4 ms·

Generally (and excluding AmEx), requiring minimum purchases is a violation of the merchant-processor agreement.

TheCoelacanth 9y ago
That was the case until 2010, but since then the law requires that processors allow merchants to have a minimum purchase requirement of up to $10.
- DrScump 9y ago
  What law is that? State or Federal?
  - TheCoelacanth 9y ago
    Federal. It was part of Dodd-Frank. That specific part was often referred to as the "Durbin amendment".
    - DrScump 9y ago
      The Federal government does not have nexus in individual retail credit card transactions (aside from offenses like civil rights violations, e.g. "we don't sell to your kind!"). The Durbin amendment (see quoted statute in other comment) prevents networks from forcing small merchants to accept small charges, not merchants from imposing minimums on consumers. State and local laws can still prohibit CC minimums via statute or via licensing.
      - TheCoelacanth 9y ago
        > requiring minimum purchases is a violation of the merchant-processor agreement That is exactly the type of agreement that the Durbin amendment prohibits. I don't see any mention of state or local laws prior to now, so that seems like a complete non sequitur to me.
        DrScump 9y ago
        ... because it appears that you haven't read the statute (it's quoted in my other comment thread). For credit cards (as opposed to debit), it affects processors only.
        TheCoelacanth 9y ago
        > it affects processors only Yes, exactly like I said. It prevents processors from requiring merchants not to have minimum charges. In other words, it prevents processors from making agreements with merchants where "requiring minimum purchases is a violation of the merchant-processor agreement". It doesn't stop someone else from stopping the merchant from having a minimum charge, but it does stop the type of merchant-processor agreement that you described.
        DrScump 9y ago
        I don't see how you differ from what I wrote. The start of the thread was the claim that the Durbin amendment made it illegal for merchants to set CC minimums for consumer purchases. That's the false interpretation.
        TheCoelacanth 9y ago
        What I originally wrote is easily verifiable and clearly does not say that: > the law requires that processors allow merchants to have a minimum purchase requirement of up to $10
        DrScump 9y ago
        I give up. You refuse to see the distinction between the processor-merchant relationship and the merchant-consumer relationship.
        TheCoelacanth 9y ago
        No, I'm really don't. My original comment is about the processor-merchant relationship. You can tell because it uses the word "processor" and "merchant" and is about what the processor allows the merchant to do.
dragonwriter 9y ago
Even when that was true (which, as a sibling comment notes, it is not anymore), it was common anyway.
- DrScump 9y ago
  The statute says: "(3) NO RESTRICTIONS ON SETTING TRANSACTION MINIMUMS OR MAXIMUMS.–A payment card network shall not, directly or through any agent, processor, or licensed member of the network, by contract, requirement, condition, penalty, or otherwise, inhibit the ability of any person to set a minimum or maximum dollar value for the acceptance by that person of any form of payment.” It does not inhibit state or local jurisdictions from banning merchants from setting card minimums in their individual credit card consumer transactions.

That was the case until 2010, but since then the law requires that processors allow merchants to have a minimum purchase requirement of up to $10.

DrScump 9y ago
What law is that? State or Federal?
- TheCoelacanth 9y ago
  Federal. It was part of Dodd-Frank. That specific part was often referred to as the "Durbin amendment".
  - DrScump 9y ago
    The Federal government does not have nexus in individual retail credit card transactions (aside from offenses like civil rights violations, e.g. "we don't sell to your kind!"). The Durbin amendment (see quoted statute in other comment) prevents networks from forcing small merchants to accept small charges, not merchants from imposing minimums on consumers. State and local laws can still prohibit CC minimums via statute or via licensing.
    - TheCoelacanth 9y ago
      > requiring minimum purchases is a violation of the merchant-processor agreement That is exactly the type of agreement that the Durbin amendment prohibits. I don't see any mention of state or local laws prior to now, so that seems like a complete non sequitur to me.
      - DrScump 9y ago
        ... because it appears that you haven't read the statute (it's quoted in my other comment thread). For credit cards (as opposed to debit), it affects processors only.
        TheCoelacanth 9y ago
        > it affects processors only Yes, exactly like I said. It prevents processors from requiring merchants not to have minimum charges. In other words, it prevents processors from making agreements with merchants where "requiring minimum purchases is a violation of the merchant-processor agreement". It doesn't stop someone else from stopping the merchant from having a minimum charge, but it does stop the type of merchant-processor agreement that you described.
        DrScump 9y ago
        I don't see how you differ from what I wrote. The start of the thread was the claim that the Durbin amendment made it illegal for merchants to set CC minimums for consumer purchases. That's the false interpretation.
        TheCoelacanth 9y ago
        What I originally wrote is easily verifiable and clearly does not say that: > the law requires that processors allow merchants to have a minimum purchase requirement of up to $10
        DrScump 9y ago
        I give up. You refuse to see the distinction between the processor-merchant relationship and the merchant-consumer relationship.
        TheCoelacanth 9y ago
        No, I'm really don't. My original comment is about the processor-merchant relationship. You can tell because it uses the word "processor" and "merchant" and is about what the processor allows the merchant to do.

dragonwriter 9y ago

Even when that was true (which, as a sibling comment notes, it is not anymore), it was common anyway.

DrScump 9y ago
The statute says: "(3) NO RESTRICTIONS ON SETTING TRANSACTION MINIMUMS OR MAXIMUMS.–A payment card network shall not, directly or through any agent, processor, or licensed member of the network, by contract, requirement, condition, penalty, or otherwise, inhibit the ability of any person to set a minimum or maximum dollar value for the acceptance by that person of any form of payment.” It does not inhibit state or local jurisdictions from banning merchants from setting card minimums in their individual credit card consumer transactions.