I was kinda disappointed by the Indian convenient store around which doesn't allow customers to use their credit cards for purchases less than certain price. Those stores are simply inconvenient stores.
I was wondering why they don't allow that. definitely not a good customer service. Also they don't give you are good receipts which has all the information.
2007-12-24 07:30:41 · 6 answers · asked by naivethought 2 in Local Businesses ➔ United States ➔ Other - US Local Businesses
I work in retail myself and I've never been told nor done anything like that. I understand if the amount is like a dollar or so the customers themselves don't give credit cards, but some of these stores have minimum of $20 for the credit card use. Which is just ridiculous.
What is surprising is that the same people don't even hesitate using credit cards for their under dollar purchases when they shop at others.
2007-12-24 07:44:38 · update #1
Bank charges to the dealer, on all credit purchases, off the top.
2007-12-24 07:34:53 · answer #1 · answered by ed 7 · 1⤊ 0⤋
Has nothing to do with whether the stores are owned by Indians or not. The merchants are charged a fee by the credit card companies per transaction. When you charge $10.00, the merchant gets about $9.00. Most merchants don't accept credit cards for the amount less than the fee. If you charge a 1.00 candy bar, they still have to pay the fee and are making a few pennies or even taking a loss on the transaction.
Different credit card companies charge different amounts, Discover charges more per transaction that MC or Visa, for example.
2007-12-24 07:41:58 · answer #2 · answered by Mother Amethyst 7 · 0⤊ 0⤋
The credit card companies charge merchants a relatively high price to process credit card purchases. For example some charge $0.30+ 3% of the purchase price. So on a $2 purchase, the credit card company would take 36 cents, which greatly cuts into their profits on small purchases.
And that is not even counting the monthly flat fees that the credit card companies charge just to use their system.
2007-12-24 07:41:18 · answer #3 · answered by Heather S 2 · 1⤊ 0⤋
They have to pay everytime you use that credit card.
If you just bought something for a dollar why would you want them to pay the service charge for that amount?
Try looking at things from the other side sometime.
2007-12-24 07:40:03 · answer #4 · answered by Lynnie 5 · 2⤊ 0⤋
They are not the only ones and I agree with them. Most have to pay a minimum fee per transction to the card issuer. If that fee is more than the sale, isn't it reasonable to stop that level of sale?
If your bank chrged you a dollar to cash a check, how many fifty cent checks would you bother cashing? It's the same idea.
2007-12-24 07:40:52 · answer #5 · answered by Tom K 6 · 2⤊ 0⤋
MOST OFTEN BECAUSE THE STORE HAS TO PAY 3% TO THE BANK ISSUING THE CREDIT CARD AS A SERVICE FEE.....ON THE OTHER HAND MOST CREDIT CARD ISSUERS PROHIBIT THE PRACTICE AND IF A MERCHANT WERE REPORTED AS ENGAGING IN THE PRACTICE THEY OFTEN WILL NOT ALLOW THE MERCHANT TO USE THEIR SERVICES.
2007-12-24 07:38:43 · answer #6 · answered by Anonymous · 0⤊ 0⤋