Welcome Back, MINIMUM PURCHASE signs for Credit Card Usage!!

[aceO07]

I don't mind using CC at major stores for small items. CVS, Rite Aid, Duane Reade, etc. It's usually for small items, which have inflated prices and they make a nice profit on anyways. If they enforce the $10 min at those stores, it'll probably be healthier for me since I could do with less junk food anyways.

For smaller stores, I will use cash. At restaurants I will also use cash if I have enough.

 

[QueBert]

What I don't understand is why you have to legislate this anyway. Why no let the market decide what is an appropriate minimum, if any.

Because customers are stupid fuck tards who'd only listen if Visa or MC directly told them it was legal. When I worked retail I'd have people saying "this is bullshit you won't let me get 2 99 cent bags of chips on my mastercard!" After explaining that after our charges from MC we'd lose about .15 cents on the transaction "so?" If anything MC/Visa sending an across the board minimum will be perfect.

 

[Exterous]

Thank god they put this in the Consumer Protection Act to protect us consumers against being able to spend small amount on the CC

I could understand a limit of $5 but $10 seems a bit high to me. It has been my experience that sometimes you just don't plan right with your cash expenditures and it's nice to have the CC to fall back on. This tends to happen to me sometimes at lunch. The meal ends up being $9.00 when I actually only have $8 on me.

It's not a huge deal but an annoyance. I am suprised that this is how the government tries to enforce personal fiscal responsibility on us. Curb large purchases and loans? Heck no - we want to keep you from spending small amounts of money on your CC

 

[erikistired]

Because customers are stupid fuck tards who'd only listen if Visa or MC directly told them it was legal. When I worked retail I'd have people saying "this is bullshit you won't let me get 2 99 cent bags of chips on my mastercard!" After explaining that after our charges from MC we'd lose about .15 cents on the transaction "so?" If anything MC/Visa sending an across the board minimum will be perfect.

yes, it's our fault that CC companies are fucking the business over.

 

[Kev]

I once went to pay for a pizza order with a CC and they tried to pull the minimum amount BS on me. They didn't even have a sign up, and refused to accept my card. So I said fuck it and left.

 

[Kev]

This. Those who are crying bitter tears of outrage about this need to change their entitlement diapers.

Not really entitlement. I just hate carrying coins around. Plus I get 1% back on my CC. If I use it for everything, it adds up.

 

[RPD]

Why do they make transactions harder...

 

[RPD]

Its like when they do this, they are saying we don't really want your money so we are making it more difficult for you to give it to us!

 

[frostedflakes]

Well people in this thread have posted situations where businesses can actually *lose* money on CC purchases... so of course they don't want your business in these situations, they're not even making any money. Some are just willing to eat the cost I guess to keep customers happy, but I can totally understand small businesses especially not wanting to do that.

 

[Colt45]

They don't 'lose' money unless the margin is less than the ~2% visa charges, which isn't bloody likely. They do however lose profit.

 

[jlee]

Because customers are stupid fuck tards who'd only listen if Visa or MC directly told them it was legal. When I worked retail I'd have people saying "this is bullshit you won't let me get 2 99 cent bags of chips on my mastercard!" After explaining that after our charges from MC we'd lose about .15 cents on the transaction "so?" If anything MC/Visa sending an across the board minimum will be perfect.

You are aware that it was previously against Visa/MC terms of service for you to set a minimum charge, are you not?

 

[Lithium381]

Because customers are stupid fuck tards who'd only listen if Visa or MC directly told them it was legal. When I worked retail I'd have people saying "this is bullshit you won't let me get 2 99 cent bags of chips on my mastercard!" After explaining that after our charges from MC we'd lose about .15 cents on the transaction "so?" If anything MC/Visa sending an across the board minimum will be perfect.

see, mentality of most people is if it doesn't affect them, why should they care? i personally think it's a good thing to set a REASONABLE limit....since i do care......it's mutually benificial....i get to use my CC and they don't loose money on the sale, it's convenient for both parties involved.

 

[jchu14]

They don't 'lose' money unless the margin is less than the ~2% visa charges, which isn't bloody likely. They do however lose profit.

I believe merchant also have to pay a flat fee per transaction in addition to the 2-3%percentage fee. Think paypal fee structure. This link says the merchant pays 25 to 50 cents in flat fee per transaction. That seems awfully high to me, but I haven't seen a more credible number.

I have no problems with this law at all. It may be a little inconvenient at times, but it's great that mc/amex/visa can't push merchants around as they wish. This is good for merchants and indirectly, consumers, by taking money away from the credit card companies.

 

[Meghan54]

They don't 'lose' money unless the margin is less than the ~2% visa charges, which isn't bloody likely. They do however lose profit.

Actually, in a CC sale, if the item purchased is cheap enough, it is possible to lose money on the sale.

Take the .50 pack of gum one poster above purchased with a CC.

Merchant discount rate which is the fixed percentage amount deducted from the purchase cost.

