AASOA-PAC

To: The Honorable Members of the South Carolina Legislature

South Carolina lottery retailers face significant financial hardship due to the current policy on debit card sales. The core issue is that processing fees—typically a flat rate plus a percentage—often exceed the 7% commission on common, low-value ticket sales. This forces retailers into a no-win situation: absorb a net financial loss on each transaction or risk losing customers by refusing debit payments.

Furthermore, the practice of routing these payments through third-party processors may conflict with lottery agreements requiring funds to be deposited into designated state accounts.

Other states, including Virginia, North Carolina, and Ohio, have successfully implemented policies to protect retailer viability while modernizing payments. We believe a similar, sustainable solution is achievable in South Carolina.

We respectfully propose the following solutions:

• Direct Cost Mitigation: Provide debit processing through state-managed lottery terminals with fees covered by the state, establish a reimbursement program for debit fees, implement a fee-sharing model, or increase the sales commission for debit transactions.
• Policy and Technology Adjustments: Establish a reasonable minimum purchase amount (e.g., $5.00) for debit sales or develop a state-approved digital wallet to eliminate direct retailer fees.

We are proud partners in the mission to fund education in South Carolina. To ensure we can continue this partnership effectively, we urgently request your action to create a policy that is fair for retailers, convenient for customers, and beneficial for state revenue. We are ready to work with you to achieve this outcome.

Respectfully,
The Undersigned South Carolina Lottery Retailers