Tip About Minimum Credit Card Purchases

[Mrs.Toad]

The whole premise of this thread, that a person should go out of their way to punish a business for trying to protect their bottom line, really rubs me the wrong way. Would you actually want a small business owner to go out of business due to excessive credit card company fees just so you can buy a pack of gum with your visa? I find that sense of entitlement incredibly self-centered. Perhaps I missed the message of your post?

I completely agree. Although most businesses do accept credit cards these days, it is still optional. If a store can choose whether to accept credit cards at all, I don't see the harm in letting them choose for what minimum $$ amount they will accept them.

Technically, I don't know until I see the little VISA sign near the register whether they'll take my card or not, and I'll notice the little "$10 minimum for credit cards" sign at the same time. If I wanted to buy a $3 item with my credit card and saw the sign, I'd do the same thing I do when I see the sign that says "cash only", either pay cash if I have it, see if they'll take a check or walk out without buying and remember it for future purchases, which may include making sure I have cash before going into the store, or avoiding that store if I don't.

 

[Mrs.Toad]

This leaves a really bad tatste in my mouth. I know you didn't create the policy, but honestly, it's like extorsion. The CC companies use their clout to force small business owners to use the cards, even if the transaction costs them more to run than they make in the sale. If the store doesn't want to, the CC company will pull their contract. That's such slimy, unethical business practices on the part of the CC company, IMO.

I will not report a small business owner for aving this policy and will continue to hold the opinion that those who DO report it are just being petty and selfish.

Another good point. I think it's sleazy business practice on the part of the credit card companies, too.

 

[PghLybrt]

Another good point. I think it's sleazy business practice on the part of the credit card companies, too.

Another sleazy thing they do….we are a seasonal business in many of our locations. Because of this our service is suspended throughout the winter so we do not accrue any fees. This time when I went to start them up I did all the paperwork required in January, February and again re did it all last week. They said all was well in Feb when I had called. Low and behold it was not and they have been holding all transactions from on of the locations. Now it well over 15,000 they are holding until they get the paperwork in line!! Even though I have it documented by fax and recorded of when and whom I have spoken with.

Now 15,000 may not seem like a lot, but in a seasonal business that has been puling in nothing all winter but put out money all winter it is to us. They have no response as to when they will release it either!

So even if this location takes the credit cards we still will not see the money probably for another 2-3 weeks. Try telling that to employees when they want paid!

 

[4greatboys]

I have seen several stores that charge you a "surcharge" if you dont charge a minimum on your card. In those cases I have just told them they just lost a customer and left without my intended purchase.
Still its very irritating that they try to do that.

 

[DisInsider]

I'm surprised they didn't mention it to you that it's against policy to charge extra for using a credit card as well.

I only found out about the minimum purchase thing because I asked. I never thought to ask about charging for using cards, because I had never heard of it besides those on-site ATM's that some buisnesses use.

 

[momrek06]

Also - many people now sign the back of their cards, "Please See ID" for added protection.

And now for a little humor to throw into this thread. My DS went overseas to the University of Glasgow, Scotland, UK for Fall '06 semester. We sent him with an AMEX all set up in his name. DS decided to write on the back "SEE ID"!! He had his drivers license as well as college (USA) id!!

First time he uses the cc to purchase items for his dorm room, he hands the clerk his AMEX and his license. DS then proceeds to write HIS NAME on the receipt.

The clerk looks at the receipt and at DS' AMEX, keeps looking at both of them and then tells him..."NO, you must sign the receipt EXACTLY like the AMEX!"....DS tried to explain to her that it means to "ask for ID"....NOPE, she was not interested in any discussion, he had to sign the receipt "SEE ID"....and he continued to do that the entire semester he was there(in that particular store).......... ...........

 

[DisInsider]

I have no idea.

My guess is that a company as large as sonic has the clout to force the CC companies to waive the fees. Given the nature of their business (volumn of small transactions) I'm sure they factored that into the equation when deciding whther to get the CC service or not. That's not the same a Joe Smith who owns the gas station franchise down the street, KWIM?

Not sure if this was your point, but why would a CC company waive their fees for Sonic or any other company if they aren't going to make money. Doesn't make much sense to me. A large company like Sonic can negotiate to have lower fees, but no CC company is going to just waive them.