Right now, the average for retail establishments is around 2.1%....so let's say 2% for simplicity. But this only works out to .01 on a .50 pack of gum, so it isn't the factor that loses the merchant $$.

So, it's the merchant transaction fee. In addition to the discount rate, a transaction fee is also deducted from the purchase cost. Today, the typical range is between .20-.50 per transaction.

If the merchant isn't at the absolute bottom of the range that's currently found with today's merchant accounts, the sale of the gum just lost the merchant selling it $$, even if it's only a penny or two.



And the Brinks truck pickups and dropoffs comment above made me laugh. It's only the most major of businesses or chains that utilize that sort of service. Unless you're Bloomingdale or Macy's or Fry's or the like, you're doing your deposits and other banking in person or using a night deposit.

 

[ShawnD1]

And the Brinks truck pickups and dropoffs comment above made me laugh. It's only the most major of businesses or chains that utilize that sort of service. Unless you're Bloomingdale or Macy's or Fry's or the like, you're doing your deposits and other banking in person or using a night deposit.

My friend is the manager of McDonalds. The money truck comes by his store once per week.
Lower managers count money each shift and deposit it in the safe (it has a drop slot but cannot be opened by any of the lower managers). After a week, the safe has more than $10,000 in it. Would you really want one of your employees hauling around 10k in cash? Would you want him doing this every week? Of course you wouldn't. That's why you hire a money truck.

The money truck also delivers new coins. You didn't think change magically showed up at the store did you?

 

[DainBramaged]

I can't believe how many people refuse to carry cash. It's not that hard.

 

[lxskllr]

Why wouldn't the card issuer waive the flat fees for small transactions? They may not get rich off it, but 2% of 50¢ is still better than 0% of 50¢.

 

[kranky]

Why wouldn't the card issuer waive the flat fees for small transactions? They may not get rich off it, but 2% of 50¢ is still better than 0% of 50¢.

The processor (Visa, MC, Discover, Amex, etc.) which electronically handles the transaction between the merchant and the card issuer charges the fee. They have no incentive to waive the fee.

 

[Tiamat]

Is it so hard to keep a $20 in your wallet?

yeah because 20$ isn't enough depending on where you live. In DC-metro area, 20$ might last you a single day. ATM fees of 4$ adds up real quick, also going out of your way to get to an ATM is not convenient. Even if you were to try to minimize the fees and take out money 200$ (for example) at a time, carrying 200$ in cash constantly is not comfortable.

 

[Terzo]

I can't believe how many people refuse to carry cash. It's not that hard.

yeah because 20$ isn't enough depending on where you live. In DC-metro area, 20$ might last you a single day. ATM fees of 4$ adds up real quick, also going out of your way to get to an ATM is not convenient. Even if you were to try to minimize the fees and take out money 200$ (for example) at a time, carrying 200$ in cash constantly is not comfortable.

This, seriously. I get paid by direct deposit. Right now I have no reason to go to a bank. The only times I have cash on me is after selling something on craigslist, cashing a check (very very rare), or taking out money to buy something on craigslist.

I wonder if there's potential for a credit card company that charges membership (ala amex) but is friendlier towards merchants, and doesn't require a $5-10 minimum.

 

[kranky]

This, seriously. I get paid by direct deposit. Right now I have no reason to go to a bank. The only times I have cash on me is after selling something on craigslist, cashing a check (very very rare), or taking out money to buy something on craigslist.

I wonder if there's potential for a credit card company that charges membership (ala amex) but is friendlier towards merchants, and doesn't require a $5-10 minimum.

Credit card issuers can't dictate merchant fees, it's the processors who charge those fees. The only way you could have a credit card that is fee-free, or have a different fee structure, for a merchant is if the card issuer set up and operated their own processing network. And if they have to do that, you can be sure that annual fee would be more than you'd be willing to pay.

 

[SandEagle]

heh I make $0.25 purchases on my CC sometimes. like for a pack of gum or whatever. this law sux

 

[SlitheryDee]

Its like when they do this, they are saying we don't really want your money so we are making it more difficult for you to give it to us!

No, it's like they're saying that they don't want you costing them money. All of a businesses transactions with a customer should result in a net profit for the business unless the business itself chooses otherwise (sales, loss leaders etc.).

To you people saying you'd take your business elsewhere, those businesses who would institute this limit are glad for that. Why the fuck would they want to cater to your sorry ass if all it does is cost them money?

 

[xSauronx]

meh, annoying but i can understand. i know most of the staff at my favorite bar, and they told me last year the business was out over $15k to debit/cc transaction fees

the place got rid of the card machine and put in an ATM. im the type who uses my debit card all the time because i dont carry much cash regularly, but I can see why places would have a minimum.

doesnt keep it from sucking. i have to go out of my way to actually get cash, since my paycheck is direct deposited.

 

[Fritzo]

debit != credit, though... this is about CCs...

cash for myself.

Most everyone processes debit cards as credit cards.

I'm the same way- I never carry cash.