Credit Card Minimums

2/27/2008:

I’m kind of in the middle on this subject. Credit card surcharges are a pain in the neck, especially for small businesses. However, it’s in those small businesses’ best interest to accept credit cards overall, because they’d be losing those customers otherwise. Many stores and restaurants try to impose minimums to use credit cards in their establishment, and one Hoboken411 reader explains that they’re not supposed to do that.

hoboken-credit-card-minimums.jpg

“I want to share with all of my fellow Hobokenites that this practice is NOT allowed…. anywhere. Many businesses try and impose a “minimum $10 purchase” to use plastic, or they want to add in a $1 fee for using it for a certain level purchase. This happens all over the country and it is not allowed by any of the major credit card companies. The practice is restricted in the retailers’ rules & regulations that they have with the credit card company. If this happens to you, explain to the merchant that the credit card company does not allow imposing minimum purchases and if you are not able to use the card, you will report them to your bank and Visa/MasterCard/American Express, etc. If this is the case after explaining that, do call or email your bank and they will take care of filing a report on behalf of the credit card. Also go directly to the credit card and file a complaint.

MANY local businesses (mostly places like Chinese take out and the Organic Grocery on Washington) do such a practice and I have called them on it many times.”

He suggested some links to check out:

MSNBC
AZCENTRAL
BANKRATE

If you owned a business with thin profit margins and high rent, what would you do?

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85 Comments on "Credit Card Minimums"


bradykp
Member
bradykp
8 years 7 months ago

[quote comment=”70659″][quote comment=”70593″]Another reason the bar holds your license is to prevent identity fraud. You always have the option to pay cash even if you put your card down. I prefer to pay the bill with plastic but leave the tip in cash.[/quote]

1. I realize that but I offered to show them my license but told them they’re not holding it. Remember though, it’s they’re responsibility to verify the signature on the back of your card for authenticity and if they’re not confident it may be you to then ask for backup identification. I did that plenty of times back in the day when I worked in retail. I just really didn’t appreciate the double standard they’re enforcing when they don’t ask for a card if you’re getting table service.
2. If possible I like to tip in cash b/c then it’s between you and the bartender/server and all the less for them to report.[/quote]

there’s less of a chance of a customer fleeing from a sit down dinner than there is from an open tab. it happens so often it’s pathetic.

bradykp
Member
bradykp
8 years 7 months ago
[quote comment=”70560″]i requested a citi lower my line because i never use the card…they jacked the rate up from 6% to 9% because the lower rate was only for high limit accounts. i laughed at the guy on the phone and asked what the rate is for a “close my account”? they really don’t do a very good job at servicing good accounts…they put all their resources into attracting lower rated accounts and then really screwing them over. you guys realize that if you are on vacation or it’s a holiday or something…that if you are 1 day past due date on a card that you pay in full each month that they will try all sorts of shit…a $25 flat fee, plus a penaly interest rate charged for the ADB for that month, then try to jack up your low rate…yeah, using those bank cards are just the best! think of all those miles you’re getting! ha! you’re missing the real game here. if i tried to loan you money and threw those kinds of surprises and demands it would be called “loan sharking” and i’d go to jail for a few years. but citi does it to millions of people every day and it’s fine? kinda like the guy that went to jail for running numbers i guess. suckers![/quote] i’ve been late before, and they credit the late fee if you call them in. what’s wrong with credit card companies? i get to use someone else’s cash for… Read more »
sullyx
Member
8 years 7 months ago

[quote comment=”70593″]Another reason the bar holds your license is to prevent identity fraud. You always have the option to pay cash even if you put your card down. I prefer to pay the bill with plastic but leave the tip in cash.[/quote]

1. I realize that but I offered to show them my license but told them they’re not holding it. Remember though, it’s they’re responsibility to verify the signature on the back of your card for authenticity and if they’re not confident it may be you to then ask for backup identification. I did that plenty of times back in the day when I worked in retail. I just really didn’t appreciate the double standard they’re enforcing when they don’t ask for a card if you’re getting table service.
2. If possible I like to tip in cash b/c then it’s between you and the bartender/server and all the less for them to report.

chrisjur
Member
8 years 7 months ago
[quote comment=”70588″][quote comment=”70443″]#57: chrisjur – you obviously know your stuff. Visa/MC & the banks are in the wrong here – and you should be angry with them, not your local stores/merchants. IF Visa/MC want merchants to take credit cards for ALL transactions (even small ones) – then they should charge a flat percentage for all transactions and NO per transaction fee.[/quote] maybe each transaction has an associated cost as far as completing the transaction, providing a secure environment, and providing the insurance that any fraudulent transaction will be covered past $50. they have costs too and want to make a profit, why should they eat costs on small transactions if they don’t need to? they are clearly providing consumers AND merchants a beneficial service.[/quote] Yes, that is correct. There is a huge infrastructure cost associated with issuing the cards and authorizing the transactions. One thing to note, however, is that, in the end, the bank who issues you the card never pays for fraudulent transactions. They simply indemnify you, the cardholder, from losses, but are eventually reimbursed the money themselves. The actual liability rests with other entities depending on how the payment is made. In face-to-face environments (e.g. at a shop or restaurant) the acquiring bank who has the relationship with the merchant holds the risk associated with fraud (these are called “card present” transactions). For Internet, mail order, telephone order and any other non-face-to-face transaction (called “CNP or Card Not Present”), the merchant actually holds 100% of the liability… Read more »
nbm3
Member
nbm3
8 years 7 months ago

Who the hell has the audacity to go charge a $0.50 newspaper. People need to carry some cash with them. Cash still rules.

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