pushback

Merchants sign up to accept credit cards because they know that, in the aggregate, people who use credit cards spend more. That's the advantage to the merchant, without which no merchant would accept a credit card. Well, with that bonus comes a little bad news. Not everyone is going to buy the Mercedes. If you choose to accept credit cards, you have to take them all, and not cherry pick. In the aggregate, you will come out ahead.

I use my cards for everything. When I run across a merchant who tries to enforce a minimum purchase I let them know they are in violation and that I will report them to Visa/MC if the refuse to accept my card--and I follow though. I have also been known to comment along the lines of "if you are going to be so brash as to charge $5 for a bottle of water, it's no wonder people want to put it on a credit card."

I like the rebates, miles, points, that come with using the card. I also like not having to go to the ATM every other day to satisfy the whims of the merchants who want to violate their merchant agreement.

kaukau

Who cares!

At Chow Mein Express in the food court at HNL they will sell you anything they've got, from an $0.89 small scoop of rice on up on to whatever: on your credit card - and could care less about the amount. They just swipe your card and immediately hand you the receipt and your order....no signature; no tip; no nothing. Just fast service and a "Thank you." It's just how it should be everywhere.

sjefenole

Depends on the manager of the McDonalds...
There was a change in ownership of the on by my university and last time I went I had to sign AND show ID.
That contributes to why it's the last time.

tom911

I do, which is why I asked the question, which remains unanswered.

neuro0

I use my card for everything. I charge a cup of coffee $1.5 everyday.
No comment was ever given to me.
This is the way I like it, no coins, no cash, no trip to ATM, no holdup the line, and best of all I get rewards. If someone don't like it, so be it. It won't bother me.

Pizzaman

It depends on the merchant. However, most times there are two fees. One is usually a percentage based on the type of card being used (rewards cards charge higher percentages). The other is usually a "click fee" of sorts, a fixed fee per transaction.

This is the reason some merchants don't like small charges. If you're a bigger company, the click fee can be as small as 3 or 4 cents. However, smaller merchants may have to absorb a fee of as much as 15 cents. If the transaction is only a couple of dollars, this might represent most of their profit on an item.

However, as pushback noted, the "plus" is the larger average transaction. In the fast-casual restaurant industry, we see an average check that is anywhere between 50 and 100% bigger with credit cards than with cash.

So, you take the good with the bad.

gj83

I thought all McDonalds, even franchise ones, used the same POS terminal. I've been to McDonalds everywhere including Vegas Strip and didn't have to sign or show ID. Sounds like that guy needs to go back to HamburgerU.

Back on topic: if places could impose a minimum transaction fee there would be little reason for fast food to accept credit cards since it seems like most transactions are less than $10. People buy a $1 ice cream cone and charge it.

TAHKUCT

Good Point!!!


That is what I do

sdsearch

At any 7 Eleven in the country, you can buy a USA Today for .75 plus tax, and charge it, and not need to sign. A few used to balk at it when it was still .50 plus tax (over a year ago, IIRC), saying "minimum 75 cents" (in which case I went to the next 7 Eleven and had no problem), but now that USA Today is .75 plus tax I've not had a problem at any 7 Eleven with that small a charge.

(And I get 4+ UA miles for each such paper bought, since I'm using Chase Rewards Plus, and since they seem to round up before calculating points, and since they consider each 7 Eleven to be either a gas station or a grocery store.)

boilers

Mainly my wife comments but that is all. Virtually all major chains don't have any comment but some smaller individually owned and operated places have. I will make charges for less than $1.00. I find the smaller establishments balk at the fees and I also point out the T&C they signed when allowing CC's. A store clerk was extremely rude when I had purchased gas outside but then Mrs. Boilers wanted something from inside the gas station. I went to pay with my CC (again) and he said no transactions under $5. I got into a small argument and submitted a complaint. That was the only major issue I have ever encountered.

CreditCardForum_com

I'm shocked at how many people today still have no concept of how credit cards work. They think you pay interest even if you pay off your bill in full. Unbelievable.

biggestbopper

Not so long ago a local news stand and magazine shop owner told me he was quitting the business (and did) because he had to take credit cards because many of the customers had very little cash--but, the fees were more than his profits, due to the small size of each transaction.

One news stand killed by credit card fees. Kinda sad ...

bk3day

that I've ever charged.

I was at the cash register at Trader Joes where I was just buying 1 banana when i realized i had no cash on me.

I was ready to just forget the banana but the cashier said charging 27 cents wasn't a problem. ^

decibel08

i was at a restaurant the other night that had visa/mc logos displayed at the register along with a sign saying "we prefer cash, who doesn't?!"

i asked how much of a percentage visa takes and at first the guy thought i was a visa agent checking in on them, but then told me 0.9%. i imagine it varies a lot by merchant. so i tipped about 5% more than i would have otherwise to make them not mind i was paying with a cc. i'd only do this at a non-chain restaurant i really like and want to keep in business though.

DLFan2

I love using credit cards, maximizing miles earned by doing so. Plus, I hate carrying loose change around.

However I know that CC fees are not negligible. I use PayPal, and if I receive a CC payment, I pay 30+cents plus about 3%. If you apply that same schedule when you go to the grocery, the store actually loses money when you charge 27 cents worth of bananas.

I try not to charge small amounts when I am at a Mom and Pop operation, but the clerk at WalMart could care less, obviously.

I assume that mega operations such as McDonalds, WalMart, etc. have negotiated more favorable transaction fees than I am able to get when I receive a PayPal payment.

Any merchant can negotiate no signature for purchases under xxx with the CC companies. It has nothing to do with what country you are located in. But if the merchant is willing to accept a CC without a signature, they are also accepting more risk that they would with a signature.