What happens after reporting a merchant who accepts credit cards improperly?

[SeanArenas]

So in other threads, we’ve discussed that a merchant is not allowed to set a minimum purchase price for using a credit card.

Three weeks ago, I called my Visa card handler (Chase) and told them that a local merchant has a $5.00 minimum for credit card purchases.

The guy I was talking to basically said “So what,” and I told him it’s against the merchant agreement with the Visa card. The guy told me it’s not, and I told him it is. I had the Visa terms and conditions up at the time, and read them to him.

He put me on hold for a bit and came back and said he would add notes to my account about the merchant setting a minimum purchase amount.

I told him I don’t want notes on my account, I want for Chase or Visa to take some action to make sure that the merchant no longer charges the minimum amount.

The guy said he would do that (but I got the impression he wasn’t going to do anything).

I went back into that yogurt shop yesterday, and they still have the sign up.

If Chase won’t do anything about it, who will? Who am I supposed to call, who will take the call seriously, and take action about it? Because obviously Chase doesn’t care.

[Caffeine.addict]

Have you tried calling Visa itself. Chase doesn’t have a dog in that fight. The issue is between Visa and the merchant.

[Captain_Amazing]

This webpage might help you.

http://www.creditcards.com/credit-card-news/merchants-who-violate-credit-card-terms-1275.php

If the bank isn’t listening to you, contact Visa directly.

[SeanArenas]

Thanks, Cap. Good article, but … there are times when they seem to take the merchant’s side:

“The challenge lies in how to educate consumers that the interchange fees on small purchases made on credit cards is equivalent to stealing the product from retailers – there is no profit left,” says Jeff Lenard, vice president of communications for the National Association of Convenience Stores.

Why do I need to be educated that making a small purchase is like “stealing” the item from the merchant? If I were stealing it, I wouldn’t be paying for it! What they mean to say is that it’s the same as having the merchant earn little or no profit on those small sales.

“…With the increased push to use credit cards for purchases both large and small, the interchange fees are eating up small business profits,” he says.

But with the increased push to use these cards by the card companies, I have increasing incentive to use the cards. I get 3% back when I use my card for a food transaction. I don’t care if the charge is $100 or $1.00, I’m now programmed to pay with my AmEx. If the merchant doesn’t want to pay those fees, he should:
a) Stop accepting those cards
b) Raise the price on the low cost items so that these tiny transactions don’t beat him up

I’m sure restaurants don’t rely on $3 transactions as their main income anyhow.

How come McDonald’s and Carl’s Jr. gleefully take my AmEx for the tiniest transaction (I used it for a soda the other day and the server didn’t bat an eye), but other places raise a fuss or post signs which are in clear violation?

If their profit on that $3 transaction is blown by paying $0.19 to perform the transaction, aren’t they supposed to raise the price of the product by $0.19 so they don’t lose money?

Quoting from that article again:

For relatively minor transgressions, such as “minimum $5 payment” signs, the other alternatives are to go ahead and buy another soda to bring the purchase price up over the minimum or decline to do the transaction.

Buy an extra soda? So if I have a burger and drink and it comes to $4.50, I should buy an extra soda in order to bring it to more than $5.00 so that the merchant doesn’t get beat up too badly with charges? That’s putting an awful lot of responsiblity and cost on the consumers when we’re the ones giving money to the merchant. The merchant doesn’t want my business real bad when they post signs or have policies like that. There has to be a better way, a way which doesn’t punish the consumer, to do this.

[SeanArenas]

Also, there’s no way to contact Visa directly, methinks:
http://usa.visa.com/about_visa/ask_visa/index.html#anchor_4

Minimum Purchase
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.

Does anyone know how I can directly contact Visa, since Chase doesn’t seem to know/care?

[gazpacho]

We have threads like this every so often. The answer that seems to come out of these threads is that nothing at all happens when you report a merchant for requiring ID or minimum purchase etc. You complaint is politely received then ignored.

[DrDeth]

It’s a small yogurt shop and really $5 isn’t like it’s going to kill Visa’s sales. Visa isn’t going to do anything and they likely shouldn’t either. You need to pick your battles, and this is not very important in the big scheme.

[Really_Not_All_That_Bright]

Visa’s direct Customer Care number is 1-800-847-2911. I have no idea whether they’ll help you or not.

[Reply]

I’ve reported many of these violations (to Mastercard, I think). Absolutely nothing happens. It’s not worth your time. Here’s the relevant (and worthless) contact form for Mastercard, whereas Visa just directs you to your card issuer.

[tumbleddown]

The answer here is going to have to be to address the person setting these policies at the merchant. Pointing out to them that they’re going to lose business from people who either won’t stop somewhere that violates merchant agreements (I don’t) and from people who might not be buying $5 worth of stuff today, but would consistently buy slightly less than $5 worth of stuff on a regular basis if they could use their card.

