about:stuff

Ladies and gentlemen, we’ve all been there. You’re at a bar, or making a small store purchase or just grabbing a coffee or soda at the gas station and they (sometimes asshole-ishly) tell you that they have a $5 minimum when you try and purchase it with a credit card. Some of you have even gotten wind that this isn’t even legal, but you’re not quite sure. You might even suspect it might be a state by state thing. Well wonder no more because it IS in fact illegal (in all 50 states). It goes against the rules the various credit card companies require their merchant/retailers to follow. Nothing has infuriated me more then being told I can’t make a purchase despite my insistence that it’s not in compliance. So I’ve gone through the trouble to map out just where each company specifies this information not only for my own reference but everyone who chooses to make a stand against shady practices.

Now it is our turn to look that douchebag in the eye and tell him to go fuck himself, because this shit isn’t going to fly anymore.

Lastly, since I am human I’m just as prone to making mistakes. If you see something that shouldn’t be there or should be corrected or you have any additional information PLEASE CONTACT me to update this guide. You can leave a comment or email me. I want this thing to be as precise as possible.

The following breaks down each credit card institution by where they specify this condition in their merchant rules/guidelines. I’ve added a link to the contact information to report these instances of merchant fraud. (Warning! Some PDFs! To make this easier I’ve transposed and referenced the exact section where this is so you don’t have to open the PDF if you don’t want to or are unable to do so.)

All links open in a new window. Happy hunting!

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MASTERCARD

Rules Homepage:http://www.mastercard.com/us/merchant/support/rules.html
Rules PDF: http://www.mastercard.com/us/merchant/pdf/MasterCard_Rules_5_08.pdf

What It States:

Section 5 – Merchants and Sales Transactions
5.9 – Prohibited Practices
5.9.3 – Minimum/Maximum Transaction Amount Prohibited
[A Merchant must not require, or indicate that it requires, a minimum or
maximum Transaction amount to accept a valid and properly presented Card.]

Contact Us – Merchant/Retailer Violation
http://www.mastercard.com/us/personal/en/contactus/merchantviolations.html
[] In order to make a MasterCard purchase, the merchant/retailer required a minimum or maximum amount.

As you can clearly see, there’s no denying the explicit ruling by Mastercard on this behaviour. They’ve even gone as far as to make that an actual check box on the violation form! Sounds like a common issue to me.

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VISA

Rules PDF: http://usa.visa.com/download/merchants/card_acceptance_guide.pdf

What it states:

(Numerical page 9, actual page 16 of 151)

[Always honor valid Visa cards in your acceptance category, regardless of the
dollar amount of the purchase. Imposing a minimum or maximum purchase
amounts in order to accept a Visa card transaction is a violation of the Visa rules.]

Visa FAQ
http://www.corporate.visa.com/ut/faq.jsp
[I believe a merchant has acted fraudulently. What can I do?]
[Please notify the dispute area at the financial institution that services your Visa account of any
merchant practices that you feel are inappropriate. Your bank has access to the appropriate Visa
rules and regulations as well as to the Notification of Customer Complaint forms which should be
used by your bank to document and file merchant complaints. It is not necessary for your bank to be
the merchant's financial institution in order to file a complaint for you. The address or telephone
number of the financial institution that issued your Visa card can be found on the back of your Visa
card or your Visa statement.]

Also very cut and dry here. There’s no marginally gray area or exhaustive use of complicated terms to confuse all parties involved. The only drawback is there’s no actual form to fill out. But contacting your issuing bank may be easier for you especially if they are local, which in most cases they are. Bonus points for making the call infront of the merchant themselves!

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DISCOVER

Operating Regulations: http://finance.tamu.edu/fmo/apcc/docs/Discover-Operating-Regulations.pdf

What it states:

2.8 – Minimum/Maximum Dollar Limits and Other Limits
[You may not require that any Cardholder make a minimum dollar
purchase in order to use a Card and you may not limit the maximum
amount that a Cardholder may spend when using a Card except when the
Issuer has not provided a positive Authorization Response for a Card
Transaction.]

Discover Fraud Prevention FAQ
http://www.discovernetwork.com/common/pdf/FraudPreventionFAQs.pdf
6. Where can I report suspected merchant fraud?
Please contact our Merchant Fraud Prevention Department at 800-347-3083.

A mix of Mastercard and VISA’s contact, you’re still phoning it in but it’s directly to Discover. Still some bonus points for immediate in-store dialing. Again, same simply linguistics in the regulations regarding minimum or maximum purchase amounts.

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AMERICAN EXPRESS

Merchant Policy: https://www209.americanexpress.com/merchant/singlevoice/USEng/FrontServlet?request_type=navigate&page=merchantPolicy
Merchant Policy PDF: https://www209.americanexpress.com/merchant/singlevoice/singlevoiceflash/USEng/pdffiles/MerchantPolicyPDFs/referenceguide_withfees_Final.pdf

What it states:

3.2 – treatment of the American Express brand

• [try to dissuade Cardmembers from using the Card,]
• [impose any restrictions, conditions, or disadvantages when the Card is accepted that are not imposed equally on all Other Payment Products, except for ACH funds transfer, cash, and checks,]
• [engage in activities that harm our business or the American Express Brand (or both),]

Message Center
https://www152.americanexpress.com/EformsWeb/un/ViewSuppressionPage.do?loc_str=en_US&utype=internet&origin=6
Type of Experience: [Merchant insisted on a minimum / maximum purchase amount.]

Amex is a little trickier with this rule as they do not explicitly say one way or another. But using circular logic and the right level of confidence with the prohibitive treatments stated, you can go a long way. For instance, since it’s against the rules for merchants or retailers to require a min/max amount on the other 3 cards, it would be very dissuasive to Amex users if they were the only cardholders subject to this tomfoolery. This also imposes a “restriction, condition or disadvantage” over all Other payment products for the same reason. The last example is also a no brainer. So by knowing the rules on other cards, you can legitimately fight this as an Amex customer as well!

To back this up I looked for contact info for American Express and one of the options on the first drop down box is regarding the minimum or maximum requirement!

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So there you have it. An in depth breakdown of how merchants and retailers sometimes force customers into purchases they normally wouldn’t be. This is highly shady and is against every single card company’s rules and procedures and if you report it, it will be fixed. Then one day you’ll absent mindedly walk in, make a sub-$5 purchase, receive no hassle in the process, and stare at the clerk with the self-satisfied smugness of a battle well won.

Knowledge is power.