19 replies to this topic

[BBQ123]

http://www.nytimes.c...mp;ref=business

Basically, the Senate version of the Finance reform bill could allow minimum purchases to be set by merchants with credit/debit cards.

The House version does NOT have these provisions, so hopefully in reconciliation this will be removed.

Politics aside, this could be a serious chance in Visa/MasterCard/AmEx policy that would hurt those of us who use all credit, all the time to maximize rewards.

[frank22]

I would think for most people it won't add up to much. The big corps have smaller swipe fees so they probably won't impose minimums. Many of the small places already have them, and many that don't will not change. So, how many small purchases do most people charge at small businesses? I would think it would mostly be at pizza places, sandwich shops and small convenience stores. How much will that 1- 2% add up to per month? Would that be enough to make it worthwhile to change your buying habits?

You could also make adjustments, say go to Papa Gino's for your pizza instead of Tony's down the street. Yes, it might not be as good, but you will be showing Tony a thing or two! In my area, most of the Tony's already have $10 minimums. I guess no one called to complain. I don't know anyone who gets mad over it, if some were planning on using a card, they just shrug and use cash, life goes on.

A very small percent of the population feels as strongly as those here, and the loss of rewards in most cases will not add up to much. Some people even like Papa Gino's, so you could learn to like it.

[MB82x]

By all means make a minumum - but make a maximum minimum.

I think this helps protect small merchants from huge fees (think people buying single bottles of soda and candy bars on credit).

$5.00 - I think - would be a reasonable "maximum minimum" that would allow fees to be covered and a fair profit to be made, without "punishing" the consumer - but I don't know all the math behind it.

$10.00 is a little bit excessive though, I think.

...keep in mind too, some items (newspapers are one of them, I think) are sold at almost no profit. They're in the store because if they weren't, people who want them would shop elsewhere.

Having worked for a few retail pharmacies and sat in on some exec. conversations, the topic of "ethics of selling cigarettes in a pharmacy" has come up several times.

It's not that the company can't do without the profit made by selling cigarettes... it's that if we didn't sell cigarettes, we'd lose a whole demographic of smokers to the competition... and they'd get their RX filled somewhere that DID sell cigarettes, etc...

Err, getting off topic, aren't I?

[hegemony]

great...now we'll have all those lower prices as subprime merchants pass their savings onto consumers...

[MB82x]

great...now we'll have all those lower prices as subprime merchants pass their savings onto consumers...

Subprime merchants, or subprime purchases?

[thelowpriceleader]

The beauty of competition is that small merchants can try doing whatever they want and customers will respond as necessary. Someone else will see the opportunity and take customers away from the small merchant that decides to impose a $5 minimum on card purchases. It comes down to this MB: Would you rather sell me that 1.59 soda that cost you 1.03 and pay a .18 fee to process my card (still making a profit of 38cents) or have me take my business elsewhere and make 0.00?

Believe me, there will always be merchants who are willing to sell to customers even if they are only making a cent or two on the purchase.

A convenience store operator in my area (of about 3 stores) a number of months ago posted signs and tried to impose a $5 minimum for all debit/credit purchases. After various customer complaints, abandoned cups of coffee/soda, arguments, customers yelling at the clerks, and who knows how many lost customers for good (there is no shortage of convenience stores, and I know of no others that have a minimum purchase requirement near these), they backed off from having the minimum quickly.

I think if a merchant has a problem with paying card acceptance fees they just shouldn't take cards at all. Allowing minimums undermines the whole concept of the cards.

[hegemony]

I just hope these subprime merchants can get legislation passed to LIMIT THE AMOUNT a consumer can charge on a card for a purchase. Just imagine the terrible burden the merchant fees are on a $3000 purchase!!!!! these poor merchants need caps on charge amounts ASAP before they all go out of business!!!!!

[frank22]

I just hope these subprime merchants can get legislation passed to LIMIT THE AMOUNT a consumer can charge on a card for a purchase. Just imagine the terrible burden the merchant fees are on a $3000 purchase!!!!! these poor merchants need caps on charge amounts ASAP before they all go out of business!!!!!

Except I don't think they ever even suggested they wanted to do this! Your are making up an argument just to shoot it down. Funny.

Edited by frank22, 26 May 2010 - 09:20 PM.

[breeze]

It's called a "straw man."

[hegemony]

I just hope these subprime merchants can get legislation passed to LIMIT THE AMOUNT a consumer can charge on a card for a purchase. Just imagine the terrible burden the merchant fees are on a $3000 purchase!!!!! these poor merchants need caps on charge amounts ASAP before they all go out of business!!!!!

Except I don't think they ever even suggested they wanted to do this! Your are making up an argument just to shoot it down. Funny.

subprime merchants need to save money so limiting the amount of credit card fees they pay for large purchases is reasonable. I just hope the law can be changed before more of these merchants go out of business.

[lolipop]

I just hope these subprime merchants can get legislation passed to LIMIT THE AMOUNT a consumer can charge on a card for a purchase. Just imagine the terrible burden the merchant fees are on a $3000 purchase!!!!! these poor merchants need caps on charge amounts ASAP before they all go out of business!!!!!

Except I don't think they ever even suggested they wanted to do this! Your are making up an argument just to shoot it down. Funny.

subprime merchants need to save money so limiting the amount of credit card fees they pay for large purchases is reasonable. I just hope the law can be changed before more of these merchants go out of business.

Go shop at Walmart if you don't like it

[hegemony]

I just hope these subprime merchants can get legislation passed to LIMIT THE AMOUNT a consumer can charge on a card for a purchase. Just imagine the terrible burden the merchant fees are on a $3000 purchase!!!!! these poor merchants need caps on charge amounts ASAP before they all go out of business!!!!!

Except I don't think they ever even suggested they wanted to do this! Your are making up an argument just to shoot it down. Funny.

subprime merchants need to save money so limiting the amount of credit card fees they pay for large purchases is reasonable. I just hope the law can be changed before more of these merchants go out of business.

Go shop at Walmart if you don't like it

why would I go to dumpmart? I'll just find a merchant that does not do everything it can to ripoff consumers.

[lolipop]

I have no problem as long as they don't charge a fee for $10+ in purchases

[BBQ123]

If a merchant puts a minimum of $5 in, I'm simply going to spend my money at a place without a minimum.

I'd rather spend $5.01 on a credit card than $4.99 in cash.

[lolipop]

To me, it's all about convenient, so I carry a minimum amount of cash on me all the time just in case. I wouldn't go out without a couple of $10 or $20 in my wallet.

[thelowpriceleader]

I sometimes use cash at small independent merchants for small purchases (less than $5). At any chain merchant, I will charge it, and it doesn't matter if it is as little as 15cents. It is very rare for me to have an employee question or even express disgust with these small charges. It has happened, but not many times.

Edited by thelowpriceleader, 07 June 2010 - 05:15 PM.

[lolipop]

I sometimes use cash at small independent merchants for small purchases (less than $5). At any chain merchant, I will charge it, and it doesn't matter if it is as little as 15cents. It is very rare for me to have an employee question or even express disgust with these small charges. It has happened, but not many times.

Well, according to visa master card policy, they shouldn't prohibit any charges even for as low as $0.15.

[athensgaguy]

http://www.navyfeder...nAmendment.html

[frank22]

http://www.nytimes.c...ey/22money.html


http://www.nytimes.c...ion/29sat3.html

Edited by frank22, 09 June 2010 - 09:30 AM.

[lolipop]

Cash will be primer if the bill is signed into law.