General Implementation
- What are the required next steps for WIC state agencies to implement the rule?
The final rule revises food delivery regulations that apply to all WIC state agencies. To remain in compliance with WIC regulations, all state agencies must:
- Develop a transaction authentication policy and submit it to FNA. See questions 3a through 3c for more details.
- Ensure the state plan reflects current remote issuance operations.
- Develop updated vendor, farmer, and farmers market agreements to include all necessary provisions.
Beyond the provisions of the final rule that apply to all state agencies, there are additional implementation requirements for state agencies that are currently using waivers for an online shopping project, to conduct virtual monitoring visits, or to offer mobile pay.
Types of Vendors
- What types of vendors can state agencies authorize?
State agencies may authorize brick-and-mortar vendors, internet vendors, and mobile vendors.
- Are vendors that were previously authorized for WIC now considered brick-and-mortar vendors?
Vendors that were previously authorized in WIC with a single, physical, fixed location are now considered brick-and-mortar vendors. Before the final rule was published, state agencies with approved waivers authorized some internet vendors, and state agencies authorized some mobile vendors; however, the vast majority of the nation’s currently authorized WIC vendors are brick-and-mortar vendors.
- What are the differences between each vendor type?
Vendor types are determined by where the WIC transaction takes place. For brick-and-mortar vendors, the transaction must occur at a single, physical, fixed location (e.g., a store). For internet vendors, the transaction must be internet-based (e.g., via an online ordering site or platform). For mobile vendors, the transaction must take place at a mobile vehicle (e.g., a truck, bus, or pushcart).
- Can a state agency permit a vendor to be multiple types under the same authorization (i.e., can the same authorization allow a vendor to transact WIC foods both in-person and online)?
No. The state agency must authorize each vendor separately. If a business operates both a brick-and-mortar storefront and an online ordering platform, the state agency must authorize the brick-and-mortar store to transact WIC foods in-person separately from the internet vendor transacting WIC foods online. These distinctions are necessary to strengthen program integrity and ensure the appropriate management and oversight processes are used to safeguard each type of transaction.
- Can an authorized brick-and-mortar vendor offer WIC foods via internet transactions or are they limited to physical sales?
They are limited to transacting WIC benefits at the physical location of the authorized brick-and-mortar store. If the brick-and-mortar store has an online retail presence such as an online ordering system, platform, or site where they can also transact WIC benefits, the online retail operations must be authorized separately as an internet vendor and assigned a distinct vendor ID.
- What is the difference between “online ordering” and an “internet-based transaction”?
“Online ordering” means the process a customer uses to select food items for purchase online, but the transaction for the WIC payment occurs in-person. An “internet-based transaction” means the process a customer uses to select food items for purchase online and the transaction for the WIC payment is completed online. While internet-based transactions are limited to internet vendors, online ordering could be used by brick-and-mortar, mobile, or internet vendors.
Transaction Authentication
- Which state agencies need to develop a transaction authentication policy?
All state agencies need to develop a policy for transaction authentication. This includes state agencies continuing to use Personal Identification Number (PIN) authentication.
- Do all state agencies need to submit their transaction authentication policy to FNA for approval?
The state agency must develop policies to ensure that each transaction is authenticated. The final rule permits the continued use of PINs, and alternative methods such as Open Authorization (OAuth). All state agencies must submit their transaction authentication policy to FNA but those using a PIN do not need to wait for our approval. However, state agencies using alternative authentication methods in place of a PIN cannot proceed with adopting the alternative method without our written approval.
- Do participants still need to enter a PIN in the presence of a cashier?
No. The final rule removes the requirement that paper food instruments must be signed or that a PIN is entered in the presence of a cashier. The rule allows WIC state agencies the flexibility to identify additional or new options to securely authenticate electronic benefits transfer (EBT) transactions, thereby strengthening program integrity and modernizing benefit security alongside the grocery industry.
Shelf Prices
- Do state agencies still need to collect shelf prices every six months or submit a shelf price exemption?
The regulatory requirement to ensure cost competitiveness remains. However, state agencies with EBT redemption data may now use this information for cost containment purposes. These state agencies will no longer need to collect shelf prices every six months or request an exemption. State agencies without EBT redemption data must continue to collect vendor shelf prices at least every six months, unless we grant an exemption.
- Do state agencies still need to collect shelf prices at authorization?
State agencies only need to collect shelf prices at authorization if they do not have access to EBT redemption data for the vendor, such as for an initial authorization.
- Do state agencies still need to collect shelf prices or prices charged to other customers during a compliance buy?
Yes. State agencies with EBT redemption data still need to collect shelf prices or prices charged to other customers during a compliance buy.
- How often do state agencies using EBT redemption data need to collect this information?
Since updated EBT data is available to state agencies in real time, the six-month timeline was removed. While this final rule does not specify a timeline for how often this data must be monitored, state agencies must continue to uphold all other requirements at 7 CFR 246.12(g) and ensure ongoing monitoring of EBT prices.