 

[Luv'sTink]

Here you go, page 10 (It takes a while to load be patient, it has 143 pages)

http://www.usa.visa.com/download/merchants/rules_for_visa_merchants.pdf?it=r5|%2Fmerchants%2Findex%2Ehtml|Rules%20for%20Visa%20Merchants

Dollar Minimums and Maximums
Always honor valid Visa cards, in your acceptance category, regardless of
the dollar amount of the purchase. Imposing minimum or maximum purchase
amounts is a violation.

No Surcharging
Always treat Visa transactions like any other transaction; that is, you may not impose any surcharge on a Visa transaction. You may, however, offer a discount for cash transactions, provided that the offer is clearly disclosed to customers and the cash price is presented as a discount from the standard price charged for all other forms of payment.


I went to large company and wanted to buy a $4,500 item and they told me they would charge me 5% of the sale to cover their cost and when I told them it was against Visa policy they said they knew and didn't care. They didn't charge the surcharge on lower priced items. It isn't just the small business that are doing it now the big ones are getting in on it too.

 

[orljustin]

I completely agree. Although most businesses do accept credit cards these days, it is still optional. If a store can choose whether to accept credit cards at all, I don't see the harm in letting them choose for what minimum $$ amount they will accept them.

They make the decision to accept credit because it will bring in the customers, because, frankly, a majority of customer prefer to use credit these days. To then try and force people to add more to their purchase is ridiculous, and they should be reported. If they want the benefit of people buying bigger things on credit, then they can eat the couple of cents for small things.

I've emailed Mastercard before about merchants. I don't know if they removed their signs, because I didn't go back, or never saw them again.

 

[PghLybrt]

I am sorry but to you all realize that what we do to cover the fees imposed by the credit card companies is to raise prices passed onto a consumer? As a consumer it is in your best interest to use cash or secure your own financing.

 

[DisInsider]

Here's another friendly tip/request from a merchant. If your credit card is declined, we can't tell why it was reclined. But please don't ask us to run it through again. The CC companies will charge us a minimum fee of $15 to re-run a card that was declined the first time. The reason given to me was because the time spent re-running the card ties up the lines for somehting that was already done. I have no problem swiping another card for you, but once a card is declined, I will hand it pack and ask for another form of payment.

 

[bicker]

I do think it's a bad thing! Chain stores that sell a similar, but lesser quality, product to mine drive down the value of my product.

The quality of product you choose to provide is a personal decision you make, in the context of the desires of your prospective customers.

If we are comparing apples to apples, I sell high-end quilt fabric that is not available at Walmart, Hobby Lobby, or Joann's.

So you're precisely in the sweet-spot for small, local businesses, and your clientèle should have no interest in the more standard offerings of the national chain stores. The national chains provide the standard offerings; you provide the unique offerings.

I'm not asking anyone to support a local business that provides a lesser product at a higher price. I'm just saying - don't make the ability to charge $1 the deciding factor in your consumer choice.

Well, that's a fundamental issue that is discussed here on the DIS all the time -- the difference of perspective between the relative minority of us who loved eating at Disney's restaurants when they were expensive, never crowded, and always verging on haute cuisine -- versus the relative majority who love eating at Disney's restaurants now that there are so many more more-affordable meals to be had, despite the fact that the restaurants are now more crowded and the food quality is more mainstream. For good or ill, customers will make their purchasing decisions based on criteria of their own, and more and more, and in more and more market sectors, customers are making their purchasing decisions based on price, more than any other single consideration.

 

[bicker]

The whole premise of this thread, that a person should go out of their way to punish a business for trying to protect their bottom line, really rubs me the wrong way.

I agree. Folks shouldn't be petty about it. However, by the same token, folks shouldn't feel obligated not to use their credit card, if that is what they prefer to do.

Would you actually want a small business owner to go out of business due to excessive credit card company fees just so you can buy a pack of gum with your visa?

The point is that that's really truly not the customer's problem. Folks here know that I'm a very strong supporter of businesses legally doing what's best for their objectives, and a strong opponent of Entitlement Mentality. However, this is not entitlement mentality. As I mentioned above, customers should not feel obligated not to use their credit card, if they would prefer to use it for a purchase.

