2007-12-22 23:42:58 · 6 answers · asked by nanabooboo 1 in Politics & Government ➔ Law & Ethics
it or debt card to shop in there store ?
2007-12-22 23:44:15 · update #1
Virginia law may allow such a thing, but no credit card companies allow businesses to insist that customers make a minimum purchase in order to use a credit card. Businesses sign contracts with the credit card companies in order to be allowed to accept the credit cards, and in all contracts it is stated that businesses are not allowed to require a minimum purchase or charge a fee for accepting credit cards. This means that if a company or business is doing this, you may report them to the credit card companies, and the credit card companies may revoke their right to accept credit cards.
The reason that businesses do this, however, is because they are charged a fee (either a percentage or a flat rate) for every credit card transaction. This means that if you use a credit card for a very small purchase, like a 50 cent bar of candy, the business could actually end up losing money because they pay more in credit card transaction fees than they get from you.
2007-12-22 23:49:46 · answer #1 · answered by Somebody else 6 · 2⤊ 1⤋
No law on the books, simply merchant preference. The credit card companies don't like it, but they don't enforce their side of the contract to abide by any amount as a purchase, so you've no recourse in the law, just the cc company could take their charging privileges away.
They won't because a $5 purchase would cost the merchant around $2 to process.
2007-12-23 08:05:25 · answer #2 · answered by Anonymous · 2⤊ 0⤋
No such law is required. A private merchant has the legal right not to accept credit cards at all if he so wishes. Technically, a business owner is violating his contract with the credit card companies by having a "minimum purchase" rule, but small mom-and-pop stores simply could not do business otherwise because of the high transaction fees and the large number of small purchases they typically deal with. They aren't breaking any laws, however.
2007-12-23 07:50:36 · answer #3 · answered by Anonymous · 1⤊ 1⤋
Not a law, a store policy. Credit cards cost the merchant when accepted. It is their choice to accept them or place a minimum purchase amount on the usage. Not good business sense to my way of thinking though.
2007-12-23 07:50:08 · answer #4 · answered by sensible_man 7 · 2⤊ 1⤋
No, it is not a law. Yes, the merchant has the right/ authority to make that choice.
He doesn't have to let someone in his STORE, if he so chooses.
2007-12-23 13:23:19 · answer #5 · answered by wendy c 7 · 1⤊ 0⤋
NO! And any merchant who requires this can and should be prosecuted for it. As a minimum report them to the Better Business Bureau.
2007-12-23 07:54:22 · answer #6 · answered by Anonymous · 1⤊ 3⤋