I assume it would be legal for the merchant to say “Credit card purchases under $xx.xx will require the addition of a yy¢ transaction fee.” If so, this would fulfill the obligation with Visa without causing a loss to the merchant.
Naw. From the Visa Merchant Agreement:
Not only would this be a violation of the merchant agree, per Reply’s post, but in some states, like California, it would also be a violation of the law.
Here in California, merchants are forbidden to impose a surcharge for using a credit card. They are permitted to offer a discount for cash, but that discount must apply to ALL customers and ALL transactions where cash is used, not just those above or below a certain amount.
As for the general point of the thread, as others have noted, complaints will have basically zero effect. The fact is that Visa isn’t especially interested in enforcing it, because Visa makes plenty of profit even from merchants who have minimum purchase rules.
While i occasionally get annoyed if a place has a minimum and i don’t have cash on me, i’m really not interested in investing too much time and effort just to allow Visa to squeeze a bit more money out of a small business owner.
It seems to me like a dick move to report a local business for an issue like this. If you need to use your credit card, go somewhere that wants you to pay with your credit card.
Violating the law sounds more severe. I accept that my solution would violate the merchant’s agreement (come to think of it, I seem to remember that I was told this once before in a GQ thread), but then again, the business is already violating the merchant agreement.
“No Capes!!!”
It’s easier for a big corporation to absorb such losses than the mom & op down the street.
Violating the merchant agreement might actually be worse. Visa can impose penalties against the merchant for violation of the agreement (though it seldom does).
Losses?
That’s why I said to tell the merchant that if they don’t change their policies, they’ll lose your business. Then to follow through. They won’t know why you’re not shopping there any more if you don’t tell them. And it gives them an opportunity to do what’s right.
McDonald’s, Dairy Queen and other fast food places franchise out, very few (if any) locations are owned by the main corporation. The local McDonald’s that will let you use your credit or debit card for a $1.00 order of fries is just as likely owned by an individual (or individual family) than a corporation, and even if it is a corporation, they likely operate a small handful of fast food places around one town. Does a McDonald’s have a higher volume of customers than Frannie’s Fro-Yo Fantasies? Sure. But it’s not the magnitude of difference you’re suggesting.
And, if was an actual loss, then high volume just makes it worse.
But there are multiple reasons for disputing a charge, aside from simply indicating that you didn’t authorize it. For example, you asked for a refund for a product and they wouldn’t give it you (e.g., purchase the minimum, and return the item you didn’t really want).
You people deserve to be pitted. You are actually eager to force a local merchant to raise his prices on all items?!?!?! This benefits who how?!?!
If you insist on paying for everything with a credit card you are essentially agreeing to a 4% bank tax on all purchases. How would you feel if your city raised it’s sales taxes by 3-4%?
Yes, lets fight with the local merchants so that Bank of America, Chase and the other banks can make bigger profits. How has this worked out for the country as of late?
That’s not what he was describing.
On average, it’s more like 2%. And, cash cost also- there’s hold-up insurance, bank fees for excess cash deposits, and armored car pick ups. These add at least 1% to cash.
So the net is maybe 1%. If that.
And of course, the business has every right to simply not take CC at all. No one forces them to do so. But if they* choose *to do so, then they should play by the rules.
Borrowed from http://creditboards.com/forums/
Visa
Phone Number: 1-800-VISA-911 (International: 1-410-581-9994) and you can also call the number on the back of your card
Mailing Address:
Visa U.S.A. Inc.
P.O. Box 194607
San Francisco, California 94119-4607
Online: Your card issuer’s website may let you send them complaints about merchant violations and start a dispute if your were charged a fee to use your card.
MasterCard
Phone Number: 1-800-MASTERCARD (International: 1-636-722-7111) and you can also call the number on the back of your card.
Online: http://www.mastercard.com/us/personal/en/c...violations.html (Also you may be able to dispute a charge online if you were charged a fee.)
American Express
Phone Number: 1-800-528-4800 (International: 1-336-393-1111)
Mailing Address:
American Express
P.O. Box 297812
Ft. Lauderdale, FL 33329-7812
Online: Login to your account at www.americanexpress.com and then click e-mail on the right side. You can also dispute a charge online if you were charged a fee to use your card.
Well, if my stocks and mutual funds in the banks were to go up by 3%-4%, I’d be happy with it. Keep in mind who earns the profits. Big corporations aren’t like Scrooge McDuck wherein they stockpile all of their money in huge vaults.
Seriously, though, no one forces local merchants to do anything. They sink or swim. If they have to increase prices, they’ll do so. If that causes everyone to run to the competition, they either find other ways to save money and lower prices, or they go out of business. We don’t live (yet) in a society where “fairness” equates to “at least he tries” (although judging by companies that deal in credit default swaps, we’re heading that way ;).)
Does anyone know if these Visa or MC T&C apply outside the United States, particularly in the UK? I have never heard of anyone complaining about not being able to pay for small value items with a credit card in a small shop - it’s just accepted as a reasonable decision by the trader. I’ve more often heard people complain about the **!*! who insists on buying a 50p item with a cc and holding up the queue. 
In the UK I’ve also never had a merchant ask for proof of ID when using a card so this seems to be another non-issue.