accepting credit cards for REAL SMALL purchases (Minnesota)?

Question

Hello, I run a small retail shop in Minnesota. Yesterday, someone wanted to charge FIFTY CENTS on a credit card. My fees are nearly that much, if not more. So, I gave him the item, and told him to pay me next time he stopped by. The question I have is, what are my options, in Minnesota, regarding such small purchases on a Credit Card? Can I refuse them? Can I charge an extra fee to cover my costs in processing a 4-bit Charge? (And, yeah, I realize both options don't really encourage more business at my shop) But, c'mon......FIFTY CENTS? Back when Jesse was the Gov, the rule was you had to accept the charge, but could add on a fee for your costs. But I have yet to find a confirmation that the rule is still in effect. Anyways, thanks for the help. TABroman

Answer 1

Visa's and MasterCard's rules prohibit merchants to set up any minimum charges. Discover leaves it up to the merchants. Amex does not let merchants to impose a minimum purchase amount only if this merchant also accepts Visa or MasterCard.

Answer 2

Get out your merchant contract with Visa and Mastercard. That's where it says you cannot charge an added fee for credit card purchases. It's my understanding that Visa and Mastercard really don't like this and if a customer reports you, they might take away your privilege of accepting those credit cards.

I don't know about the minimum purchase. Check your contract. It use to be very common for small merchants to require a $10 minimum to use a charge card.

I think it's pretty bad if someone is charging 50 cents.

Answer 3

I am not exactly sure about Minessota but here in Alaska the rule at most gas stations is that you have to make a minimum $1 purchase in order to pay with a credit card. I also know that there are local merchants that can make out contracts that only take a certain % of your sale and no transaction fees. However these merchants normally charge higher % charges. Say that a normal merchant charges you 2% on VS/MC preffered this one would charge you 3.9%. You got to look at the mix of your sales. If most of your sales are medium to higher dollar items $5 and up I would go with the traditional merchant if most sales are $5 and under search for a local merchant that offers the % of sale option only.