Credit Cards as a B&M Merchant?

I have a small shop. Average ticket less than $20. I personally and in my business don't use credit, reasons of my Faith. I have Debit cards. I know many plus and minuses but would be interested in any thoughts or opinions from those here.
I can get service for $.19 + 1.5-2.75%, From a MN branch of a National Company.

I'm still researching
Obviously

1 question for those who know.
It is against the CC agreement, at minimum, maybe illeagle , to post a sign or have a policy to refuse transactions under $20. What about a sign saying "Due to fees incured we would rather not accept Credit Card transactions under $20"?

I can say here in Mass, I see a lot of small stores, particularly liquor stores that advertise a minimum credit card transaction price.

Wits' End said:

1 question for those who know.
It is against the CC agreement, at minimum, maybe illeagle , to post a sign or have a policy to refuse transactions under $20. What about a sign saying "Due to fees incured we would rather not accept Credit Card transactions under $20"?

Click to expand...

My local gunshop has a sign stating "Prices shown reflect cash discount"...nothing the cc company can say about that...

You can PM me for more advice...

Regards,
Flavio

It's been a number of years but there was a deal with CCs that you could not discriminate against people that used them by charging the additional 3-5% it cost us to process them. Like Flavio mentions however we could and did list prices as "cash and carry", i.e. a cash discount. The result is the same only the verbiage is different. Also a lot of places would not allow CC purchases of $10 or less. I don't know if this was because of something in a CC contract or just common practice.

-LT

I think you need to supply what the customer wants. A lot of people use credit cards even for routine transactions. So it'll probably increase sales somewhat. However, transaction cost issues may necessitate a minimum purchase amount for payment by CC. I've seen signs requiring that in lots of places. It might even increase sales further if people who are determined to use a CC buy more to meet the minimum purchase requirement.

Personally, I walk out of place where they want to charge me extra for wanting to use my debit or credit cards. It's against the company's agreement to discriminate in such a way. OTOH, I understand that places who take cards have the extra cost "built into" their pricing structure (so even people paying cash pay the "CC fees", so to speak), so it's really pointless for me to get upset.

I like Flavio's wording...

Visa's web page said:

"Can merchants set a minimum purchase or charge a fee for using my Visa card?
Visa has certain regulations that all merchants that accept Visa cards must follow. One of those rules is that Visa merchants are not permitted to establish minimum transaction amounts, even on sale items."

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http://corporate.visa.com/ut/faq.jsp#5

While tough for the business, Visa wants the customer experience to be consistent regardless of the purchase, hence the rules for no minimums and why you can't charge more for using credit than cash. They do allow for a discount of the base price, which results in the same thing, but it is all in the perception. It is not costing more to use credit, you are getting a discount for using cash. Kinda dumb but it is all in the marketing.

Just a side note, I do work for Visa (in IT so I am not up on all the rules and regs.) If you find something you can't find an answer too, feel free to PM and I can see if I can find "official" answers. Just keep in mind that Visa as a company only provides the Brand, the Network, and the Process, for making transactions. Visa does not issue cards, or for the most part provide the Point of Service. Those services are from banks and financial institutions.

And before you all ask, no I can't get you a better rate

Thanks, my post was a quick one last night and this won't be much longer I know lots of people post minimums but they can't/shouldn't.

My question is more of a customer perception one. If I put up a sign that says--We prefer no Credit Card transactions less than $20-- how would you feel?

My shop has an atmosphere that says we are a small business and we probably opperate on cash and checks. We quite often have people ask if we take them though.
The concern I have though is the ~5%, roughly figured over the last 2-3 days who bring up a $2-3 item and ask if we take cards. I fear 'losing' 10% (1.5% + .19 of $2 is about 10%) on a transaction. However I anticipate turning a $50 sale into a $70 one
Thanks for your input so far. And it is against the rules to charge more

If I'm trying to make a deal (bargaining) at a gunshow or such, I'll generally tell the merchant that I'll be using cash or check. Don't know if it helps or not.

Wits' End said:

My question is more of a customer perception one. If I put up a sign that says--We prefer no Credit Card transactions less than $20-- how would you feel?

My shop has an atmosphere that says we are a small business and we probably opperate on cash and checks.

Click to expand...

From what you're saying, I get the impression your customers would see the sign and understand you prefer cash.

Like you say, it's all in how the customer perceives the message you're trying to convey, while following all the CC company's rules. I rarely carry cash and it makes me feel very uncomfortable when asked to pay what I perceive as an unjustified "extra" expense. I feel almost as the vendor not wanting my business. Along the same lines, whenever I sell something and the person is paying with a CC, I "eat" the PP fees.

Just a little follow up, from a personal view as a customer not the employee. I generally like to use my card on almost all transactions for the services that they provide me. The 1st is the convience of not having to carry a bunch of cash or checks. They help me keep track of my yearly usage with a year end summary. They also provide a certain level of buyer protection as well, as doubling the waranty of most items I buy. I also get 1% cash back. I never carry a balance. If I don't have money in the bank account to back it up, I shouldn't be buying it.

That being said I rarely use it for small purchases. If I don't have cash I usually find something else to buy to get it to a decent amount.

I don't own a business so I can't comment from your end, but if I have a good experience somewhere I usually bring my business back there. I think anything that a business can do to provide a positive experience for your customer is going to bring them back in the long run will help to minimise the expense.