# minimum $ purchases to use credit card - legal? **URL:** \ **Category:** Factual Questions\ **Created:** [October 7, 2004, 10:19pm UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107 "2004-10-07T22:19:25Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Freejooky](https://avatars.discourse-cdn.com/v4/letter/f/ba8739/32.png) [@Freejooky](https://boards.straightdope.com/u/Freejooky)\ **Post date:** [October 7, 2004, 10:19pm UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/1 "2004-10-07T22:19:25Z")
I’ve just moved to the midwest from DC, and a major irritant I’ve run into is businesses refusing to accept credit cards for purchases less than a dollar amount - usually $10. I thought this was illegal, or at least in violation of an agreement between the business and the credit card companies. Is it? It’s irritating as hell, and I don’t think it’s fair. ---
**Author:** ![Telemark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/telemark/32/372_2.png) [@Telemark](https://boards.straightdope.com/u/Telemark)\ **Post date:** [October 7, 2004, 10:25pm UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/2 "2004-10-07T22:25:49Z")
I believe there is a minimum charge to the store for a CC transaction. While it is usually expressed as a percentage of the sale, there may be a minimum charge (to the store) for a transaction. If so, a minimum charge limit (to the customer) makes perfect sense. I’ve never heard of a requirement from a CC/Store contract that there be no minimum limit, but I admit to not being very familiar with them. ---
**Author:** ![mks57](https://avatars.discourse-cdn.com/v4/letter/m/b9bd4f/32.png) [@mks57](https://boards.straightdope.com/u/mks57)\ **Post date:** [October 7, 2004, 10:26pm UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/3 "2004-10-07T22:26:25Z")
[http://www.usa.visa.com/personal/about\_visa/contact\_us.html?it=ss\_/index.html](http://www.usa.visa.com/personal/about_visa/contact_us.html?it=ss_/index.html) > [@](#): > > Can merchants set a minimum purchase or charge me a fee for accepting my Visa card? > > Visa merchants are not permitted to establish minimum transaction amounts, even on sale items. They also are not permitted to charge you a fee when you want to use your Visa card. > If you run into a problem like this with a merchant, please notify the financial institution that issued you your Visa card. These institutions have access to the appropriate Visa rules and regulations and can help you document and file your complaint. You’ll find their address and/or telephone number on your Visa statement. Their telephone number may also appear on the back of the card itself. ---
**Author:** ![Freejooky](https://avatars.discourse-cdn.com/v4/letter/f/ba8739/32.png) [@Freejooky](https://boards.straightdope.com/u/Freejooky)\ **Post date:** [October 7, 2004, 10:29pm UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/4 "2004-10-07T22:29:35Z")
[http://www.mastercard.com/cgi-bin/contactus.cgi?template=ContactUsMV&rgn=1](http://www.mastercard.com/cgi-bin/contactus.cgi?template=ContactUsMV&rgn=1) Mastercard says the same thing. Interesting. So, what can I actually do about it? I’ve run into 5 business like this in the past three days, and it’s really pissing me off. ---
**Author:** ![vetbridge](https://avatars.discourse-cdn.com/v4/letter/v/b5e925/32.png) [@vetbridge](https://boards.straightdope.com/u/vetbridge)\ **Post date:** [October 7, 2004, 10:41pm UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/5 "2004-10-07T22:41:58Z")
> [@Freejooky](#): > > So, what can I actually do about it? I’ve run into 5 business like this in the past three days, and it’s really pissing me off. Take your business elsewhere? File a complaint and put the store in a position where they no longer accept credit cards? Pay cash for that pack of gum? ---
**Author:** ![twelvericepaddies](https://avatars.discourse-cdn.com/v4/letter/t/7c8e57/32.png) [@twelvericepaddies](https://boards.straightdope.com/u/twelvericepaddies)\ **Post date:** [October 7, 2004, 10:49pm UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/6 "2004-10-07T22:49:34Z")
Oh come on - join the real world - have a little perspective for a change. Merchants just cannot afford to handle a transaction for pennies. I am a merchant accepting credit cards but only handle larger transactions. But I see people constantly so cheap and so silly as to try to put very trivial amounts on CCs - it astonishes me. And we all stand in line behind people using debit cards for kiddie sums and wait, and wait, and wait until their $1.23 transaction clears. Many people today are just simply unrealistic. > [@Freejooky](#): > > [Mastercard USA | A Global Payment Technology Solutions Company](http://www.mastercard.com/cgi-bin/contactus.cgi?template=ContactUsMV&rgn=1) > > Mastercard says the same thing. Interesting. > > So, what can I actually do about it? I’ve run into 5 business like this in the past three days, and it’s really pissing me off. ---
