Credit Card Rules for Merchants

With more and more purchases today being made online, many merchants now accept credit cards. For one, accepting credit cards can drastically increase a merchant's sales. For two, customers are much happier when they have a choice of payment methods. Here are some of the rules that credit card companies impose on merchants who accept credit cards.

Minimum Purchases

Merchants cannot impose minimum purchase amounts for accepting credit cards. Some merchants will require a $10 minimum purchase, for example, to compensate for the credit card fees. However, this is against the rules and you can report them to the credit card company.

No Surcharges

Merchants cannot charge surcharges when accepting credit cards. They can, however, offer a discount to consumers who use cash.

Convenience Fees

Merchants may charge convenience fees (such as for telephone orders), but they must be disclosed and be a flat or fixed amount.

No Cash Refunds

Typically, when issuing a refund, a merchant must credit the credit card used to make the purchase. Return and exchange policies must be fully disclosed.

Identification

A merchant may ask a customer using a credit card for identification. However, the customer can refuse and still be able to make the purchase, since showing identification is not required for the sale.

Resources

• Credit Card Rules for Merchants
• Visa Merchant Rules