$5 Minumum purchase to use credit card

[Cypress]

So I co go to the store to buy me an energy drink this morning and when I reached for my drink I noticed a sign that said "Effective 3-13 $5 minimum purchase to use credit card." I like many Americans don't carry cash and I have it where each time i use my check card it deposits the difference to the next higher dollar in my savings account. I then put the drink back thinking to myself its not worth me buying over 5 bucks of stuff that i don't need just to get an energy drink. I came to my desk and googled the policy. I really thought in my mind that merchants are not supposed to have a minimum charge in order to use a credit card. I stumbled across these links that I found interesting. I proceeded to walk back to the store where I was wanting to purchase the drink. I went to check out and the clerk informs me of the policy. By that time I had already printed out the policies from both Visa and Master Cards websites showing them that they are not supposed to have that sort of policy and that someone could file a complaint if they refused. She let me purchase my 3 dollar energy drink and she was going to show that policy to her boss.

Visa USA
MasterCard Small Business | Frequently Asked Questions | MasterCard®

I was not trying to be a donkeys rear end, I really just wanted an energy drink. Theoretically, if you wanted to, you could charge a penny and a merchant would have to honor it as in this case. Minimum Purchase on Debit/Credit Card Transactions | INeedAttention.com

I won't go so far as to report that merchant as doing so will have the possiblility of them getting a warning from Visa and if enough people complain they could loose the right to accept Visa. If people want to buy in to their suggested sign that is fine. If I make a purchase there again and get refused for using my check card then they have lost my business as there are other merchants along the way to purchase my drink.

[Jack Straw]

I hate these policies, they are very common in asian take-out places and bodega-type places around here. I think it's no coincidence that the places that don't have the minimum get all of my business near where I work. Thanks for the link, that will probably come in handy.

[atquick]

Well the one thing you have to keep in mind is, even though the merchants offer the visa/discover card transactions, there is a percentage of the money the merchant is collected is being taken by the credit card companies.

I know in my shop, that everytime someone swipes their card for a transaction, I automatically lose about 15 cents from that one transaction. Regardless of the price, it could be a 60 cent transaction, I automatically lose 15 cents. I lose even more money when someone is using a Rewards check card, or credit card. I lose my 15 cents and whatever the Rewards is offering, lets say .2% back on all purchases, I lose that .2% as well.

Basically, the merchant just wants to make profit, not give it away to the Credit Card companies.

So, if the merchant is setting up a policy to have you spend more then $5 on a credit card/debit card transaction. It's so he can make it worth his time swiping the cards.

Personally, in my store, I don't have a minimum transaction policy. I'm just saying for instance.

[Jack Straw]

But that 15c per purchase will help bring in more customers, won't it? For instance, there is a chain of gas stations around here called "lowest price" and I almost never go to them because they are cash only.

[Dgar]

Originally Posted by atquick

Basically, the merchant just wants to make profit, not give it away to the Credit Card companies.

I dont like these policies either and try to avoid places that have them, I understand the mercahnt wants to make a profit, but if said merchant cant do so within the contractual agreement he has with CC company maybe the Merchant shouldnt be using Credit Cards.... same way a consumer should look at it, if you cant afford the interest dont use the card.

[mc2712]

How about just telling the customers that making a sell of less than whatever amount cost you the store owner money. Then the customers will hate credit card companies and not the store. A friend of mine told me about his son working as a waiter at restaurant chain here in Houston area that every time the customer left their tip on a credit card the restaurant would charge the waiters a fee and then give the tip to the waiters. To me that is just as bad as sign saying $5 or more for credit card purchase.

[Cypress]

Everyone is trying to make a profit and I understand that. I dont hate the credit card companies as I have gotten my numbers and identity stolen and they have cleaned my bank account twice. Within 24 hours I had all the money back and was not liable for the charged.

[BlueHavanaII]

The easy answer, which would satisfy both parties, would be for the merchant to raise all his prices and offer a discount for cash!

[Blindjimme]

If they only tacked on the .15 cents it wouldn't be so bad. A lot of the shops here charge .75 cents. I just don't frequent them like I do the stores that don't. Thanks for the links, that's useful info.

JB

[nativetexan_1]

The retailer signed a contract. They don't have to accept the cards at all if they don't want to, but if they do, they are bound by the terms of their contract with the card company.