Minimum Spend for Debit Card Payments

wuckfit

I insisted on a minimum spend on cards when I had my shop. I was charged around 25p for every debit card transaction, so spends of less than £5 were uneconomical, so I discouraged them by putting in a minimum spend on cards.

Conversely, if somebody was buying a high ticket item, then 2.5% of £1000 is quite a lot to lose. Fortunately I was able to negotiate my % charge down to 1.8% instead of 2.5% which helped.

The_FD

cyberbob wrote: »

Therefore penalising those who pay cash!

An amount is added into each transaction to cover goods which are damaged or stolen - so you could argue that is not fair - penalising those who don't steal....that is the way business works i'm afraid!!!!

damionlee

I'm sorry to resurrect an old post, but these old threads are often where people take their information from. This one, however, if FULL of incorrect information.

It absolutely is NOT permitted to set a minimum purchase amount on ANY VISA product. That means debit cards and credit cards with the VISA logo on, the store may not require a minimum spend. To do so is a breach of contract.

There is no grey area on this at all.

The grey area that does exist is in relation to the practice of surcharges. VISA regulations again prohibit the use of surcharges, however, across the EU they are not able to enforce this in countries and regions that permit surcharges.

In the UK I have not been able to get a definite position on this. So I can't comment on whether this practice is permissible or not. However, I can categorically state that it is NOT permissible for any store to set a minimum transaction value on your purchase. If you want to purchase a 1p sweet (if you can still find those) on a VISA debit or credit card and the store accepts VISA, then they can not require you to spend a higher amount to use your card.

Equally, stores are not permitted to refuse custom on non-desirable payment. There are legal definitions on the maximum a store 'has' to accept in legal tender. But providing your purchase is within that, the store may not refuse based on payment method. So if you want to buy a £1,000 clock in £1 coins, the store would be breaking the law to refuse to take your payment because it was in £1 coins. The same is true if you want to buy a 35p packet of chewing gum on your VISA debit card.

EDIT: Another thing with regards to VISA cards. There was a lot of stores some time ago that used to say they would not take VISA Electron cards. Again, the regulations and contract are very clear on this. If a store displays the VISA logo, it MUST accept ALL cards from VISA. They are not permitted to take some but not others. Worth remembering if a store keeper turns round and says 'Oh, we don't take those ones'.

Lifeisbutadream

damionlee wrote: »

I'm sorry to resurrect an old post, but these old threads are often where people take their information from. This one, however, if FULL of incorrect information.

It absolutely is NOT permitted to set a minimum purchase amount on ANY VISA product. That means debit cards and credit cards with the VISA logo on, the store may not require a minimum spend. To do so is a breach of contract.

There is no grey area on this at all.

The grey area that does exist is in relation to the practice of surcharges. VISA regulations again prohibit the use of surcharges, however, across the EU they are not able to enforce this in countries and regions that permit surcharges.

In the UK I have not been able to get a definite position on this. So I can't comment on whether this practice is permissible or not. However, I can categorically state that it is NOT permissible for any store to set a minimum transaction value on your purchase. If you want to purchase a 1p sweet (if you can still find those) on a VISA debit or credit card and the store accepts VISA, then they can not require you to spend a higher amount to use your card.

Equally, stores are not permitted to refuse custom on non-desirable payment. There are legal definitions on the maximum a store 'has' to accept in legal tender. But providing your purchase is within that, the store may not refuse based on payment method. So if you want to buy a £1,000 clock in £1 coins, the store would be breaking the law to refuse to take your payment because it was in £1 coins. The same is true if you want to buy a 35p packet of chewing gum on your VISA debit card.

EDIT: Another thing with regards to VISA cards. There was a lot of stores some time ago that used to say they would not take VISA Electron cards. Again, the regulations and contract are very clear on this. If a store displays the VISA logo, it MUST accept ALL cards from VISA. They are not permitted to take some but not others. Worth remembering if a store keeper turns round and says 'Oh, we don't take those ones'.

