Coupons and Discounts ... The manner in which coupons an

Loading...

PPT – Coupons and Discounts ... The manner in which coupons an PowerPoint presentation | free to download - id: 10ed1-MTNkN



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Coupons and Discounts ... The manner in which coupons an

Description:

Coupons and Discounts ... The manner in which coupons and discounts are credited will differ between WIC ... WIC purchases, the coupon or discount is credited ... – PowerPoint PPT presentation

Number of Views:286
Avg rating:3.0/5.0
Slides: 38
Provided by: Pen71
Learn more at: http://www.fns.usda.gov

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Coupons and Discounts ... The manner in which coupons an


1
WIC FRUITS AND VEGETABLES CASH VALUE VOUCHER
(CVV)
  • 2008 WIC EBT Users Group Meeting
  • Milwaukee, WI
  • June 17-19, 2008

2
Goal
  • It is the goal of FNS to present a single
    approach for implementing changes to WIC food
    packages, specifically the electronic issuance of
    WIC Cash Value Voucher (CVV) benefits to
    participants for the purchase of fruits and
    vegetables, online and offline.

3
Objectives
  • Provide a single solution for all retail
    ECR/POS systems.
  • Where a single solution is not feasible, propose
    a solution that is technology specific,
    operationally and technically feasible, with
    minimum impact to retail ECR/POS systems
    currently certified and supporting WIC EBT.

4
Background
5
FNS Revisions to WIC Food Packages
  • Interim Final Rule (72 FR 68966)
  • Issued December 6, 2007
  • Effective February 4, 2008
  • Amended March 17, 2008
  • Implementation Deadline October 1, 2009
  • Comments Due February 1, 2010
  • Final Rule will be issued by USDA after review
    and analysis of public comments.

6
FNS Report WIC EBT System Implementation of WIC
Cash Value Voucher (CVV)
  • Clarify FNS regulations and/or policy related to
    CVV implementation in WIC EBT environment
  • Define WIC CVV Business Rules for WIC EBT
  • Define technical specifications for the
    implementation of WIC CVV in retail ECR/POS
    systems, integrated and stand-beside and
  • Recommend retail ECR/POS system design features
    and enhanced functionality to maximize
    efficiencies and benefit utilization
    (redemptions) at the POS.
  • Final Report June 2008.

7
Approach
8
Cooperative Planning WIC EBT Team Approach
  • Key stakeholder involvement
  • FNS headquarters, region offices
  • State WIC Authorities, Indian Tribal
    Organizations (ITOs)
  • WIC vendors, retailer/grocer associations
  • Retail ECR/POS manufacturers, developers,
    integrators
  • Activities/Milestones
  • Conference calls
  • Inter-industry meeting Dallas, April 14-15,
    2008
  • Technical workgroup initial draft report,
    follow-up analyses on technical issues, white
    paper reports

9
FNS CVV Policy Impacting Retail ECR/POS Systems
  • Fresh fruits and vegetables can be purchased with
    WIC CVV benefits.
  • CVV benefits may be up to 8 or 10 (pregnant
    women) or 15 per participant per month.
  • Some foods are excluded by regulation.
    Reference www.fns.usda.gov
  • Any fresh product (packaged, bulk or individual)
    that is not excluded must be authorized for
    purchase with CVV benefits.
  • In addition to fresh produce, WIC Authorities may
    authorize specific canned, frozen or dried food
    items for administrative reasons.

10
FNS CVV Policy (Continued)
  • When the CVV purchase amount exceeds the amount
    of available CVV benefits in the WIC
    participants account, unless operating offline
    or specifically prohibited by the WIC Authority,
    it is FNS preference for retail ECR/POS systems
    to allow a WIC participant to pay for a portion
    of a WIC CVV item, up to the available WIC CVV
    balance (if known), with WIC CVV benefits and the
    remainder (difference) with a second (non-WIC)
    tender.
  • Cash or credit must not be given to a WIC
    participant for unused CVV benefits.
  • WIC CVV purchases are not subject to cost
    containment reviews (i.e., maximum reimbursement
    per peer group, individual food item price edits
    for NTE, maximum price, etc.).

