[Monkeydad]

I just remembered that a coffee shop by my office that I go to almost every day (I get coffee for free there actually) has a $2.00 minimum if using a card for the exact reason of merchant fees.

Every business/merchant contract will have a transaction amount that's a break-even point for profits. If a transaction is processed below that amount, the business will be losing money.

For a business selling goods/services at higher prices, this is not an issue, but for low-priced transactions, this must be found and addressed if the business wants to turn a profit. That's why you see a lot of coffee shops/convenience stores, etc with these extra fees or minimum transaction amounts for c/c customers.