You know the scene. You need to pick up a couple of small items from the convenience store, but you don't have any cash on hand. That's okay, because you've brought along your credit card. So you browse for the stuff you need, put it on the counter, and whip out your plastic – only to be directed to a sign that spells out a minimum purchase amount for credit card use.
According to Visa and MasterCard, merchants can't do this. There are specific clauses in the merchant's agreement that forbid minimum purchase amounts or surcharges for credit card use. American Express discourages these practices as well, though their written rules are more vague. So what should you do if a merchant is imposing these limits?
First, realize that merchants who take credit card payments are themselves required to pay some hefty processing fees for every transaction. Those fees add up and cut into the store's profitability.
If a small shop owner takes credit cards, they usually set minimum purchase amounts to recoup the cost of those processing fees. If they were to accept credit card payments for tiny dollar amounts, they'd actually lose money on those transactions.
If that knowledge isn't enough for you, experts recommend complaining to the bank that issued your credit card.
No comments:
Post a Comment