**Author:** ![Colophon](https://avatars.discourse-cdn.com/v4/letter/c/f05b48/32.png) [@Colophon](https://boards.straightdope.com/u/Colophon)\ **Post date:** [October 7, 2004, 10:52pm UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/7 "2004-10-07T22:52:06Z")
There are so many of these “can a shop legally do such and such” threads on here. Look, it’s their shop; they make the rules. If they want to specify that they will only accept payment in cashew nuts, at the rate of one pound of kernels per dollar, then they can do it. Sure, they won’t do much business, but it’s their choice. ---
**Author:** ![Balthisar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/balthisar/32/2825_2.png) [@Balthisar](https://boards.straightdope.com/u/Balthisar)\ **Post date:** [October 7, 2004, 10:53pm UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/8 "2004-10-07T22:53:19Z")
> [@vetbridge](#): > > File a complaint and put the store in a position where they no longer accept credit cards? This is a good one, and it hurts the store owners more than the customers. Not accepting credit cards puts them at a competitive disadvantage. Let 'em go under for thier own stupidness. I don’t know how important _my_ particular demographic is, but if a place doesn’t take credit cards, there’s no way to get my business. ---
**Author:** ![Derleth](https://avatars.discourse-cdn.com/v4/letter/d/b9e5f3/32.png) [@Derleth](https://boards.straightdope.com/u/Derleth)\ **Post date:** [October 7, 2004, 10:55pm UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/9 "2004-10-07T22:55:33Z")
> [@twelvericepaddies](#): > > Oh come on - join the real world - have a little perspective for a change. Merchants just cannot afford to handle a transaction for pennies. I am a merchant accepting credit cards but only handle larger transactions. But I see people constantly so cheap and so silly as to try to put very trivial amounts on CCs - it astonishes me. And we all stand in line behind people using debit cards for kiddie sums and wait, and wait, and wait until their $1.23 transaction clears. Many people today are just simply unrealistic. Uh, did you or did you not sign agreements with the CC companies that obligate you to transact business with respect to credit cards a certain way? I respect your right to run your business as you choose, but those sites make it sound like you have legally agreed not to set any minimums on transactions, or to charge fees for those transactions. And if you are being bitten by those agreements, well, join the real world and suck it up. ---
**Author:** ![Dignan](https://avatars.discourse-cdn.com/v4/letter/d/f07891/32.png) [@Dignan](https://boards.straightdope.com/u/Dignan)\ **Post date:** [October 7, 2004, 10:57pm UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/10 "2004-10-07T22:57:48Z")
My school accepts tuition payments online with a credit card, however it has a “convenience charge” if you do use a credit card. I always thought this kind of nonsense is against the CC rules, but when I called, the CC people told me it wasn’t. It’s especially ridiculous that the charge is a percentage, which gets high, quick, with the cost of tuition these days. Is there something different about my school’s “covenience charge” than other businesses? [aside] It’s even more irritating that the school has the nerve to call it a “convenience” charge. They need to come straight out and say what it is, an extra charge. It’s far more convenient for them since they don’t have to have someone take my payment, deposit the check, wait for the check to clear, etc. What a bunch of nonsense. It would make me very happy to find out that the school is being run by a bunch of crooks, like I have long suspected. ---
