Why debit cards from big banks are expensive on small sales
A published flat rate like 2.6% + 15¢ costs about 25¢ on that same $4 sale [5]. Federal law limits debit interchange for banks with $10 billion or more in assets and exempts smaller banks [3]. That cap shows up in Visa's and Mastercard's tables as 0.05% + 21¢, plus 1¢ for banks that meet fraud prevention standards [1][2]. On a $100 purchase that is a bargain: 27¢. On a $4 purchase it is 22¢, or 5.5% of the sale.
Debit cards from smaller banks are exempt from the cap [3], and their small ticket rows run 1.55% + 4¢ on both networks [1][2]. On a $4 sale that is about 10¢, less than half the regulated amount.
A store with 6,000 card sales a month at $4
If half are debit cards from large banks, that is 3,000 sales at about 22¢ each in interchange: about $666 a month [1].
The same sales on Mastercard's small ticket credit row would be about 9¢ each [2].
You cannot choose which card a customer uses, but you can choose pricing that passes these costs through instead of charging one flat rate on top.
Small ticket rates, and making sure you get them
Both networks publish rates built for small sales. Mastercard's small ticket credit rows apply to transactions of $5 and below and run from 1.65% + 2¢ on Core cards to 2.30% + 2¢ on World Elite [2]. Visa lists a small ticket credit row at 1.90% with a 4¢ minimum on basic and traditional rewards cards, and 2.20% with a 4¢ minimum on premium cards [1].
These rows only reach you if your processor qualifies your sales for them and passes the cost through. On a flat rate you pay the same percent plus the same cents on every sale. On interchange-plus pricing, your statement should show small ticket rows; if all you see is a standard retail row, ask why.
| Typical sale | What drives the cost | What to ask for |
|---|---|---|
| Under $5 | The cents per sale | Small ticket rows passed through, and a low per-sale markup |
| $5 to $20 | Both cents and percent | Interchange-plus with a per-sale fee under 10¢ |
| Fuel fill-ups | Caps on fuel rows | Fuel rows passed through, with their caps |
The $10 card minimum: what the law allows
Federal law lets you set a minimum purchase for credit cards, as long as the minimum is not more than $10.00 and does not treat card networks or banks differently [3]. The provision covers credit cards. It does not give you the same right for debit cards, so a "$10 minimum for cards" sign that turns away debit customers is not covered.
A minimum can make sense for a store with many tiny credit card sales, but it can also cost you customers. Check how many of your credit sales are under $10 on your last statement before you post one.
Selling fuel: the capped rows
Stores with pumps have their own interchange rows, and some are capped. Visa's fuel credit row is 1.15% + 25¢, capped at $1.10 per sale, and its service station debit row for smaller banks is 0.80% + 15¢, capped at 95¢ [1]. Mastercard's petroleum service station debit row is 0.70% + 17¢, also capped at 95¢ [2].
On a $60 fill-up, that works out to about 94¢ on a basic Visa credit card, 63¢ on a smaller bank's Visa debit card, and 59¢ on an unregulated Mastercard debit card. Visa's $1.10 cap starts to apply on fill-ups above about $74. New Jersey's surcharge law leaves motor fuel out of its definition of goods [7]; ask counsel how that applies before you surcharge at the pump.
SNAP EBT: how it differs from a card sale
SNAP benefits are paid with an EBT card that works like a debit card: the customer swipes and enters a four-digit PIN, and the amount is credited to the store's bank account within two banking days [4]. Stores must be authorized by USDA to accept SNAP.
Plan for equipment costs. USDA says most retailers must pay for their EBT equipment and services, whether they get it from the state's EBT processor or a third party; only certain exempt store types get free state-supplied equipment [4]. USDA also says commercially available card terminals can process EBT and regular card sales on the same device, so ask your current processor about programming yours before buying a separate one [4].
New Jersey's convenience stores
New Jersey had 1,467 convenience stores and another 1,037 gas stations with convenience stores with paid employees in 2023 [8]. Owner-run stores with no paid employees are not in that count.
BatchOut is our own processing service and works with convenience stores. If we show it to you, it is labeled as ours and sits next to other options. New Jersey's surcharge rules are covered on our merchant services in NJ page.