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Is it okay for stores to have a minimum charge for a credit card?

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I went with my mom to the U of M student union today to get some lunch and go shopping (it's her birthday). We went to get some lunch and when I went to pay for her meal (I got Subway, she got pizza) the dude said there was a minimum $5.00 charge in order to be able to use a credit card.

I remember reading something a long time ago about how it's in violation of the merchant agreements to have a minimum charge in order to use a credit card. Is this true? I think it's unfair, especially since this is in a college eatery - how often do you get a lunchtime meal over $5 as a college student? It seems like it's an easy way to get customers to spend more than they normally would.
 
Originally posted by: GtPrOjEcTX
I don't think it would be.

Its their business, they can refuse to sell anything they want to you.
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Good point, wrong application. They're not refusing to sell the food to me - they're saying that for my particular payment method, I need to spend more than I already have. Actually I don't think it's illegal, but I think it might be against the merchant agreement that they sign when they get a credit card authorization terminal. I'll google it.
 
It's not illegal, but it goes against every credit provider's agreement that the store has to sign. Report them to the companies cards that they accept.
 
It's not illegal, but it goes against every credit provider's agreement that the store has to sign. Report them to the companies cards that they accept.
 
AHA! Found it here:
Can merchants set a minimum purchase or charge me a fee for accepting my Visa card?
Visa merchants are not permitted to establish minimum transaction amounts, even on sale items. They also are not permitted to charge you a fee when you want to use your Visa card.

If you run into a problem like this with a merchant, please notify the financial institution that issued you your Visa card. These institutions have access to the appropriate Visa rules and regulations and can help you document and file your complaint. You'll find their address and/or telephone number on your Visa statement. Their telephone number may also appear on the back of the card itself.
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I knew I was right. 🙂
 
I'm sure that Visa, et al, "strongly discourage" it, but considering that it costs the store like $0.50 + 1-2% of the transaction when you use it, I don't think that they're out of bounds. From the store's perspective, it's not a way for them to make you pay more, it's a way for them to encourage you to pay CASH for small purchases.
 
Originally posted by: Thegonagle
I'm sure that Visa, et al, "strongly discourage" it, but considering that it costs the store like $0.50 + 1-2% of the transaction when you use it, I don't think that they're out of bounds. From the store's perspective, it's not a way for them to make you pay more, it's a way for them to encourage you to pay CASH for small purchases.
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It's against the merchant agreements. See my above post with a link to Visa for more information.
 
It's cheaper for a store to accept your debit card and have you type in your PIN if the purchase is below $10... saves them about half the charges.
 
Originally posted by: joshsquall
It's cheaper for a store to accept your debit card and have you type in your PIN if the purchase is below $10... saves them about half the charges.
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But it wasn't a self-service POS terminal. There's no way in hell I'm giving a pizza shop clerk my PIN
 
Originally posted by: jumpr
Originally posted by: joshsquall
It's cheaper for a store to accept your debit card and have you type in your PIN if the purchase is below $10... saves them about half the charges.
Click to expand...
But it wasn't a self-service POS terminal. There's no way in hell I'm giving a pizza shop clerk my PIN
Click to expand...

I'd never type my PIN into a non-ATM. They could have some hax0r on their system, stealing the PINs.

It took me probably a year to figure out that ATMs don't check some database for your PIN number.. it's actually encoded on the card. If you know how to do it, you can steal someone's PIN and dupe their card.
 
Originally posted by: joshsquall
Originally posted by: jumpr
Originally posted by: joshsquall
It's cheaper for a store to accept your debit card and have you type in your PIN if the purchase is below $10... saves them about half the charges.
Click to expand...
But it wasn't a self-service POS terminal. There's no way in hell I'm giving a pizza shop clerk my PIN
Click to expand...

I'd never type my PIN into a non-ATM. They could have some hax0r on their system, stealing the PINs.

It took me probably a year to figure out that ATMs don't check some database for your PIN number.. it's actually encoded on the card. If you know how to do it, you can steal someone's PIN and dupe their card.
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Yup, I've heard (maybe here...I dunno) of tiny sleeves that 'hackers' slip into ATM slots that capture the PINs on cards. Then, a couple days later they just take out the sleeve and they've got all the numbers and PINs of all those people.

:scary; 🙁
 
Originally posted by: jumpr
Originally posted by: Thegonagle
I'm sure that Visa, et al, "strongly discourage" it, but considering that it costs the store like $0.50 + 1-2% of the transaction when you use it, I don't think that they're out of bounds. From the store's perspective, it's not a way for them to make you pay more, it's a way for them to encourage you to pay CASH for small purchases.
Click to expand...
It's against the merchant agreements. See my above post with a link to Visa for more information.
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Yes. I did. I'm a slow poster today because I'm using my sister's PowerBook with OS9.x and Netscape 6.2, and editing is slow and painful.

So, at any rate, it's not ILLEGAL, it's discouraged by Visa and the others.

Go ahead and get the store in trouble, if you want to see them either raise prices for everyone, or stop accepting cards altogether. Otherwise, just pay cash.
 
Originally posted by: jumpr
I went with my mom to the U of M student union today to get some lunch and go shopping (it's her birthday). We went to get some lunch and when I went to pay for her meal (I got Subway, she got pizza) the dude said there was a minimum $5.00 charge in order to be able to use a credit card.

