Credit Card Minimums - aren't they illegal?

[beer]

Somewhere in my last 21 years, I've heard more than enough times that (a) credit card minimum purchases are not allowed as per card merchant agreements, and (b) charging more for credit cards is nearly always prohibited, unless when shown as a 'cash discount.'

What is the final say on this?
I don't like paying cash at bars because I can't monitor how much I spend. I also don't like $20 minimums they have (which ends up being 6 drinks). Is there a final say?

 

[mpitts]

It costs money to process credit cards. I am pretty sure a merchant can deny any type of payment that they want.

 

[Gunslinger08]

Not illegal, but against the terms of service for credit card merchants.

 

[Amused]

Originally posted by: joshsquall
Not illegal, but against the terms of service for credit card merchants.

Bingo!

And if $20 is 6 drinks, you're a sh!tty tipper.

 

[beer]

Originally posted by: joshsquall
Not illegal, but against the terms of service for credit card merchants.

Is this always true?
If it is, I would crusade to start getting these removed since I think they are total bullsh!t and I shouldn't have to take it. How do credit card merchant agreements work? Do they go straight to Visa/MC/Amex, or through an intermediary?

 

[beer]

Originally posted by: Amused

Originally posted by: joshsquall
Not illegal, but against the terms of service for credit card merchants.

Bingo!

And if $20 is 6 drinks, you're a sh!tty tipper.

They won't run a card without a $20 face value, period. This means pre-tip. Most places that have minimums are sh!ttier on the whole, so $3 a drink is average. Throw in a couple of dfferent ones and it ends up being $20 for 6 drinks, which is more than I can consume in one evening and drive home.

 

[mzkhadir]

I think they go through a third party which connects to visa/mc/amex

 

[Gunslinger08]

Originally posted by: beer

Originally posted by: joshsquall
Not illegal, but against the terms of service for credit card merchants.

Is this always true?
If it is, I would crusade to start getting these removed since I think they are total bullsh!t and I shouldn't have to take it. How do credit card merchant agreements work? Do they go straight to Visa/MC/Amex, or through an intermediary?

Most of your local joints will go through an intermediary, such as Costco (yes, they offer credit card processing).

 

[Albis]

yeah from what i know, the store will use another bank / company before going through visa / mc

the store pays the intermediate group for the transaction fee.

 

[beer]

Originally posted by: joshsquall
Most of your local joints will go through an intermediary, such as Costco (yes, they offer credit card processing).

If the intermediary cannot have purchasing minimums (since they are directly connected to Visa/MC/Amex), then there should be no way that the final end-user (i.e local joints) can either, right? I don't want to start being a dick about this AND being uninformed. I'd rather just be a dick that gets rid of a stupid rule.

 

[Scarpozzi]

In Europe, I had to purchase 10-15 Euros of merchandise before they'd accept them. CC's aren't as popular over there as they are here....it may be why the US economy is going down the toilet.

 

[Amused]

Originally posted by: beer

Originally posted by: Amused

Originally posted by: joshsquall
Not illegal, but against the terms of service for credit card merchants.

Bingo!

And if $20 is 6 drinks, you're a sh!tty tipper.

They won't run a card without a $20 face value, period. This means pre-tip. Most places that have minimums are sh!ttier on the whole, so $3 a drink is average. Throw in a couple of dfferent ones and it ends up being $20 for 6 drinks, which is more than I can consume in one evening and drive home.

What, no drinks for the pretty chicks you meet?

You're such a stud!

 

[beer]

Originally posted by: Scarpozzi
In Europe, I had to purchase 10-15 Euros of merchandise before they'd accept them. CC's aren't as popular over there as they are here....it may be why the US economy is going down the toilet.

The US economy is weaker than the European economy? Did you really just say that? Last time I checked, Germany and France were running at 10%+ unemployment, the Spanish economy was stalled, and Eastern Europe was still a sh!thole.

Economic strength has nothing to do with credit cards. I pay them off each month so Amex/MC do not get a dime from me, but having it online allows me to record where my money goes. Cash does not do that.

