There are several reasons why some establishments set a minimum price for card payments. One of the main reasons is that credit and debit card processing companies they charge a commission for each transaction they process. This fee can be a percentage of the total purchase amount or a flat fee per transaction, which can result in a significant cost to merchants, especially if many small transactions are made.
Another reason why some establishments may set a minimum card payment is because prefer to receive payments in cash, since this allows them to avoid the commissions of the card processing companies and have greater control over their cash flow. In addition, some establishments may have minimum card payment policies to ensure that customers do not use credit or debit cards to make low value purchases that are not profitable.
Depends on the establishment
Although establishments have the right to establish a range for card payments, they may be breaching the regulations of Visa or Mastercard cards.
These companies require merchants to accept their cards that do not impose a minimum to make payments with them. If at the entrance to the establishment there is a sticker indicating that they accept these cards, then they are obliged to accept them without setting a minimum amount. Otherwise, they would be violating the terms and conditions of their contract with the card processing company, which could lead to negative consequences, such as imposition of fines wave suspension of dataphone use.
Also, if customers are forced to spend extra to meet the minimum price, they may feel pressured or cheated. This can make customers do not visit the establishment again and, therefore, can have a negative impact on the profitability of the business in the long term.
So while merchants have the right to set whatever price they want, it’s important that they comply with card company regulations and consider how this practice may affect the customer experience.
They must notify in advance
Companies that have a high turnover or a wide profit margin, usually do not require a minimum cost, since they can assume the charges that are imposed on them for processing card payments. However, in the case of small businesses or those with a low profit margin, they often impose a minimum to pay by card, since the costs associated with processing electronic payments can exceed the profits obtained from the sale. Other businesses, on the other hand, allow unrestricted card payments in order to build customer loyaltywhich may offset the additional cost involved.
It is important to bear in mind that establishments cannot increase the price of their products or services for the fact of accepting card payments. According to the Municipal Consumer Information Office (OMIC), establishments must inform in a visible way on the minimum purchase price that they accept when paying by card. In this way, consumers can make an informed decision before making their purchase. In case there is no sign that does not announce, the client will have the right to pay by card with any amount.
Can’t charge extra
In Spain, it is It is prohibited to charge an additional surcharge or commission customers for the fact of paying with a credit or debit card. This practice is considered illegal and is punishable by the Payment Services Law. According to this law, businesses and establishments cannot impose an additional surcharge on the price of products or services for the use of bank cards as a form of payment. The reason for this is that the use of credit or debit cards is considered a normal and legitimate way of conducting business transactions, and therefore the costs must be borne by the merchant as part of the normal operating expenses of the business.
In addition, this practice can be considered an abusive clause in the contract between the merchant and the customer, since it is a unilateral and unjustified restriction on the use of the card as a means of payment.