Small merchants may or may not be persuaded to care. In which case, vote with your feet.

[Balthisar]

Perhaps a well worded, postal note to the owner wherein you explain that you’ll report them to the credit card company and attorney general if they don’t change their policy. Clearly it’s an empty threat, but maybe they don’t know that.

If it’s a real sticking point, then picket.

[Markxxx]

Nothing happens, what people fail to understand is VISA and MasterCard are just clearing agencies for banks. What they are doing is basically selling you a logo. Merchants use banks to process the charges.

For instance, in the last hotel I worked at Bank Of America processed all our charges for Visa, MasterCard, JCB and American Express. We used other banks for Discover and another for Diners Club.

Other places our main bank did Visa, MasterCard and Discover and we used different banks to process American Express and the others.

If merchants violate a rule, all Visa (or any others) can do is pull their machine. (Meaning they no longer can process credit card payments. So what? Visa and MC and the rest know most consumers carry more than one card. If Visa pulls their card, all that will happen is they will give the business to MC. So they don’t care about minor infractions like minimum requirements.

Oddly enough every place I worked at banks will not process charges for less than $1.00. So if you tried to push through a charge for 89¢ the bank wouldn’t do it. So there should be at least a dollar minimum

If you want to “get even” with these minimum charge places, here’s what you do…

Buy something and use your credit card. Then when the bill comes “dispute the charge.” This will create more work for them. And if they fail to answer in the correct amount of time, you win and get the item free. If they come up with the proper paperwork and you lose, so what? You were going to pay anyway.

PLUS there is a charge by the bank for every dispute they send through. For instance, in the last hotel I was an asst controller for, every time someone disputed a charge officially through the credit card company it cost the hotel $15.00. Even if we WON and the charge was legit we had to pay the $15.00. (This fee varies per your merchant contract), so you know even if you dispute the charge and lose, you’ll cost that merchant money.

That’s why if someone called the hotel and complained about a charge less than $15.00 I wrote the charge off, 'cause it wasn’t worth it if they took the matter to the credit card company

[Gfactor]

@Markxxx

Buy something and use your credit card. Then when the bill comes “dispute the charge.” This will create more work for them. And if they fail to answer in the correct amount of time, you win and get the item free. If they come up with the proper paperwork and you lose, so what? You were going to pay anyway.

That would be illegal under US law.

@SDMB registration agreement

You agree not to post material that in our opinion encourages activity that is illegal in the U.S.

SDMB registration agreement as of 12/29/2008 - About This Message Board - Straight Dope Message Board

Please don’t encourage illegal activities here.

Gfactor
General Questions Moderator

[J_Cubed]

Go order a sub-$5 yogurt. Whip out your credit card. When they say they won’t take it, tell them you don’t want it then and leave. Do this every day until they change the policy or put your picture up on the wall.

[Reply]

@Gfactor

That would be illegal under US law.
SDMB registration agreement as of 12/29/2008 - About This Message Board - Straight Dope Message Board

Please don’t encourage illegal activities here.

Gfactor
General Questions Moderator

How is it illegal?

[Gfactor]

@Reply

How is it illegal?

Falsely disputing a charge is fraud. You are falsely claiming you didn’t authorizethe charge. Because you’re doing it by mail or wire, you are probably violating one or more of these statutes: http://www4.law.cornell.edu/uscode/18/usc_sup_01_18_10_I_20_63.html

[SeanArenas]

Well I called Amazon/Chase and the person who answered the phone told me immediately that it’s against the merchant agreement for the merchant to set a minimum fee. I said, “I know! So get them to stop please” and he says, “Let me give you the phone number to Visa.”

I told him that Visa’s Website said to contact the financial carrier who could bring the merchant in line. He said he isn’t familiar with that, and transferred me to his manager.

His manager was familiar with how to present the complaint to Visa, and she filled out a complaint form for me. She said it would be mailed to Visa who would take steps to bring them in line.

[Reply]

@SeanArenas

His manager was familiar with how to present the complaint to Visa, and she filled out a complaint form for me. She said it would be mailed to Visa who would take steps to bring them in line.

Please let us know if this works. I highly doubt it, but I’d love to be proven wrong.

[Dog80]

Don’t you guys have anything better to do with your free time. I bet you are the same type of person who sends those obnoxious, holier than thou letters to the editor of your local newspaper

[Reply]

@Dog80

Don’t you guys have anything better to do with your free time. I bet you are the same type of person who sends those obnoxious, holier than thou letters to the editor of your local newspaper

See, SeanArenas! I told you no one would take us seriously without the costume and cape :mad: