Rules for Credit Card Transaction Minimums
Widespread acceptance of credit cards by retailers reduces the need for carrying cash; consumers commonly use credit cards for everyday purchases such as groceries and convenience items. However, some retailers impose a minimum transaction amount, which can affect your ability to use a credit card for small purchases. The rules for minimum purchases are governed by credit card issuer policies rather than by federal or state law.
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Visa
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A retailer may impose a minimum transaction limit when a customer uses a credit card bearing the Visa logo. However, the limit must be $10 or less to comply with Visa's policies. Also, the retailer cannot impose the minimum limit for debit cards bearing the Visa logo.
MasterCard
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MasterCard's policies permit retailers to impose a minimum purchase amount for purchases made with a credit card bearing the MasterCard logo. As of September 2011, MasterCard stipulates that retailers cannot set the minimum purchase at more than $10. MasterCard's policies also state that if the Federal Reserve Board permits a minimum purchase amount higher than $10 by regulation, retailers may impose minimum purchase restrictions at the higher amount.
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American Express
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Although American Express does not specifically permit or forbid minimum purchase restrictions, it does discourage retailers from imposing a minimum purchase limit for customers using an American Express credit card. If a retailer imposes a minimum purchase, American Express requires that the retailer impose the same restriction on other types of credit card transactions; that is, it will not allow a retailer to require a minimum transaction for American Express purchases but not Visa or MasterCard purchases.
Discover
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Discover policies prohibit the imposition of a minimum purchase restriction but do not address whether retailers may impose restrictions on non-Discover credit cards. However, the parity rule imposed by American Express would mean that if a merchant imposed a minimum amount for American Express purchases, it could not also accept Discover credit cards for payment because Discover does not allow a minimum purchase.
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References
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