I see signs in stores and restaurants saying in order for you to purchase something with your credti or debit card you have to charge a minimum of X amount of dollars on it... is that legal?
2006-08-10 06:54:34 · 20 answers · asked by Meliskell 2 in Business & Finance ➔ Small Business
It is legal but against the policy of MasterCard and Visa in the US, other counties have different laws. I think in France you have to show your id or Passport to use a card.
2006-08-10 09:45:05 · answer #1 · answered by webworm90 4 · 1⤊ 0⤋
It is legal, but against the rules and regulations of the credit card company. The merchants do this, because the credit card companies charge them 2 ways - first they pay a % of the sale to the cc company, and they pay a transaction fee. So if the charge is 2% plus a .50 fee, its not a big deal for a $200 purchase. However, if its a $4 purchase, they give 58 cents to the CC company.
You can report a merchant for having a minimum charge to the credit card company.
2006-08-10 14:01:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes it is legal because the credit crad companies charge the stores for each transaction and in order for the stores not to lose profits, they have a minimum charge. I worked at a restaurant and the minimum charge was $5.00. It is legal because the store owners choose the way of payment they will accept, and they don't even have to accept credit cards at all if they chose not to.
2006-08-10 14:01:23 · answer #3 · answered by muslimah 3 · 0⤊ 0⤋
It is perfectly legal - just like the store doesn't have to accept personal checks if they don't want to.
It costs the store money every time you want to use a charge card. And for small business owners, charges of $5.00 or less usually mean they are losing money. The other option is for them to raise the price you are paying for food to make up for the money they would lose. And that would effect all customers. Instead, they chose to set a minimum for those using a credit card.
If you want to complain as others have suggested - to visa or mc, then realize that the price of your purchase will be going up OR the owner will just not accept credit cards any more.
2006-08-10 16:37:34 · answer #4 · answered by Anonymous · 0⤊ 1⤋
I don't think there is a law against it. It is probably to the store owner's discretion. Because they pay a fee for each use, it isn't beneficial for them to accept credit cards for minimal amounts. In order to be able to the credit card, they need to make enough of a profit to cover their user fee with the credit card company and still make money!
2006-08-10 14:03:38 · answer #5 · answered by Tangled Web 5 · 0⤊ 0⤋
dunno...never have seen those signs before. I do know that companies are charged a fee for the debit/credit transactions though. Was is the minimum amount usually?
2006-08-10 14:01:10 · answer #6 · answered by Sal 2 · 0⤊ 0⤋
Depends on the county laws. It costs the store to run a debit/charge, and if the purchase isn't over a certain amount, the store loses money.
2006-08-10 14:00:16 · answer #7 · answered by ninusharra 4 · 0⤊ 1⤋
It's technically "legal" in that it's not violating any laws. However, it's against the terms of their contracts with many of the credit card companies. If they're caught or reported, they might lose their ability to accept credit cards.
2006-08-10 14:06:11 · answer #8 · answered by Muralasa 3 · 1⤊ 0⤋
No, not legal. It's not legal for them to ask to see your license either, even if the back isn't signed. They do have the right to refuse you as a customer, though.
2006-08-10 13:59:40 · answer #9 · answered by Molly 3 · 0⤊ 0⤋
According to the credit card companies, it's not.
2006-08-10 14:00:45 · answer #10 · answered by loveblue 5 · 1⤊ 0⤋