The Food Stamp Surety Bond is required by the US Department of Agriculture to ensure that the USDA will receive payment from a retailer who has had a violation that results in collection from the USDA. These types of bonds are only required in the first year of business as a retail food business.
Click Here to learn more about the Food Stamp Bond requirements from the USDA
The bond is to protect your clients from any harm or wrongdoing by your company. If they feel you have wronged them in a financial matter they can file a claim with your surety company. The claim will be researched and if the surety company pays out, you must pay them back.
This bond is fairly easy to obtain and only requires a completed application.
The USDA requires a minimum bond amount of $1,000 or 10% of your average monthly coupon redemption volume in a 12 month time period.