Tulsa Area Business's charging a Minimum to use credit/debit cards

[zstyles]

Okay..I don't know WHAT it is this week but today marked the 3rd time a store or restaurant locally has had a 5.00 minimum on a purchase to use a credit/debit card...I asked them why they said "they charge us blah blah blah" so I said..okay well just raise your prices!! Your the ones who voluntarily agreed to accept the damn things! Called one owner who basically said don't like it ...don't come back! One place said they would charge me 5.00 and just refund me the change!!( WHAT!?!?)

So I called visa and it turns out this is VERY against their policy(MasterCard and discover as well). They said no matter if you buy a pack of gum or a $10,000 car stores cannot charge you a fee for accepting our cards.

They asked for the business's information and will be contacting them. Anyone else notice this more?

[rwarn17588]

I don't bother to use my card when the total purchase is under $5. That's what cash is for.

Sorry if I don't join the Outrage Brigade on this one.

[cannon_fodder]

I use my credit card for everything.  1% cash back on everything adds up to a lot of cash back.  I have not encountered this is Tulsa, but have elsewhere (at QT I constantly buy $1 fountain drinks and such on the card). 

The issue is that small merchants pay a transaction fee in addition to a percentage of the transaction.  It depends on your contract, but it could be more than $1 per transaction (50 cents is not unusual for low volumes).   On some guitar strings ($4) one time in college a music store accepted $3.25 cash instead of the full $4 on credit (only options I had) . . . so they aren't just trying to screw people.

But, as I understand it, it is against credit card policies. 

[sgrizzle]

As CF said, I heard it is because they pay a fee plus a percentage. If MC/Visa take 50c + 5% then your $1 fountain drink you bought only netted the store 45c. If you spend $5 then they $4.25 and the effect is much less.

And as far as "choosing to accept credit cards" there will not be many businesses around who don't soon. Not many now.

[YoungTulsan]

The small merchants are getting bilked on transaction fees.  Don't get too worked up over it.

Why do you think Visa runs contests encouraging you to make more transactions, credit cards can afford to pay you 1% cash back, even if you pay off your balance every month and don't end up acrueing interest?  The fees are steep enough that they profit every step of the way.  The small merchant is squeezed by the credit card companies.  The CC companies know they have the leverage.  They just say, you don't like the transaction fees, fine - What are you going to do, not accept credit cards?  Almost no business could survive these days not taking credit cards.

[YoungTulsan]

I've even seen gas stations (not in Tulsa though) that have separate prices for cash and credit.

[zstyles]

I've even seen gas stations (not in Tulsa though) that have separate prices for cash and credit.

EXACTLY! This is what they should do..raise your prices and OFFER A CASH DISCOUNT of 5% or whatever i...don't make me buy more from you just to add up to 5 bucks...

Sorry I am in the minority here but its dumb, they are in business, if they can't afford to run the business get out or stop accepting debit cards...spoke with one today that charged the minimum they said they didn't know it was the policy and would stop asking for that immediately.

[sgrizzle]

EXACTLY! This is what they should do..raise your prices and OFFER A CASH DISCOUNT of 5% or whatever i...don't make me buy more from you just to add up to 5 bucks...

Sorry I am in the minority here but its dumb, they are in business, if they can't afford to run the business get out or stop accepting debit cards...spoke with one today that charged the minimum they said they didn't know it was the policy and would stop asking for that immediately.

If I remember correctly that is currently illegal in Oklahoma. That is why gas station in Oklahoma no longer do that.

[Hawkins]

LOL, Tulsans can be such stingy consumers. Zstyles, your actions are pathetic.

This is exactly WHY it sucks to own a small business in this community.

I don't take credit cards at my business for this exact reason. Take your less than $5 purchases and go jump off a cliff, people.

Unless you are buying a pack of gum at a convenience store, there's really no excuse to nickle and dime small business owners who are trying to support themselves and the local economy.

 

[Wilbur]

Sounds like there is some confusion.

If I understand you correctly, the stores were telling you that your purchase had to be at least $5, not that they were going to charge you $5 to use the card.

One is legal and one is not.

[nathanm]

Sounds like there is some confusion.

If I understand you correctly, the stores were telling you that your purchase had to be at least $5, not that they were going to charge you $5 to use the card.

One is legal and one is not.

Either one violates the agreement the merchant has with their processor and can get their merchant agreement revoked. (Just like asking for ID can, if someone bothers to complain)

[mocboy]

Hawkins,
                  Your absolutely wrong.  I own 2 businesses and am doing fine without accepting ccs.  you see when a merchant decides to accept ccs they AGREE by singing a contract that they will not charge a minimum or any type of fee for consumers to purchase with them.  Its very simple, if you don't want to pay fees for accepting ccs, then you don't have to sign that contract.  your assumption that business fail without accepting ccs is simply wrong.  also your OPINION on this doesn't matter as I have stated facts here.  
                      Now in my opinion I think stores should not try and do this as it breaks their contract with visa or MC and makes them look bad to consumers at the same time.  Personally I don't let businesses get away with it.  I have been to some places that I have already consumed a product (food) and they try and pull this crap when I'm trying to pay.  I politely explain the contract issue with them and inform them I will not be paying an extra fee or upping my bill to satisfy their policy.  they can either use my cc correctly or not get paid.  they have always chosen to get paid!  If I go to any place that requires payment first and they try to charge a fee or minimum payment I simply refuse to do business with them.  but hey, that's just me!

[nathanm]

I own 2 businesses and am doing fine without accepting ccs.

You probably won't find me there. I hardly ever carry cash. 

[mocboy]

that's OK, checks work just fine for me as well as cash!

[Hawkins]

Hawkins,
                  Your absolutely wrong.  I own 2 businesses and am doing fine without accepting ccs.  you see when a merchant decides to accept ccs they AGREE by singing a contract that they will not charge a minimum or any type of fee for consumers to purchase with them.  Its very simple, if you don't want to pay fees for accepting ccs, then you don't have to sign that contract.  your assumption that business fail without accepting ccs is simply wrong.  also your OPINION on this doesn't matter as I have stated facts here.  
                      Now in my opinion I think stores should not try and do this as it breaks their contract with visa or MC and makes them look bad to consumers at the same time.  Personally I don't let businesses get away with it.  I have been to some places that I have already consumed a product (food) and they try and pull this crap when I'm trying to pay.  I politely explain the contract issue with them and inform them I will not be paying an extra fee or upping my bill to satisfy their policy.  they can either use my cc correctly or not get paid.  they have always chosen to get paid!  If I go to any place that requires payment first and they try to charge a fee or minimum payment I simply refuse to do business with them.  but hey, that's just me!

I think you misunderstand me. I don't accept credit cards either. I used to, saw how much it was costing me, and quite accepting them.

I agree that stores should not try to charge additional fees or have to put minimums on credit card purchases, but Tulsa consumer habits sometimes demand it. Zstyles attempt to contact VISA over a small purchase issue with a local shop strikes me as uber-lame and harassing.

Back when I did take credit cards, I had the same customers charging small amounts over and over again, and it was costly and inconvenient. Now we have an ATM. No CC machine. No more hassle.