Minimum purchase of $10 to use your credit card

[Mermaid_Ariel]

I am SO annoyed! I hate it when I go to a store and there's a sign on the register that says, "Minimum purchase of $10" to use a Visa card. I always debate on whether I should try reporting them but never did until now.

I went into a Blimpie (a sandwich/hoagie/sub/grinder chain for all the ways this country calls them ) and there was a sign on the register that said Minimum Purchase of $10 or be assessed a $.50 service fee if you charge under $10. I was like, WHAT?! Charging ME money to use my Visa card?? I told the guy that I was really annoyed by this policy. Also, it's misleading to have a Visa logo on the door to the establishment and then find out you can't really charge until your sandwich is made. I felt like I was cornered if I didn't have a few dollars on me.

I went to Visa.com and checked to see if I could find any official word on the topic. http://usa.visa.com/about_visa/ask_visa/index.html#anchor_4

So, I contacted my Credit Card company (Capital One) as per the Visa website and they wanted no part of it. I argued with the woman telling her that the merchant is in violation with Visa but they didn't want to help me. I just sent an e-mail to an e-mail address listed on Visa.com but I doubt I will ever get a response.

Why doesn't Visa seem to care about these violations? I see these type of signs all over the places - nail salons, coffee shops, etc. But, this is the first time I ever saw a service fee for using my credit card!!

Has anyone ever gone through with a complaint on this? Any advice? Thank you for letting me vent.

 

[princesswendy720]

The town that I went to college in was notorious for having minimums on card purchases and charging fees for using them (it was high, more like $2.00). My then boyfriend was so infuriated with it that he looked into it and found that it was illegal for all cards except for American Express cards. However, if the company accepts cards other than American Express they can't impose a minimum on any of them (including the AE).

He tried to stage a big protest against it but it never got off the ground. I've found that the best policy is to basically threaten to report the establishment if they try to charge you. It is illegal to do that and they only reason they do it is that they get charged a fee from the credit card company to accept cards, so in essence they are passing the fee (the fee that is meant to be a service to their customers) on to you so they don't have to pay it.

It's ridiculous and I generally don't shop anywhere that does that. If they're going to charge you to use the card they just shouldn't accept them.

 

[CajunDixie]

I've wanted to do this recently too. But instead I just told them I didn't want the item and walked out. They tried telling me they would call the police but I told them as I was walking out my attorney would then notify my credit card company about the bogus fee.

Whole different issue but I hate showing my driver's license when using my cards too! I don't always drive now (DS 15 drives) not to mention my volunteer job requires I carry my ID on me....as in little business card type wallet with just my ID, Cert. and $10 & it sometimes gets left in my work pants. Strangely enough my son has never had a problem using my card and I'm female!

 

[ms1031]

I've wanted to do this recently too. But instead I just told them I didn't want the item and walked out. They tried telling me they would call the police but I told them as I was walking out my attorney would then notify my credit card company about the bogus fee.

Whole different issue but I hate showing my driver's license when using my cards too! I don't always drive now (DS 15 drives) not to mention my volunteer job requires I carry my ID on me....as in little business card type wallet with just my ID, Cert. and $10 & it sometimes gets left in my work pants. Strangely enough my son has never had a problem using my card and I'm female!

Now see, I'm bothered when I am NOT asked for identification for my credit card. The more the merchants do to limit my risk of credit fraud, the better!

 

[MKCP5]

Well, I hate to rain on your parade, but it costs the small business owner money every time you use your visa card. If you are not making a substantial purchase, then what little profit they may have made is all but gone to pay for the CC fee.

I don't like it when I see that sign, but I understand that they are just trying to stay afloat too and not have to raise their prices.

 

[girli565]

Well, I hate to rain on your parade, but it costs the small business owner money every time you use your visa card. If you are not making a substantial purchase, then what little profit they may have made is all but gone to pay for the CC fee.

I don't like it when I see that sign, but I understand that they are just trying to stay afloat too and not have to raise their prices.

But what the OP is saying is that it violates VISA's policy which the merchant has to agree to when they accept a Visa logo card.

Yes, we know that it costs money but it's a convenience thing and if a store wants customers (especially loyal ones) than they have to know the service charge is included with the CC purchase. If it's such a problem than don't accept CCs and become a cash only business.

 

[MKCP5]

But what the OP is saying is that it violates VISA's policy which the merchant has to agree to when they accept a Visa logo card.

Yes, we know that it costs money but it's a convenience thing and if a store wants customers (especially loyal ones) than they have to know the service charge is included with the CC purchase. If it's such a problem than don't accept CCs and become a cash only business.

