Kokua Line
Kokua Line
Question: I work in a small shop within a large institution. Our unwritten policy is that we do not accept charge cards (Visa and MasterCard) on any purchase less than $10. Recently, a customer stated that we are not allowed to discriminate and should allow charges for any purchase, even as low as 50 cents, or we may lose our license. Is this true? If not, can we simply post a notice regarding minimum charges? Few credit card issuers
allow sale requirementsAnswer: There is no state or federal law governing this, according to Stephen Levins, acting executive director of the state Office of Consumer Protection. Rather, it's a matter of the agreement between the card issuers and the merchants.
In the case of Visa and MasterCard, no minimum requirements are allowed. We also checked with American Express and Discover and found they do allow minimums, but only if they are set for other accepted charge cards and if the minimums are not higher than for other cards.
According to a MasterCard representative, a merchant cannot require your MasterCard transaction to be above a minimum or below a maximum dollar amount. Cardholders are told to call MasterCard directly if any merchant does set a minimum charge requirement: 800-300-3069.
Visa "tries to work with merchants directly so that consumers don't have to have a minimum charge to use their Visa card," spokeswoman Rosetta Jones said from San Francisco.
If you encounter any problems, you are advised to call 800-VISA-911.
At American Express, merchants are permitted to set a minimum purchase amount, but they have to meet two requirements. The minimum cannot be set only for American Express, it has to be across-the-board, said Desiree Fish, an American Express spokeswoman based in New York.
"Also, if they're going to do it for everyone, they have to have a full disclosure to the customer," she said.
That disclosure has to be very visible, as with a sign, she said.
Customers are starting to use charge cards more and more for everyday purchases, Fish said. "Sometimes that could be $5 or $500."
American Express cardholders with complaints should call the number on the back of their cards, she said.
Discover, meanwhile, tells its merchants "that they cannot institute or adapt any practice that discriminates or provides unequal treatment for users of a (Discover) card vs. any other credit card that they may accept," a spokeswoman from Discover headquarters in Riverwoods, Ill., said.
If a merchant accepts credit cards other than Discover and sets minimum purchase requirements for those cards, which "happens very rarely," she said, then the merchant has to inform Discover.
"That's reviewed, but 99 percent of the time, there is no set purchase requirement," she said.
Mahalo
To Dwayne Nasu of Acme Fender and Paint Shop. The dealer where I bought my car referred me to Acme Fender for some minor body work. Dwayne advised me it would cost so much to do a complete job that he suggested I get some touch-up paint from the dealer and gently repair the nicks myself. He then used some paint thinner to fix up some minor scrapes and sent me on my way. It is so refreshing to encounter a businessman who is not out to get every single penny out of a person that he can. Mahalo, Dwayne, for being such an honest, nice guy. -- Alice Tucker
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Honolulu 96813. As many as possible will be answered.
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