Minimum for credit card purchase

[Chasey_Lane]

I didn't know until recently it was a violation for a business to impose a "minimum" purchase - usually $10 as I've seen. It is a violation of their merchant agreement. You can report the business to your credit card company if you run into this.

A bit of info: Tip: Minimum Purchase Amounts Are Malarkey | credit card, tip, debit card | SavvySugar - Career & Money

 

[Chasey_Lane]

Asking for id: Surprising rules on credit cards - ConsumerMan- msnbc.com

 

[Cowgirl]

OOOh!!!!!! D is going to love you!! The little Mom & Pop place down the street just started doing this not long ago! D would always stop in and get a fountain Pepsi there (because he says they're the best, even though he prefers Coke ) but he never carries cash so he'd put it on his card (all $1.89 of it). They put an end to that so he boycotted the store. He'll be glad to read this!



That explanation was way too long, wasnt' it?

 

[Chasey_Lane]

That explanation was way too long, wasnt' it?

Nope, not at all. I'm actually looking forward to the next time I'm asked for id or that I didn't meet the minimum purchase requirement.

 

[theArtistFormerlyKnownAs]

That's absurd.
It costs the merchant money to take credit cards, so they should be able to place a minimum purchase to cover those costs.

People who carry $0 cash irritate me

 

[Chasey_Lane]

That's absurd.
It costs the merchant money to take credit cards, so they should be able to place a minimum purchase to cover those costs.

People who carry $0 cash irritate me

Riiiiiight! That $.04 they lost on a fountain soda is horrible, simply horrible! I mean, the mark-up is ludacris enough.

 

[Cowgirl]

Nope, not at all. I'm actually looking forward to the next time I'm asked for id or that I didn't meet the minimum purchase requirement.

You should probably print those articles out so they believe you.

That's absurd.
It costs the merchant money to take credit cards, so they should be able to place a minimum purchase to cover those costs.

People who carry $0 cash irritate me

Waah. I also carry zero cash.

 

[itsbob]

OOOh!!!!!! D is going to love you!! The little Mom & Pop place down the street just started doing this not long ago! D would always stop in and get a fountain Pepsi there (because he says they're the best, even though he prefers Coke ) but he never carries cash so he'd put it on his card (all $1.89 of it). They put an end to that so he boycotted the store. He'll be glad to read this!



That explanation was way too long, wasnt' it?

I think it's a little ridiculous to ask a mom and pop operation to bear the cost of the service charge and surcharge for a credit card purchase of <$10.

Every time you use your credit card THEY pay for the service.

 

[remaxrealtor]

I think it's a little ridiculous to ask a mom and pop operation to bear the cost of the service charge and surcharge for a credit card purchase of <$10.

Every time you use your credit card THEY pay for the service.

It really adds up at the end of the day.

 

[Cowgirl]

I think it's a little ridiculous to ask a mom and pop operation to bear the cost of the service charge and surcharge for a credit card purchase of <$10.

Every time you use your credit card THEY pay for the service.

Well, they can always decide to stop taking cards. :shrug: Not my fault they accept them.

 

[itsbob]

Riiiiiight! That $.04 they lost on a fountain soda is horrible, simply horrible! I mean, the mark-up is ludacris enough.

Where did you come up with the 4 cent figure?

I thought it was based on how many transactions a business does, and the percentage/ cost per transaction would be substantially less for Wal-Mart than for a Mom and Pop operation. mom and Pop probably pay a monthly fee for the service (from a local bank probably), than an additional fee per transaction (also to the bank), AND a percentage to the credit card company

 

[lovinmaryland]

That's absurd.
It costs the merchant money to take credit cards, so they should be able to place a minimum purchase to cover those costs.

People who carry $0 cash irritate me

I finally irritate you instead of the other way around

 

[LusbyMom]

Well, they can always decide to stop taking cards. :shrug: Not my fault they accept them.

Fact is you have to accept credit cards in this day and age. But it really does put a hurting on a small business. Not much you can do about it.

I do know some that add a % to the bill total if you pay with a credit card. I have heard that is not legal and I have heard that it is.

 

[tyky]

That's absurd.
It costs the merchant money to take credit cards, so they should be able to place a minimum purchase to cover those costs.

People who carry $0 cash irritate me

I agree
It does cost the merchant a percentage of the sale.

Oh and I never have cash on me either

 

[itsbob]

It really adds up at the end of the day.

Nice for someone on the 'other side of the fence' to chime in.

I'm not a small business owner of ANY type, but I can imagine that a small business can get nickled and dimed right out of business pretty quickly while the big franchises grin at the idea of more business for them every time a small business succumbs to the .04 cents a transaction..

 

[Chasey_Lane]

Where did you come up with the 4 cent figure?

I thought it was based on how many transactions a business does, and the percentage/ cost per transaction would be substantially less for Wal-Mart than for a Mom and Pop operation. mom and Pop probably pay a monthly fee for the service (from a local bank probably), than an additional fee per transaction (also to the bank), AND a percentage to the credit card company

I calculated a 2% charge - didn't include other costs. So, I'm sure my figure is low.

 

[Cowgirl]

What would a business rather do? Make a $10 minimum on purchase and potentially lose customers who don't carry cash, or don't have a minimum and get the business from those people? I'm thinking multiple $9.99 purchases would be much better than NO purchases. :shrug:

 

[LusbyMom]

Nice for someone on the 'other side of the fence' to chime in.

I'm not a small business owner of ANY type, but I can imagine that a small business can get nickled and dimed right out of business pretty quickly while the big franchises grin at the idea of more business for them every time a small business succumbs to the .04 cents a transaction..

I am a small business owner and we take credit cards. We pay a monthly fee, plus a fee for each transaction and a percent of each transaction. It eats up alot of money.

 

[theArtistFormerlyKnownAs]

Do you people never have to use a soda/snack machine?!
Neither do I, but I have cash just in case

Also, do you all care that the server you are tipping with your credit card is actually getting less than what you're writing in there, since it is taxed? (yeah, it's all "supposed" to be taxed anyway, I know...)

 

[LusbyMom]

I do have a friend who owns a small deli/grocery store. She has a $5 min on purchases. People would buy a newspaper on a card. It was costing her money.