I am prefectly clear on what the OP is saying, but you would prefer they raise their prices to accomodate taking cards and processing for a $3.00 purchase?
I'm sure they could do that so that this woudn't be an issue, but I don't think you would like that too much either.

 

[girli565]

I am prefectly clear on what the OP is saying, but you would prefer they raise their prices to accomodate taking cards and processing for a $3.00 purchase?
I'm sure they could do that so that this woudn't be an issue, but I don't think you would like that too much either.

Raising the price is just something they have to do then because if not they are violating the policy they agreed to with Visa by setting a minimum purchase or a service charge.

If I or any customer doesn't like it, than they can leave or choose to not be a customer at that store again. If it's a set policy that's being violated, would that business prefer to be reported and suffer the consequences, whatever they may be?

A business owner should be aware of the service fees and if it's a problem for them to pay the service fees than they shouldn't accept CCs. It's really a cut and dry issue when there is a set policy for merchants who agree to accept Visa cards.

 

[FoundMyPrince]

There is a very small teacher supply store in our town that has a $10 minimum purchase for the use of credit cards. It's annoying. The last time I was in there I purchased about $4 worth of stuff and bought a $10 gift certificate just so I could use my card. I don't carry cash or checks so I was kind of in a tough spot. Now I carry a credit card and a gift certificate.

 

[StillPinballFamily]

Why doesn't Visa seem to care about these violations? :

Well, because duh, they are making a HUGE fortune charging these fees to merchants and then, of course, ultimately to the consumer! They aren't going to cease dealing with or even slap the hand of any company who is providing them big profits each day/week/month/year - just because they didn't get to make their .15 on your sandwich.

Cash is king! (And I'm a former debit card queen!)

If it truly bugs you, don't shop there, or anywhere that offends you - there are many of us who don't shop with certain businesses because we dislike the company owner's politics...that they only carry items made overseas...that a store is always dirty...whatever.

And for your safety's sake - please start carrying at least a spare hidden $20 in your wallet for an emergency - you never know when you'll REALLY need it. (And no, wanting a sub/hoagie/grinder doesn't count...! )

 

[girli565]

And for your safety's sake - please start carrying at least a spare hidden $20 in your wallet for an emergency - you never know when you'll REALLY need it. (And no, wanting a sub/hoagie/grinder doesn't count...! )

My mother tells me this allllllllll the time!! But she's right, just don't tell her I said that!

 

[StillPinballFamily]

My mother tells me this allllllllll the time!! But she's right, just don't tell her I said that!

EEK! OMG - have I finally turned into MY mother????

 

[MKCP5]

Raising the price is just something they have to do then because if not they are violating the policy they agreed to with Visa by setting a minimum purchase or a service charge.

If I or any customer doesn't like it, than they can leave or choose to not be a customer at that store again. If it's a set policy that's being violated, would that business prefer to be reported and suffer the consequences, whatever they may be?

A business owner should be aware of the service fees and if it's a problem for them to pay the service fees than they shouldn't accept CCs. It's really a cut and dry issue when there is a set policy for merchants who agree to accept Visa cards.

Policy Shmolicy I think it's ridiculous that the store owner has to follow anyones policy. It's THEIR store. If you don't want to shop there, don't. Go somewhere else. Goodness knows there are a million sub shops. Visa couldn't care less if some store wants to create a minimum. They're waaaaayyy too busy making billions off the suckers who pay all those interest charges and the store owners who pay them too!

 

[jellybeans0607]

Policy Shmolicy I think it's ridiculous that the store owner has to follow anyones policy. It's THEIR store. If you don't want to shop there, don't. Go somewhere else. Goodness knows there are a million sub shops. Visa couldn't care less if some store wants to create a minimum. They're waaaaayyy too busy making billions off the suckers who pay all those interest charges and the store owners who pay them too!

Not to mention they love the minimums just as much, it means you put more on your card.
Small business owners are suffering right now. They don't have the extra money to pay the fees. They have no choice but to transfer those fees to the customer. And, quite frankly i think its perfectly acceptable. Why should they pay the fee because someone doesnt feel like carrying cash?

On a side note, gas stations do it all the time. They have 2 prices, one thats advertised with the word cash next to it and then the one they charge credit card users. Why arent people complaining about that? I wonder if they even bother to look to see if they are getting charged more?

 

[pearlieq]

On a side note, gas stations do it all the time. They have 2 prices, one thats advertised with the word cash next to it and then the one they charge credit card users. Why arent people complaining about that?

