Cash, credit or EBT? More stores taking food stamps

In a down economy, and we all know this is a down economy, discount retailers perform better than those catering to the middle or upper middle class. So when dollar stores and deep discounters are reporting strong sales, everyone else starts looking at the reasons why and the answer may surprise: Food stamps.

Stores, like Family Dollar, that accept Electronic Benefit Transfers are prospering simply by accepting the cards. There's a list of products that qualify -- food items and necessities -- and those that don't like alcohol, pet food and cigarettes. But not all retailers were set up to process these payments, although that's starting to change.