Having spent my youth in New Jersey, and buying gas thousands of times in NJ since, your experience is the rare outlier. I've never had a problem like that at any NJ filling station. That was most likely a defective gas pump handle, which could happen at any filling station in any state.
True. That's my favorite story, not a representative one. A representative story is: Pull up to pump. Wait for attendant. Continue waiting for attendant. Attendant eventually comes over. Hand attendant card. Attendant then runs card through pump mounted credit card reader, exactly as I would have done, and sticks pump in car. Attendant then wanders off. Gas finishes. Wait for attendant. Continue waiting for attendant. Attendant ambles back, holsters pump, gives you card back.
Total time elapsed: 2X to 4X what would have happened if I'd just pumped the gas myself. There's a reason the gas lines are so long on the NJTP.