is it legal for stores to require at least a 5 dollar purchase if using a debit or credit card?

Answer 1

It is legal--that is, there is no law against it.

Most credit card companies, however, have rules against the minimum purchase. If the store asks for it, I'd pull out my cell and start calling the credit card company. If the company says "They can't do that," put the manager on the phone.

Answer 2

I manage a store. It is unreasonable for a store to have a minimum charge. The credit card companies charge a % for each transaction charged. Example in Los Angeles County for a retail purchase the bank charges 1.26% fee of the amount purchased. From a $5 dollar amount @1.26% that is only .06cents. On a $10 dollar amount 1.26% is .12cents. Its a percentage charge so it doesnt matter how high or low the amount you charge. It does not make an impact on the business. Usually the price of the item has included the fees for credit cards, utilities, rent for the location and any other expenses they have. So just remember when you buy an item and it is more expensive in one place than the other they take into account the rent, credit card charge fees, utilities, employee salaries and a ton of other expenses. The volume in charges is what helps a business, i would never turn away a client to with a silly credit card minimum its not good for business.

Answer 3

Actually, the minimim rate that Credit Card processors charge is 3%-5% of each transaction. Then after paying the bank costs associated w/ ACH Debit, most small retailers need a break even point.

Unlike Walmart, because they are so huge, and the volume is so heavy, they don't care if charge $.48 for a candy bar. (Because they will make it up w/ the next 50 customers who are charging $48.00 each).

Answer 4

Yes it is legal, however usually smaller and independent merchants have a minimum. The merchants usually have to pay at least $3.00 for every transaction charged.

So in a profit society if you want to buy $1.00 worth of merchandise the merchant is losing $2.00. Not good for business. For a super chain like Target or Wal-Mart it's not really going to hurt there budget because they are multi-million or maybe billion companies

Answer 5

Yes. They do that because the credit card company charges them 3 bucks for each debit/credit card purchase they process. They have to make money...

Answer 6

It is legal for stores to set ANY rules they want regarding form of payment. The reason most set a minimum amount for card purchases is they need to cover the transaction fees they pay to the card processor.

Answer 7

Yes, they can decide whether they want to have a minimum or not. Stores have to pay for their credit card machines and service so smaller stores have the minimum in place in order to recoup some of those funds.

Answer 8

Yes it is legal.

The merchants get charged per transaction on their debit machines (costs vary from 5 cents to 45 cents per transaction) so they have the right to charge you for offering the service if you don't meet the minimum requirements.