Because you asked
By Bobbi Mlynar
Originally published 09:55 a.m., August 16, 2008
Updated 09:55 a.m., August 16, 2008
Q Several businesses in town have instituted minimum purchase requirements for credit card transactions. Usually, it’s between $3 and $5. Does this violate any contracts between the merchants and the card companies?
A Yes, it does, at least on agreements involving Visa and MasterCard.
According to the merchants’ agreement posted on Visa’s Web site at http://usa.visa.com/download/merchants/rules_for_visa_merchants.pdf, Visa requires merchants to “always honor valid Visa cards in your acceptance category, regardless of the dollar amount of the purchase. Imposing minimum or maximum purchase amounts in order to accept a Visa card transaction is a violation of the Visa rules.”
MasterCard has a similar policy. In section 5.9.3 of its merchants’ agreement document, the policy states “a Merchant must not require, or indicate that it requires, a minimum or maximum Transaction amount to accept a valid and properly presented Card.”
American Express and Discover/Novus did not return telephone calls nor respond to e-mails. No references to minimum purchases could be found in a cursory search of those companies’ Web sites.
F Questions on topics of local interest may be sent to Because You Asked, in care of The Emporia Gazette, Drawer C, Emporia KS 66801. Questions need to be signed, but names will not be used. Questions submitted anonymously will not be answered.