The initiative ensures that EBT transactions are settled on the next business day after the sale takes place, thus saving retailers several million dollars annually in lost float. Currently, EBT sales that occur after cut-off time on Friday are not settled until Tuesday. The FMI amendment allows for those same sales transactions to be settled on Monday.
“We are delighted with this victory,” said FMI President and CEO Tim Hammonds. “Next-day settlement of EBT transactions mirrors the practice for other commercial transactions, thereby saving our members millions of dollars in lost float every year. This victory shows how effective an association can be in identifying a flawed regulation and then mobilizing an entire industry to change it. We are very grateful to all of those members who responded to our call for the grassroots letters and phone calls that were key to our success."
The amendment requiring next day settlement will be incorporated into Section 6.1 of the Quest Operating Rules for EBT transactions.