aln

I rarely carry cash, and so use my credit card for everything possible. I was recently refused for an under $10 purchase at a local merchant. I know there is 3% ding for merchants over cash but is there some additional charge beyond that for small purchases?

LI Sound Grunt

probably a 1 or 2 buck min depending on the agreement between the card co and the merchant I would guess???

__________________
1st Cav Div Air Assault Infantry RVN
-Can Do........ and .......Carry On -

jtburf

.35 cent process fee 3-5% fee for a card machine depending on your funding options....
plus monthly rental...

also could have been a very low profit item...

John

Bitefish

That's a violation of their merchant agreement. Part of your merchant agreement (ALL merchant agreements) is that you cannot refuse charge plate use no matter how small the charge.

Call your card issuer and report the name and location of the merchant.

For "Card present" purchases the discount rate is well under 2% unless your business is flagged as "high risk." There IS, however, a "ticket fee" which hits you on small purchases, and this is why merchants typically will try to refuse charges on small purchases.

Its against the rules for them to do so and if reported can result in them losing their merchant account. REPORT IT.

11andy11

the processing agreement between the merchant and the credit card company requires that you treat credit cards the same as cash. They are violating there agreement. That never happens at the bigger stores, but some of the mom and pop places will charge a min.

greyg8r

What Bitefish and 11 said - definitely a violation of their agreement with their merchant account. It won't help you now, but if you tell the store manager that a minimum is a violation of their merchant agreement and you will report this as a chargeback (technically this would not be, but that word scares the he!! out of merchants like me!) the next time you are told there is a minimum, I think they will buckle under and accept your card with no minimums.

__________________

kbrehbay

What about when they attemp to charge you extra to use the card ?

Beuford T. Justice

A discount for paying cash is different than a surcharge for using a CC.

makosteve66

My opinion - carry a few bucks at all times - buying a coffe or pack of gum - use the cash - or even coin. refusing the card maybe a violation of the card agreement, but give the small independent merchant a break (there are fewer and fewer left each day. Why make a small trivial purchase and have the guys 30 cent profit margin eaten up. In the late 80's I had a small liquor store in NY, avg mark-up was 25% (less if you tried to compete with the big boys or match an advertised sale) Back then it was a b!tch just to get approved to accept credit cards as small merchant and the fee was 3-4 %. Ran certian items at cost just to increase volume and sales were usually at cost to generate exposure. Sale items were cash only. It doesn't hurt to carry ten bucks in your wallet and the loss of so few "bonus points" or "frequent flier" miles won't kill you. Again just my opinion, but try to put yourself in the other guys shoes.

__________________

lichris

Definately a violation of their merchant account. Their "card present" discount rate is probably between .9%-1.8% plus a tiny charge to swipe the card and a tiny charge to close the batch at the end of the night. It's the cost of doing business...

__________________
__
Reckoning Discount Marine Supplies