Minimum Spend for Debit Card Payments

lesleyrabbit

Hi,

I'm sorry I'm not sure if this is the right place to post this but is it ok for shops etc to set a minimum spend for debit card transactions?

Today we were told that there was a minimum spend policy of £10 but there were no signs or anything up and I had thought that Visa had a no minimum charge policy but I guess that's only if the shop has it's merchant service agreement with them?

Anyway if anyone can clear this up for me I'd appreciate it!!

Thanks

cyberbob

Some shops do have a minimum spend for debit cards its normally the smaller shops who are less likely to be able to absorb banking costs, I can think of a couple local to me. Although they really should have a sign saying what it is

spike7451

lesleyrabbit wrote: »

Hi,

I'm sorry I'm not sure if this is the right place to post this but is it ok for shops etc to set a minimum spend for debit card transactions?

Today we were told that there was a minimum spend policy of £10 but there were no signs or anything up and I had thought that Visa had a no minimum charge policy but I guess that's only if the shop has it's merchant service agreement with them?

Anyway if anyone can clear this up for me I'd appreciate it!!

Thanks

One shop where live says it's £5 yet the CoOp dont have a limit.I think the retailers make up their own rules.

sweetstudent

spike7451 wrote: »

One shop where live says it's £5 yet the CoOp dont have a limit.I think the retailers make up their own rules.

One of the co-ops by me dont have a sign but they say its a £5 spend, so after waiting 10 minutes in a queue listening to a women argue with the SA, i had spend £2ish on two drinks (rip off i know) and wanted cash back only to be told that they i had to spend a minimum of £5. ]

I just plonked down the drinks and walked out

DCFC79

Yes course its ok for shops to have a min spend, i dont see an issue with it really, ive come across it before and i had no problem with it. As far as i know ive not come across a min spnd in supermarkets and have used my card to pay for a pack of chewing gum before

LeeSouthEast

The smaller shops tend to. My local (small) Co-Op has a limit of £3. My 'corner shop' is £10 or a 50p fee. Tesco took a payment for 11p off my Visa. It's just ability to absorb costs associated with card transactions.

Anihilator

Shops pay approximately 2.5% of each transaction to a merchant handler to deal and process transactions.

To someone like Tesco this is nothing and is often in house so costs even less. To your small local shop 2.5% is not affordable unless there is good custom out of it or it is covered by the customer.


Tbh why should a shop have to pay 2.5% for your convenience or whatever when your spending pennies.

Ch4rlieB

2.5% only if its Amex..

The others charge around 1%.

But still agree on the point of smaller retailers not being able to absorb the cost.

OlliesDad

Ch4rlieB wrote: »

2.5% only if its Amex..

The others charge around 1%.

But still agree on the point of smaller retailers not being able to absorb the cost.

Most well ran businesses will build this sort of cost into the price of the goods (the same way they build in the cost of running the shop, paying the staff etc). A small local shop should be able to comfortably absorb the costs.

In relation to the original question, they can set any minimum value they like, they could also state they only sell to people wearing purple underpants (though from a business point of view this would be silly).

boliston

The last time I encountered this rule was buying a pair of gloves at a small shop/cafe next to the sea. They had taken the label tags off the gloves as I wanted to wear them and I handed over my credit card for £7 I think and they said sorry it has to be £10 for cards.

I explained that credit cards are charged as a percentage and not a fixed fee like debit cards but the lady seemed a bit too thick to understand any of this so I just told her to keep the gloves.

BargainGalore

They can also charge you for using a debt card as there is a cost to the business although few do