Feedback: Let Merchants Set Minimums

Published April 28, 2010, 11:48 a.m. EDT

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Updated May 05, 2010, 10:32 a.m. EDT

1 Min Read

I absolutely believe this should be passed on a federal level [Vermont Bill Would Let Merchants Set Minimums for Card Acceptance, April 27, 2010].

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I am a business consultant, and for Visa and MasterCard to prohibit small-business owners from setting a minimum is ridiculous. When a merchant pays $0.25 per transaction plus 1.49% and higher on the sale amount when a customer chooses to pay for that $0.99 cup of coffee or candy bar with an electronic payment, the merchant would be better off to give the product away.

And this is NOT a bait and switch. An electronic transaction, even when via debit, is not the same as a CASH transaction for a merchant. He has to pay fees, whereas, with true cash, he would not.

I encourage my small-ticket clients to set a minimum for card purchases because to do otherwise does not make good business sense financially.

Teresa Ritzer
Owner
The Merchant's Matchmaker

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