Another wonderful aspect of the “Reform” financial legislation passed by Congress is coming your way: Credit card companies permitting merchants to impose minimum charges on their credit cards. This does not impact debit cards.
Credit card company rules prohibited merchants from requiring minimum purchases to use credit cards, even though some merchants did it anyway
But with the new law, credit card companies are able to permit merchants to require minimum purchases. Visa, according to the Consumerist.com, launched the new tide by permitting merchants to set a $10 minimum.
The Consumerist – owned by Consumer Reports - said today it has contacted other major credit card companies and found they are doing the same.
I think something had to be done to protect small merchants from having to pay minimum fees on a charge for $1 soda from a customer who doesn’t carry cash. But I think a better solution would be to let merchants add a 50 cent fee for a credit card charge.
That way the merchant is kept whole and the consumer has the convenience of not needing cash all the time.
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Adding a “Credit Usage Surcharge” effectively becomes a violation of truth in lending laws as it will increase the cost of money for charging on that account. APR disclosures would not be accurate, at that point.
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