment technology vendors about whether they can accept chip cards, according to Conexxus.
If retailers do not hear from their brand or distributor when a state notice arrives, Conexxus recommends contacting them directly.
For oil brands, wholesalers and home offices
Conexxus recommends oil brands and corporate teams stay up to date on the chip transition by watching for communications from state agencies, processors and vendors. They should:
- Confirm with technical teams whether magnetic stripe fallback is supported.
- Collaborate with vendors to understand when chip card acceptance will be available.
- Work with processors to identify any required certifications or upgrades.
- Coordinate with equipment providers to understand what changes may be bundled with certification requirements.
- Educate site-level staff on timing and what the shift means for operations and customer experience.
Technical considerations
Conexxus also advises technical teams to verify whether their POS systems support Empty Candidate List (ECL) fallback. This occurs when a chip card cannot be read and the system attempts to process the card via magnetic stripe or manual key entry.
If ECL fallback is not supported, terminals may be unable to accept chip cards unless fallback methods are permitted and configured correctly.
Card handling at the register
If the POS system has been updated to support chip card acceptance, customers with chip-enabled cards will insert or tap their card just like with any other chip-based payment, according to Conexxus. In some cases, a card reader may require the chip to be inserted before allowing a swipe. Employees should ask the customer to insert the card and follow the on-screen prompts before attempting to swipe.
Interested in learning more about the latest in convenience-store technology? Don't miss C-StoreTEC 2025 (October 27-29, Plano, TX)—the industry's premier technology leadership event created by retailers, for retailers. Visit https://cstoretec.com to secure your spot at this groundbreaking conference where convenience retail leaders collaborate to drive digital transformation and accelerate growth.
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