11
WIC CVV Business Rules
12
WIC CVV Business Rules
  • WIC CVV Business Rules are grouped by WIC EBT
    business process and system design feature and/or
    environment
  • Retail ECR/POS systems
  • Authorized Product List (APL)
  • WIC CVV purchase transaction approval and
    processing
  • Coupons and discounts

13
Retail ECR/POS Systems
  • Retail ECR/POS systems ensure WIC benefits are
    only used to purchase WIC-approved WIC CVV foods.
  • Retail ECR/POS systems use the Authorized
    Products List (APL) to identify foods approved
    for purchase with WIC CVV.
  • Retail ECR/POS systems report food items redeemed
    with WIC CVV benefits.
  • Retail ECR/POS systems produce printed receipts
    that provide a WIC cardholder information about
    available WIC CVV benefits, WIC CVV benefits
    utilization (pre-purchase) and WIC purchases.
  • If required by the WIC Authority, WIC ECR/POS
    systems support aggressive redemption of WIC
    CVV foods in the same manner as prescribed WIC
    foods.

14
Authorized Products List
  • The APL lists all food items approved by the WIC
    Authority for purchase with WIC CVV, by food
    category and subcategory, and also by unique
    product identifier, either Universal Produce Code
    (UPC) or Price Look Up (PLU) Code.
  • The APL is the reference used by the WIC/WIC EBT
    hosts to confirm items approved by the retail
    ECR/POS system for purchase with WIC CVV were
    authorized by the WIC Authority for purchase with
    WIC CVV and are eligible for payment.
  • The APL identifies each WIC authorized food item
    as belonging to a single food category within
    that food category, the food item may be listed
    at both the broadband (000) and one or more
    lesser, subcategory (001, 002) levels.

15
Authorized Products List
  • For fresh fruits and vegetables, the APL contains
    only PLU codes compliant with the International
    Fresh Produce Standard (IFPS).
  • Each WIC-eligible (non excluded) fresh fruit and
    vegetable is identified by an IFPS PLU code in
    the APL.
  • The APL identifies whether the unique product
    identifier is a UPC or PLU code. Reference
    ANSI X9.932008
  • The APL includes a check digit for each WIC
    approved food item, the last digit of the unique
    product identifier.

16
WIC CVV Purchase Transaction Approval and
Processing
  • WIC CVV benefits are separate, distinct from
    prescribed WIC benefits.
  • WIC CVV benefits are identified within the APL
    and retail ECR/POS systems as a separate food
    category, i.e., WIC CVV Fruits and Vegetables.
  • FNS will designate the food category value for
    WIC CVV
  • WIC CVV benefits are measured in cash value
    units.
  • The base unit of measure for the WIC CVV food
    category is 1.00 the quantity of an item
    redeemed is the number of pennies in the purchase
    price.
  • The retail ECR/POS system does not record, track
    or report the weight or the number of individual
    fruit and vegetable items (packaged, bulk or
    individual) purchased with WIC CVV.

17
WIC CVV Purchase Transaction Approval and
Processing
  • Split Tender Purchases
  • A WIC CVV food item may be redeemed in total or
    in part with WIC benefits.
  • A single UPC or PLU may be split and purchased
    partially with WIC benefits and one or more
    additional tender.
  • Split tender is not allowed for prescribed WIC
    food purchases.

