A bagging station within a check-out counter system and for use by a cashier positioned in a cashier location within the check-out counter system. The bagging station includes a lower bag rack and an upper bag rack. The lower bag rack is configured to hold at least one bag for loading with a first portion of merchandise and defines a first upper edge. The upper bag rack is configured to hold at least one bag for loading with a second portion of merchandise. The upper bag rack is positioned behind the lower bag rack relative to the cashier location, and the upper bag rack defines a second upper edge. The first upper edge and the second upper edge are arranged in a terraced configuration. Check-out counter systems and methods of processing merchandise provide additional advantages.