Minimum for credit card transactions

You step up to the counter with a couple of small items and your credit card. Then you see the sign, often handwritten and taped to the register: "$10 minimum for credit card transactions."

Until 2011, most card networks prohibited merchants from setting minimums for credit card transactions, and even set up methods for consumers to turn in violators.

A coalition of retail and small business organizations asked Congress to change that. Because it costs retailers money to accept cards, small transaction amounts can make accepting cards unprofitable, especially at places such as convenience stores and gas stations, where profit margins are paper-thin. The key reasons the merchants pushed this law was based upon the fees they pay for credit card transactions.

Most Americans are less likely to carry cash and prefer to use credit and debit cards for convenience. For many stores, regular relationships and small buys often lead to larger purchases. The cost of handling a small transaction is worth the potential of a larger sale. 

Article by Anna Klymenko 

Working happily with National Merchant Services 

www.processnms.com 

Happy Processing!