Credit card Purchases

[007Runner]

Found out some information few people with credit cards are aware of:

A merchant is not allowed to place a minimum or maximum amount on any Master Card or Visa credit card purchase. Those signs at coffee shops etc. that post you must spend $10 or more are in violation of their contractual agreements with Visa and Master card. If you call the credit card company they will immediately call the merchant and run your card through. If they refuse, Master card or Visa will terminate their service.

The act of signing your name after you make a purchase is unnecessary and archaic. All you really need to do is just swipe the card thats it. The credit card companies told me this is only still done today because so many people are simple and it makes them feel safe. One day all merchants will stop doing this. Purchase a cup of coffee and a donut you sign for it. Pump $50 at a gas station swipe your card and away you go.

Getting back to the merchant putting a maximum limit on a credit card purchase. If you buy a new car most dealerships will tell you the limit is $4000 or someplace in that ball park.
How they get away with that is simple. The credit card is set up in the service department not the showroom. Because of that they are not obligated to accept the credit card at all for showroom related sales. So if you purchase a new vehicle, you could say the dealership is doing you a favor by letting you put $4000 of the purchase price on your card. They don't have to let you do that at all.

 

[drake3]

You should tell the post office this because I tried to purchase a single airmail stamp for 69 cents from thier vending machine using AMEX, but the minimum it will let you get away with is a $1.00 transaction. It makes you buy other stuff, mostly first class stamps, to get to the minimum.

As for maximums, flash an AMEX centurion black and well, problem solved.

 

[007Runner]

Dude did you even read the post? It was about real credit cards like Visa and Master card. Not those little reject cards like american express that very few merchants except. I have no clue what their agreement is. The card had nothing to do with limits imposed, it was the merchant not honoring the contract.

 

[LP_4Runner]

007: Quit being so damn rude to people. He was only making an honest and straightforward comment. From your post, it is NOT necessarily clear that you were talking strictly about MC and Visa cards. It could easily be inferred that you were simply using those as an example. All you had to say was "From what I know this basically applied to MC and Visa only." And by the way, its "accept" in that context, not "except." I don't normally go around correcting spelling or grammar but this arrogant prose you keep displaying towards others is really getting old. To everyone else: apologies for the rant.

 

[sharp4runr]

And why this is in the General Section is beyond me so I'm moving it to Off Topic.

Continue your rant...

BTW - The "Black" card from AMX is a very exclusive card.

 

[007Runner]

How foolish of me to only make six references. Three each to Master card and Visa. I accept the fact I made a grammar error. Except it was an honest mistake.

 

[drake3]

I assumed the minimum amount from the vending machine was for all credit card purchases and not just for my "reject" AMEX. It made reference to all purchases actually, so even cash. But regardless of which card I chose to use that day I thought I was replying with information that was pertaining to your post.

If the post office makes the mimimum purchase $1 for a vending machine does this not go along with your example of a coffee shop with a sign for a minimum purchase of $10 [for cc purchases]? I don't see the difference here in terms of the "contractual agreement." Your first statement said a merchant is not allowed to place a min or max of any bank card purchase which is what the vending machine was doing to me for which I am assuming is for whatever card either "reject" or "real" I wish to use.

 

[007Runner]

Your first statement said a merchant is not allowed to place a min or max of any bank card purchase which is what the vending machine was doing to me

A merchant is not allowed to place a minimum or maximum amount on any Master Card or Visa credit card purchase. This was my first statement. I did not mean for my reply to be so harsh.

 

[Thai]

Please be civil, 007...this is your last warning. You're getting on everyone's nerves.

 

[rook]

Found out some information few people with credit cards are aware of:

A merchant is not allowed to place a minimum or maximum amount on any Master Card or Visa credit card purchase. Those signs at coffee shops etc. that post you must spend $10 or more are in violation of their contractual agreements with Visa and Master card. If you call the credit card company they will immediately call the merchant and run your card through. If they refuse, Master card or Visa will terminate their service.

The act of signing your name after you make a purchase is unnecessary and archaic. All you really need to do is just swipe the card thats it. The credit card companies told me this is only still done today because so many people are simple and it makes them feel safe. One day all merchants will stop doing this. Purchase a cup of coffee and a donut you sign for it. Pump $50 at a gas station swipe your card and away you go.

Getting back to the merchant putting a maximum limit on a credit card purchase. If you buy a new car most dealerships will tell you the limit is $4000 or someplace in that ball park.
How they get away with that is simple. The credit card is set up in the service department not the showroom. Because of that they are not obligated to accept the credit card at all for showroom related sales. So if you purchase a new vehicle, you could say the dealership is doing you a favor by letting you put $4000 of the purchase price on your card. They don't have to let you do that at all.

Interesting post, do you have the contractual information to back this up? Given interchange and per-transaction fees, I could understand why some merchants who vend low markup items would set certain limits.

