Small Ticket Program by Host Merchant Services

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Unlock Lower Processing Costs on Small Transactions

If your business runs on lots of small purchases, like coffee shops, quick-service restaurants, transit, or convenience stores, traditional card processing fees can eat into your margins fast. The Host Merchant Services Small Ticket Program is designed to fix that by reducing the cost of low-value transactions while keeping pricing clear and transparent.

Advantages of the Small Ticket Program

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Reduced Per-Item Fees

The program lowers the cost per transaction from a standard 24-cent debit fee to as little as 4–5 cents, depending on whether the card network is Visa or Mastercard.

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Lower Effective Rates

With less cost pressure from the per-item fee, total processing expense on small transactions drops, increasing margins for businesses that run high monthly volume on low-dollar payments.

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Improved Profitability for Low-Value Purchases

Sectors including quick-service restaurants, transit operators, and convenience retail locations see a direct impact as processing costs scale more closely with revenue per sale.

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Transparent Savings

Host Merchant Services applies Small Ticket Interchange categories at the network level, with no blended pricing offsets or percentage increases that reduce realized savings.

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Secure payment processing for small businesses with Host Merchant Services.

Purpose-Built Interchange Pricing for High-Volume, Low-Cost Payments

The Host Merchant Services Small Ticket Program is for merchants that process high volume, low-value transactions each month. Businesses that routinely accept transactions of $15 or less typically have disproportionately high effective rates due to fixed per-item interchange charges.
This program gives you access to special interchange fee categories offered by Visa and MasterCard, which substantially reduce the per-item cost for qualifying merchants.

Stop Losing Margin to Per-Transaction Fees on Small Sales

Traditional debit and credit card interchange fees charge a set fee per transaction, regardless of the purchase amount. Even though the Durbin Amendment reduced debit interchange to 24 cents plus 5 basis points, this model remains inefficient for small transactions. A 24-cent fee on a $10 sale is a massive percentage of that transaction, before processor markups or assessments are applied.
The Small Ticket Program reconfigures this cost structure. Merchants eligible to participate receive lower per-item fees and modified interchange rates, thereby lowering total processing costs for low-value sales.

Who Saves the Most with the Small Ticket Program

This program is especially valuable for:
  • Businesses with average tickets under $15
  • Merchants that see hundreds or thousands of small transactions per month
  • Locations where customers frequently pay with cards for low-dollar purchases (coffee, snacks, fares, tolls, etc.)
  • Businesses currently on flat-rate or tiered pricing who want to unlock true interchange savings with Interchange Plus
If small-ticket card payments are common in your business, this program directly targets one of your highest hidden costs: per-transaction fees.
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Program Structure and Pricing

Host Merchant Services applies the Small Ticket Interchange Program directly and transparently. The structure is as follows:

Visa Small Ticket Pricing

  • Per-Item Fee: 5 cents
  • Interchange Rate: 1.6%
MasterCard Small Ticket Pricing
  • Per-Item Fee: 4 cents
  • Interchange Rate: 1.55%
This pricing model reduces fixed costs for small transactions, helping lower the effective rate when high volumes of low-ticket sales are common. What’s great about Host Merchant Services is that they don’t slip in hidden markups or adjust the price differences between standard and small ticket categories. Every eligible merchant gets to enjoy the complete benefits of the reduced interchange schedule.

Visa-Eligible Business Types

  • Local Commuter Transport
  • Limousines and Taxis
  • Bus Lines
  • Bridge and Road Tolls
  • Grocery Stores and Supermarkets
  • Convenience Stores
  • Service Stations
  • Fast Food Restaurants
  • Drug Stores
  • Bookstores
  • News Dealers and Newsstands
  • Dry Cleaners
  • Quick Copy, Reproduction, and Blueprint Services
  • Parking Lots and Garages
  • Car Washes
  • Motion Picture Theaters
  • Video Tape Rental Stores
  • Postal Stamps (Government Only)
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MasterCard-Eligible Business Types

  • Transportation Services
  • Limousines and Taxis
  • Bus Lines
  • Bridge and Road Tolls
  • Miscellaneous Food Stores and Convenience Stores
  • Restaurants
  • Fast Food Restaurants
  • Dry Cleaners and Laundry Services
  • Quick Copy, Reproduction, and Blueprint Services
  • Parking Lots and Garages
  • Car Washes
  • Motion Picture Theaters
  • Video Rental Stores
  • Postal Services (Government Only)
Merchants operating in any of these categories and using Interchange Plus pricing may qualify for the program.

What Makes Host Merchant Services Program Unique?

Host Merchant Services provides a direct and transparent implementation of the Small Ticket Program. Merchants receive clear pricing, full access to qualified interchange categories, and dedicated support throughout the enrollment process. Host Merchant Services ensures that the savings associated with Visa and MasterCard’s small ticket classifications are passed through accurately and consistently to the merchant.
In addition to delivering optimized pricing for low-value transactions, Host Merchant Services offers Interchange Plus pricing as its preferred model, giving merchants access to the most cost-effective structures available across all transaction types. This approach eliminates uncertainty and ensures that every qualifying merchant benefits from the lowest possible cost for small purchases.
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How to Get Started with the HMS Small Ticket Program

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Review Your Current Pricing Model

Confirm whether you are on Interchange Plus pricing or a flat/tiered model.

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Confirm Your Business Category

Check whether your merchant category code (MCC) matches any of the Visa- or MasterCard-eligible business types listed above.

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Share Your Recent Processing Statements

Provide your most recent processing statements so Host Merchant Services can estimate your potential savings and verify your eligibility.

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Activate the Small Ticket Setup

Once approved, Host Merchant Services will configure your account so that qualifying small-ticket transactions automatically route through the reduced interchange categories.

Monitor Savings Over Time 1
Monitor Savings Over Time

Compare your monthly statements before and after activation to see how much your effective rate drops on small-ticket volume.

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Frequently Asked Questions

What if my average ticket is sometimes above $15?

You can still benefit. Small-ticket pricing can apply to qualifying transactions, while larger purchases are processed under standard interchange categories. Host Merchant Services will ensure proper routing and pass-through.

Will this change how my customers pay?

No. Customers still use their cards as usual. The difference is in how those transactions are priced to you, the merchant.

Can eCommerce or online merchants qualify?

If your business type falls into an eligible category and you’re on Interchange Plus pricing, online or card-not-present transactions may benefit. Eligibility is ultimately determined by the card brands and your MCC.

Do I need new equipment to use the Small Ticket Program?

In most cases, no. The program is a pricing structure change, not a hardware change. Your existing terminals or gateways typically continue to work as-is, while Host Merchant Services updates how transactions are priced on the back end.

Get the Small Ticket Savings You Deserve

Merchants who process high volumes of low-value transactions cannot afford to overpay for processing. The HMS Small Ticket Program is one of the simplest ways for qualifying businesses to reduce fees and increase margins, all while receiving exceptional support and complete transparency.
If your business falls into any qualifying category, contact Host Merchant Services today. Our team will confirm eligibility, walk you through the savings, and make sure you receive the most cost-effective processing available.
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