Credit card cares about their vendors pocket?

[MaryMary]

Last night I went to the small store trying to buy something for $7. The lady at the counter reluctantly took my Master Card, then told me that CC company send her a letter requiring to impose $10 limit on charges.
The company which makes main money on the number of transactions made at their vendors asking to limit their sales???
I told this lady to be beware of credit card co's caring of her pocket. She said they do care (yea, right! ). Then she sheepishly added: "A little".

Of course, she lied, she never received such a letter. But to insist on it even when confronted with the truth? She had a nerve..

[chip4]

Several years ago, I worked for a big bank. I did not work for the credit card division, however, my assistant manager had. She said that the credit card company for this bank did not allow its vendors to limit their transaction amount. I thought it was % of each transaction, so why would it matter?

[carisal]

NO WAY, it IS written in the contracts that they canNOT limit the amount of a transaction to take a card.
....
from what I've seen processing fees are generally around 25 cents per transaction PLUS 3 percent of the amount charged.

[MaryMary]

The lady tried to shift a blame to Big Bad CC co. for imposing a limit..

It is true, the contract between CC co and the vendor (retailer) prohibits such a limit.
Beware of such a situations, it's the store, NOT a CC co., limiting the amount of transaction. Any fees on the top of your purchase amount are illegal, a violation of the contract between CC and the retailer.

[Lurkergirl]

I have actually seen a credit limit minimum listed at some stores. I have seen it at a resale store that in order to use a credit/debit card you must make a minimum purchase of 10 dollars .I have seen it at a few other stores also .

[carisal]

I have actually seen a credit limit minimum listed at some stores. I have seen it at a resale store that in order to use a credit/debit card you must make a minimum purchase of 10 dollars .I have seen it at a few other stores also .

I've seen it also, but still, if their credit card processor found out, those stores would have their contract pulled from that company.

[carisal]

ETA:

""MINIMUM CHARGE REQUIREMENTS
Some stores require consumers to spend at least $20 (or some other minimum) to pay for purchases by credit card. They engage in this practice because they and their banks do not want the expense of processing a credit card transaction involving a small amount of money.

This practice defeats one of the major purposes of credit cards—convenience—and may force credit card users to spend more than they want to. In addition, minimum charge requirements vary from merchant to merchant, and there are no regulations requiring disclosure of these minimum purchase levels.

Visa's and MasterCard's regulations prohibit minimum charge amounts. American Express's regulations do not explicitly prohibit minimum charges, but its policy is to discourage any merchant practices that create a "barrier to acceptance." Amex does prohibit "discrimination" against the Amex card, however, so if a merchant has no minimum charge for Visa and MasterCard, the merchant may not discriminate against Amex by imposing a minimum charge.
TIP:If a store requires a minimum purchase for Visa or MasterCard, point out to the store manager that the practice is prohibited by the card companies.""

Financial Guide: MERCHANT CREDIT CARD ABUSES: What They Cannot Ask You To Do

[Lurkergirl]

I've seen it also, but still, if their credit card processor found out, those stores would have their contract pulled from that company.

But how would one fight against such a policy?

[carisal]

But how would one fight against such a policy?

list them here, in the minimum purchase hall of shame
Credit Card Minimum Purchase Hall of Shame
......
If a complaint cannot be resolved with a merchant, here’s how to reach the credit card companies:

Visa USA Consumer Relations, askvisacorporate@visa.com, or “If you run into a problem like this with a merchant, please notify the financial institution that issued you your Visa card.”

MasterCard International, 1-800-300-3069

American Express Customer Service, 1-800-297-1234
Stores requiring a minimum credit card purchase are breaking the rules | KHON2.com - News, Sports, Weather | Action Line
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In many cases, such violations can be charged back to the vendor by contacting your issuing bank and documenting the incident. "Although MasterCard does not maintain direct relationships with merchants, if a consumer feels a merchant is in violation, the consumer should contact the issuing bank. If that issuing bank reports the violation to MasterCard, we would then work with the merchant's acquiring bank to bring the merchant back into compliance," says Barbara Coleman, MasterCard spokeswoman.
What consumers can do when 'minimum purchase' and other credit card rules are bent

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as you found out, some stores try to impose a limit. What can you do? In your case, you can report the merchant to the financial institution that issued your Visa card.
....You might also want to file a complaint with the Federal Trade Commission at www.ftc.gov.
http://www.msnbc.msn.com/id/11697094/
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Did you know that retailers aren't allowed to set a minimum purchase amount for Visa or MasterCard? It's not illegal -- it's just not allowed in their contracts with the card companies. ........In reality, it's a violation of the contract," says Mayleben. "But there are a lot bigger fish to fry than (a small store) on the corner. If the folks from Visa or MasterCard were to knock on his door he'd be told to stop or lose his ability to accept cards."........ You probably shouldn't be seeing too many places pushing minimums for American Express or Discover cards, either. According to Strumello, those two cards allow minimums, but only if minimums are applied to all cards the retailer accepts. In theory then, anyplace that accepts MasterCard or Visa wouldn't be allowed to set a minimum for American Express or Discover,,,,,,,,,Visa says its bylaws clearly state that merchants must not establish a minimum transaction amount. That's done, "To protect Visa cardholders so they can expect to use their cards anywhere, anyhow and anytime Visa is accepted," says a spokesman.
"If Visa finds out about a violation, Visa will issue an enforcement letter to the acquiring bank that enables the merchant to accept the card. It's up to the acquirer as to how to deal with the merchant."
MasterCard is also emphatic about dealing with violations although MasterCard deals with them directly.
What you do the next time you're told there's a minimum to use a credit card probably depends on how you feel about the issue. If you're sympathetic toward the merchant's plight you'll save the card for bigger purchases.
On the other hand, if you're trying to rack up every cent on your credit card for more frequent flier miles, you might rustle up your best steely eyed gaze and say, "That's not allowed."
If you'd rather complain with less fanfare, write to Visa at askvisacorporate@visa.com. MasterCard complaints will be accepted at 1-800-300-3069.
Credit card purchase minimums

[puakinikini]

Wow - thanks for the info - learn something new all the time.