Remember when you use to get a discount at the gas station for paying with cash? Well, there was a reason for that. I had a credit card processing agency for 8 years here in Chattanooga. Every customer we contracted with received a merchant agreement that stated you cannot charge any fee from the customer for the acceptance of any visa/mastercard nor could you require a minimum purchase or you would lose your merchant number or be fined.
So why does the city of Chattanooga and other government agencies get by with this when you pay for your taxes and fees? Also all these restaurants and stores that are in practice of this are in violation of those same agreements. If people would call and complain to the better business bureau or their credit card issuing banks, this practice would be stopped.
Tony Davis
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Mr. Davis is correct. It is a violation of the merchant’s contract with their credit card companies and card processor to (among other things):
1. Charge a fee to use a credit card
2. Require a minimum purchase amount to use a credit card
3. Require photo ID to use a credit card (unless the back of the card is unsigned)
If a merchant requires any of the above, they absolutely should be reported, as Mr. Davis suggests.
Credit cards are intended to be more convenient to use than cash or checks – for competitive reasons. If merchants were allowed to place such restrictions on their use, there would be little or no advantage to use credit cards over other modes of payment. As a result, credit card companies would see usage plummet. It certainly makes sense if I’m a credit card company or own their stock.
Bear in mind, these merchant rules may vary by statute in some states, and government agencies may be exempt (so what’s new?), but consumers should be on the lookout for these unsavory practices and know their rights.
Jay Parker
Chattanooga