Credit Card Transaction Rules
Swiping your credit card is a fast and easy way to pay for your retail purchases. That convenience also translates into more sales dollars for merchants. It's the carefully crafted rules that govern all credit card transactions that allow this mutually beneficial exchange to take place. To protect your own interest in every credit card transaction, you should know what the basic rules are.
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Signature
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According to credit card transaction rules imposed by VISA, MasterCard, Discover and American Express, you must sign the back of your credit card for it to be valid for purchases.
Misconceptions
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You may not write "Ask for I.D." or "See I.D" in the signature space on your card in lieu of your signature.
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Significance
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VISA and MasterCard have a rule prohibiting merchants from imposing a minimum or maximum purchase amount when you use your card. American Express discourages the practice, but does not specifically disallow it.
Surcharges
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Visa and MasterCard have rules against imposing a surcharge on credit card purchases as opposed to other forms of payment. American Express disallows merchants from specifically discriminating against American Express users by imposing surcharges.
Fees
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Credit card companies and the banks that issue the credit cards may impose "foreign transaction fees" of up to 3 percent on purchases you make outside of the country. Though credit cards often disclose these fees, there are no specific legal rules about how the disclosure must be made.
Protection
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According to the Fair and Accurate Credit Transaction Act (FACTA), a merchant may not display more than the last five digits of your credit card number on the credit card receipt.
Identification
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To protect you from identity theft, most states have legal rules prohibiting merchants from writing any of your personal identifying information on any copy of your credit card receipt.
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