 

[beer]

Originally posted by: Amused
What, no drinks for the pretty chicks you meet?
You're such a stud!

I am 21. Girlfriend is 20. Buying drinks for pretty chicks would probably end up with one very pretty chick very mad at me.

 

[woowoo]

Learn to count
Pay cash
Problem solved

 

[JeffreyLebowski]

Simple answer. Get drinks, offer credit card, they say there is a minimum to what they will charge. Leave without paying. Hey you offered to pay with a valid credit card and they refused. Free drinks.

 

[Eli]

Originally posted by: JeffreyLebowski
Simple answer. Get drinks, offer credit card, they say there is a minimum to what they will charge. Leave without paying. Hey you offered to pay with a valid credit card and they refused. Free drinks.

LOL.. Somehow, I don't think that would really work.

It does raise an interesting question, though. What if you went to pay, and they wouldn't accept your paper money? Then what? Could you leave at that point? lol

 

[Jzero]

You're drinking less than 6 drinks...but you can't keep track of what you're spending if you pay cash?
Go to the ATM machine. Get $20. Don't open a tab; buy drinks one-at-a-time
When the $20 is gone, go home.

Simple.

 

[Bryophyte]

Visa/Mastercard and perhaps others do not allow merchants to set minimums. The agreements are very specific about it. If you're pissed about it, complain to Visa/Mastercard (note: not your credit card issuer, the companies directly) about it. You won't get any money back, but they will get notified about it and can lose the ability to take that card if they don't change their policy.

Why do they get away with setting minimums? Because they can. Almost nobody complains.

 

[blakeatwork]

Originally posted by: Scarpozzi
In Europe, I had to purchase 10-15 Euros of merchandise before they'd accept them. CC's aren't as popular over there as they are here....it may be why the US economy is going down the toilet.

Guess it depends on where ya go, as Dublin and Cork, as well as Belfast, all accept major CCs (AMEX/VISA/MC) in 90% of the shops...

I've never heard of a minimum for a bar, but if you're worried about overspending, just bring 15 bucks with you, and only spend that. problem solved.

 

[Svnla]

Originally posted by: joshsquall
Not illegal, but against the terms of service for credit card merchants.

Ding ding, correct. It is annoying to see merchants (mostly Asians in Asian places) have a sign **minimum AE/VISA/MC/etc. $20). I usually bring cash whenever I visit those places.

 

[royaldank]

Per the merchant agreement with Visa, there cannot be a minimum amount or an additional charge. Doesn't matter who processes the transactions. If they have a VISA or MC logo on their window, they must abide by the user agreement. It is also against the agreement to charge a card in return for cash (meaning, if I work at Walmart and I'm out of cash, I cannot charge $20 to my card and take cash out of the drawer).

I have no idea what the penalties are or how to go about reporting someone in violation.

Why not call VISA and report this club?

 

[quakefiend420]

Originally posted by: Svnla

Originally posted by: joshsquall
Not illegal, but against the terms of service for credit card merchants.

Ding ding, correct. It is annoying to see merchants (mostly Asians in Asian places) have a sign **minimum AE/VISA/MC/etc. $20). I usually bring cash whenever I visit those places.

3....2....1....

 

[vood0g]

Originally posted by: quakefiend420

Originally posted by: Svnla

Originally posted by: joshsquall
Not illegal, but against the terms of service for credit card merchants.

Ding ding, correct. It is annoying to see merchants (mostly Asians in Asian places) have a sign **minimum AE/VISA/MC/etc. $20). I usually bring cash whenever I visit those places.

3....2....1....

RACIST! j/k i notice the same thing too.

 

[Svnla]

Originally posted by: vood0g

Originally posted by: quakefiend420

Originally posted by: Svnla

Originally posted by: joshsquall
Not illegal, but against the terms of service for credit card merchants.

Ding ding, correct. It is annoying to see merchants (mostly Asians in Asian places) have a sign **minimum AE/VISA/MC/etc. $20). I usually bring cash whenever I visit those places.

3....2....1....

RACIST! j/k i notice the same thing too.

LOL, I am Asian too.