**Author:** ![Freejooky](https://avatars.discourse-cdn.com/v4/letter/f/ba8739/32.png) [@Freejooky](https://boards.straightdope.com/u/Freejooky)\ **Post date:** [October 7, 2004, 11:14pm UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/11 "2004-10-07T23:14:48Z")
> [@twelvericepaddies](#): > > Oh come on - join the real world - have a little perspective for a change. Merchants just cannot afford to handle a transaction for pennies. I am a merchant accepting credit cards but only handle larger transactions. But I see people constantly so cheap and so silly as to try to put very trivial amounts on CCs - it astonishes me. And we all stand in line behind people using debit cards for kiddie sums and wait, and wait, and wait until their $1.23 transaction clears. Many people today are just simply unrealistic. Guess what, gramps - we’re rapidly, even exponentionally rapidly, turning into a cashless society. I seldom if ever carry cash, haven’t paid a bill with an actual check in years, and I use my check card for everything from groceries to gas to video rentals. I’ve also worked in retail management for years, and I can tell you that people will charge $.51 (the price of one of our budget video rentals a few years ago) to their check card if they’re not carrying the cash, which 9.9/10 times they aren’t. But i’m not niggling over that. I just think it’s unreasonable that i can’t charge a $5 video rental, or $8 dry cleaning pick-up to my check card. And, according to Visa and Mastercard (the companies that merchants like you have signed agreements with), it _is_ unreasonable. ---
**Author:** ![Balthisar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/balthisar/32/2825_2.png) [@Balthisar](https://boards.straightdope.com/u/Balthisar)\ **Post date:** [October 7, 2004, 11:53pm UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/12 "2004-10-07T23:53:46Z")
> [@twelvericepaddies](#): > > And we all stand in line behind people using debit cards for kiddie sums and wait, and wait, and wait until their $1.23 transaction clears. Let’s examine the alternatives – behind some crusty anciana that writes a f\*cking check for $1.23 for her cat food? Credit card is faster. How about some damn kid who’s returning deposit bottles, and pays for the balance of his slushie in nickels and pennies? Credit card is faster. How about getting behind _any_ math-challenged fool buying lottery tickets? Hell, _all of the above_ is faster, but the credit card especially. How about getting behind the guy paying for his $1.23 purchase with a twenty? Now the damn clerk has to put it in the safe, wait for the little rolls of small bills to come out, and fumble with finding 77¢ in the cash drawer. The credit card is _still_ faster. It’s the cost of doing business. Just like _every_ business decision, you’ve got to accept the loser customers in order to keep the lucrative customers. ---
**Author:** ![Balthisar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/balthisar/32/2825_2.png) [@Balthisar](https://boards.straightdope.com/u/Balthisar)\ **Post date:** [October 7, 2004, 11:56pm UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/13 "2004-10-07T23:56:51Z")
> [@Dignan](#): > > My school accepts tuition payments online with a credit card, however it has a “convenience charge” if you do use a credit card. My township office accepts taxes with a credit card the same way. Hell, the federal government accepts income taxes with a credit card the same way. The deal is, though, that they’re not processing the charge themselves. You’re paying another company to pay your school/township/country for you. That’s the convenience part, I guess. ---
**Author:** ![JRDelirious](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jrdelirious/32/9531_2.png) [@JRDelirious](https://boards.straightdope.com/u/JRDelirious)\ **Post date:** [October 8, 2004, 12:06am UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/14 "2004-10-08T00:06:31Z")
> [@Balthisar](#): > > How about getting behind the guy paying for his $1.23 purchase with a twenty? Now the damn clerk has to put it in the safe, wait for the little rolls of small bills to come out, and fumble with finding 77¢ in the cash drawer. The credit card is _still_ faster. :dubious: What sort of place do you shop in that the checkout clerk can’t break a twenty? I’ve _never_ been in _any_ walk-in store where, under normal circumstances, a debit or credit card would be faster than just handing over legal tender for small purchases. ---
