Grocery Store charges if use debit card under $5...Allowed?

[julsmom]

Today while standing in line at our local small town grocery store, I noticed a little handwritten sign stating "30 cent charge for debit card purchases under $5". I know that just recently I read that this is not allowed, or maybe it was bypass-able. I cannot remember where I read it though to go look again. Does anyone know whether this is allowed?

I just don't like unnecessary charges.

 

[kctwinmommy]

I thought I read that too... that they couldn't do that!!

 

[Mickeyluver37]

I paid my water bill online today and they charge you for using a credit card. The kicker that the fee is not flat, but based on how much you are charging, which totally sounds to me like they are recouping their costs! The utilities are billed by my county government, but it appears to be a 3rd party e-pay system. I don't see how this can be legal.

 

[momxx5]

Check cashing
Using decit card
and especially using credit cards

All cost the vendor, and it used to be a flat fee, however I can see it becoming a % thing.

American Express was the biggest expense to vendors/stores so much so that a lot stopped accepting AE. Discover was similar until is mergered.

Now as far as charging the customer, of that I'm not sure. I know that most stores used to lump it in with their DBA costs = prices went up because stores had to pay banks, etc.

Now with 3rd party businesses okaying checks, etc, I know they charge the store, I guess stores are trying to pass it along to the customer.

 

[tonilea]

Here you can pay your property taxes w/ a cc, but there is a sliding fee scale for the costs.

IMHO, stores should be able to charge you for the use of credit or debit cards. I reconcile the credit card statments at the business I work for and the stores are hit coming and going. They are charged a flat fee per use, plus a percentage and can be hit with extra fees if they have to enter your card by hand because it is really worn.

Small business are hit especially hard because they don't have the volume to negotiate better rates.

FWIW, the only people who really win are the credit card companies. Even people who pay off their balances monthly are most likely to lose as more will spend 20% more when paying with plastic.

 

[Obi-Wan Pinobi]

I think they can have a service charge for using credit/debit cards. I think the practice that is out there that is technically not allowed is having a minimum purchase in order to use your plastic.

 

[j2huns]

It is legal for businesses to charge a fee.

 

[BethR]

This may be splitting hairs, but I believe that it is LEGAL for a vendor to charge a service fee for using a branded debit or credit card, but it is against the TOS with the card's company to charge an additional charge to cover these fees.

It is Visa or Master Card's rule.

I don't like paying extra fees either and almost always choose not to do business at places that charge these fees. I know that is 6 of one and half a dozen of another, but I think that they should just build the fees into their prices.

 

[abcboys]

I was turned away the other day from a resale shop because I was trying to use my debit card for a little under $5. The guy told me his boss said cc sales need to be $10. There was no sign for it anywhere. I was a little upset because I was out of town and didn't have any cash so I couldn't buy it. I told him (very nicely) that I thought it wasn't allowed to do it (per cc companies rules). I would have just assumed he charged me an extra .25 or .50 to help cover some of their costs. So, they ended up losing a sale.

 

[dmslush]

If they are accepting Visa or Mastercard, they are not supposed to set minimum purchase requirements. You can call the place that issued your debit/credit card and report them. Also, before I pay any kind of fee, I would call my credit/debit card company and ask them if the store is allowed to do that.

 

[tonilea]

I think that they should just build the fees into their prices.

I would rather see a discount for using cash.

 

[julsmom]

I think they can have a service charge for using credit/debit cards. I think the practice that is out there that is technically not allowed is having a minimum purchase in order to use your plastic.

If they are accepting Visa or Mastercard, they are not supposed to set minimum purchase requirements. You can call the place that issued your debit/credit card and report them. Also, before I pay any kind of fee, I would call my credit/debit card company and ask them if the store is allowed to do that.

Maybe this was what I read, but I feel like there was more to it. I wish I could remember where I saw it!

I agree with what everyone is saying. I was just standing there thinking, this doesn't feel quite right. KWIM? But that is just the way everything is today.

 

[BethR]

I would rather see a discount for using cash.

That is how the beer distributor down the road handles things. You get a 50 cent per case discount when paying with cash.

 

[C.Ann]

Do people really walk around with so little cash on them that they can't pay for a purchase of under $5 without a credit card or debit card?

And if you're using a CC card to pay a bill on-line or whatever and they are charging you an extra fee on top for using the CC, what is the point of paying by CC?

 

[BethR]

Do people really walk around with so little cash on them that they can't pay for a purchase of under $5 without a credit card or debit card?

Actually I don't carry much cash with me at all since we use CCs for almost every purchase that we can. Got to get those Rewards Points, you know.

And if you're using a CC card to pay a bill on-line or whatever and they are charging you an extra fee on top for using the CC, what is the point of paying by CC?

I don't know about others, but if there is a charge for using my CC, I don't. Then I am forced to write a check or do an electronic transfer. I don't use electronic bill paying through my bank either since they charge a monthly fee to do so. I either pay through the vendor's website or through Check Free. If neither of these options work, then again, I will pay by check.

 

[deltachi8]

Do people really walk around with so little cash on them that they can't pay for a purchase of under $5 without a credit card or debit card?

Yes. I have exactly $4 in my pocket and it has been that way for about a week. I charge virtually everything.

 

[C.Ann]

Yes. I have exactly $4 in my pocket and it has been that way for about a week. I charge virtually everything.

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I would never feel comfortable being out anywhere on a daily basis (or on a vacation somewhere) without having numerous financial options available to me.. I have seen credit cards denied; debit cards that won't spit out cash; and vendors that won't except anything but cash..

You're a lot braver than I am!

 

[ticktock]

I would rather see a discount for using cash.

YES! If you choose to put everything on your credit card for the points why should the people who pay cash and aren't amassing points have to pay higher costs for you?

The people who won't shop at a store if they charge for cc's would probably be in the minority, especially if said store could charge less for their product if they weren't paying credit card fees.

I absolutely DETEST that commercial were people are all dancing through a lunch line using their cc and then some poor guy comes up with cash and disrupts their party and everyone gives him the evil eye. What a blatant middle school type of brainwashing. Oh, you don't want to be different do you? The horror!

 

[disneychrista]

Unless I am covering for my bartender (and receveing tips) I never have more than about $5 cash and many times I have no cash. If a place charges a fee to use the CC or debit card I generally won't go there w/o cash. It really really is annoying and bad business to charge customers for paying for their goods and services.

 

[tonilea]

YES! If you choose to put everything on your credit card for the points why should the people who pay cash and aren't amassing points have to pay higher costs for you?

The people who won't shop at a store if they charge for cc's would probably be in the minority, especially if said store could charge less for their product if they weren't paying credit card fees.

I absolutely DETEST that commercial were people are all dancing through a lunch line using their cc and then some poor guy comes up with cash and disrupts their party and everyone gives him the evil eye. What a blatant middle school type of brainwashing. Oh, you don't want to be different do you? The horror!

We discussed that very commercial on a Dave Ramsey yahoo group. It is pretty pathetic.

Toni - Dave Ramsey Junkie