Comments on: It is ILLEGAL to REQUIRE a minimum or maximum purchase when using a credit card

By: Aware Consumer

Aware Consumer — Mon, 02 May 2011 20:18:32 +0000

Retailers must pay fees for credit & debit card transactions, usually a percentage fee plus a transaction and/or batch fee. Although it’s “breaking” the card issuer rules to impose a minimum, small retailers are usually just trying to keep prices low for both their credit & cash customers.

My local bakery owner prefers if I pay cash for small purchases and has a “$5 minimum” sign. I could report this “tom-foolery” to the card issuer, but as Elenor asks, “Do they take it seriously?” Well, I doubt Master Card is going to contact the Merchant Services vendor and say “One of your accounts is violating the rules.” Then the service vendor would have to contact the bakery and … well what option do they have… Issue a stern warning? Or else, deactivate the account?

It’s hard to imagine that either the Card Issuer or Merchant Services would “bite the hand that feeds them.” If they did, then the bakery would either stop accepting credit cards or raise prices for cash & credit customers.

I keep that in mind when I encounter retailers who require a minimum. I ask myself, “Would I rather carry a small amount of cash or pay more for a cup of coffee at my local bakery?”

By: merchant account credit card

merchant account credit card — Sat, 12 Sep 2009 07:41:35 +0000

While most merchants who accept credit cards adhere to the terms and conditions set forth by credit card issuers, there are retailers who violate credit card issuer agreements. It’s up to the consumer to know when those rules are being broken, and to decide whether to make a fuss about it.

Purchase amounts: Merchants cannot impose minimum or maximum purchase amounts for credit card transactions.

By: aubrey

aubrey — Sat, 25 Apr 2009 14:41:14 +0000

I went to a bar last night in Missouri with a friend I wanted to get a couple drinks which in my area is usually about 10 dollars give or take a buck. I only wanted 2 because i would have to drive later. Well I have a Visa and Mastercard bartender comes over says after 9:00 p.m. that the minimum purchase is $20.00 I said I dont want to drink that much, the bartender gets all bitchy and trys to sell my drink to someone else, my friend said I will pay for her drink the bartender said u gonna go over to the ATM she said “I have cash.” Needless to say we were treated like crap the rest of the night the owner came over and said she aint paying a 3 dollar fee everytime I want a drink and it is her discresion (sp?) on if she wants to make a minimum purchase requirement, this crap was outrageous treated like crap when we were paying customers because I only wanted to drink a small amount hey and ten dollars is still ten dollars, I dont know what to do because this is one of the few bars in town and I bet the crazy owner tries to get some kind of revenge if i turn this crap in.

By: elenor

elenor — Wed, 01 Apr 2009 11:40:47 +0000

Have you ever tried reporting it? Do they take it seriously?

By: gatsome

gatsome — Wed, 31 Dec 2008 18:38:26 +0000

I use the term illegal on purpose. It’s a more succinct way of putting it. As far as state laws go, I don’t think it’s illegal at the state or Federal level, although some cases are. For instance some states have a clear “No surcharge for credit use” law, like in New York. This makes it illegal for any company in the state to add a special charge when using a credit card, and many in this state actually do this, illegally.

In this instance I use the definition of illegal in direct correlation with the ruling that credit card companies have. So it’s illegal in relation to that. So while the term could potentially be misleading (and I appreciate the comment) I used it on purpose and correctly. I’m not asking anyone to take any merchants/retailers to court, simply by reporting them correctly can this problem be resolved, so I’ve only included the contact info for the various reporting aspects and nothing lawyer-like.

By: Hudson

Hudson — Wed, 31 Dec 2008 18:20:36 +0000

Very interesting information, many thanks.

One important point of clarification I’d be curious to know about:

Is it actually “illegal” in all 50 states to do this, or is it only against company policies? There is an important difference.

If it is illegal, then the violators could be brought up on charges of violating a specific Federal or State law in court by the consumer, or by the card company.

But if it is “only” against company policy, not against a Federal or State law, then the vendor is only in violation of their agreement with the credit card company — which could revoke their privileges — but they couldn’t be taken to court by the consumer.

Any idea which it is? Or both?