Is it illegal for merchants that take Mastercard and Visa to make you buy a minimum?

Question

I remember reading that recently, but I still see signs up in stores that say you have to be purchasing over a certain dollar amount if you want to use your credit card.

Just wondering ...

Answer 1

No. It's not illegal. It is so they don't go out of business. Credit card companies charge vendors a fee when the cards are used, and so in order for them to maximize profits, they have to minimize low credit card purchases. Also, it's not illegal for a merchant to refuse to sell you anything at all.

Answer 2

There is no legal requirement for merchants to accept credit cards at all. As long as the policy is known in advance of purchase (important in cases, like in a restaurant, where the product or service might be consumed before payment) and applied without regard to ethnicity, sex, physical condition, etc. then there should be no legal problem with such a policy.

The reason these policies exist is that many merchants are charged a flat fee for each charge in addition to a small percentage of the purchase amount. A nonprofit group I work with pays $0.50 + 3/4% of the amount for donations made via credit card, for example. The same 50-cent charge for a merchant would less than the net profit on an item that costs just a couple of bucks.

Answer 3

Because usually they can't check on the card unless the purchases equal a certain amount (computers). Also, the credit card company charges them a fee when they take a credit card for purchases.

Answer 4

Merchants have a lot more power in this than you may think- minimum amounts for cards or checks, they really don't have to make change, they don't have to take big bills, etc.

Answer 5

You are ALLOWED to shop somewhere, you don't necessarily have the right. So, the store owner can do whatever it is that they want. Just like casinos can kick you out of they think you're winning too much. It's not a good business decision, though.