Published on Nov 14, 2017

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Don’t let minimum transactions kill your profits


Did you know that by accepting cards for all transactions, no matter the value, your business could be 40 percent bigger?

Customers are choosing businesses based on their no-minimum transaction value. They are also going out of their way to avoid businesses who do not offer them a choice on minimum spend.

The Reserve Bank of Australia reports consumers are choosing to use cash less often. Many small regional businesses are still operating as cash-only or with a minimum transaction amount on their EFTPOS. This is a concerning trend when our customers are increasingly cash-less and our smart phones are helping transform how people want to pay for goods and services.

Having zero minimum transaction value gives a customer a wonderful experience with your business. It saves the customer the embarrassment of having to leave and go elsewhere and avoids any awkwardness of asking them to buy more.

In addition to missing out on up to 40 percent of their business if they impose restrictions on low value transactions, retailers will find that cashless payments are quick, clean and safe. ‘Contactless’ or ‘paypass’ payments are instantaneous, more hygienic and decrease the risk associated with excess cash held on premises.

In order to demonstrate the impact of card transaction limits on small business – Mastercard ran an experiment.

For one morning, they put two businesses together in the same location, both selling the exact same coffees for the exact same price. The only difference was one had a $10 card limit and the other offered patrons no minimum transaction value on EFTPOS and card transactions. Watch what happens in the video:

The results showed the business with no minimum card transaction value had $240 in sales whilst the business with $10 minimum card transaction limit had only $21 in sales.

In recent research commissioned by MasterCard amongst Australian cardholders, it was found:

  • 62% find it frustrating when they can’t use cards for smaller transactions
  • 2 in 5 (44%) already avoid shops that don’t allow cards for smaller transactions
  • 61% prefer to pay with cards over cash for smaller transactions (over dealing with small change)
  • 84% resent paying a fee for smaller transactions


  • Offer card payments and extend this to no minimum transaction value.
  • Have a sign at point of sale telling customers!
  • Learn about your surcharge obligations under the law.