18
WIC CVV Purchase Transaction Approval and
Processing
  • WIC CVV Split Tender is a technology specific
    issue. In an online system, if the participant
    does not have the second tender, the sale can be
    canceled and benefits restored to the account in
    an offline system, benefits deducted from the
    card and replacement of benefits onto the card
    cannot occur at the POS.
  • Online retail ECR/POS systems may allow the
    purchase of a single food item by two or more
    types of tender (i.e., WIC, FS, TANF, cash),
    unless prohibited by the WIC Authority.
  • Offline. Offline retail ECR/POS systems must not
    allow a single food item to be split and
    purchased by two or more types of tender.
  • To enable WIC participants to redeem full WIC CVV
    benefits, FNS recommends retail ECR/POS system
    logic utilize one or more algorithms to
    maximize the utilization of available WIC CVV
    benefits at the POS. Ex Modified FIFO, Best
    Fit, Best Match

19
WIC CVV Purchase Transaction Approval and
Processing
  • Positive APL Match.
  • The UPC or PLU code scanned at the POS is
    matched against a UPC or PLU in the retail
    ECR/POS system (APL) to determine whether a food
    item scanned at the POS is WIC CVV eligible. If
    the available balance is equal to or greater than
    the quantity (price) of a WIC CVV item purchased,
    the food item scanned is WIC CVV redeemable.
  • Mapping
  • When a non-standard or IFPS retailer assigned
    PLU code is scanned, a State WIC Authority may
    require a retail ECR/POS system map a food item
    scanned to an IFPS-compliant PLU code within the
    APL for a similar or like food type (full
    mapping).
  • As an alternative, a State WIC Authority may
    allow a retail ECR/POS system to map the food
    item to a single, IFPS-compliant PLU code in the
    APL (partial mapping).
  • FNS will designate the IFPS-compliant PLU code to
    be used by all WIC Authorities for partial
    mapping. EX PLU 4469, defined by the IFPS as
    For use with all commodities.

20
WIC CVV Purchase Transaction Approval and
Processing
  • Reporting
  • A State WIC Authority may require a retail
    ECR/POS system report each WIC CVV food item
    approved for purchase with WIC CVV (full
    reporting).
  • As an alternative, a State WIC Authority may
    allow a retail ECR/POS system report all WIC CVV
    food items purchased as a single IFPS-compliant
    PLU code within the APL.
  • FNS will designate the IFPS-compliant PLU code to
    be used by all WIC Authorities opting to allow
    many-to-one reporting of WIC CVV purchases.

21
Coupons and Discounts
  • Retail ECR/POS systems must apply manufacturer
    and store coupons and other discounts to WIC CVV
    purchases.
  • The coupon or discount will be applied at the
    item level, when technically or operationally
    feasible
  • If the coupon or discount cannot be matched to
    the individual food item, the coupon or discount
    will be applied at the transaction level.
  • The manner in which coupons and discounts are
    credited will differ between WIC CVV and
    prescribed WIC purchases.
  • For prescribed WIC purchases, the coupon or
    discount is credited to WIC and the discount
    amount is reported in the claim or purchase
    request.
  • For WIC CVV, the coupon or discount will be
    subtracted from the WIC CVV purchase amount and
    price and the net purchase will be decremented
    from the WIC participants WIC CVV account. No
    discount amount will be reported in the claim or
    purchase request.

22
Technical Specifications
  • X9.93 Implementation Considerations

23
WIC CVV General
  • WIC CVV benefits utilize the same food category
    and subcategory data structures as prescribed WIC
  • A category/subcategory approach is technology
    neutral approach, supportable in both online and
    offline WIC EBT systems at all processing levels
  • At the POS, where the UPCs and PLU codes scanned
    are matched to UPCs and PLU codes in the WIC
    Authoritys current APL for purchase request and
  • At the WIC/WIC EBT host, where the UPCs and PLU
    codes reported by retail ECR/POS systems are
    matched to UPCs and PLU codes in the WIC
    Authoritys current APL for payment approval and
    settlement.
  • Integration of WIC CVV will require modifications
    to clinic, host and retail ECR/POS systems, but
    system support for the new benefits is intended
    to be fairly straightforward.

24
Field Usage
  • WIC CVV implementation affects data fields
    defined in ANSI X9.932008.
  • General UPC/PLU data
  • APL related fields
  • Purchase request information fields
  • Purchase response information fields

25
General UPC/PLU Data
  • In X9.93, Part 1 for online and in Part 2 for
    offline, UPC Data is used to contain the actual
    UPC or PLU for an item
  • UPC/PLU indicator, n 1
  • UPC, n 16 (right justified, zero-filled, last
    digit is a check digit on significant digits) or
  • PLU, n 16 (right justified, zero-filled).
  • NOTE The standard will be amended to indicate
    the last digit is a check digit for PLU data.