Actually, what the gas stations do is kosher by CC policy. They aren't allowed to set a minimum or charge a fee to use a credit card, but they're allowed to offer a DISCOUNT if you use cash.

Of course, it's exactly the same thing, just worded differently, but one is OK and the other isn't.

 

[jellybeans0607]

Actually, what the gas stations do is kosher by CC policy. They aren't allowed to set a minimum or charge a fee to use a credit card, but they're allowed to offer a DISCOUNT if you use cash.

Of course, it's exactly the same thing, just worded differently, but one is OK and the other isn't.

ok then you get a discount by paying cash at a small business

 

[peggster]

On a side note, gas stations do it all the time. They have 2 prices, one thats advertised with the word cash next to it and then the one they charge credit card users. Why arent people complaining about that? I wonder if they even bother to look to see if they are getting charged more?

I believe the way the agreement is written (and I'm sure someone will correct me if I'm mistaken), a store can offer a discount for cash vs. credit card purchases. Sure, it's basically the same thing, but it's all in how they word it.

 

[parkers*momma]

As a small business owner, I can tell you that the fees are crazy. I have a minimum purchase amount ($5.00) for a credit card with no cash back. Also, if you want to cash a check, you have to purchase atleast $5.00 or I will charge you three dollars to cash the check.

I know some ppl have an issue with these practices but here is the bottom line.

Just to scan your CC, it costs a business 75 cents plus 2% of the sell. That is not including the supplies or the direct line used to place the call (must have a dedicated line). I have had customers come in and get a newspaper (50 cents) or a can of pop (75 cents) and want to charge it. I could raise the prices...I probably should raise the prices to cover those items but I haven't as of yet. A can of pop costs me 59 cents so should I add the my profit margin plus the 2% plus the 75 cents it costs me to scan the CC. Now instead of a customer paying 75 cents a can, the customer will be paying $1.52 for that can of pop. WOW, I don't think I will be selling very many cans of pop.

I have a very small percentage of customers who chose to use a CC for their purchases. Maybe I should be like gas stations and charge the CC customers more than the cash paying customers. Gas stations do this all the time and I don't blame them. There is very lil profit to the actually station owners...the make pennies on the dollar per gallon.

Ethically, I know it is wrong to put a minimum that you can charge but I'd like to stay in business for all my customers all the while not going under because of credit card companies. It took me until this year to FINALLY get a CC machine in because of the astronomical charges from the CC companies. At this point and time, I don't fell it is right to raise all of my prices.....for all of my customers....because a select few want to charge their purchases. How is that fair to the cash paying customers?

Currently, we have the average charges of less than $125.00 a day. Somewhere in the neighborhood of 9-11 customers per day. My monthly bill just to have the CC machine, the services fees, and line is around $375.00 a month. Quite a bit for a small company don't you think?

I respect the fact that it you feel it is wrong for a retailer ask that a minimum purchase to entitle you to charge your items but in the same token, I hope you relize that CC companies have us over a barrel too.

FYI...I accept all forms of credit cards...as do most businesses. One of the things you might not realize...Most businesses are contracted through a third party company. We don't directly pay visa, mastercard, discover, american express. The third party company does this so the rules are a lil different.

I feel your pain and frustration...I use my cc/debit card too....I just know what an establishment is charged when I use it.

Trust me, small business aren't reaping the bounty when you use your CC and ask that it for a minimum amount. They are just hoping to break even. It's the CC companies who are charging us for you to use it and charging you interest for using it. Like double dipping, huh?

 

[jellybeans0607]

I would still have to argue that that isn't what the gas stations are doing. I have nvevr seen a price posted for the credit card users, so one could argue that they are being penalized. If it truely were a discount for using cash they would post the price of gas(cost to credit users) and then somewhere write the price of the "discount". Instead the post the cash price, which makes it the cost.

 

[Nie0214]

Now see, I'm bothered when I am NOT asked for identification for my credit card. The more the merchants do to limit my risk of credit fraud, the better!

Agreed.

When I worked at JCPenney, I would ask for the card to verify the signature and if it didn't resemble the signature on the card, I would ask for an ID. There were also people who didn't sign their CC at all, so I would ask for their ID. I had been thanked many times for asking for an ID (one time a woman told me she had been an identity theft victim and truly appreciated it). Since those times, whenever I am asked to see my ID, I reply with "Thank you for asking to see it!" So hopefully by hearing "thank you" they will do it all the time.

I loved the people that instead of signing their CC, they write "See ID" and then they get mad when I ask to see it!

Far more people said "thank you", but I did have a few who complained, grumbled, and the occasional one who thought yelling at me would make me not need his ID. :