Should small merchants institute credit and debit card minimum purchase requirements?
Many small businesses will start instituting minimum purchase requirements for credit and debit card purchases now that they are permitted by the Dodd-Frank financial reform law. The Dodd-Frank financial reform law allows merchants to require up to a $10 minimum for credit card purchases. A handful of consumer advocates are unhappy with the minimum purchase requirements and MasterCard is also opposed to limits on credit card purchases. However many small merchants find that they must either pass the costs of interchange onto all their customers or only to those who use cards.
Most merchants understand that accepting cards improves their sales. While customers demand the convenience of credit and debit card acceptance, card use is down and costs are up for merchants. Small merchants must conduct a cost benefit analysis to determine how required minimum purchase requirements will affect their customers’ satisfaction and sales.
Loretta Hunnicutt
