I was at a convenience store the other day, and I witnessed an argument that aroused my attention.  No, I was not revelling in the fact that these strangers were embroiled in a heated dispute; rather, I was interested due to the reason the conflict arose: the controversial credit card minimum purchase.

The woman in front of me was paying for her items and the total sale was about $7.  As she handed over her credit card, the cashier  declined to accept it.  "I'm sorry but we' can't take credit cards for purchases that are under $10," the cashier said.  This customer did not take kindly to the news and blasted the cashier with a litany of descriptive words that I wish would not have been uttered if only because my youngest son was right next to me at the time.  Sadly, the cashier did not handle this diatribe too well, and returned verbal fire with fire.

The customer mentioned that she would never again shop at this store, and threatened to call her card issuing bank to complain.  Well, if she makes that call, she will soon learn that the cashier had every right to impose this $10 minimum.  I don't think the cashier should wait for this cusomter's apology, however.

Now once upon a time, it would have been against the card holding associations' regulations for any establishment to impose a credit card minimum purchase.  Indeed, any merchant who instituted a minimum transaction amount would be in violation of their merchant account agreement, and could be reported to the proper authorities.  But with the passing of the Dodd-Frank Wall Street Reform and Consumer Protection Act which went into effect in September, 2010, merchants are now permitted to set a credit card (or debit card) minimum purchase as long as it does not exceed $10, provided this figure does not differentiate between issuers or card networks.  The Federal Reserve Board is also granted the power to increase the $10 amount in the future should it see fit to do so.

The verbiage of the law follows:

3) LIMITATION ON RESTRICTIONS ON SETTING TRANSACTION MINIMUMS OR MAXIMUMS.  (A) IN GENERAL.—A payment card network shall not, directly or through any agent, processor, or licensed member of the network, by contract, requirement, condition, penalty, or otherwise, inhibit the ability (i) of any person to set a minimum dollar value for the acceptance by that person of credit cards, to the extent that (I) such minimum dollar value does not differentiate between issuers or between payment card networks; and (II) such minimum dollar value does not exceed $10.00.        

Wearing a merchant's shoes, I'm not so sure if I would still impose any minimum transaction threshold.  Yes, processing fees may negate any profit on a given sale but perhaps this customer will return -- and next time purchase a much greater amount.  Moreover, while most customers may not react in the same volatile fashion in which the woman in the convenience store reacted, many would be displeased with a credit card minimum purchase policy and take their business elsewhere.

But perhaps I tend to be too much of a people pleaser.  Indeed, I was once in the same situation where I purchased less than the $10 required for a credit card transaction.  When I then discovered that I had no money in my wallet (why do my kids view my wallet as an inviting treasure chest?), I apologized profusely to the customers behind me in line and simply brought additional products that I didn't even need.  Next time, I'm going to really be bold and just leave the items on the counter.