Credit Card Min Purchase

Has anyone here implemented a minimum amount one must spend before they can use their credit/debit card?

Ours is set at $5.00. We did it because people were coming in just to buy a can of soda at just $.50 and when you factor in the processing costs we were actually losing money on the sale. (Or so my boss tells me).

Does that amount seem too high?

Well, it is against most merchant agreements but people do it anyway.

In addition to the percent charge (depending on card used) you will have a per transaction charge of 2 to 20 cents or so. This is what eats up profits. But requiring a minimum can get you into trouble and piss off customers.

I would be curious how many are doing this and whether they have had any problems.

i used to get pissed when this lady would get a single scoop of ice cream every other day 1.32$ pay with debit card never said anything just sucked it up then one day she came in and got a 80.00$ order of pizzas when we were slow maybe she would have spent it elsewhere if i made a big deal about it ?

I have heard tell of operators having a policy of something like 50 cents convenience charge for totals under a certain amount. I believe it is equally forbidden by the CC agreements, but gives the customers a choice . . . and you a hope of making SOME money on a small transaction.

I realize I am new to this forum however the wave of the future is “plastic cash” (oh I mean present day) I have no restrictions, how many low transactions do you really have with “plastic”?

i take the KRIS approach I smile and thank them profusly and hope things come full circle
I absulotly HATE when there is convenience charges and min. I have left a video store one time and refuse to go back…it has the perception of milking the customer even though we know its just trying to get our money back

We also have a $9.00 minimum purchase for delivery.

How is that any different?

A LOT!! The orders for $10 and less will eat me alive in fees and specialty card premium fees. Man. $5 on a platinum money-back or miles card is pretty much costing me money every time. We have quite a few customers who will make that payment on that card every time. We explained once to a loyal customer (when he asked about our credit card costs) how it ended up costing us money out of pocket to make the $5.35 sale (with % food cost and labor, rent, etc.). He was absolutely astonished and decided he would pay with check or cash with small orders.

we have a $10.00 min for del and ask for debit card instead of charge card for in house the local wabbi jobbie (packi stores) some will carge 1 to 2 dollars to cover charges lower than $5.oo we even quit taking american express because of their charges they screw people both ways

I don’t have a min. I do have pretty good low fees, but still know I’m losing all margin when someone charges a soda.
But I’ve noticed that customers pretty regularly NOTICE that we don’t have a fee or a minimum, and they appreciate it, and they leave with a good feeling about my place.
In general, charge orders have a HIGHER average ticket (and tip better on deliveries), so I think of it as a cost of offering “easy payment” as a benefit of buying from us…

Hey, we dont have a credit card min here, but i have been to stores before were the min is AD$20!!! i find that the less they spend the cheaper my machine is. it all depends on the bank you are with i guess. Its up to you what you think should be charged. Hope it works out…