26
APL Related Fields
  • In Part 1, for online systems, APL related fields
    appear in the EBT file update Response Data in
    Part 2, for offline systems, APL related fields
    appear in the WIC UPC/PLU detail record as part
    of the claim file.
  • Benefit Quantity
  • For prescribed WIC, the quantity of benefit units
    required to redeem this WIC benefit
  • For WIC CVV, 100 (1.00)
  • Package Size
  • For prescribed WIC, the measure of package
    content in specified units of measure
  • For WIC CVV, 100 (1.00)
  • Price Type
  • For prescribed WIC, the type of price being sent
    in the item price field
  • For WIC CVV 03, a CVV item, no maximum price

27
Purchase Request Information Field
  • For Part 1, these fields appear in the WIC
    Prescription Food Item Data used in 200 messages
    for Part 2, the WIC claim addenda record as part
    of the claim file.
  • Purchase Quantity
  • For prescribed WIC, the number of instances a
    UPC/PLU is represented in the purchase
  • For WIC CVV, the price of the item up to the
    available balance, if known
  • Units
  • For prescribed WIC, the quantity of benefit units
    for redemption from account (optional for online)
  • For WIC CVV the price of the item up to the
    available balance, if known

28
Purchase Response Information Fields
  • For Part 1, these fields appear in the WIC
    Prescription Food item Data used in 210 messages
    for Part 2, in the WIC auto-reconciliation
    addenda record 2 as part of the WIC
    auto-reconciliation file.
  • Purchase Quantity
  • For prescribed WIC, the number of instances for
    this UPC/PLU approved in the purchase (not used
    in offline)
  • For WIC CVV, the approved price of the item
  • Units
  • For prescribed WIC, the quantity of benefit units
    approved for redemption from account (optional
    for online)
  • For WIC CVV, the approved price of the item

29
Use Cases
30
Issue 1. PLU Mapping/Reporting
31
Use Case One-to-One (Full) Mapping Full
Reporting
  • Sale Condition Single Item Purchase,
    retailer-assigned, non-standard PLU code not in
    APL
  • Technology neutral business process
  • State maintains APL with IFPS standard codes for
    all specific food items
  • Item is scanned at POS the PLU code is
    store-assigned, non-standard locally-grown
    apples _at_ 1.69/lb, 1.00 purchase by weight
  • Apples are WIC-approved the retail ECR/POS
    system maps the non-standard PLU code to an
    IFPS-standard PLU for apples in the APL
  • CVV available balance is confirmed 3.00
  • Retail ECR/POS system converts CVV item price
    (1.00) to 100 units
  • CVV benefits are decremented from the available
    balance of CVV benefits 300 units - 100 units
    200 units
  • WIC CVV redemptions are reported to WIC 100
    units of the mapped PLU code for applies, 1.00
    price
  • Printed receipts provide all of the information
    required by FNS

32
Use Case Many-to-One Mapping Single PLU
Reporting
  • Sale Condition Single Item Purchase,
    retailer-assigned, non-standard PLU code not in
    APL
  • Technology neutral business process
  • State maintains APL with IFPS standard codes for
    all specific food items
  • Item is scanned at POS the PLU code is
    store-assigned, non-standard locally-grown
    apples _at_ 1.69/lb, 1.00 purchase by weight
  • Apples are WIC-approved the retail ECR/POS
    system maps the non-standard PLU code to the
    FNS-designated single PLU code for WIC CVV.
  • CVV available balance is confirmed 3.00
  • Retail ECR/POS system converts CVV item price
    (1.00) to 100 units
  • CVV benefits are decremented from the available
    balance of CVV benefits 300 units - 100 units
    200 units
  • WIC CVV redemptions are reported to WIC 100
    units of the mapped PLU code designated by FNS
    to denote CVV, 1.00 price
  • Printed receipts provide all of the information
    required by FNS

