So you rely on plastic to pay for almost everything? I’m with you. I rarely have cash in my wallet when it comes time to pay for something. Many of my friends also use credit cards for most dining and shopping transactions.
When customers use plastic, merchants must rely on the services of credit card processing companies, which act as middlemen in the transactions for a fee. These fees may add to the cost of doing business, but most merchants feel they get a high return on them because so many people don’t carry cash anymore.
While it’s not legal to pass processing fees on to the consumer, it is legal to set minimums for using charge accounts so merchants can avoid the fees and inconvenience for minor purchases that may not be worth the extra cost, according to www.finweb.com, an independent financial portal.
Click here to learn more about credit card processing.
Visa and MasterCard, however, don’t allow minimum charges in their contracts with retailers, so while it’s not illegal it’s still not allowed, according to Bankrate.com. Click here or see below for more on this.
Now that you know the rules, you can speak up and/or file a complaint (click here for MasterCard or e-mail firstname.lastname@example.org for Visa) if stores ask you for a minimum charge when using Visa or MasterCard. The prospect of losing their contracts with these card companies may be enough to get them to do away with minimum charges.
This is just one of several things you might not know about your credit card.
Date posted: July 22, 2009
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