**Author:** ![Cisco](https://avatars.discourse-cdn.com/v4/letter/c/ccd318/32.png) [@Cisco](https://boards.straightdope.com/u/Cisco)\ **Post date:** [October 8, 2004, 12:35am UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/15 "2004-10-08T00:35:59Z")
Monday was the deadline for voter registration here in Arizona. I was at the _Post Office_ buying a stamp to mail my registration and I handed the lady my credit card. She told me she couldn’t charge 37 cents to a credit card and I told her that’s all I had. “There’s an atm at [the other end of the shopping center]” she said. “It’s not an atm card,” I told her, “it’s a credit card.” Finally after going back and forth like this a few times, it being less than 10 minutes until the must-be-post-marked-by deadline, I stormed out, cussing up a storm on the phone with my brother. When I got to my car a little old lady who had apparently seen the whole thing go down walked up smiling and handed me a dollar. I thanked her profusely, got my stamp, dropped my registration in the mail, and thanked her again while giving her the change. This was the first time I’ve heard of a minimum charge on any kind of card. ---
**Author:** ![Dog80](https://avatars.discourse-cdn.com/v4/letter/d/6bbea6/32.png) [@Dog80](https://boards.straightdope.com/u/Dog80)\ **Post date:** [October 8, 2004, 12:40am UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/16 "2004-10-08T00:40:22Z")
I believe that the CC company handling fee is something like 70 cents. So for a sale of, say 1.50 dollars, the shop is actually losing money on that transaction. ---
**Author:** ![JayElle](https://avatars.discourse-cdn.com/v4/letter/j/4bbf92/32.png) [@JayElle](https://boards.straightdope.com/u/JayElle)\ **Post date:** [October 8, 2004, 1:00am UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/17 "2004-10-08T01:00:26Z")
My Accounting department budget me 2.2% of yearly gross sales for credit card serivce fees. Because more and more people are using credit cards (my self included), the fees are actually running at about 5% of total sales. So in store A, that brings in $500,000 a year in gross sales, I’m paying the credit card companies $25,000 for processing. Since this exceeds my budget, I have to increase my gross margin, which means _dum, DUM!_ raised prices. We can’t afford to lose money on transactions, so the customer ends up paying for the fees anyway. I feel a little guilty, cause I charged $4.93 for my lunch today. I never seem to have any cash. ---
**Author:** ![El\_Cheapo](https://avatars.discourse-cdn.com/v4/letter/e/8e7dd6/32.png) [@El\_Cheapo](https://boards.straightdope.com/u/El_Cheapo)\ **Post date:** [October 8, 2004, 1:31am UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/18 "2004-10-08T01:31:25Z")
I can’t say that I blame the stores that don’t want to ring up a $0.50 credit card transaction… At my workplace, our credit card transactions run $0.30 plus 2.29% of the value (for MC and Visa). So, for a $0.50 pack of gum, $0.31+ goes directly to the credit card/banking folks. I realize that different companies in different industries with different average sale amounts with different chargeback rates with different signature/card present situations will be charged differently, but regardless a big chunk of that first dollar does not stay with the merchant. ---
**Author:** ![mks57](https://avatars.discourse-cdn.com/v4/letter/m/b9bd4f/32.png) [@mks57](https://boards.straightdope.com/u/mks57)\ **Post date:** [October 8, 2004, 1:56am UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/19 "2004-10-08T01:56:34Z")
> [@JayElle](#): > > My Accounting department budget me 2.2% of yearly gross sales for credit card serivce fees. Because more and more people are using credit cards (my self included), the fees are actually running at about 5% of total sales. So in store A, that brings in $500,000 a year in gross sales, I’m paying the credit card companies $25,000 for processing. Since this exceeds my budget, I have to increase my gross margin, which means _dum, DUM!_ raised prices. We can’t afford to lose money on transactions, so the customer ends up paying for the fees anyway. > > I feel a little guilty, cause I charged $4.93 for my lunch today. I never seem to have any cash. It also costs money to handle cash, more than most people realize. Does your accounting department consider that cost? ---
**Author:** ![stockton](https://avatars.discourse-cdn.com/v4/letter/s/b5a626/32.png) [@stockton](https://boards.straightdope.com/u/stockton)\ **Post date:** [October 8, 2004, 2:04am UTC](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107/20 "2004-10-08T02:04:48Z")
As it happens, I AM the guy that publishes the book that goes to the quickie marts with the CC rules spelled out inside. If you accept VISA and MC, you have agreed to the terms they specify. It is not ambiguous in any way. IF you accept these cards, you may not prescribe a minimum transaction amount. If you do and ENOUGH FOLKS COMPLAIN, they’ll yank your account. No CCs. Good luck, quickie mart. [Next page](https://boards.straightdope.com/t/minimum-purchases-to-use-credit-card-legal/268107.md?page=2)