Sorry with all due respect I think you are wrong.:)

Stores do not 'have' to accept anything. If they dont want to serve someone they dont have to.

molerat

Many of the surcharges or minimum spends are against the card schmes t&c's but are not enforceable in law and may be unfair or illegal contract conditions in some countries which is probably why there is no enforcement. Visa etc can stipulate whatever they want but unless they can police and enforce their rules (losing income in the process) it is just hot air.

dmg24

damionlee wrote: »

I'm sorry to resurrect an old post, but these old threads are often where people take their information from. This one, however, if FULL of incorrect information.

It absolutely is NOT permitted to set a minimum purchase amount on ANY VISA product. That means debit cards and credit cards with the VISA logo on, the store may not require a minimum spend. To do so is a breach of contract.

There is no grey area on this at all.

The grey area that does exist is in relation to the practice of surcharges. VISA regulations again prohibit the use of surcharges, however, across the EU they are not able to enforce this in countries and regions that permit surcharges.

In the UK I have not been able to get a definite position on this. So I can't comment on whether this practice is permissible or not. However, I can categorically state that it is NOT permissible for any store to set a minimum transaction value on your purchase. If you want to purchase a 1p sweet (if you can still find those) on a VISA debit or credit card and the store accepts VISA, then they can not require you to spend a higher amount to use your card.

Equally, stores are not permitted to refuse custom on non-desirable payment. There are legal definitions on the maximum a store 'has' to accept in legal tender. But providing your purchase is within that, the store may not refuse based on payment method. So if you want to buy a £1,000 clock in £1 coins, the store would be breaking the law to refuse to take your payment because it was in £1 coins. The same is true if you want to buy a 35p packet of chewing gum on your VISA debit card.

EDIT: Another thing with regards to VISA cards. There was a lot of stores some time ago that used to say they would not take VISA Electron cards. Again, the regulations and contract are very clear on this. If a store displays the VISA logo, it MUST accept ALL cards from VISA. They are not permitted to take some but not others. Worth remembering if a store keeper turns round and says 'Oh, we don't take those ones'.

A post full of contradictions and nonsense.

damionlee, I trust you can point us to the relevant law that supports your statement?

vikingaero

On my last few visits to small corner shops in the last month, the majority (90%+) had minimum spend signs for card purchases.

Olokia

I have been on the visa website and saw what damionlee is saying is correct. They cannot set a minimum amount however they can say 50p charge on all purchases under a certain amount.

I had to check this because I have a contactless visa card (the contactless only works under a certain amount, at the time it was £10 but I think it has gone to £15).

There was a certain corner shop who I tried to buy £2 worth of drinks from but they told me the minimum amount was £5. This was against visa's rules and what was the point of buying using contactless when you can only buy between £5-10. I explained to them that it was against Visa's rules but they were having none of it.

I asked Visa and they replied that this was against their rules and I should report the shop to them. I did and they must have done something because the next time I went into the shop, they told me there was a charge of 50p which is allowed.

damionlee

You will note, I stated that surcharges are the grey area, as prevention of these is only possible in countries and regions which make it legally possible to prevent them. As yet, I can not find a clear yes or no as to whether the UK in general or its constituents have made that decision.

However, minimum spend is a matter of contract, and the merchant contracts with VISA are very clear. If you enforce a minimum transaction amount you are in breach of contract. You can verify this with VISA directly if you wish: 020 7795 5777

This is fully enforcible, which is why you will find all banks complaint forms and procedures for this.

HappyMJ

damionlee wrote: »

You will note, I stated that surcharges are the grey area, as prevention of these is only possible in countries and regions which make it legally possible to prevent them. As yet, I can not find a clear yes or no as to whether the UK in general or its constituents have made that decision.

However, minimum spend is a matter of contract, and the merchant contracts with VISA are very clear. If you enforce a minimum transaction amount you are in breach of contract. You can verify this with VISA directly if you wish: 020 7795 5777

This is fully enforcible, which is why you will find all banks complaint forms and procedures for this.

Whilst there is no minimum spend law/contract term...whatever..the merchant will simply refuse to sell an item to you which he is entitled to do.

As fas as your contradicting example of paying for something worth £1000 in £1 coins the merchant/seller/trader is entitled to refuse to trade with you if he/she so wishes. The only time legal tender cannot be refused is in payment of a debt. As no debt exists then legal tender "laws" do not apply.