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I’ve been to multiple party stores in this area and they all seem to have this $5 or $10 minimum to use your debit card. ... I’m wondering if this is a legal practice in the state of Michigan. And if it isn’t, why aren’t we doing anything about it?
A 2010 federal law allows merchants to set minimum purchase amounts (up to $10) for credit card transactions, but not for debit cards. If a store adds minimums or “processing fees” or other requirements to a debit card transaction, it is violating its agreement with the card issuer, that is with Visa or MasterCard. In theory, you could complain to those companies.
A debit card can be run through as a signture transaction (Credit side) if it has a Visa or Mastercard symobol on the card. It can also be run through as a pin transaction (Debit side). Both methods come out of your checking account.
So, does that mean merchants must allow all purchase under $10 with a debit card even if it run through as signature transaction (Credit side)?
The editor could be wrong.
Edited by groze, 24 April 2012 - 07:57 AM.