- Will this final rule impact a state agency’s existing geography or peer group exemption?
No. The process for requesting exemptions to geography and peer group requirements is completely separate and not impacted by this final rule. Please continue to submit updates to your geography and peer group exemptions per the exemption language.
Fees Associated with WIC Purchases
- Can vendors, farmers, and farmers markets provide delivery to participants?
Yes. WIC vendors, farmers, and farmers markets can deliver supplemental food to participants. However, vendors, farmers, and farmers markets cannot charge state agencies fees associated with WIC purchases, such as delivery or convenience fees. If fees are present for non-WIC participants using the same service, WIC participants must be allowed to pay these fees with another tender type. If a vendor, farmer, and farmers market has a free delivery policy for other customers, they are required to extend this offering to WIC participants.
- Can the state agency pay for delivery of foods in a retail food delivery system?
Federal WIC funds (e.g., Nutrition Services and Administration (NSA) and food funds) must not be used to pay for any fees associated with WIC purchases in a retail food delivery system. Non-WIC funds can be used at state agency discretion, such as for delivery fees.
Return of Benefits
- Are state agencies required to allow for the return of electronic benefits?
If the state agency authorizes internet vendors, the state agency must allow for the return of electronic benefits to a participant’s balance across all vendor types. This is an option for state agencies that do not authorize internet vendors.
- Does the return of electronic benefits apply to all vendors in a state agency?
If a state agency authorizes internet vendors, the state agency must allow for return of electronic benefits from all vendor types (i.e., mobile, internet, brick-and-mortar).
- Is the state agency required to extend benefit use to seven days beyond last date of use?
No. State agencies that allow for the return of electronic benefits may allow participants to use their benefits up to seven days beyond the last date of use, but it is not required. At a minimum, the state agency must provide the participant the remainder of the benefit issuance month to transact returned electronic benefits.
Virtual Oversight
- When can state agencies use virtual methods for vendor oversight?
State agencies may now use virtual methods for preauthorization visits, routine monitoring, and compliance buys. This option provides state agencies with the opportunity to pursue new types of monitoring and investigative methods and ensure they are appropriate for the vendor type (e.g. internet vendors) and environmental conditions.
- Are virtual methods of oversight allowed for mobile or brick-and-mortar vendors?
Yes. State agencies may use virtual methods of oversight for any vendor type.
- Are virtual methods of oversight required?
No. State agencies are not required to use virtual methods of oversight.
- Is the state agency required to document the cashier involved in a compliance buy?
The state agency is required to document the cashier involved in the compliance buy only if a cashier is involved in the compliance buy transaction. If the transaction does not involve a cashier (e.g., an internet-based transaction), the state agency is not required to document the cashier involved. However, the documentation requirement remains for compliance buy transactions that involve a cashier.
Food Delivery Systems & Food Instruments
- What types of food delivery systems may WIC state agencies use to provide participants with adequate access to supplemental foods?
There are three types of food delivery systems: retail, home food delivery, and direct distribution. Each food delivery system must be procedurally uniform throughout the state agency’s entire jurisdiction.
- Is EBT a food delivery system?
No. EBT is a benefit delivery method that provides electronic access to WIC food benefits (e.g., through an EBT card).
- Are state agencies required to continue using EBT cards for food instruments?
No. State agencies may use other types of food instruments besides an EBT card. Other food instruments could include but are not limited to an electronic benefit access device or technology, such as a mobile wallet, that is used to obtain supplemental foods.
- Can state agencies use multiple types of food instruments?
Yes. State agencies can use multiple types of food instruments within a single food delivery system. When used, each food instrument type must be uniform and described and approved in the state agency’s state plan.
Home Food Delivery
- Are home food delivery contractors required to deliver only to a participant’s home?
No. Home food delivery contractors may now deliver supplemental food to either a location designated by the state agency, or a location designated by participants, provided it is approved by the state agency.
- Can state agencies continue using food funds to pay for transporting supplemental food in home food delivery systems?
Yes. In home food delivery and direct distribution systems, state agencies may continue using federal WIC food funds to pay for the cost of transporting food. This is different from a retail food delivery system in which state agencies cannot use WIC food funds to pay for the cost of transporting food.
Recalls
- Must vendors treat WIC participants the same as non-WIC customers during supplemental food recalls?
Yes. During a supplemental food recall, vendors must treat all customers, including WIC participants, parents or caretakers of infant or child participants, and proxies the same. This should be reflected in store recall exchange policies, including policies related to replacements (which may include, but are not limited to, the same product, a substitute product, store credit, or a cash refund).
Purchase Price
- Are vendors required to inform participants of the total purchase price before a transaction is completed?
Yes. Vendors are required to inform participants of the total purchase price before a transaction is completed. The final rule clarifies that this requirement applies to EBT transactions.