Minimum for credit card purchases cannot exceed $10

By Dave Segal

POSTED: 01:30 a.m. HST, May 13, 2012

~~<p>Question: Some merchants require customers to make a minimum purchase when using a credit card. Is that legal and, if so, what is that minimum?</p>
<p>Answer: A coalition of retail and small-business organizations asked Congress to require a minimum purchase for credit card purchases. This was because it costs retailers money to accept credit cards and process small transaction amounts. Processing the small transaction amounts made accepting credit cards unprofitable, especially at places such as convenience stores and coffee shops. These retail organizations asked for the option to require a minimum purchase amount for credit card transactions. Congress responded, and as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Congress allowed credit card issuers to set a minimum purchase limit of not more than $10.</p>
~~

Question: Some merchants require customers to make a minimum purchase when using a credit card. Is that legal and, if so, what is that minimum?

Answer: A coalition of retail and small-business organizations asked Congress to require a minimum purchase for credit card purchases. This was because it costs retailers money to accept credit cards and process small transaction amounts. Processing the small transaction amounts made accepting credit cards unprofitable, especially at places such as convenience stores and coffee shops. These retail organizations asked for the option to require a minimum purchase amount for credit card transactions. Congress responded, and as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Congress allowed credit card issuers to set a minimum purchase limit of not more than $10. Login for more...