Should You Accept EBT in Your Laundromat?

One question that comes up frequently among laundromat owners is whether they should accept EBT (Electronic Benefit Transfer) as a payment option. While modern laundry payment systems can support EBT transactions, deciding whether it makes sense for your store requires understanding who your customers are and how EBT works.

Understanding EBT and How It Applies to Laundry

EBT benefits fall into two distinct categories, and this distinction is critical:

• SNAP (Food Benefits): The most common type. These funds cannot be used for laundry services.
• TANF (Temporary Assistance for Needy Families): A cash benefit that can be used for laundry.

Customers who receive only food benefits will be unable to use their EBT card in your laundromat. However, customers receiving TANF funds can use those dollars just like cash, including for washing and drying services.

The challenge is that many EBT recipients do not realize there are two types of benefits. This confusion often leads to declined transactions and frustration.

Decline Rates Can Be High

Across laundromats that accept EBT, it is common to see an EBT decline rate of around 50%. Most of these declines occur because:

• The customer believes their food benefit can be used for laundry
• They are unaware of TANF requirements
• They have insufficient funds in the cash-benefit portion of their account

Because of this, offering EBT without fully understanding your customer base can lead to confusion at the kiosk and added support demands for your staff.

Survey Your Customers Before You Invest

There are no reliable public surveys that tell you how many customers in your area receive TANF benefits specifically. That means the best way to evaluate whether EBT makes sense for your laundromat is to ask your customers directly.

You might consider:

• Talking with customers about whether they use EBT
• Asking your attendants what they observe
• Speaking with other local business owners who serve similar demographics

If only a small percentage of customers receive TANF funds, the cost of enabling EBT acceptance may not justify the investment.

When EBT Makes Sense — and When It Doesn’t

EBT acceptance can be worthwhile if:

• You serve a community with a high number of TANF recipients
• You confirm that customers understand how EBT works
• You’re prepared to educate users and handle declines

EBT may not be worth the added cost if:

• Most customers receive only SNAP food benefits
• Your customer base is unclear or inconsistent
• The decline rate becomes too high to justify support and processing costs

Ultimately, EBT acceptance is not a universal must-have — it depends entirely on your market and your customer mix.

The Bottom Line

While CCI systems offer the option to accept EBT, it’s important for store owners to understand how EBT works and assess whether it aligns with their customer base. If your community includes a significant number of TANF recipients, EBT can be a valuable payment option. If not, the additional cost may outweigh the benefit.

As with any payment decision, the best approach is to gather data, talk to your customers, and make an informed choice based on the needs of your market.

About CCI

For the past 25 years, Card Concepts Inc. (CCI) has helped over 4,000 laundries streamline operations and maximize profit potential through modern payment solutions designed to help operators work on their business instead of in it.