merchant refuses to accept credit card even though card sign displayed?

Question

A coffee shop had credit card symbols on it glass -- visa, mastercard, american express. So i asked for a coffee, and just as i was about to hand my american express card for payment, the cashier refused saying

minimum payment must be $5 for credit card or pay cash.

I never use cash. So i walked out without buying anything.

But i mean the shop door displays credit card signs, yet shop refused to accept card for something as little as $2.20. Isn't this arrogance?

But i have used credit card for less than 2 dollars at walmart, gas stations, seven eleven, etc etc and they all accepted it. Then how come this arrogant coffee shop wouldn't?

Answer 1

Sorry, but I must agree with the first poster.

I mean, come on, I use my credit cards every week, but I never charge anything under $35.00.

Besides, $2.20 is pocket change.

Answer 2

I have worked for a credit card company for some years now and yes as the other answer said the business does get charged every time they run your card thru but it is against their agreement with all three of those credit processors (visa, mastercard and AMX) to refuse to take the card because of the dollar amount. I would really encourage you to call american express and let them know what happened it will help if you have the name and address of the shop that refused the card. The company will contact the business and most likley the business will be fined. If they continue to do it they could lose the ability to process credit cards which they dont want becuse it will really hurt their business.

Your right it is WRONG for them not to take the card I would urge you to do something. A credit card is legal tender and should be accepted. That is in your contract with american express and it is in the business contract with american express.

Answer 3

Not really, the merchant has to pay a fee to the credit card companies. In a coffee shop most of the purchases are going to be small and the shop owner may not be able to raise his prices enough to absorb the costs of credit card charges. You can't blame the guy for trying to keep his costs down and stay competitive.

Answer 4

nope, not arrogance. Actually its common practise.
It costs them a lot to charge a small amount.

You often cannot even use a debit card for anything under $5, in Canada anyway.

I too have walked out for requesting a $4 purchase, and they refuse my debit card. Basically they are saying that if I have less than $10 in my account, I have to spend $5 or more to be able to use the card.

Answer 5

Per Visa MasterCard regulations if they choose to accept those cards they have to accept them for any amount. If it is a problem call the bank that issued your credit card and they will file it with Visa or MasterCard.

Answer 6

Tough-guy,
arrogance? don't think so.
look at this transaction from a real business viewpoint.
AE visaMC all charge discount on purchase plus transaction fees. So purchase can cost the merchant money if too little, add in the labor materials overhead etc.
how would u like to work and have a negative income on ur work.
visit daveramsey.com to learn about not living with cash. u got some hard lessons coming ur way.

Answer 7

i dont know about american express but for visa its against the merchant rules to have a minimum or maximum purchase amount and if they do you can call visa on them as for amex id say look at there merchant rules they may have went against it.

even if they say they dont accept under a certain amount they arent suposed to do that they are suposed to cover the cost because they decided to accept it they didnt have to start so its on them

and for anyone who says they can have a minimum of 5 dollars is in correct some companies like visa says there are to be no maximums or minimums on a purchase and i have reported several companies for this

Answer 8

It is against credit card policy and illegal in some states to charge a fee/surcharge or request minimum/maximums on transactions.

In my opinion, if a merchant's business is financially unstable in that they cannot afford to take major cards without charging a fee or requesting minimum charges, then they should stick to cash and debit transactions.

File a complaint with the credit card company - visa, mc, amex etc.

The states where surcharges are illegal:
California
Colorado
Connecticut
Florida
Kansas
Maine
Massachusetts
New York
Oklahoma
Texas

If you live in one of these states file complaints with your state


For Example:

Visa policy:

Page 8 states:
Always honor valid Visa cards in your acceptance category, regardless of the dollar amount of the purchase. Imposing minimum or maximum purchase amounts in order to accept a Visa card transaction is a violation of the Visa rules.

Page 9 states:
Always treat Visa transactions like any other transaction; that is, you may not impose any surcharge on a Visa transaction. You may, however, offer a discount for cash transactions, provided that the offer is clearly disclosed to customers
and the cash price is presented as a discount from the standard price charged for all other forms of payment.

For Example:

California Civil Code Section 1748.1

((a limited reference of the code))

(a) No retailer in any sales, service, or lease transaction with a consumer may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check, or similar means. A retailer may, however, offer discounts for the purpose of inducing payment by cash, check, or other means not involving the use of a credit card, provided that the discount is offered to all prospective buyers.

b ) Any retailer who willfully violates this section by imposing a surcharge on a cardholder who elects to use a credit card and who fails to pay that amount to the cardholder within 30 days of a written demand by the cardholder to the retailer by certified mail, shall be liable to the cardholder for three times the amount at which actual damages are assessed. The cardholder shall also be entitled to recover reasonable attorney's fees and costs incurred in the action.

Answer 9

I run everything thru my credit card, but I still always carry a few dollars. I would never think of charging such a small amount.

Arrogance is trying to use a credit card for purchases under $5.