33
Use Case Full Mapping, Single PLU Reporting
  • Sale Condition Single Item Purchase,
    retailer-assigned, non-standard PLU code not in
    APL
  • Technology neutral business process
  • State maintains APL with IFPS standard codes for
    all specific food items
  • Item is scanned at POS the PLU code is
    store-assigned, non-standard locally-grown
    apples _at_ 1.69/lb, 1.00 purchase by weight
  • Apples are WIC-approved the retail ECR/POS
    system maps the non-standard PLU code to an
    IFPS-standard PLU for apples in the APL
  • CVV available balance is confirmed 3.00
  • Retail ECR/POS system converts CVV item price
    (1.00) to 100 units
  • CVV benefits are decremented from the available
    balance of CVV benefits 300 units - 100 units
    200 units
  • WIC CVV redemptions are reported to WIC 100
    units of the FNS designated single PLU code for
    CVV, 1.00 price
  • Printed receipts provide all of the information
    required by FNS

34
Issue 2 Split Tender
35
What is Split Tender?
  • FNS policy is to encourage states to allow
    participants to pay the WIC CVV overage with a
    subsequent tender. When more than the available
    balance is purchased, the system decrements the
    full, remaining CVV balance and allows the
    participant to pay the overage with a second
    tender.
  • When split tender occurs, only the portion
    purchased with WIC CVV is reported as redeemed
    the retail ECR/POS system records both the WIC
    CVV redemption and the purchase with secondary
    tender
  • Split tender is technically feasible in online
    and offline systems split tender is
    operationally feasible in online systems only.
    In online retail ECR/POS systems, a vendor may at
    its option allow split tender for WIC CVV benefit
    redemptions.

36
Use Case Split Tender, Online (Store Option)
  • Sale Condition Purchase of one CVV item, CVV
    exceeds available balance
  • Technology neutral business process
  • Item is scanned at POS PLU 4015 for apples _at_
    1.69/lb, 2.00 purchase by weight
  • PLU matches a PLU in the APL apples are
    WIC-approved
  • CVV available balance is confirmed 100 units
  • CVV Price is converted to units 2.00 to 200
    units
  • Benefits are decremented 200 gt 100 units 100 -
    200 units 0 units remaining CVV balance and
    1.00 of apples to be purchased with secondary
    tender (FS)
  • WIC CVV benefit redemptions are reported to WIC
    100 units, 1.00 price, PLU4015 for apples.
  • FS redemptions reported to FS 1.00
  • Printed receipts provide all of the information
    required by FNS

37
Use Case No Split Tender, Online or Offline
  • Sale Condition Purchase of two CVV items, CVV
    exceeds available balance
  • Technology neutral business process
  • Items are scanned at POS PLU 4015 for apples _at_
    1.69/lb, 2.00 purchase by weight and PLU 4011
    for bananas _at_ .89/lb, 1.00 purchase by weight
  • Both PLUs match PLUs in the APL apples and
    bananas are WIC-approved
  • CVV available balance is confirmed 1.00
  • CVV Price is converted to units 2.00 to 200
    units 1.00 to 100 units
  • Benefits are decremented
  • Option 1. First In/First Out (FIFO) 200 gt 100
    units, apples cannot be redeemed with WIC CVV no
    purchase with WIC CVV possible 3.00 purchased
    with FS
  • Option 2. Modified FIFO 200 gt 100 units,
    applies cannot be redeemed with WIC CVV 100
    units 100 units, 100-100 units 0 units
    remaining balance 2.00 of apples purchased with
    secondary tender (FS)
  • Benefit redemptions are reported to WIC
  • Option 1 No WIC CVV benefits redeemed
  • Option 2 WIC CVV redemptions reported as 100
    units, 1.00 price, bananas PLU4011.
  • Printed receipts provide all of the information
    required by FNS