Beginnings... read this first!

When retailers choose to accept credit cards, they are accepting in their vendor agreement with Visa or Mastercard that they must not enfore a minimum purchase amount to complete a transaction. While we can't cite the actual verbiage from a contract (the contracts are somewhat difficult to track down online), the MasterCard website has an option called "In order to make a MasterCard purchase, the merchant/retailer required a minimum or maximum amount" on their online complaint form. Visa has the same policy with vendors, but the only way to complain is by calling them.

If a retailer posts a sign saying something to the effect of "X$ minimum for credit card purchases" and then tries to enforce this policy, you are being cheated by the retailer. To help resolve the situation:

1. Politely inform the retailer that they are not allowed to do this.
2. If the retailer insists it is their policy, (again, politely) explain to them that their vendor agreement with Visa/MC forbids such practices.

It is usually after step 2 that retailers will back off and honor the transaction. This is especially essential if you're in a restaurant. If they're insistent upon enforcing their disallowed policy, there's not a whole lot you can do if you've already consumed what you're about to pay for. In a small store, you can insist that you will take your business elsewhere. You have the choice to shop there, and they have the choice to honor policy. If they honor policy, you'll shop there. If not, you can take your business elsewhere and inform them accordingly.

The key is to *be nice* about all of this. We don't necessarily encourage reporting these issues to Visa/MC unless you are actually refused the sale.

Vendors have good reason to want to enforce a minimum charge amount; they are charged a $0.25 to $0.50 transaction fee and then a 1-5% fee on all credit card transactions. It adds up for a retailer. This is not, however an excuse to violate contract and refuse small sales based on this. It's part of the cost of doing business, and if retailers can't handle this cost, they should not be accepting credit cards.

If you are refused a sale and you need to report it to Visa or MasterCard, you can phone Visa at 1-800-VISA-911 or log the complaint on MasterCard's website, here.