I remember reading something a long time ago about how it's in violation of the merchant agreements to have a minimum charge in order to use a credit card. Is this true? I think it's unfair, especially since this is in a college eatery - how often do you get a lunchtime meal over $5 as a college student? It seems like it's an easy way to get customers to spend more than they normally would.
Click to expand...

it's not an issue of legality. it's an issue of their TERMS OF SERVICE with their Visa / MC providers.

AFAIK minimums are usually allowed.
 
Originally posted by: Thegonagle
Originally posted by: jumpr
Originally posted by: Thegonagle
I'm sure that Visa, et al, "strongly discourage" it, but considering that it costs the store like $0.50 + 1-2% of the transaction when you use it, I don't think that they're out of bounds. From the store's perspective, it's not a way for them to make you pay more, it's a way for them to encourage you to pay CASH for small purchases.
Click to expand...
It's against the merchant agreements. See my above post with a link to Visa for more information.
Click to expand...

Yes. I did. I'm a slow poster today because I'm using my sister's PowerBook with OS9.x and Netscape 6.2, and editing is slow and painful.

So, at any rate, it's not ILLEGAL, it's discouraged by Visa and the others.

Go ahead and get the store in trouble, if you want to see them either raise prices for everyone, or stop accepting cards altogether. Otherwise, just pay cash.
Click to expand...
I think it's unfair because whether or not they like it, they're FORCING college students with no cash to spend MORE money for MORE food that they ordinarily wouldn't have gotten if their card had been accepted.

If the restaurant doesn't like it, then they can drop Visa and Mastercard for all I care. It makes me annoyed though, when a FAST FOOD restaurant advertises that they take Visa/MC but then they don't take it for pretty much every purchase made there. If the food hadn't already been made, I would have asked my mom if she wanted to go somewhere else.
 
Originally posted by: joshsquall
It's cheaper for a store to accept your debit card and have you type in your PIN if the purchase is below $10... saves them about half the charges.
Click to expand...

I don't use debit anymore because sometimes they have to call a freaking manager and go through all kinds of hassle.
 
Even if it's not illegal it should be. I hate waiting behind those people in the stores who bust out the plastic for a candy bar and a magazine. Items like this do not qualify as a major purchase people. Scrape some fvcking cash together.

And if you really have to use the plastic go to an ATM and get a cash advance. That way you're paying the interest instead of making the buisness pay the insane fee's because you can't be bothered by keeping a few bucks on you.
 
Originally posted by: flxnimprtmscl
Even if it's not illegal it should be. I hate waiting behind those people in the stores who bust out the plastic for a candy bar and a magazine. Items like this do not qualify as a major purchase people. Scrape some fvcking cash together.

And if you really have to use the plastic go to an ATM and get a cash advance. That way you're paying the interest instead of making the buisness pay the insane fee's because you can't be bothered by keeping a few bucks on you.
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I wouldn't call $0.13 + 3% of < $5 insane fees.
 
Originally posted by: flxnimprtmscl
Even if it's not illegal it should be. I hate waiting behind those people in the stores who bust out the plastic for a candy bar and a magazine. Items like this do not qualify as a major purchase people. Scrape some fvcking cash together.

And if you really have to use the plastic go to an ATM and get a cash advance. That way you're paying the interest instead of making the buisness pay the insane fee's because you can't be bothered by keeping a few bucks on you.
Click to expand...
I'm one of those people (even though I don't buy candy bars nor magazines). I hardly carry any cash but a few small bills.
 
Originally posted by: flxnimprtmscl
Even if it's not illegal it should be. I hate waiting behind those people in the stores who bust out the plastic for a candy bar and a magazine. Items like this do not qualify as a major purchase people. Scrape some fvcking cash together.

And if you really have to use the plastic go to an ATM and get a cash advance. That way you're paying the interest instead of making the buisness pay the insane fee's because you can't be bothered by keeping a few bucks on you.
Click to expand...

Hey asshat, you are damned right that I can't be bothered to keep cash on me. Also, I didn't sign a merchant agreement that states when and how I can accept a VISA card. You are way off base here, and saying that a company should be able to run over you because you have personal prejudice against those who like to use a credit card for most things. How about you learn to not be so nosy about how people are paying for something? How about you grow up and realize that everyone doesn't think the same way as you. If I want to get a candy-bar and a magazine on my credit card, then I can under the agreement the store signed with VISA. If the store doesn't like it, then they can stop accepting VISA or follow the agreement.

I would say 95% of my purchases are made by credit card. Whether it is 4 dollars or 400 dollars. Got a problem with it...

([])--------<> Here is a spoon so you can eat my ass.

BTW, what "insane" fees are you talking about? 3%+maybe 50 cents? Wow that is INSANE!
rolleye.gif
 
Originally posted by: jumpr
Originally posted by: GtPrOjEcTX
I don't think it would be.

Its their business, they can refuse to sell anything they want to you.
Click to expand...
Good point, wrong application. They're not refusing to sell the food to me - they're saying that for my particular payment method, I need to spend more than I already have. Actually I don't think it's illegal, but I think it might be against the merchant agreement that they sign when they get a credit card authorization terminal. I'll google it.
Click to expand...
correct application. I'll clarify upon the original statement...

Its their business, they can refuse to sell anything they want to you. In this case, anything under $5 when you want to use a credit card.
 
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