# Presentation: 040089

## WIC FRUITS AND VEGETABLES CASH VALUE VOUCHER (CVV)

- 2008 WIC EBT Users Group Meeting
- Milwaukee, WI
- June 17-19, 2008

## 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.

## 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.

## Background

## 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.

## 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.

## Approach

## 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

## 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](http://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.

## FNS CVV Policy (Continued)

- When the CVV purchase amount exceeds the amount of available CVV benefits in the WIC participant’s 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.).

## WIC CVV Business Rules

## 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

## 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.

## 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.

## 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 X9.93:2008]
- The APL includes a check digit for each WIC approved food item, the last digit of the unique product identifier.

## 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.

## 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.

## 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]

## 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.]*

## 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.

## 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 participant’s WIC CVV account.  No discount amount will be reported in the claim or purchase request.

## Technical Specifications

- X9.93 Implementation Considerations

## 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 Authority’s 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 Authority’s 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.

## Field Usage

- WIC CVV implementation affects data fields defined in ANSI X9.93:2008.
- General UPC/PLU data
- APL related fields
- Purchase request information fields
- Purchase response information fields

## 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.]*

## 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

## 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

## 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

## Use Cases

## Issue #1.PLU Mapping/Reporting

## 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 @ $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

## 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 @ $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

## 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 @ $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

## Issue #2Split Tender

## 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.

## 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 @ $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 > 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, PLU#4015 for apples.
- FS redemptions reported to FS: $1.00
- Printed receipts provide all of the information required by FNS

## 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 @ $1.69/lb, $2.00 purchase by weight and PLU #4011 for bananas @ $.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 > 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 > 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 PLU#4011.
- Printed receipts provide all of the information required by FNS