Why do some stores have credit card minimums?

Key takeaways When a merchant accepts credit card payments, it pays an interchange fee charged by the credit card company to process each card transaction. Interchange fees can chip away at a merchant’s bottom line, with small purchases resulting in a loss in profit if paid for with a card. Merchants can legally impose a minimum credit card purchase requirement of no more than $10 to help offset interchange fee costs. Have you ever pulled out a credit card to pay for a purchase, only to find out the store has a credit card minimum you haven’t quite met yet? If so, then you’ve also likely asked yourself why there’s a credit card minimum at all. Although a minimum charge can be annoying or downright inconvenient for the consumer, the merchant has financial reasons for enforcing one. If