2006-06-06 00:38:58 · 13 answers · asked by chris 1 in Business & Finance ➔ Small Business
Because of the cost to them of processing the transactions, small amounts cost too much
2006-06-06 00:40:58 · answer #1 · answered by lizarddd 6 · 1⤊ 0⤋
They dont REALLY need to have a minimum amount as you can process any amount on a card - but each transaction costs the shop, so for that reason they make a minimum amount so that they are not losing out on too much money!
2006-06-06 07:43:08 · answer #2 · answered by June 2 · 0⤊ 0⤋
As an aside, it is illegal to require a minimum purchase to use a Visa card if the shop accepts Visa. It's in Visa's terms of service that a shop must accept the card for all purchases.
2006-06-06 07:50:29 · answer #3 · answered by Elliot 1 · 0⤊ 0⤋
because it costs the business a lot to process a card transaction. I know someone who pays 29 pence by card every day!!
2006-06-06 07:41:53 · answer #4 · answered by shoppie00 1 · 0⤊ 0⤋
not only do u pay to have card shops also "pay" to accept it if u buy $2 worth of stuff and the % they pay to accept card is 2% they lose the first $.04 of profit if thier markup is 3% they only make $.02 of the whole sale and thats hardly worth taking up shelf space to store the item not to mention the time it takes for an employee to ring up ur card
2006-06-06 07:44:49 · answer #5 · answered by Anonymous · 0⤊ 0⤋
the buisness has to pay the credit card company to process every transaction so if small amount it is not worth while ..thats why lot of small places wont use amex as thier rates are to high
2006-06-06 07:44:19 · answer #6 · answered by kathy_madwoman_bates 4 · 0⤊ 0⤋
They are charged by the credit card company for the card's use !.
2006-06-06 09:07:09 · answer #7 · answered by randy j 3 · 0⤊ 0⤋
so they are able to make some kind of profit on the purchase, as, after all fees, charges and expenses are paid by the company for the facility option, they then need to make a return to enable the company to keep trading for business.
It costs a penny to make a penny.
2006-06-06 07:43:44 · answer #8 · answered by Mintjulip 6 · 0⤊ 0⤋
the bank charges 50p + 10% of the transaction. so for small amounts its not worth them selling it because they would not make any money on it.
2006-06-06 07:42:32 · answer #9 · answered by drunkredneck45 4 · 0⤊ 0⤋
thats only in lame boring europe, in america, you can pay a $1.69 bubble gum by credit card, there is no limit there.
2006-06-06 07:42:30 · answer #10 · answered by sueet2b 4 · 0⤊ 0⤋