 

[Mrs.Toad]

They make the decision to accept credit because it will bring in the customers, because, frankly, a majority of customer prefer to use credit these days. To then try and force people to add more to their purchase is ridiculous, and they should be reported. If they want the benefit of people buying bigger things on credit, then they can eat the couple of cents for small things.

I've emailed Mastercard before about merchants. I don't know if they removed their signs, because I didn't go back, or never saw them again.

I prefer to use credit, too, but the majority of my purchases are in excess of any stated minimum I've encountered.

I have never seen a business try to "force people to add more to their purchase". They are only asking that we pay cash instead of use a credit card for small amounts, which IMO is perfectly reasonable when the credit card fee exceeds their profit from the transaction. You may think that's ridiculous, but I think reporting them for something so petty is what's ridiculous.

Like someone said, if most customers are regularly paying for $2-5 purchases with credit cards, I bet most businesses would just mark up the price of all those little items by the 30 cent transaction fee, to be sure it was covered if someone bought only that on a credit card. If someone ended up buying two of them, they'd just make some extra profit.

 

[PghLybrt]

So you're precisely in the sweet-spot for small, local businesses, and your clientèle should have no interest in the more standard offerings of the national chain stores. The national chains provide the standard offerings; you provide the unique offerings.

.

Not speaking for anyone other than me here.

What you typed should be how it is. However it is not. People see the Wal-Mart add, see its cheaper and go there. They do not give you the ability to teach them. They actual get mad because you are trying to rip them off by charging more money, even though you are selling a higher quality product with much better service.

 

[Monte Cristo]

I am sorry but to you all realize that what we do to cover the fees imposed by the credit card companies is to raise prices passed onto a consumer? As a consumer it is in your best interest to use cash or secure your own financing.

You know, that's the first thing I thought of too when reading this thread. I would think that the higher costs would filter down and the consumer would pay more.

I use my card a lot, and just today used it for a $3 purchase at CVS. I didn't realize the OTC meds I was buying were that cheap, otherwise I would have paid cash. CVS isn't a small business, but I still felt bad.

 

[salmoneous]

I know the fees associated with accepting credit/debit cards are steep, especially for small businesses,

Just curious, where you always reporting these small companies because it was your job, or was this just some sort of hobby?

 

[bicker]

This leaves a really bad tatste in my mouth. I know you didn't create the policy, but honestly, it's like extorsion. The CC companies use their clout to force small business owners to use the cards, even if the transaction costs them more to run than they make in the sale. If the store doesn't want to, the CC company will pull their contract. That's such slimy, unethical business practices on the part of the CC company, IMO.

That's like complaining that it is "unfair" that national chains get to buy products wholesale for a lower price than small, local businesses. In reality, each company gets to offer what they wish, and then each customer (and in this case, the small business owner or manager of the chain stores are the customer of the credit card companies) has the option to accept or reject the available offers. Sellers are not obligated to make offers that explicitly ensure that all their customers can make enough profit. If a small, local business cannot afford to pay the regular costs of doing business like this, then they don't deserve to be in business.

 

[Mrs.Toad]

customers should not feel obligated not to use their credit card, if they would prefer to use it for a purchase.

What about businesses that don't accept credit cards at all? In my area, there are many more of them, than businesses who impose minimums on credit card purchases. Is it also wrong to make a customer feel obligated not to use their credit card at those businesses?

I'm sure you or someone else will say that once they put their sign out saying they take credit cards, they need to take them for all purchases, but I disagree. I think as long as the minimum charge sign is displayed in conjunction with the credit card signs, the customer knows what the merchant is willing to accept, and they can make an informed decision as to whether they want to shop there.

 

[bicker]

What you typed should be how it is. However it is not. People see the Wal-Mart add, see its cheaper and go there. They do not give you the ability to teach them. They actual get mad because you are trying to rip them off by charging more money, even though you are selling a higher quality product with much better service.

I wouldn't get wrapped up in customers who really aren't looking for the special stuff that you're selling. They probably don't want the better quality stuff, otherwise they'd be more interested in what you're trying to tell them.