 

[biglatka]

I can understand a merchant, especially with a small store, not wanting to accept a credit card for purchases over a certain amount, i.e. $10 or so. It is my understanding that Visa, MasterCard, Amex (especially), etc charge an upfront fee plus a percentage (2-3%) of the total amount. On a small purchase the upfront fee per transaction alone could be a substantial amount compared to the purchase amount and thus obviate a profit, perhaps even causing a loss for the sale. I regularly make small purchases from a local (small) grocery store in my area, and I know he takes charge cards but prefers cash or check. He doesn't post a sign limiting the amount but I still give him cash. I couldn

 

[tomhaney1]

Found out some information few people with credit cards are aware of:

A merchant is not allowed to place a minimum or maximum amount on any Master Card or Visa credit card purchase. Those signs at coffee shops etc. that post you must spend $10 or more are in violation of their contractual agreements with Visa and Master card. If you call the credit card company they will immediately call the merchant and run your card through. If they refuse, Master card or Visa will terminate their service.

The act of signing your name after you make a purchase is unnecessary and archaic. All you really need to do is just swipe the card thats it. The credit card companies told me this is only still done today because so many people are simple and it makes them feel safe. One day all merchants will stop doing this. Purchase a cup of coffee and a donut you sign for it. Pump $50 at a gas station swipe your card and away you go.

Getting back to the merchant putting a maximum limit on a credit card purchase. If you buy a new car most dealerships will tell you the limit is $4000 or someplace in that ball park.
How they get away with that is simple. The credit card is set up in the service department not the showroom. Because of that they are not obligated to accept the credit card at all for showroom related sales. So if you purchase a new vehicle, you could say the dealership is doing you a favor by letting you put $4000 of the purchase price on your card. They don't have to let you do that at all.

What about those a-holes who charge a fee to use a credit card?? That has to be against some rule. It seems to me the same thing as requiring a minimum purchase, just more straight forward. I will definitely start snitching on those places who require minimums!!

 

[jrs2]

The credit card companies don't allow a fee for using a card. Of course, a merchant can give a discount for cash. Anytime you are making a large cash purchase you should ask for a discount.

 

[tomhaney1]

The credit card companies don't allow a fee for using a card. Of course, a merchant can give a discount for cash. Anytime you are making a large cash purchase you should ask for a discount.

So how do they charge you a fee at Taco Bell?? Or is it ok to charge a fee for debit purchases and not credit purchases??

 

[007Runner]

A merchant is not allowed to charge you a fee or surcharge for using your Master card or Visa. They can give a discount for cash so don't get that confused. I have nothing in writing regarding this.
I called Visa and Master card to inquire about this. After being transfered to the correct department I was given this information which is available to you as well if your a card holder.
Master card told me that they will take severe action against any merchant imposing a minimum or maximum limit. Visa said they will not tolerate it as it is in violation of the contractual agreement. Both cards told me that they want people to know, their cards will be accepted at all merchants for any and all purchases no matter the amount big or small.
This information is available to any Master card or Visa owner.

 

[jharris2]

Re: Re: Credit card Purchases

Interesting post, do you have the contractual information to back this up? Given interchange and per-transaction fees, I could understand why some merchants who vend low markup items would set certain limits.

Try this: http://www.mastercard.com/us/business/en/common/faq.html#211

 

[rook]

A merchant is not allowed to charge you a fee or surcharge for using your Master card or Visa. They can give a discount for cash so don't get that confused. I have nothing in writing regarding this.
I called Visa and Master card to inquire about this. After being transfered to the correct department I was given this information which is available to you as well if your a card holder.
Master card told me that they will take severe action against any merchant imposing a minimum or maximum limit. Visa said they will not tolerate it as it is in violation of the contractual agreement. Both cards told me that they want people to know, their cards will be accepted at all merchants for any and all purchases no matter the amount big or small.
This information is available to any Master card or Visa owner.

I checked with my associates and it is part of the merchant agreement, if they accept m/c or v for payment they cannot place a limit on the amount of the transaction. The penalty is the merchant losing the ability to accept credit cards as payments. On a side note, if you have problems with a particular merchant, call your credit card bank. They will then be able to take the necessary action, with m/c or v, including transaction revocation.

It would be nice to get 35,000 points when I buy my next 4Runner though!

 

[broncosi]

NICE! i heard that business' werent aloud to do that but now that i know it for a fact, im going straight to my local exxon that loves to say $5 minimum with credit, throw my card down for a pint of chocolate milk along with that website printed out in large font and say BOO-YAH!!

seriously though i will because i stop there alot and it suprises me everytime.

 

[tomhaney1]

I checked with my associates and it is part of the merchant agreement, if they accept m/c or v for payment they cannot place a limit on the amount of the transaction. The penalty is the merchant losing the ability to accept credit cards as payments. On a side note, if you have problems with a particular merchant, call your credit card bank. They will then be able to take the necessary action, with m/c or v, including transaction revocation.

It would be nice to get 35,000 points when I buy my next 4Runner though!

My father used his AMEX, which had an introductory 0% apr, to buy a 40,000 dollar truck the other year. The dealership didn't give him any problems with doing that. I have also heard of people using their Visa/MC to do the same with other vehicles. What would be interesting is if you used a credit card to purchase the vehicle and in a month or so it broke down, could you use the credit card dispute resolution service? Also, at least one of my credit cards will extend the manufacturer's or purchased extended warranty by two years. I wonder if that would apply to a vehicle as well?? Theoretically, all I would have to do is purchase the vehicle with the credit card and then pay the credit card off with a vehicle loan from my credit union and I would be covered by those benefits through the credit card. Hmmm...

 

[broncosi]

well i got kicked out of 2 stores so far for telling them that they were not allowed to do the minimum thing. Does anybody know the correct number to call?